The foundation of business quality and long-term value creation
Western Union CO’s recent quarterly figures show a stable top line with revenue hovering around the $1.0 billion mark over the past several periods.
After a brief dip to $983.6 million in early 2025, revenue rebounded to $1.03 billion in the most recent quarter, matching the level seen two quarters prior.
This consistency suggests that the company is maintaining its market reach without significant expansion or contraction.
The most recent quarterly revenue was $1.03 B, and the most recent quarterly net income was $139.6 M.
Why Growth Matters
Consistent revenue and earnings growth are the lifeblood of successful long-term investments. Companies that can grow their top line (revenue) and bottom line (net income) over many years demonstrate they have products or services customers value and are willing to pay for repeatedly.
Revenue Growth shows whether the company is expanding its market reach, gaining market share, or successfully launching new products.Net Income Growth demonstrates the company can convert that revenue into actual profits while managing costs effectively.
Look for steady, sustainable growth rather than erratic spikes. The best businesses compound earnings year after year, creating tremendous value for shareholders over time. Companies that can grow earnings faster than revenue are improving their profitability—a sign of operational excellence and competitive strength.
Year-over-year growth rates for revenue and earnings per share
Reading the Growth Rate Chart
This chart converts the absolute per-share figures into year-over-year percentage changes, making it easy to see whether growth is accelerating, decelerating, or reverting to trend — regardless of the company's absolute size.
Revenue per Share Growth (1-year, split-adjusted) measures how quickly the top line is expanding on a per-share basis. Sustained positive growth signals that the company continues to win customers and grow its addressable market.EPS Diluted Growth (1-year, split-adjusted) measures how quickly earnings are compounding for each shareholder. When EPS growth consistently outpaces revenue growth, operating leverage and margin expansion are at work.
Look for consistency, not just magnitude. A company that reliably grows EPS 10–15% per year is far more valuable than one that alternates between 50% spikes and deep contractions. Negative EPS growth during a period of positive revenue growth is a red flag — costs are rising faster than sales. Quarters where both lines converge near zero or go negative deserve close scrutiny.
How revenue converts to net income for the most recent annual period
Over the period Oct 2024 to Sep 2025, Western Union Co converts approximately 37¢ of every revenue dollar into gross profit (gross margin: 37.4%).After accounting for operating expenses and taxes and expenses, the company retains 18.8% as net profit margin, resulting in $0.77B in net earnings.
Period Information
Report Type: Annual (10-K)
Period: Oct 2024 to Sep 2025
Analyzing long-term margin stability and competitive positioning
Western Union CO’s profit margins have remained consistently in the high‑30s percent range over the past several years, indicating steady pricing power and cost control. The most recent quarter ending September 30, 2025 shows a gross margin of 37.4 %, an operating margin of 18.3 %, and a net profit margin of 18.8 %. Compared with the previous quarter, the gross margin dipped slightly from 37.2 % to 37.4 %, while the operating margin increased from 17.4 % to 18.3 % and the net margin fell from 21.8 % to 18.8 %. This shift suggests that although revenue‑level profitability has remained robust, the company’s net earnings have been more sensitive to recent costs or tax adjustments.
Looking further back, the margins peaked in mid‑2022 when gross and operating margins approached 43–44 %, with a net margin of 20.3 % in December 2022. Since then there has been a gradual decline toward current levels, likely reflecting broader industry cost pressures and competitive dynamics. The trend has been relatively flat in the last two years, hovering around 37–38 % gross and 18‑19 % operating margins.
The most recent observed values are: Gross margin = 37.4 %, Net profit margin = 18.8 %, Operating margin = 18.3 %.
Understanding Profit Margins
Between Oct 2024 and Sep 2025, Western Union Co converts every dollar of revenue through the following stages:
Sustainable competitive advantages reveal themselves through consistently superior profit margins over extended periods. Companies with durable economic moats maintain pricing power and operational efficiency that competitors struggle to match.
A sign of durable competitive advantage is earning sustained higher margins than competitors.Look for margins that remain stable or improve over time, especially during economic downturns. Declining margins may signal increasing competition, pricing pressure, or deteriorating business fundamentals.
