Is Wex Stock a Good Investment?

Wex Investment Advice

WEX

To provide specific investment advice or recommendations on Wex Inc stock, we recommend investors consider the following general factors when evaluating Wex Inc. This will help you to make an informed decision on whether to include Wex in one of your diversified portfolios:

Examine Wex's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Wex's leadership team and their track record. Good management can help Wex navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Data Processing & Outsourced Services space and any emerging trends that could impact Wex's business and its evolving consumer preferences.
Compare Wex's performance and market position to its competitors. Analyze how Wex is positioned in terms of product offerings, innovation, and market share.
Check if Wex pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Wex's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Wex Inc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Wex Inc is a good investment.

Sell

Buy

Strong Buy

Macroaxis provides trade recommendation on Wex to complement and cross-verify current analyst consensus on Wex Inc. Our trade advice engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Wex Inc is not overpriced, please check out all Wex Inc fundamentals, including its short ratio, and the relationship between the cash per share and market capitalization . Given that Wex Inc has a price to earning of 68.45 X, we strongly advise you to confirm Wex Inc market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevalent risk tolerance and investing horizon.

Market Performance	Insignificant	Details
Volatility	Very steady	Details
Hype Condition	Low key	Details
Current Valuation	Fairly Valued	Details
Odds Of Distress	Low	Details
Economic Sensitivity	Barely shadows the market	Details
Investor Sentiment	Alarmed	Details
Analyst Consensus	Strong Buy	Details
Financial Strenth (F Score)	Healthy	Details
Financial Leverage	Inapplicable	Details
Reporting Quality (M-Score)	Unlikely Manipulator	Details

Examine Wex Stock

Researching Wex's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 99.0% of the company outstanding shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.52. Wex Inc recorded earning per share (EPS) of 6.15. The entity had not issued any dividends in recent years. The firm had 11:10 split on the December 17, 2003.

To determine if Wex is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Wex's research are outlined below:

	Over 99.0% of the company outstanding shares are owned by institutional investors
	Latest headline from gurufocus.com: Q1 2024 WEX Inc Earnings Call Transcript

Wex uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Wex Inc. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Wex's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	8th of February 2024 Upcoming Quarterly Report	View
	25th of April 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	8th of February 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	31st of December 2022 Last Financial Announcement	View

Earnings surprises can significantly impact Wex's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Wex's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2005-10-26	2005-09-30	0.28	0.33	0.05	17
2009-10-28	2009-09-30	0.56	0.63	0.07	12
2007-08-07	2007-06-30	0.42	0.5	0.08	19
2016-04-27	2016-03-31	0.88	0.97	0.09	10
2015-04-29	2015-03-31	0.99	1.1	0.11	11
2016-10-27	2016-09-30	1.13	1.25	0.12	10
2009-04-29	2009-03-31	0.27	0.42	0.15	55
2015-02-09	2014-12-31	1.12	0.96	-0.16	14

Know Wex's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Wex is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Wex Inc backward and forwards among themselves. Wex's institutional investor refers to the entity that pools money to purchase Wex's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
River Road Asset Management, Llc	2023-12-31	727.5 K
Geode Capital Management, Llc	2023-12-31	669 K
Neuberger Berman Group Llc	2023-12-31	640.1 K
Brown Advisory Holdings Inc	2023-12-31	617 K
Bank Of America Corp	2023-12-31	582.9 K
Fmr Inc	2023-12-31	468.5 K
Norges Bank	0031-12-31	461.3 K
Primecap Management Company	2023-12-31	454.6 K
Goldman Sachs Group Inc	2023-12-31	444.7 K
Vanguard Group Inc	2023-12-31	4.2 M
Hhg Plc	2023-12-31	4.1 M

Note, although Wex's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Wex's market capitalization trends

The company currently falls under 'Mid-Cap' category with a total capitalization of 9.07 B. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate Wex's market, we take the total number of its shares issued and multiply it by Wex's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and those looking for more risk prefer small-cap and mid-cap equities.

Market Cap

4.08 Billion

Wex's profitablity analysis

Wex's profitability indicators refer to fundamental financial ratios that showcase Wex's ability to generate income relative to its revenue or operating costs. If, let's say, Wex is currently losing money, the management's focus should be on how to reverse that trend. However, when revenue exceeds expenses, Wex's executives or investors may be in less hurry to break that information down - which is where profitability analysis comes into play. Gaining a greater understanding of Wex's profitability requires more research than a typical breakdown of Wex's financial statements. By doing a profitability analysis, companies can identify areas needing attention, and investors can make a profitable trade.

