Wex Inc.

Consumer Discretionary
Business Services
www.wexinc.com

Earnings Score
Moat Score
Safety Score

Market Cap $7.28B
PE 22
Debt $4.66B
Cash $1.31B
EV $10.63B
FCF $454.40M

Earnings

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Sales & Net Margins

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Earnings	$330.60M
EBIT	$687.50M
ROE	20%
ROA	5%
FCF	$454.40M
Equity	$1.68B
Growth Stability	-200%
PE	22.03
PEG	0.44
PB	4.34
P/FCF	16.03
P/S	2.74
Price/Cash	0.18
Debt/Equity	2.78
Debt/FCF	10.25
Net Margins	12%
Gross Margins	61%
Op. Margins	26%
Earnings CAGR	3%
Sales Growth YoY	2%
Sales Growth QoQ	-1%
Sales CAGR	13%
FCF CAGR	9%
Equity CAGR	5%
Earnings Stability	0.01
Earnings Growth YoY	460%
Earnings Growth QoQ	34%

Earnings CAGR 5Y	50%
Sales CAGR 5Y	13%
FCF CAGR 5Y	-6%
Equity CAGR 5Y	-3%
Earnings CAGR 3Y	13%
Sales CAGR 3Y	13%
FCF CAGR 3Y	109%
Equity CAGR 3Y	-2%
Market Cap	$7.28B
Revenue	$2.65B
Assets	$13.96B
Total Debt	$4.66B
Cash	$1.31B
Shares Outstanding	39.8M
EV	10.63B
Earnings Score	6%
Moat Score	82%
Safety Score	38%
Final Score	42%
Working Capital	391.3M
Current Ratio	1.04
Gross Profit	$1.62B
Shares Growth 3y	6%
Equity Growth QoQ	-6%
Equity Growth YoY	-1%

Assets & ROA

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Stockholders Equity & ROE

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WEX Inc is a provider of corporate payment solutions. The company operates three business segments: fleet solutions, Travel & Corporate Solutions, and Health & Employee Benefit Solutions. Fleet Solutions, the largest segment by revenue, provides fleet vehicle payment-processing services for commercial and government fleets. Travel and corporate solutions offer business-to-business payment processing and transaction monitoring services. Health and employee benefit solutions generate revenue from healthcare payment products and its consumer-directed software platform. Wex's largest end market is the United States of America.

SEC Filings

Direct access to Wex Inc. (WEX) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Wex Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Wex Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 3%

Stability 1%

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Wex Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Wex Inc..

Years

Calculation mode

= $8.3B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$454M	$494M	$537M	$584M	$635M	$690M	$751M	$816M	$887M	$965M	$1B	$10B
DCF		$449M	$444M	$439M	$434M	$429M	$424M	$419M	$414M	$409M	$404M	$4B
Value	$8.3B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	24%	13%	6%	13%	11%	6%	-18%	0%	7%	10%	12%
ROA	-	6%	3%	4%	6%	5%	-1%	3%	4%	5%	5%
ROE	-	10%	4%	9%	9%	5%	-15%	0%	10%	15%	20%

Good Net Margins (12.34%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	2.8	-0.59	53.25	8.3	5.75	4.23	47.56	4.89	5.17	10.25
Debt over Equity	1.21	0.98	0.08	1.66	1.45	1.66	1.71	1.66	1.68	2.17	2.78
Growth Stability	-	-	-	100%	100%	77%	-200%	-	-	-	-200%

Bad Debt/FCF ratio (10.25)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Bad Debt/Equity ratio (2.78)

The company is overleveraged and has a bad balance between equity and debt.

Bad Graham’s Stability (-200%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	5%	18%	23%	20%	15%	-10%	19%	27%	8%	13%
Earnings YoY growth	-	-45%	-48%	177%	6%	-41%	-387%	-100%	122K%	59%	50%
Equity YoY growth	-	2%	37%	14%	4%	8%	-1%	-4%	-10%	10%	-3%
FCF YoY growth	-	60%	-156%	-125%	483%	79%	39%	-92%	780%	35%	-6%