Why Western Union Is Ready to Rebound
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 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
Headquarters (founded) | Englewood, Colo. (1851) |
Market Cap | $8.9 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) | 21.6% |
Cash/Debt | $1.4 billion/$3.4 billion |
Dividend Yield | 3.5% |
Competitors | American Express Moneygram International 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.
If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Western Union may not be your top choice.
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The article Why Western Union Is Ready to Rebound originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends American Express and Western Union. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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