Fundamental Analysis
Simplifying corporate payments around the world.
As a global leader in corporate payments solutions, we simplify the complexities of payments systems across continents, and industries – including Fleet, Travel and Healthcare.
With more than 3,300 associates in the Americas, Europe, Australia, and Asia, we give our customers greater control over their business, resulting in smarter decisions, lower operating costs, higher efficiency and greater customer satisfaction.
From our founding in Maine in 1983, we’ve grown to serve millions of people around the world. This growth is fueled by our passion for continuous innovation, and for providing a level of service that is unparalleled in our industry.
https://www.wexinc.com/our-story/
Reasons to buy – WEX
High level decisions on buy or sell for a stock should be driven by
1. The margin that the company makes. i.e. Out of $1 that the company sells how much does the company taken home.
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- Here we see WEX makes a margin of 22% on Operating Level and about 14% on Net level. This means that out of $1 that it makes $0.14 is being pocketed as profits.
2. The growth rates of the company on revenue, net income, EPS and Dividend. i.e. If it sold $1 last year how much more did it sell this year.
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- Here we see net revenue growth of 21% in the revenue and the net profit figures grew by 65%.
3. The efficiency ratios of the company on Equity and Assets. i.e. How well is the company able to sweat each $1 that it puts to work in the company.
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- Here we see WEX makes a Return on Assets of 3% and Return of Equity of 11% which is pretty good.
The company is involved in payment processing and information management services to the United States commercial and government vehicle fleet industry. Since it is in the financial services space the Debt/Liabilities will be high and hence this can be ignored.
GOLD STANDARD : This is one of the no-debate stocks that are a must have in ones portfolio.
All these ratios can be found in the attached excel sheets and are based on the EDGAR report submitted by WEX to the SEC. All the data on the above analysis can be found at the link below
Balance Sheet
Income Statement