	Last Reported	Projected for Next Year
Return On Tangible Assets	0.03	0.05
Return On Capital Employed	0.12	0.14
Return On Assets	0.02	0.02
Return On Equity	0.15	0.18

The company has Net Profit Margin of 0.1 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 0.25 %, which entails that for every 100 dollars of revenue, it generated $0.25 of operating income.

Determining Wex's profitability involves analyzing its financial statements and using various financial metrics to determine if Wex is a good buy. For example, gross profit margin measures Wex's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Wex's profitability and make more informed investment decisions.

The data published in Wex's official financial statements usually reflect Wex's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Wex Inc. For example, before you start analyzing numbers published by Wex accountants, it's critical to develop an understanding of what Wex's liquidity, profitability, and earnings quality are in the context of the IT Services space in which it operates.

Please note, the presentation of Wex's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Wex's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Wex's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Wex Inc. Please utilize our Beneish M Score to check the likelihood of Wex's management manipulating its earnings.

Evaluate Wex's management efficiency

Wex Inc has Return on Asset of 0.0305 % which means that on every $100 spent on assets, it made $0.0305 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.1534 %, implying that it generated $0.1534 on every 100 dollars invested. Wex's management efficiency ratios could be used to measure how well Wex manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Wex's Return On Tangible Assets are fairly stable compared to the past year. Return On Capital Employed is likely to rise to 0.14 in 2024, whereas Return On Assets are likely to drop 0.02 in 2024. At this time, Wex's Total Assets are fairly stable compared to the past year. Non Current Assets Total is likely to rise to about 5.2 B in 2024, whereas Non Currrent Assets Other are likely to drop slightly above 62.9 M in 2024.

	Last Reported	Projected for Next Year
Book Value Per Share	42.54	44.66
Net Current Asset Value	0.00	0.00
Tangible Asset Value	0.00	0.00
Tangible Book Value Per Share	(62.00)	(58.90)
Enterprise Value Over EBITDA	10.88	10.66
Price Book Value Ratio	4.57	4.55
Enterprise Value Multiple	10.88	10.66
Price Fair Value	4.57	4.55
Enterprise Value	7.7 B	8.1 B

The analysis of Wex's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze Wex's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of Wex Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.

Beta

1.586

Basic technical analysis of Wex Stock

As of the 27th of April, Wex maintains the Downside Deviation of 2.15, mean deviation of 0.9681, and Market Risk Adjusted Performance of 0.0989. Relative to fundamental indicators, the technical analysis model lets you check existing technical drivers of Wex Inc, as well as the relationship between them. Specifically, you can use this information to find out if the company will indeed mirror its model of past data patterns, or the prices will eventually revert. We were able to analyze and collect data for nineteen technical drivers for Wex Inc, which can be compared to its peers. Please check out Wex Inc market risk adjusted performance, variance, as well as the relationship between the Variance and potential upside to decide if Wex Inc is priced fairly, providing market reflects its latest price of 216.58 per share. Given that Wex Inc has jensen alpha of 0.0104, we strongly advise you to confirm Wex Inc's prevalent market performance to make sure the company can sustain itself at a future point.

Wex's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Wex insiders, such as employees or executives, is commonly permitted as long as it does not rely on Wex's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Wex insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

		Melanie Tinto over a month ago Disposition of 119 shares by Melanie Tinto of Wex at 233.95 subject to Rule 16b-3
		Trickett Sara over a month ago Disposition of 564 shares by Trickett Sara of Wex at 173.56 subject to Rule 16b-3
		Trickett Sara over a month ago Disposition of 564 shares by Trickett Sara of Wex at 173.56 subject to Rule 16b-3
		Trickett Sara over a month ago Disposition of 564 shares by Trickett Sara of Wex at 173.56 subject to Rule 16b-3
		Trickett Sara over a month ago Disposition of 564 shares by Trickett Sara of Wex at 173.56 subject to Rule 16b-3
		Ann Drew over two months ago Disposition of tradable shares by Ann Drew of Wex at 103.75 subject to Rule 16b-3
		Melissa Smith over two months ago Disposition of 13000 shares by Melissa Smith of Wex at 103.75 subject to Rule 16b-3
		Jack VanWoerkom over three months ago Sale by Jack VanWoerkom of 2000 shares of Wex
		Jack VanWoerkom over six months ago Exercise or conversion by Jack VanWoerkom of 1030 shares of Wex subject to Rule 16b-3

