MeritValue

WEX Inc.

WEXdata completeness 100%18 fiscal years on file
The thesis, from the filings

WEX Inc. earns about 5% on invested capital, and has bought back 21% of its shares over 5 years. The applicable estimate puts fair value near $76.96 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$1.35B1$1.69B2$1.84B3$1.87B3$1.85B3
Net income$135.3M4$167.2M5$266.6M6$309.6M6$304.1M6
Operating cash flow−$42.6M7$679.4M8$907.9M9$481.4M9$454.3M9
Capital expenditure$86M10$112.9M11$143.6M12$147.3M12$140.6M12
Free cash flow (derived)−$128.6M7$566.5M8$764.3M9$334.1M9$313.7M9
Total debt$3.01B13$2.98B14$4.96B15$5.72B16$6.24B16
Cash & equivalents$588.9M17$922M17$975.8M18$595.8M19$905.8M19
Diluted shares45.3M44.7M43.3M41.3M35.9M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$343.87
your share of equity
Profit it earned you last year
$84.71
Free cash flow it threw off
$87.38
Debt you’d be carrying
$1,738.02

10 shares is a claim on $343.87 of net worth that earned you $84.71 and generated $87.38 of cash last year, against $1,738.02 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
5% avg · 5y
FY21 5%FY22 7%FY23 5%FY24 5%FY25 5%

It earned an average 5% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−21% shares · 5y

Share count is down 21% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has risen 108% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
negative equity value — refusing to publish per-share figure
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$334.1M
DCF · Growth Exit 5Y
not applicable
negative equity value — refusing to publish per-share figure
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$334.1M
Earnings Power Value
$76.96
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$266.6M
  • growthAssumed0.0%
Graham Number
$80.95
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001309108-24-000033 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001309108-25-000017 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001309108-26-000010 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001309108-24-000033 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001309108-25-000017 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001309108-26-000010 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001309108-24-000033 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001309108-25-000017 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001309108-26-000010 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001309108-24-000033 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001309108-25-000017 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001309108-26-000010 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0001309108-23-000022 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2022-12-31 · accession 0001309108-24-000033 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2023-12-31 · accession 0001309108-25-000017 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2024-12-31 · accession 0001309108-26-000010 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2021-12-31 · accession 0001309108-24-000033 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2023-12-31 · accession 0001309108-25-000017 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2024-12-31 · accession 0001309108-26-000010 (CashAndCashEquivalentsAtCarryingValue)