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 1.35%) 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 |
$8.2 billion |
|
Industry |
Data processing and outsourced services |
|
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) |
21.2% |
|
Cash/Debt |
$1.8 billion / $40 billion |
|
Dividend Yield |
3.4% |
|
Competitors |
American Express Moneygram International PayPal |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 1,639 members who have rated Western Union believe the stock will outperform the S&P 500 going forward.
Just last month, one of those Fools, RallyCry, tapped the stock as a particularly attractive bargain opportunity:
Western Union stumbled on earnings and was punished late last fall with a 30% drop. It has recovered slightly, but we are looking at a company that will earn around $1.50 in 2014. What kind of multiple should we put on the company? How about 11x 2014 earnings due to their relatively stable cash flow generation and 3.5% current yield. My 12-18 month price target is $16.50.
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