WEX Inc. (WEX) stock analysis

P/E below its 5-year median

WEX's P/E of 15.7 is below its own 5-year median of 29.7.

P/E below the industry

WEX's P/E of 15.7 is below the Miscellaneous Business Services median of 25.8.

EV/EBITDA below its 5-year median

WEX's EV/EBITDA of 5.9 is below its 5-year median of 8.7.

P/B above the industry

WEX's price-to-book of 5.20 is above the Miscellaneous Business Services median of 2.48.

Trading below fair value

The share price of $182.29 is below our fair value estimate of $314.10.

Margin of safety over 20%

The price is 42.0% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 4.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 23.5% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 9.7% over the last twelve months; the Miscellaneous Business Services median is 9.9%.

Guidance raised

WEX raised its full year 2026 revenue outlook on Jul 22, 2026.

Gross margin improving

Gross margin was 60.4% over the last twelve months, against 59.1% a year earlier.

Return on equity under 15%

Return on equity was 35.6% over the last twelve months and averaged 14.6% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 46.4%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

WEX's return on equity of 35.6% is above the Miscellaneous Business Services median of 6.8%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 14.0% over the last twelve months, against a 5-year average of 9.6%.

Net margin above the industry

WEX's net margin of 14.0% is above the Miscellaneous Business Services median of 3.8%.

High debt

Debt is 462% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 159% five years ago to 462%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals -2.3% of total debt; we look for at least 20%.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.03 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 0.83; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

WEX has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.