- Analysts expect an earnings per share (EPS) of $0.44, consistent with the same quarter last year, with revenue projected to decline by 2.9%.
- The company’s price-to-earnings (P/E) ratio of 3.23 and price-to-sales ratio of 0.70 suggest the stock might be undervalued.
- Western Union’s debt-to-equity ratio of 2.97 indicates a significant reliance on debt, posing potential risks for investors.
Western Union (NYSE: WU) is a global leader in cross-border, cross-currency money movement and payments. The company is set to release its second-quarter earnings on July 28, 2025. Analysts expect an earnings per share (EPS) of $0.44, consistent with the same quarter last year. Revenue is projected to be around $1.04 billion, marking a 2.9% decline from the previous year.
Despite the anticipated revenue decline, Western Union’s financial metrics present a mixed picture. The company’s price-to-earnings (P/E) ratio is approximately 3.23, indicating a low valuation relative to its earnings. This suggests that the stock might be undervalued, offering potential opportunities for investors. The price-to-sales ratio of about 0.70 further supports this, as the market values its sales at less than one times its revenue.
Western Union’s enterprise value to sales ratio is around 1.02, reflecting its total valuation in relation to sales. This metric, combined with an enterprise value to operating cash flow ratio of approximately 9.19, highlights the company’s cash-generating ability. The earnings yield of about 31% indicates a strong return on investment relative to its share price, which could attract investors seeking high returns.
The company’s debt-to-equity ratio stands at approximately 2.97, suggesting a significant reliance on debt financing compared to equity. This could be a point of concern for investors, as high debt levels can pose risks, especially in volatile market conditions. However, Western Union maintains a current ratio of around 1.06, indicating a stable liquidity position with slightly more current assets than current liabilities.
As Western Union prepares to release its financial results, the company’s CEO, Devin McGranahan, and CFO, Matt Cagwin, will host a webcast and conference call to discuss the outcomes. Investors and analysts will be keen to hear their insights, especially given the recent 0.3% upward revision in the consensus EPS estimate, which often correlates with short-term stock price movements.
