Reassessing Western Union (WU) After Years Of Share Price Weakness And Excess Returns Potential

  • If you have been wondering whether Western Union is attractively priced or just a value trap, you are not alone.
  • The stock most recently closed at US$9.49, with returns of 2.4% over the last 7 days, 1.5% over 30 days, 2.8% year to date, 2.5% over 1 year, a 13.0% decline over 3 years, and a 38.5% decline over 5 years, which gives plenty of context for anyone reassessing the balance of risk and reward.
  • Recent news coverage has largely focused on Western Union’s role in global money transfers and how the company is positioning itself against digital and fintech competitors. This backdrop helps explain why investors are paying closer attention to how much they are willing to pay for each dollar of Western Union’s cash flows and assets.

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