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%).
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 yearPositive
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 yearsNeutral
Model confidence: 6/10
Key Factors
- Valuation gap versus DCF fair value
- Flat revenue growth and high leverage
- Sustained dividend payout
Long Term
> 3 yearsPositive
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
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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.