WU - Embedded Expectations Analysis - 2020 11 27
The Western Union Company (WU:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with a 9.8x Uniform P/E, implying bearish expectations for the firm. Additionally, management may have concerns about their revenue and margin growth, agent additions, and the potential of their cross-border cross-currency platformSpecifically, management may lack confidence in their ability to continue acquiring new customers, sustain agent additions to their global distribution network, and improve revenue growth and margins, particularly in their digital business. Furthermore, they may be exaggerating the potential of their unique cross-border cross-currency platform, as well as the other financial institutions' interest in their platform. Management may also lack confidence in their ability to maintain mobile app usage and their total cross-border principal. They may be exaggerating the positive impact the pandemic has had on enhancing their competitive advantages. Finally, they may have concerns about the macroeconomic uncertainties affecting their industry position and their retail position
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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