Bull Rankings model

The Western Union Company (WU) stock analysis

Credit Services. Scored on the same transparent model behind the daily rankings.

★
WU
The Western Union Company · Credit Services
66.6Financial strength
$6.12Oct 9 close$1.9B
1Y Target$6.80Analyst consensus · 14 analysts
5Y Target$8.59Compound horizon
10Y Target$11.02Long-dated conviction
FCF$565mTTM · 06/26
C+
FCF $565m — respectable but not differentiating · TTM from SEC filings (OCF − CapEx), four quarters to 06/26.
Rev-1.6%TTM YoY
D+
Revenue -1.6% — shrinking; needs a catalyst to reverse · Latest four quarters of revenue vs the four before them, from SEC filings.
D/E2.95
C
D/E 2.95 — more levered than most Financial Services peers (≈90th pctile)
P/E5.1x
A
P/E 5.1 — cheapest decile in Financial Services (≈10th pctile)
PEG*—
—
PEG n/a — analysts expect next year's earnings to be no higher than last year's

* PEG n/a — analysts expect next year's earnings to be no higher than last year's

Targets: 1-year is analyst consensus where covered, 5- and 10-year are model estimates; the DCF is a cross-check, not a target. Methodology

Financial strength · 66.6 / 100
Profitability100.0
Value (P/B)46.3
Income30.8

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
41% off the 12-month high
Quality signals
Gross profitability18% · C+gross profit ÷ total assets — not in the score
ROIC14.7% · B+return on invested capital — leads the quality score

Model-generatedFrom reported fundamentals, checked against the figures above · Editorial standards

Why now
Credit Services · market cap $1.9b. Down 41% 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 $6.80 (implying +11% 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.
Risk
D/E 2.95 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Down 41% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Dividend payout 76% of earnings on a 14.9% yield — distribution coverage is thin; one earnings stumble could force a dividend cut.
Horizon
1-3 yr $6.80 (14-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $8.59 at ~7% CAGR — dividend + buyback compounding. 10 yr $11.02 if the moat survives secular pressure.

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

WU at a glance

FINANCIAL STRENGTH · BANKPROFITABILITY100VALUE46COVERED INCOME3166.6/100 on our peer scale — not the quality-growth score.
PRICE IN ITS 52-WEEK RANGE$6.1LOW $5.9HIGH $10.4Trading near its 52-week low ($5.9–$10.4).
ONE-YEAR MOVE VS ITS BETAFLATThis stock-20%Trailing one-year price change. Price history is not an inputto the Bull Rankings score.

Same audited fundamentals as the score, unless a card says otherwise.

Analyst estimate revisions

30-day change-0.2%
90-day change-21.1%
Forward EPS estimate$1.51

Over the last 90 days, what analysts expect WU to earn is materially lower (-21.1%). 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.

Estimates move both ways and are not part of the Bull Rankings score. Biggest movers →

Shares to buy
326
Position size
$1,995
4.0% of portfolio
Stop price
$4.59
25% below $6.12
$ at risk if stopped
$498.78
budget $500.00 · 1% of portfolio

Math only: excludes commissions, slippage and gap risk. Inputs stay in your browser.

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+) rate weaker.

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+).

Is WU overvalued or undervalued?

We don't publish a discounted-cash-flow value for WU, and not because the business is unprofitable. For a lender, insurer or property trust, "free cash flow" measures balance-sheet growth rather than owner earnings — loan originations and repayments run through operating cash flow — so discounting it would produce a confident-looking number with nothing behind it. WU is judged on book value, return on equity and income cover instead, which is what the financial-strength card shows.

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. Down 41% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Dividend payout 76% of earnings on a 14.9% yield — distribution coverage is thin; one earnings stumble could force a dividend cut.

New to these metrics? See the guides and the methodology.

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