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Upturn AI SWOT - About
WEX 
Wex Inc (WEX)
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Upturn Advisory Summary
02/20/2025: WEX (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -16.98% | Avg. Invested days 38 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 02/20/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 6.25B USD | Price to earnings Ratio 21.43 | 1Y Target Price 169.24 |
Price to earnings Ratio 21.43 | 1Y Target Price 169.24 | ||
Volume (30-day avg) 537526 | Beta 1.61 | 52 Weeks Range 146.03 - 244.04 | Updated Date 04/1/2025 |
52 Weeks Range 146.03 - 244.04 | Updated Date 04/1/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 7.51 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 11.78% | Operating Margin (TTM) 24.71% |
Management Effectiveness
Return on Assets (TTM) 3.21% | Return on Equity (TTM) 18.71% |
Valuation
Trailing PE 21.43 | Forward PE 10.29 | Enterprise Value 6331488768 | Price to Sales(TTM) 2.32 |
Enterprise Value 6331488768 | Price to Sales(TTM) 2.32 | ||
Enterprise Value to Revenue 2.29 | Enterprise Value to EBITDA 6.17 | Shares Outstanding 38816300 | Shares Floating 35865901 |
Shares Outstanding 38816300 | Shares Floating 35865901 | ||
Percent Insiders 0.93 | Percent Institutions 106.8 |
Analyst Ratings
Rating 3.69 | Target Price 203.16 | Buy 1 | Strong Buy 5 |
Buy 1 | Strong Buy 5 | ||
Hold 10 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Wex Inc
Company Overview
History and Background
WEX Inc. was founded in 1983 as Wright Express, a subsidiary of Wright Company, providing fuel card services. It evolved into a global commerce platform providing payment processing, information management, and fleet management solutions.
Core Business Areas
- Fleet Solutions: Provides fleet payment and information management solutions, including fuel cards and data analytics.
- Travel and Corporate Solutions: Offers payment solutions for businesses in the travel industry and other corporate sectors. It facilitates payments between travel intermediaries and suppliers.
- Health and Employee Benefit Solutions: Provides healthcare payment and benefits administration solutions, helping employers and employees manage healthcare expenses.
Leadership and Structure
Melissa Smith is the Chair and CEO. The company has a board of directors and operates with a functional organizational structure across its business segments.
Top Products and Market Share
Key Offerings
- Fleet Cards: Fuel cards are a core product, providing businesses with controls and insights into fuel spending. WEX is a major player in the fleet card market, competing with FLEETCOR and U.S. Bank Voyager Fleet Systems. Estimated market share is difficult to pinpoint precisely but WEX has a significant position based on number of vehicles managed, and revenue. Competitors include FLEETCOR (FLT), U.S. Bank Voyager Fleet Systems, and Comdata.
- eNett: A virtual payment solution for the travel industry. eNett streamlines payment processes for travel agencies and suppliers. eNett's market share is estimated to be approximately 20% of the virtual card market, but actual numbers fluctuate and competitors include Amadeus B2B Wallet and AirPlus. Competitors include Amadeus (ADSYY) B2B Wallet, AirPlus, and Optal (acquired by Amadeus).
- Health Account Solutions: HSA, FSA, and other healthcare payment solutions that enable employees to manage their healthcare spending. WEX competes with Benefitfocus and other benefits administration platforms. Market share varies by segment within the health solutions space; precise figures are proprietary but WEX is a substantial player. Competitors include Benefitfocus (BNFT), Alegeus, and HealthEquity (HQY).
Market Dynamics
Industry Overview
The market involves fleet management, payment processing, travel payments, and healthcare benefits administration. These industries are driven by factors such as economic growth, technological advancements, and regulatory changes.
Positioning
WEX Inc. is a leading player in the fleet management, travel payment, and healthcare payment solutions spaces. It leverages technology and data analytics to provide value-added services. Competitive advantages include its established customer base and integrated platform.
Total Addressable Market (TAM)
The TAM across all segments is estimated to be in hundreds of billions of dollars, growing due to digitalization and increasing complexities in payment and fleet management. WEX is well-positioned to capture a significant share of this TAM by expanding its product offerings and customer base.
