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1. Company Snapshot

1.a. Company Description

The Western Union Company provides money movement and payment services worldwide.The company operates in two segments, Consumer-to-Consumer and Business Solutions.The Consumer-to-Consumer segment facilitates money transfers between two consumers, primarily through a network of third-party agents and sub-agents; and offers international cross-border transfers and intra-country transfers, as well as money transfer transactions through websites and mobile devices.


The Business Solutions segment provides payment and foreign exchange solutions, primarily cross-border and cross-currency transactions for small and medium size enterprises, other organizations, and individuals; and foreign currency forward and option contracts.It also offers bill payment services that facilitates payments from consumers to businesses and other organizations, as well as offers money order and other services.The company was founded in 1851 and is headquartered in Denver, Colorado.

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1.b. Last Insights on WU

The recent performance of The Western Union Company has been driven by several positive factors. The company's digital growth and European retail revitalization have offset steeper declines elsewhere, with management aiming to replicate this success in North America via localized pricing and innovation. Additionally, Western Union's core business efficiency is improving, evidenced by a $150M cost-saving program completed two years early and signs of margin expansion as a result. The company's stablecoin initiative, USDPT, is also showing promise, with the potential to generate interest on float and reduce banking fees. Furthermore, Western Union's 10% dividend yield remains well-covered, and the company's robust 18% margins provide a solid foundation for future growth.

1.c. Company Highlights

2. Western Union's Q4 2025 Earnings: A Mixed Bag

The Western Union Company's fourth quarter 2025 revenue was $1 billion, a 5% decline year-over-year on an adjusted basis. However, adjusted earnings per share was $0.45, beating estimates of $0.43, indicating a positive surprise. The company's consumer services business performed well, with adjusted revenue up 26% in the quarter and 30% for the full year, driven by growth in travel money and bill payments. For the full year 2025, the company delivered GAAP revenue of $4.1 billion and adjusted EPS of $1.75, at the top end of the guidance range.

Publication Date: Feb -22

📋 Highlights
  • Revenue Decline Amid Earnings Growth:: Fourth-quarter revenue fell 5% to $1.0B, but adjusted EPS rose to $0.45 (up from $0.40 YoY), driven by cost efficiencies and consumer services growth.
  • Consumer Services Outperformance:: Adjusted revenue surged 26% in Q4 and 30% annually, fueled by travel money (+$150M target by 2026) and bill payments, despite CMT declines.
  • Digital Transformation Momentum:: Branded digital business grew 6% in Q4 with 13% transaction growth; digital now accounts for 40%+ of principal sent globally, with double-digit transaction growth for two years.
  • Strategic Acquisitions & Partnerships:: Intermex acquisition (Q2 2026 close) and new retail deals (e.g., Kroger, Canada Post) expected to generate $100M+ in incremental revenue annually.
  • Shareholder Returns & Guidance:: Returned $500M to shareholders in 2025; 2026 guidance targets 6–9% revenue growth and adjusted EPS of $1.75–$1.85, with EPS acceleration from Intermex synergies.

Revenue and Earnings Performance

The company's Consumer Money Transfer (CMT) business saw adjusted revenue decline 9% in the fourth quarter, while transactions declined 2%. However, the branded digital business grew adjusted revenue by 6% and transactions by 13% in the quarter. The company's digital business now accounts for over 40% of the principal it sends around the world and is growing transactions double digits and revenue mid-single digits for two straight years.

Growth Prospects and Outlook

The company is optimistic about its longer-term outlook, with a focus on building a digital-first, retail-enabled consumer services company powered by payments and innovation. Western Union expects 6-9% revenue growth in 2026, inclusive of Intermex, and adjusted EPS of $1.75-$1.85. Analysts estimate revenue growth at 3.5% for next year, indicating a potential upside. The company's consumer services business is expected to grow double-digit annually over the next several years.

Valuation and Dividend Yield

With a P/E Ratio of 5.89 and a Dividend Yield of 10.15%, Western Union's valuation appears attractive. The company's return on equity (ROE) is 53.92%, indicating strong profitability. The dividend yield is also attractive, suggesting that the stock may be a good option for income investors. The company's free cash flow yield is 13.35%, indicating a strong ability to generate cash.

Strategic Initiatives and Expansion

Western Union is expanding its digital master agent model to include larger digital players in certain regions, opening up new market opportunities. The company is also partnering with digital players in the Middle East to accelerate growth. In Europe, Western Union believes it is underperforming the market and plans to make changes to its approach, model, and leadership to drive acceleration. The company's stablecoin initiative is focused on creating efficiency in the global movement of money, particularly between the company and its partners.

