The Western Union Company (WU) AI Stock Analysis

The Western Union Company is a global provider of money movement and payment services, operating through Consumer-to-Consumer and Business Solutions segments. The Consumer-to-Consumer segment supports cross-border transfers and intra-country transactions through third-party agents, sub-agents, and digital platforms. The Business Solutions segment offers payment and foreign exchange solutions to small and medium-sized enterprises, organizations, and individuals, including foreign currency forward and option contracts. The company also provides bill payment services to support transactions between consumers and businesses worldwide.

Western Union's revenue contracted from $5.07B in FY2021 to $4.48B in FY2022, $4.36B in FY2023, $4.21B in FY2024, and $4.04B in FY2025, reflecting a 5-year revenue CAGR of -3.5%. Gross margin narrowed from 42.9% in FY2021 to 28.7% in FY2025, while operating margin shifted from 22.1% to 19.4%. Annual net income was $805.8M in FY2021 and $499.6M in FY2025, with EPS holding at $1.75 in FY2025. Over the trailing twelve months, revenue was $4.04B with an operating margin of 13.0%. For the latest quarter ending June 30, 2026, quarterly revenue fell 1.3% year-over-year while quarterly earnings fell 35.1%.

As of June 30, 2026, Western Union held $2.79B in cash and short-term investments alongside $2.70B in total debt, yielding net cash of $95.9M. The current ratio stood at 3.75, with a debt-to-equity ratio of 2.95 against shareholders' equity of $914.7M. In FY2025, operating cash flow reached $543.7M and free cash flow was $392.9M. Cash deployment during FY2025 included $150.8M for capital expenditures, $234.6M for share buybacks, and $309.0M in dividends paid.

Western Union trades at a trailing P/E of 5.0x and a forward P/E of 3.9x, both below the median of its US-listed Financial Services peers of 12.1x and 10.8x, respectively. Its enterprise value to EBITDA ratio of 2.2x and price-to-sales ratio of 0.5x also sit below the peer medians of 11.7x and 3.2x. Over the past year, Western Union shares declined 14.2%, compared to a 16.8% return for the S&P 500 (SPY). Over 5 years, the stock returned -55.5% versus 83.0% for the S&P 500.

Western Union pays a quarterly dividend with an annualized forward payout of $0.94 per share, translating to a dividend yield of 15.24%. The dividend payout ratio is 63.5%, and the company has paid dividends for 21 consecutive years. Its 5-year annualized dividend growth rate stands at 0.9%, with the last ex-dividend date on September 16, 2026.

Wall Street analysts track Western Union with 0 Strong Buy, 1 Buy, 10 Hold, 2 Sell, and 5 Strong Sell ratings. The mean price target of $6.66 indicates an 8.0% potential upside from the last close of $6.17. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $4.06B and an EPS of $1.27, representing an EPS decline of 27.3%. Western Union beat EPS estimates in 2 of the last 4 quarters, and its next earnings date is November 4, 2026.

This page is an AI-written research summary of The Western Union Company (WU). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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