This firm is fairly valued at 212.47 per share with modest projections ahead. WEX has performance score of 2 on a scale of 0 to 100. The firm maintains market beta of 1.5906 which attests that as market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, WEX will likely underperform. Although it is extremely important to respect
WEX historical
price patterns, it is better to be realistic regarding the information on equity current price history. The approach into determining future performance of any stock is to evaluate the business as a whole together with its past performance including all available fundamental and
technical indicators. By analyzing
WEX technical indicators you can currently evaluate if the expected return of 0.0768% will be sustainable into the future.
WEX presently maintains a risk of 2.1454%. Please check out WEX
Market Risk Adjusted Performance,
Variance as well as the
relationship between Variance and
Potential Upside to decide if WEX will be following its historical returns.
Wex
financial leverage refers to using borrowed capital as a funding source to finance Wex Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Wex financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Wex's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Wex's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Wex's total debt and its cash.
The company has Return on Asset of
2.95 % which means that on every $100 spent on asset it made $2.95 of profit. This is way below average. In the same way, it shows return on shareholders equity (ROE) of
6.75 % implying that it generated $6.75 on every 100 dollars invested. The current investor indifference towards the small price fluctuations of WEX may raise some interest from investors as it closed today at a share price of
207.23 on
252039.000 in trading volume. The company directors and management did not add any value to WEX investors in
July. However, most investors can still diversify their portfolios with WEX to hedge your portfolio against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 2.1454. The current volatility is consistent with the ongoing market swings in
July 2019 as well as with WEX unsystematic, company specific events. WEX is selling for under 208.24. That is 1.31% increase. Day high is 209.23. WEX Sales per Share is increasing over the last 5 years. WEX Calculated Tax Rate is decreasing over the last 5 years. The previous year value of WEX Calculated Tax Rate was 35.60. Furthermore, WEX Issuance Purchase of Equity Shares is fairly stable at the moment.
| 2015 | 2016 | 2017 | 2018 | 2019 (projected) |
WEX Accounts Payable | 378,811,000 | 617,118,000 | 811,362,000 | 814,742,000 | 646,114,105 | WEX Receivables | 1,596,329,000 | 2,152,118,000 | 2,678,075,000 | 2,694,074,000 | 2,158,252,000 |
In closing, our analysis show that WEX Actively responds to market. The company is
fairly valued and projects probability of bankruptcy
below average for the next 2 years. Our current Buy/Hold/Sell recommendation on the company is
Hold.
Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
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 Rifka Kats do not own shares of Wex Inc. Please refer to our
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