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 1.42%) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Western Union and see what CAPS investors are saying about the stock right now.
Western Union facts
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| |
|---|---|
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Headquarters (founded) |
Englewood, Colo. (1851) |
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Market Cap |
$8.9 billion |
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Industry |
Data processing and outsourced services |
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Trailing-12-Month Revenue |
$5.7 billion |
|
Management |
CEO Hikmet Ersek (since 2010) CFO Scott Scheirman (since 2006) |
|
Return on Capital (average, past 3 years) |
21.6% |
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Cash/Debt |
$1.4 billion/$3.4 billion |
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Dividend Yield |
3.5% |
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Competitors |
American Express (AXP 0.07%) Moneygram International (MGI) PayPal |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 1,638 members who have rated Western Union believe the stock will outperform the S&P 500 going forward.
Just yesterday, one of those Fools, 20 punches, tapped the stock as a particularly attractive bargain opportunity:
[Western Union's] business model has come into question due to threats from new technology, but I think [Western Union] is more stable than people realize, and this firesale price offers a margin of safety in case that assumption is not as correct as I'm hoping.
[Western Union] is a CONSISTENT CASH FOUNTAIN, with very high market share, huge returns on equity, a great dividend, and the capacity for HUGE share buybacks.
Earnings yield is about 14%, and free cash flow yield is about 11%.
I'm a tad late on this one, but I think it'll still pan out just fine. Heads I win, tails I don't lose much.
Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.
