Stock analysis · Bull Rankings model

WU analysis

The Western Union CompanyCredit Services. Scored on the same transparent model behind the daily rankings.

WU
The Western Union Company · Credit Services
FCF$565mC+
Rev-1.4%D+
D/E2.95C
P/E5.9xA
PEG13.16D
64.3Financial strength
$7.30$2.3B
1Y Target$7.09Analyst consensus · 14 analysts
5Y Target$8.95Compound horizon
10Y Target$11.48Long-dated conviction
FCF$565mTTM
C+
FCF $565m — respectable but not differentiating
Rev-1.4%TTM YoY
D+
Revenue -1.4% — shrinking; needs a catalyst to reverse
D/E2.95
C
D/E 2.95 — more levered than most Financial Services peers (≈90th pctile)
P/E5.9x
A
P/E 5.9 — cheapest decile in Financial Services (≈10th pctile)
PEG13.16
D
PEG 13.16 — very expensive; pricing in best-case scenarios

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Financial strength · 64.3 / 100
Profitability100.0
Value (P/B)38.3
Income31.1

A peer-relative read for financials on profitability (ROE), valuation, and covered income — the quality-growth (FCF/ROIC) screen doesn't apply to balance-sheet businesses. Not comparable to the 0–100 quality-growth score shown on other stocks.

Entry · Margin of safety
52-week rangeNear 52-week low
29% off the 12-month high
vs DCF fair value88% belowest. fair value ~$59
What the price assumes: outright free-cash-flow decline for the next decade — vs the ~17% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability16% · C+gross profit ÷ total assets (Novy-Marx)
ROIC14.7% · B+return on invested capital — not score-weighted

Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.

Why now
Credit Services · market cap $2.3b. Down 29% from 52-week high of $10.35 — deep drawdown territory. 14 sell-side analysts rate this an Underperform with a mean 1-yr target of $7.09 (implying -3% upside).
Moat
ROE 43% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 143% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk
D/E 2.95 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Dividend payout 76% of earnings on a 13.1% yield — distribution coverage is thin; one earnings stumble could force a dividend cut. Balance-sheet financial — book value, net interest margin, and credit loss provisions are the lever points; a rates regime change or a deterioration in the loan book moves the stock more than EPS does.
Horizon
1-3 yr $7.09 (14-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $8.95 at ~4% CAGR — dividend + buyback compounding. 10 yr $11.48 if the moat survives secular pressure.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

Not enough history yet — the model records WU's score after each daily run, and the chart appears once a few days have accumulated.

Analyst estimate revisions

30-day change-19.9%
90-day change-20.9%
Forward EPS estimate$1.52

Over the last 90 days, what analysts expect WU to earn is materially lower (-20.9%). The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.

A rising estimate means expectations are improving, not that the price has failed to keep up — and estimates get cut as readily as they get raised. It is not part of the Bull Rankings score. Biggest movers across the market →

Shares to buy
273
Position size
$1,993
4.0% of portfolio
Stop price
$5.47
25% below $7.30
$ at risk if stopped
$498.22
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

The Western Union Company (WU): score, valuation & FAQ

The Western Union Company (WU) is a Credit Services company. As a bank, insurer or REIT it runs on a different financial model from the rest of the market, so Bull Rankings grades it on a sector-appropriate card — price-to-book, dividend yield, payout ratio and cash-flow coverage — rather than the 0–100 quality-growth score used elsewhere. The read below is a transparent screen, not a buy recommendation.

Its strongest graded signals are P/E (A), while Rev (D+) and PEG (D) rate weaker. On valuation, WU sits about 88% below our discounted-cash-flow fair value (a margin of safety) — the current price implies outright free-cash-flow decline over the next decade.

Is WU a good stock to buy?

Bull Rankings grades WU on a sector-appropriate card — price-to-book, dividend yield, payout and cash-flow coverage — rather than a single quality-growth score. That is driven by P/E (A). A score is a quantitative screen of The Western Union Company's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

How does Bull Rankings grade WU?

As a bank, insurer or REIT, WU isn't given a quality-growth score — signals like free cash flow, debt-to-equity and P/E don't translate cleanly to a balance-sheet business. Instead it's graded on a sector-appropriate card: price-to-book, dividend yield, payout ratio and operating-cash-flow coverage, where it rates strongest on P/E (A) and weakest on Rev (D+) and PEG (D).

Is WU overvalued or undervalued?

Based on $7.30, WU sits about 88% below our discounted-cash-flow fair value (a margin of safety) — the current price implies outright free-cash-flow decline over the next decade. It trades at a 5.9x P/E (graded A). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in WU?

D/E 2.95 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Dividend payout 76% of earnings on a 13.1% yield — distribution coverage is thin; one earnings stumble could force a dividend cut. Balance-sheet financial — book value, net interest margin, and credit loss provisions are the lever points; a rates regime change or a deterioration in the loan book moves the stock more than EPS does.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial advisor.

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