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WU:NYSEWestern Union Company (The) Analysis

Data as of 2026-06-22 - not real-time

$7.12

Latest Price

6/10Risk

Risk Level: Medium

Executive Summary

Western Union is trading at $7.12, just above the calculated support of $7.10 and well below its 20‑day, 50‑day and 200‑day SMAs (7.74, 8.50 and 8.89), indicating short‑term price weakness. However, the stock is deeply oversold with an RSI of 25, a high dividend yield of 13.2% and a forward PE of 3.7 versus an industry average of 16.9, suggesting a strong value bias. The DCF fair value of $6.76 is modestly lower than the current price, but the market’s extreme greed sentiment (FGI 89.96) may be inflating the premium. Fundamentals show solid profitability (ROE 48%) and cash generation, though revenue is flat and debt‑to‑equity is high. Recent material news includes the declaration of a $0.235 quarterly dividend, reinforcing the company’s commitment to returning cash to shareholders.
Overall, the stock appears undervalued on a value basis, with a sustainable dividend and attractive yields, but investors should be cautious of the bearish technical backdrop and elevated 30‑day volatility (≈26%).

Market Outlook

Short Term

< 1 year
Positive
Model confidence: 7/10

Key Factors

  • Oversold RSI indicating potential bounce
  • High dividend yield supporting cash return
  • Price near technical support limiting downside

Medium Term

1–3 years
Neutral
Model confidence: 6/10

Key Factors

  • Valuation gap versus DCF fair value
  • Flat revenue growth and high leverage
  • Sustained dividend payout

Long Term

> 3 years
Positive
Model confidence: 8/10

Key Factors

  • Strong ROE and cash flow generation
  • Low beta suggesting defensive characteristics
  • Attractive dividend yield and low forward PE

Key Metrics & Analysis

Financial Health

Revenue Growth-0.10%
Profit Margin10.88%
P/E Ratio5.2
ROE47.66%
ROA5.43%
Debt/Equity288.12
P/B Ratio2.3
Op. Cash Flow$504.5M
Free Cash Flow$290.7M
Industry P/E16.9

Technical Analysis

TrendBearish
RSI25.6
Support$7.10
Resistance$8.61
MA 20$7.74
MA 50$8.50
MA 200$8.89
MACDBearish
VolumeIncreasing
Fear & Greed Index89.96

Valuation

Fair Value$6.76
Target Price$9.08
Upside/Downside27.48%
GradeUndervalued
TypeValue
Dividend Yield13.20%

Risk Assessment

Beta0.51
Volatility25.73%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskLow
Liquidity RiskLow

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.