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 of 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.
How effective is Wex in utilizing its assets?
Wex Inc reports assets on its Balance Sheet. It represents the amount of Wex resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Wex aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Data Processing & Outsourced Services space. To get a better handle on how balance sheet or income statements item affect Wex volatility, please check the breakdown of all its
fundamentals.
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.
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 Wex's
gross profit and other
fundamental indicators for more details.
What is driving Wex Investor Appetite?
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.
| Retail Investors | 0.72 |
| Insiders | 0.84 |
| Institutions | 98.44 |
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 Assets4.1 B | Goodwill1.5 B | |
| Current Assets | 4.15 Billion | 72.79 |
| Goodwill | 1.54 Billion | 27.0 |
| Tax Assets | 12.16 Million | 0.21 |
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.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile 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
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