WEX Inc. provides corporate card payment solutions in North and South America, the Asia Pacific, and Europe. The company was founded in 1983 and is based in South Portland, Maine.
WEX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for WEX Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that WEX Inc ranked in the 82th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 675% on a DCF basis. The most interesting components of our discounted cash flow analysis for WEX Inc ended up being:
Its compound free cash flow growth rate, as measured over the past 5.44 years, is 0.35% -- higher than 72.4% of stocks in our DCF forecasting set.
The weighted average cost of capital for the company is 8. This value is greater than only 22.33% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as WEX, try LYTS, AMKR, DXC, GILT, and DELL.
Payments is a hard business. - Dan Schulman WEX Inc. (WEX) is a global payment solutions & accounts processing company that services businesses across three verticals - commercial & government fleet fuel cards, corporate & travel solutions, and health and employee benefits. A traditionally high-growth business that has been impacted...
Michael A. Gayed, CFA on Seeking Alpha | August 11, 2020
WEX Inc. (WEX) Q2 2020 Earnings Conference Call July 30, 2020 10:00 AM ET Company Participants Steven Elder - IR Melissa Smith - CEO Roberto Simon - CFO Conference Call Participants Ashish Sabadra - Deutsche Bank Tien-Tsin Huang - JP Morgan Steven Wald - Morgan Stanley Ramsey El-Assal - Barclays...
WEX Inc. (NYSE: WEX ) reported earnings of $1.21 per share, a 46.9% decline compared to earnings of $2.28 per share a year ago, during the company's earnings call on Thursday. The Portland, Maine-based provider of fuel payment processing for fleet vehicles also reported revenues of $347.08 million for the quarter ended June 2020, compared to year-ago revenues of $441.81 million, a 21.4% decline. "Our second quarter results reflect the impact of the COVID-19 pandemic and underscore the resilience of our business, where we saw a few bright spots even in this challenged environment," said Melissa Smith, WEX's chair and chief executive officer. WEX reported net income increased by $58.9 million to $72.7 million during the second quarter, which Smith attributed to "disciplined capital alloca...
Shares of WEX (NYSE:WEX) were unchanged in pre-market trading after the company reported Q2 results.Quarterly Results Earnings per share were down 46.93% year over year to $1.21, which missed the estimate of $1.39.Revenue of $347,084,000 decreased by 21.44% from the same period last year, which missed the estimate of $349,010,000.Looking Ahead WEX hasn't issued any earnings guidance for the time being.Revenue guidance hasn't been issued by the company for now.Details Of The Call Date: Jul 30, 2020View more earnings on WEXTime: 09:00 AMET Webcast URL: https://event.on24.com/eventRegistration/EventLobbyServlet?target=reg20.jsp&referrer=https%3A%2F%2Fir.wexinc.com%2Fevents-and-presentations%2Fdefault.aspx&eventid=2453500&sessionid=1&key=3B5E0016D00B3D599FED898E632B267F®Tag=&sour...