3. NewsRoom

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Here's Why Investors Should Hold Western Union Stock for Now

Mar -19

Source: zacks.com

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Western Union (WU) Stock Drops Despite Market Gains: Important Facts to Note

Mar -17

Source: zacks.com

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3 No-Brainer High-Yielding Stocks to Buy with $5,000 Today

Mar -17

Source: 247wallst.com

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Want Safe Dividend Income in 2026 and Beyond? Invest in the Following 2 Ultra-High-Yield Stocks.

Mar -15

Source: fool.com

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Western Union Appoints Global Business Leader Milind Pant to its Board of Directors

Mar -13

Source: businesswire.com

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Western Union (WU) Increases Despite Market Slip: Here's What You Need to Know

Mar -11

Source: zacks.com

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The Western Union Company (WU) Presents at Wolfe Research FinTech Forum Transcript

Mar -10

Source: seekingalpha.com

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The Western Union Company (NYSE:WU) Receives Average Recommendation of “Reduce” from Analysts

Mar -10

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.29%)

6. Segments

Consumer Money Transfer

Expected Growth: 10.47%

The 10.47% growth in Consumer Money Transfer from The Western Union Company is driven by increasing cross-border transactions, rising demand for digital money transfer services, and expansion into new markets. Additionally, strategic partnerships, improved customer experience, and competitive pricing also contribute to this growth.

Other

Expected Growth: 8.23%

The Western Union Company's 8.23% growth in 'Other' segment is driven by increasing demand for cross-border payments, expansion of digital channels, and strategic partnerships. Additionally, the company's diversified revenue streams, including cash-based and digital transactions, contribute to its growth. Furthermore, the company's strong brand recognition and extensive global network also support its growth momentum.

Business Solutions

Expected Growth: 8.5%

Western Union's 8.5% growth in Business Solutions is driven by increasing demand for cross-border payment solutions, expansion into new markets, and strategic partnerships. Additionally, the company's investment in digital transformation, enhanced customer experience, and competitive pricing strategies have contributed to its growth momentum.

7. Detailed Products

Money Transfer

Allows customers to send and receive money across the globe through various channels such as online, mobile, and retail locations.

Bill Payment

Enables customers to pay bills online or in-person at Western Union locations.

Prepaid Cards

Offers prepaid debit cards that can be loaded with funds and used to make purchases online or in-store.

Money Orders

Provides a secure way to make payments with a guaranteed form of payment.

Business Payments

Offers payment solutions for businesses to make international payments and manage cash flow.

Digital Money Transfer

Allows customers to send and receive money digitally through the Western Union app or website.

8. The Western Union Company's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Western Union is moderate due to the presence of alternative money transfer services such as PayPal, Xoom, and TransferWise. However, Western Union's strong brand recognition and extensive network of agents help to mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of concentration of buyers in the money transfer market. Individual customers have limited negotiating power, and Western Union's large customer base helps to reduce the impact of any individual customer's bargaining power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the large number of agents and partners that Western Union works with. This reduces the dependence on any individual supplier, giving Western Union greater negotiating power.

Threat Of New Entrants

The threat of new entrants is high due to the relatively low barriers to entry in the money transfer market. New fintech companies and digital payment platforms are emerging, posing a threat to Western Union's market share.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of established competitors such as MoneyGram and PayPal, as well as new entrants in the market. This leads to a highly competitive market with intense price competition and advertising efforts.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 85.70%
Debt Cost 5.01%
Equity Weight 14.30%
Equity Cost 8.19%
WACC 5.46%
Leverage 599.06%

11. Quality Control: The Western Union Company passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Synchrony

A-Score: 6.8/10

Value: 7.8

Growth: 7.8

Quality: 7.6

Yield: 4.0

Momentum: 7.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
OneMain Holdings

A-Score: 6.6/10

Value: 5.5

Growth: 5.4

Quality: 5.2

Yield: 10.0

Momentum: 7.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
FirstCash

A-Score: 6.3/10

Value: 4.1

Growth: 7.6

Quality: 6.4

Yield: 2.0

Momentum: 9.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
SLM

A-Score: 6.1/10

Value: 7.1

Growth: 5.6

Quality: 6.8

Yield: 4.0

Momentum: 7.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Western Union

A-Score: 6.0/10

Value: 7.4

Growth: 3.1

Quality: 6.2

Yield: 10.0

Momentum: 2.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Ally Financial

A-Score: 5.6/10

Value: 6.6

Growth: 5.1

Quality: 3.1

Yield: 6.0

Momentum: 6.0

Volatility: 6.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

9.02$

Current Price

9.02$

Potential

-0.00%

Expected Cash-Flows