WEX Story

<div class='circular--portrait' style='background:#000000;color: #f2f2f2;font-size:3em;'>WEX</div>
WEX -- USA Stock  

USD 140.05  3.73  2.59%

WEX Cash Flow Per Share is fairly stable at the moment as compared to the past year. WEX reported Cash Flow Per Share of 15.31 in 2019. Revenue to Assets is likely to grow to 0.23 in 2020, whereas Average Assets are likely to drop slightly above 3 B in 2020. If you have been following WEX you may be considering acquiring. Let's check if strong forward indicators will continue to push the price to rise for WEX's investors. Will investors continue to hold, or should we expect a sell-off?
Published over two months ago
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Does WEX (NYSE:WEX) has strong forward indicators based on the current rise?
WEX is FAIRLY VALUED at 158.29 per share with modest projections ahead. WEX appears to be very steady, given 1 month investment horizon. WEX Inc shows Sharpe Ratio of 0.14, which attests that the company had 0.14% of return per unit of risk over the last month. Our approach into determining the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. By analyzing WEX Inc technical indicators you can currently evaluate if the expected return of 0.55% is justified by implied risk. Please utilize WEX Inc Mean Deviation of 3.18, downside deviation of 3.54, and Market Risk Adjusted Performance of (4.67) to validate if our risk estimates are consistent with your expectations.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include WEX income statement, its balance sheet, and the statement of cash flows. Potential WEX investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although WEX investors may use each financial statement separately, they are all related. The changes in WEX's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on WEX's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages. The goal of WEX fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of WEX performance into the future periods or doing a reasonable stock valuation. The intrinsic value of WEX shares is the value that is considered the true value of the share. If the intrinsic value WEX is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares WEX. Please read more on our fundamental analysis page.

Are WEX Earnings Expected to grow?

The future earnings power of WEX involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of WEX factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. WEX stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of WEX expected earnings.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for WEX, but it might be worth checking our own buy vs. sell analysis

WEX Gross Profit

WEX Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing WEX previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show WEX Gross Profit growth over the last 10 years. Please check Gross Profit in more details.

Exercise or conversion by Roberto Simon of 13568 shares of WEX subject to Rule 16b-3

Legal trades by WEX insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
WEX insider trading alert for exercise of stock option (right to buy) by Roberto Simon, Chief Financial Officer, on 6th of August 2020. This event was filed by Wex Inc with SEC on 2020-08-06. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down the case for WEX

Institutional investors typically avoid acquiring a high percentage of WEX stocks because performing such an act may violate securities laws. They are usually not investing their own money, but rather making investments on behalf of their clients. Let's take a look at how the ownership of WEX is distributed among investors.

Ownership Allocation

WEX Inc retains a total of fourty-four million one hundred thousand outstanding shares. The majority of WEX outstanding shares are owned by institutional investors. These institutions are usually referred to as non-private investors looking to purchase positions in WEX Inc to benefit from reduced commissions. Accordingly, other corporate entities are subject to a different set of regulations than regular investors in WEX Inc. Please pay attention to any change in the institutional holdings of WEX Inc as this could imply that something significant has changed or about to change at the company. Please note that no matter how much assets the company shows, if the real value of the company is less than the current market value, you may not be able to make money on it.

Institutions
98.44%
Retail Investors0.72
Insiders0.84
Institutions98.44

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. WEX has an asset utilization ratio of 46.0 percent. This suggests that the company is making $0.46 for each dollar of assets. An increasing asset utilization means that WEX Inc is more efficient with each dollar of assets it utilizes for everyday operations.

Current Assets
4.1 B
Goodwill
1.5 B
Current Assets4.15 Billion72.79
Goodwill1.54 Billion27.0
Tax Assets12.16 Million0.21

Our take on today WEX rise

WEX current downside deviation rises over 3.54. WEX Inc shows above-average downside volatility for the selected time horizon. We advise investors to inspect WEX Inc further and ensure that all market timing and asset allocation strategies are consistent with the estimation of WEX future alpha.

Our Final Perspective on WEX

While some companies under the software?infrastructure industry are still a bit expensive, WEX may offer a potential longer-term growth to investors. The inconsistency in the assessment between current WEX valuation and our trade advice on WEX is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to WEX.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of WEX Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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