Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, money-transfer giant Western Union (WU -2.35%) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Western Union's business and see what CAPS investors are saying about the stock right now.
Western Union facts
|
Headquarters (founded) |
Englewood, Colo. (1851) |
|
Market Cap |
$10.8 billion |
|
Industry |
Data processing and outsourced services |
|
Trailing-12-Month Revenue |
$5.7 billion |
|
Management |
CEO Hikmet Ersek (since 2010) |
|
Return on Capital (average, past 3 years) |
21.9% |
|
Cash/Debt |
$1.4 billion/$3.7 billion |
|
Dividend Yield |
2.2% |
|
Competitors |
American Express Company (AXP -1.11%) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 1,512 members who have rated Western Union believe the stock will outperform the S&P 500 going forward.
Just last month, one of those Fools, Gordogato, succinctly summed up the bull case for our community:
Western Union is profitable and pays a small dividend, though their stock price has gone nowhere lately. Sooner or later, the market will take notice. Good margins, return on assets, and cash flow. ... I sometimes worry that Western Union could be left in the dust if Internet-based, international money transfers become easy and a disruptor company moves into this space. But [Western Union's] moat is its worldwide network of physical branches. Rich, western nations might try to move toward a cashless society, but worldwide, the need to convert electronic money into physical currency is not going away anytime soon, and neither is Western Union.
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