Upturn SWOT Analysis
Strengths
- Diversified revenue streams
- Strong market position in fleet cards
- Established customer base
- Proprietary technology platform
- Experienced management team
Weaknesses
- Exposure to economic cycles
- Dependence on key customer relationships
- Integration risks from acquisitions
- Cybersecurity risks
- Complexity of product offerings
Opportunities
- Expansion into new geographic markets
- Development of new payment solutions
- Increased adoption of digital payments
- Strategic acquisitions
- Cross-selling opportunities across segments
Threats
- Intense competition
- Technological disruption
- Regulatory changes
- Economic downturn
- Data security breaches
Competitors and Market Share
Key Competitors
- FLT
- GPN
- FISV
Competitive Landscape
WEX competes on product innovation, customer service, and pricing. Its diversified revenue streams provide a competitive advantage.
Major Acquisitions
eNett International
- Year: 2020
- Acquisition Price (USD millions): 577.5
- Strategic Rationale: Expansion into the travel payment industry and increased processing volume.
Discover Health
- Year: 2021
- Acquisition Price (USD millions): 430
- Strategic Rationale: Enhances WEX's position in the healthcare payment solutions market.
Growth Trajectory and Initiatives
Historical Growth: WEX has grown through organic expansion and strategic acquisitions. Revenue and earnings have shown solid growth over the past decade.
Future Projections: Analysts project continued growth in revenue and earnings, driven by expansion into new markets and product innovation. Revenue growth rate is projected to be between 8-12% annually over the next 3-5 years.
Recent Initiatives: Recent initiatives include expanding into new geographic markets, launching new payment solutions, and integrating acquired businesses.
Summary
WEX Inc. exhibits strong fundamentals with a diversified business model and consistent revenue growth. Its strategic acquisitions and technological advancements contribute to its competitive advantage, but it faces threats from competition and economic volatility. Its financial health is solid, and future projections are positive, making it a promising player in its core markets. Management needs to watch out for tech disruption and cyber security issues in order to continue to grow.
Similar Companies
ADP
Automatic Data Processing Inc
ADP
Automatic Data Processing Inc
FISV
Fiserv Inc.
FISV
Fiserv Inc.
FLT
Fleetcor Technologies Inc
FLT
Fleetcor Technologies Inc
GPN
Global Payments Inc
GPN
Global Payments Inc
PAYX
Paychex Inc
PAYX
Paychex Inc
Sources and Disclaimers
Data Sources:
- WEX Inc. Investor Relations
- SEC Filings (10-K, 10-Q)
- Analyst Reports
- Industry Research Reports
Disclaimers:
The information provided is for informational purposes only and should not be considered investment advice. Market data and estimates are subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Wex Inc
Exchange NYSE | Headquaters Portland, ME, United States | ||
IPO Launch date 2005-02-16 | Chairman of the Board, President & CEO Ms. Melissa D. Smith | ||
Sector Technology | Industry Software - Infrastructure | Full time employees 6500 | Website https://www.wexinc.com |
Full time employees 6500 | Website https://www.wexinc.com | ||
WEX Inc. operates a commerce platform in the United States and internationally. The Mobility segment offers fleet vehicle payment solutions, transaction processing, and information management services; and provides account activation and account retention services; authorization and billing inquiries, and account maintenance services; account management; credit and collections services; merchant services; analytics solutions; and ancillary services and offerings. This segment markets its products directly and indirectly to businesses and government agencies with fleets of commercial vehicles; and indirectly through co-branded and private label relationships. The Corporate Payments segment provides payment solutions, including embedded payments; and accounts payable automation and spend management solutions. This segment also markets its products directly and indirectly to customers in travel, fintech, insurance, consumer bill pay, and media verticals. The Benefits Solutions segment offers software-as-a-service (SaaS) platform for consumer directed healthcare benefits and full-service benefit enrollment solutions. In addition, its SaaS platform includes embedded payment solutions and plan administration services for consumer-directed health benefits; COBRA accounts; and benefit enrollment and administration services. Further, it offers custodial and depository services for health savings accounts; and markets its products through third-party administrators, financial institutions, payroll providers, and health plans. The company was formerly known as Wright Express Corporation and changed its name to WEX Inc. in October 2012. The company was founded in 1983 and is headquartered in Portland, Maine.
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