Comparing reported earnings to actual cash generation
Western Union CO’s trailing‑twelve‑month net income has fluctuated but remains in the $700‑$900 million range over the past four quarters. The most recent full year figures show a slight decline from the prior period: the latest 12‑month net income ending September 30, 2025 is $770.9 million compared with $896.1 million for the quarter that ended June 30, 2025 and $915.0 million for the year ending March 31, 2025.
Operating cash flow from core operations has followed a similar pattern of modest volatility but generally remains below net income. The most recent operating CF TTM reported as of September 30, 2025 is $460.5 million, while the figure for December 31, 2024 was $406.3 million. In both cases cash flow lags earnings, indicating that a portion of the company’s profitability has been offset by non‑cash items or timing differences in revenue and expense recognition.
The Earnings vs. Cash Flow Gap
Reported earnings (Net Income) doesn't always reflect actual cash generation. Companies use accrual accounting, which recognizes revenue when earned and expenses when incurred—not when cash actually changes hands. This creates timing differences and opportunities for accounting discretion that can mask underlying business health.
Net Income (the "earnings" number) can be influenced by non-cash items like depreciation, stock-based compensation, and changes in accounting estimates.Operating Cash Flow, however, shows the actual cash the business generates from its core operations—a harder number to manipulate.
Trailing Twelve Months
What to Look For
Key Insight: Companies with durable competitive advantages typically show operating cash flow that meets or exceeds net income over time, demonstrating they convert accounting profits into actual cash that can be returned to shareholders or reinvested in the business.
Measuring management's efficiency at generating profits from shareholder capital
The trend shows a moderate decline after the mid‑year peak but remains well above the industry benchmark for high‑quality businesses, indicating that management continues to generate significant profit from shareholder capital. Although the recent quarter’s figure is lower than the earlier part of 2025, it still reflects robust operating performance compared with the long‑term average.
Across the longer term, the company has maintained ROE values consistently above 80 % since the beginning of 2023, with a notable dip in the most recent quarter. The decline from 103.5 % in September 2024 to 83.3 % in September 2025 suggests a shift that warrants monitoring, but the level remains comfortably high relative to the historical peaks that were seen during the 2019–2020 period when ROE spiked above 800 %. The consistency of these figures over multiple quarters points to stable profitability rather than cyclical volatility.
The most recent quarterly return on equity was **83.3%**.
The Gold Standard of Profitability
Return on Equity (ROE) is a powerful measure of how effectively a company's management is using the money shareholders have invested. Calculated by dividing Net Income by Shareholders' Equity, it reveals how much profit is generated for every dollar of equity capital.
A consistently high ROE (typically above 15-20%) is often the signature of a "quality" business with a durable competitive advantage. It indicates that the company can generate high returns on its own capital, which it can then reinvest at these high rates to compound value over time.
What to Look For:
How the company generates and deploys its cash
Western Union CO’s cash flow allocation over the trailing twelve months shows a clear pattern of operating strength coupled with disciplined capital deployment. In the most recent period ending March 31 2025, the company generated $460.5 million in operating cash, which represents a decline from $506 million in the prior year but remains robust compared to earlier years when operating cash exceeded $800 million. This operating base has allowed the firm to sustain modest investing outflows.
Data Callout: Operating CF TTM $460.5 M, Investing CF TTM -$121.1 M, Financing CF TTM -$432.8 M.
Understanding Company Strategy
Capital allocation refers to how management decides to spend and invest the company's cash. Analyzing the three primary categories of cash flow reveals a company's true operational strategy:
What to look for: Is the company bootstrapping (funding growth solely from operating cash)? Are they borrowing to fund aggressive expansion or dividends? Or are they capital raising by issuing new shares, potentially diluting your ownership? A healthy, mature company typically generates strong operating cash, moderately invests in growth, and returns the surplus to shareholders through financing activities.
Trailing Twelve Months
Net assets attributable to each share — the accounting floor of intrinsic value
Why Book Value per Share Matters
Book value per share is the net worth of the company — total assets minus total liabilities — divided by shares outstanding (split-adjusted). It represents the theoretical liquidation value per share if every asset were sold and every liability repaid at balance-sheet carrying values. It is the accounting foundation upon which much of equity valuation is built.