Understand Wex's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Wex's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.0483
	Market Risk Adjusted Performance	0.0989
	Mean Deviation	0.9681
	Semi Deviation	1.99
	Downside Deviation	2.15
	Coefficient Of Variation	1476.07
	Standard Deviation	1.55
	Variance	2.42
	Information Ratio	0.0104
	Jensen Alpha	0.0104
	Total Risk Alpha	(0.10)
	Sortino Ratio	0.0075
	Treynor Ratio	0.0889
	Maximum Drawdown	11.71
	Value At Risk	(1.81)
	Potential Upside	2.29
	Downside Variance	4.63
	Semi Variance	3.96
	Expected Short fall	(0.86)
	Skewness	(2.16)
	Kurtosis	10.38

	Risk Adjusted Performance	0.0483
	Market Risk Adjusted Performance	0.0989
	Mean Deviation	0.9681
	Semi Deviation	1.99
	Downside Deviation	2.15
	Coefficient Of Variation	1476.07
	Standard Deviation	1.55
	Variance	2.42
	Information Ratio	0.0104
	Jensen Alpha	0.0104
	Total Risk Alpha	(0.10)
	Sortino Ratio	0.0075
	Treynor Ratio	0.0889
	Maximum Drawdown	11.71
	Value At Risk	(1.81)
	Potential Upside	2.29
	Downside Variance	4.63
	Semi Variance	3.96
	Expected Short fall	(0.86)
	Skewness	(2.16)
	Kurtosis	10.38

Consider Wex's intraday indicators

Wex intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Wex stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	0.0152
	Daily Balance Of Power	0.4669
	Rate Of Daily Change	1.01
	Day Median Price	217.07
	Day Typical Price	216.91
	Market Facilitation Index	3.32
	Price Action Indicator	0.29
	Period Momentum Indicator	1.55

Wex Corporate Filings

8K	25th of April 2024 Report filed with the SEC to announce major events that shareholders should know about	View Verify
	23rd of April 2024 Other Reports	View Verify
F4	8th of April 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities	View Verify
10K	23rd of February 2024 Annual report required by the U.S. Securities and Exchange Commission (SEC) of a company financial performance	View Verify

Wex time-series forecasting models is one of many Wex's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Wex's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Wex Stock media impact

Far too much social signal, news, headlines, and media speculation about Wex that are available to investors today. That information is available publicly through Wex media outlets and privately through word of mouth or via Wex internal channels. However, regardless of the origin, that massive amount of Wex data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Wex news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Wex relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Wex's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Wex alpha.

Wex Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Wex can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Wex Inc Historical Investor Sentiment

Investor biases related to Wex's public news can be used to forecast risks associated with an investment in Wex. The trend in average sentiment can be used to explain how an investor holding Wex can time the market purely based on public headlines and social activities around Wex Inc. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

Wex's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Wex and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Wex news discussions. The higher the estimate score, the more favorable the investor's outlook on Wex.

Wex Maximum Pain Price across 2024-05-17 Option Contracts

Wex's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Wex close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Wex's options.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Wex without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Wex Corporate Directors

Wex corporate directors refer to members of a Wex board of directors. The board of directors generally takes responsibility for the Wex's affairs and long-term direction of the entity. A corporate director does not make decisions for the corporation on his own. As a member of the board of directors, she or he must function as a part of a group that makes decisions on behalf of the business only by the board of directors' meetings. To pass a resolution, a majority of Wex's board members must vote for the resolution. The Wex board of directors' duties also include the election, removal, and supervision of officers, including the adoption, amendment, and repeal of bylaws.

Daniel Callahan	Independent Director	Profile
John Bachman	Independent Director	Profile
Eric Duprat	Independent Director	Profile
Ronald Maheu	Independent Director	Profile

How to buy Wex Stock?

Examine Wex's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Wex's leadership team and their track record. Good management can help Wex navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Data Processing & Outsourced Services space and any emerging trends that could impact Wex's business and its evolving consumer preferences.
Compare Wex's performance and market position to its competitors. Analyze how Wex is positioned in terms of product offerings, innovation, and market share.
Check if Wex pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Wex's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

Already Invested in Wex Inc?

The danger of trading Wex Inc is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Wex is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Wex. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Wex Inc is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.

When determining whether Wex Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Wex's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Wex Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Wex Inc Stock: