WU - Embedded Expectations Analysis - 2018 10 30
The Western Union Company (WU:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 9.1x Uniform P/E, implying bearish expectations for the firm. Additionally, management may have concerns about their performance in the Middle East, customer-to-customer platform, and weakening foreign currenciesSpecifically, management may be concerned about their weak performance in the Middle East, and may lack confidence in their ability to sustain revenue growth in their online platform. Additionally, they may lack confidence in their ability to improve their customer-to-customer revenue streams, and to sustain incremental savings from WU Way going forward. Also, they may be exaggerating their focus on account-to-account and online-to-account growth, and may be concerned about their stagnant marketing spending. Lastly, they may be concerned about the recent weakness of major foreign currencies against the U.S. dollar, and may lack confidence in their ability to improve their online platform
Western Union is a holding company. Through its subsidiaries, the company is engaged in money movement and payment services, providing people and businesses with ways to send money and make payments around the world. The company's segments are: Consumer-to-Consumer, which is focused on individual money transfers from one consumer to another; and Business Solutions, in which the company facilitates payment and foreign exchange solutions, primarily cross-border, cross-currency transactions, for small and medium size enterprises and other organizations and individuals. The company's remaining businesses and services include its electronic-based and cash-based bill payment services.
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