On the plus side, Western Union is generating a huge amount of income for its size ($910 million of net income in 2022 with a P/E ratio of 4.7). It has a net profit margin of 20% and the company is returning a bunch of cash to share holders with an 8.5% dividend and roughly $300 million per year in share buybacks. At first look, if you hold the stock for 5-10 years, you'll make your money back.
On the negative side, there aren't any real prospects for growth. There are a bunch of competitors potentially coming into the international wire transfer space (from peer to peer payment apps and possibly crypto) that could destroy the business. The company also has $2.6 billion in debt (roughly 3x earning) and roughly 11% of its net income goes to interest payments.
Is this a decent buy at $11? Am I missing any massive red flags here?
Per the rules, I guess I need to disclose that I own 1 share...
[link] [comments] https://www.reddit.com/r/stocks/comments/12gqp7t/is_western_union_a_decent_buy/
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