Western Union

Western Union made $3.9B last year and still trades at 5.3x earnings.

If you own WU, your dividend is rich and your growth is thin.

wu

consumer mid cap updated jan 30, 2026
$9.27
market cap ~$3B · 52-week range $8–$12
xvary composite: 68 / 100 · average
our overall rating — combines growth, value, risk, and momentum
Start here if you're new
what it is
It moves cash across borders and sells payment services through a giant agent network.
how it gets paid
Last year Western Union made $3.9B in revenue. International consumer money transfer was the main engine at $2.4B, or 62% of sales.
why growth slowed
Revenue fell 3.7% last year. Revenue in the latest quarter was $2.9B. The company is still fighting a 3.7% annual revenue decline.
what just happened
Western Union beat by 4.65%, with EPS at $0.45 versus $0.43 expected.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
90/100 earnings predictability — you can trust these numbers
5.3x trailing p/e — the market's not buying it — or you found a deal
10.1% dividend yield — cash in your pocket every quarter
31.0% return on capital — every dollar works hard here
xvary composite: 68/100 — average
What they do
It moves cash across borders and sells payment services through a giant agent network.
Western Union has 400,000 agent locations in more than 200 countries. About 90% sit outside the U.S. That network is hard to copy, because your family still wants a local shop for cash pickup, not a login screen.
consumer small-cap money-transfer remittances payments
How they make money
$3.9B annual revenue · their business grew -3.7% last year
International consumer money transfer
$2.4B
3.7%
U.S. consumer money transfer
$1.1B
3.7%
International consumer services
$0.3B
0.0%
U.S. consumer services
$0.1B
0.0%
The products that matter
cash-based remittance network
Consumer Money Transfer
$3.5B · 90% of revenue
it's the legacy engine, and "legacy" understates it. this business still produces $3.5B of the company's $3.9B in annual revenue, so every valuation argument starts here.
the core
digital remittance platform
Branded Digital
high-single-digit growth
the digital arm grew at a high-single-digit rate in 2025, which matters because it is one of the few parts of the business moving the right way while the $3.5B cash network slows.
the offset
digital-asset remittance rail
Digital Asset Network
first half 2026 launch
management plans to launch it with four providers in the first half of 2026. that's the bet on a cheaper, more modern network, but right now it's still a plan, not revenue.
the bet
Key numbers
$11
target
That is 19% above $9.27. The market is paying 5.3x earnings for a company with a 10.1% dividend yield.
10.1%
yield
You collect a double-digit payout while waiting. The market usually does that when it doubts growth.
23.0%
margin
Western Union keeps 23 cents of each dollar after operating costs. That leaves room for errors, but not much for excitement.
31.0%
capital return
A 31% return on capital says the business still squeezes a lot out of the money it uses.
Financial health
B++
strength
  • balance sheet grade B++ — above average financial health
  • risk rank 3 — safer than 50% of stocks
  • price stability 75 / 100
  • long-term debt $3.0B (50% of capital)
  • net profit margin 14.4% — keeps 14 cents of every dollar in revenue
  • return on equity 61% — $0.61 profit for every $1 investors have put in
B++ — return on equity looks solid but long-term debt needs watching.
Total return vs. market

You invested $10,000 in WU 3 years ago → it's now worth $8,410.

The index would have given you $14,770.

source: institutional data · total return
What just happened
beat estimates
Western Union beat by 4.65%, with EPS at $0.45 versus $0.43 expected.
Revenue in the latest quarter was $2.9B. The company is still fighting a 3.7% annual revenue decline, so the beat did not fix the bigger problem.
$2.9B
revenue
$0.45
eps
23.0%
operating margin
the number that mattered
The $0.45 EPS mattered because the beat was only $0.02. That is a thin cushion when annual revenue is still $3.9B and down 3.7%.
source: company earnings report, 2026

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What could go wrong

the #1 risk is continued decline in Consumer Money Transfer.

med
the core keeps shrinking
Consumer Money Transfer produces $3.5B of revenue, or 90% of the total. If transaction volumes keep slipping, digital growth can look good on paper and still fail to move the consolidated numbers.
this risk touches 90% of the revenue base.
med
the turnaround plan arrives late or underdelivers
The Digital Asset Network is expected to launch in the first half of 2026 with four providers, and management has tied its Beyond strategy to a digital-first reset. If those launches slip or adoption is weak, the rerating case gets thinner fast.
the promised offset is still pre-scale, while the legacy decline is already visible.
med
remittance policy hits a key corridor
Potential U.S. restrictions or taxes on remittances to Mexico could directly pressure transfer volumes. For a company built on cross-border flows, regulation is not abstract — it can hit the transaction itself.
any volume hit lands on a business already down 3.7% from last year.
Western Union is still a $3.5B remittance machine. That's the source of the cash flow and the source of the fragility.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
first half 2026 network launch
management plans to launch the Digital Asset Network with four providers in the first half of 2026. if that slips, the modernization story slips with it.
metric
whether revenue decline actually stops
the business did $3.9B of revenue and declined 3.7% last year. stabilization matters more than small beats on EPS.
risk
mexico remittance policy
potential U.S. restrictions or taxes on remittances to Mexico would hit the exact type of transaction Western Union lives on.
trend
progress toward the 2027 targets
management is aiming for $4.8B–$5.3B of revenue and $2.00–$2.20 of adjusted EPS by 2027. those numbers are now the public test of the turnaround.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — analysts expect above-average price performance in the year ahead. in human-speak, they think the stock has room to bounce.
risk profile
average
stability score 3 — typical risk profile. not a bunker stock, not chaos either.
chart momentum
average
technical score 3 — the chart is not flashing a major signal. for now, it is mostly moving with the tape.
earnings predictability
90 / 100
management's earnings pattern is reliable. the business may be under pressure, but it usually does not surprise you.
source: institutional data
Institutional activity

institutions have been net selling for 2 consecutive quarters — 213 buyers vs. 228 sellers in 3q2025. total institutional holdings: 0.3B shares. net selling for 2 quarters.

source: institutional data
Price targets
3-5 year target range
$8 $13
$9 current price
$11 target midpoint · +19% from current · 3-5yr high: $20 (+115% · 27% ann'l return)
source: institutional data · analyst targets

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