A steadily rising book value per share is one of the most reliable signals of compounding wealth creation. It means the company is retaining earnings and building net worth faster than it is returning capital or eroding it. Warren Buffett famously tracked Berkshire Hathaway's book value per share for decades as his primary measure of intrinsic value growth.
Context is essential. Asset-heavy businesses (banks, manufacturers, utilities) should be judged by book value more directly than asset-light businesses (software, consumer brands), where intangible assets like intellectual property and customer loyalty may far exceed their balance-sheet carrying values. A company trading at a large premium to book value is not necessarily overvalued — it may simply possess competitive advantages that accounting rules do not capture. Conversely, a declining book value per share — especially over multiple years — is a serious warning sign of capital destruction.
How much of the company is financed by debt versus shareholders' equity
Reading the Debt-to-Equity Ratio
The debt-to-equity (D/E) ratio compares total financial debt to shareholders' equity. A ratio of 1.0 means the company has borrowed one dollar for every dollar of equity; a ratio of 2.0 means it has borrowed twice as much as it owns. Financial leverage amplifies both returns and risk: in good times, debt turbocharges equity returns; in bad times, it accelerates losses and can threaten solvency.
Trends matter more than a single number. A rising D/E ratio can mean the company is taking on debt to fund growth — potentially value-creating if returns exceed the cost of capital. But it can also mean equity is being eroded through losses or that the business is borrowing simply to sustain operations. A falling D/E ratio generally reflects strengthening financial health: earnings are being retained, debt maturities are being paid down, or both.
Industry norms vary enormously. Capital-intensive sectors (utilities, real estate, financials) routinely carry high D/E ratios that would be alarming in, say, a technology company. Always compare against sector peers. As a rough rule of thumb, a D/E above 2× in a cyclical business warrants careful scrutiny of interest coverage and refinancing risk.
Short-term liquidity — can the company cover its near-term obligations?
Liquidity: Can the Business Pay Its Bills?
The current ratio is calculated as current assets divided by current liabilities. A ratio of 1.5 means the company has $1.50 of short-term assets — cash, receivables, inventory — for every $1.00 of obligations due within the next twelve months. It is the most direct measure of near-term financial resilience: can the business meet its obligations without needing to raise new capital or sell long-term assets at a discount?
A ratio above 1.0 is generally healthy, meaning current assets exceed current liabilities. A ratio consistently above 2.0 may indicate the company is holding excess cash or inventory that could be deployed more productively. A ratio below 1.0 is a warning sign — the company is relying on future cash generation or external financing to cover its near-term obligations, which is manageable in normal conditions but dangerous during a downturn.
Trends and context matter.A declining current ratio isn't always alarming — highly efficient businesses (e.g., large retailers with reliable daily cash flows) often run leaner balance sheets intentionally. Conversely, a rapidly rising current ratio can signal slowing sales causing inventory to build, or customers taking longer to pay. Always compare the trend against industry peers and cross-reference with the cash flow statement to assess whether the business is genuinely liquid or just holding non-cash current assets.
How much the market is paying for each dollar of company earnings
Western Union CO’s price‑to‑earnings ratio has declined markedly over the past year, falling from a high of 7.4× in early 2024 to 3.4× as of September 30, 2025. The most recent quarter shows a continued contraction, with the ratio decreasing to 3.1× in June 2025 before rebounding slightly to 3.8× in March 2025 and then settling at 3.4× by the end of September.
Most recent observed price‑to‑earnings ratio for Western Union CO: 3.4x
What Is the PE Ratio?
The Price-to-Earnings (PE) ratio is one of the most widely used valuation metrics in investing. It divides the current stock price by the company's earnings per share (EPS), revealing how much investors are willing to pay for each dollar of earnings. A high PE can signal that the market expects strong future growth, while a low PE may suggest undervaluation—or reflect genuine concerns about the company's prospects.
Context matters:PE ratios vary significantly across industries. High-growth technology companies routinely trade at PE ratios above 30x or 40x, while mature, low-growth sectors like utilities or financials often trade closer to 10–15x. Always compare a company's PE to its own history and its industry peers, not just an absolute number.
What to Look For:
Key Insight:The PE ratio is a snapshot of market sentiment and expectations. Tracking it over time alongside earnings trends reveals whether the market's valuation has expanded or contracted—and whether that change is justified by fundamentals.