WEXWEX Inc.
Is the business good?
The checks split: margins widening, but thin cash backing (0.5×) and returns that lean on debt.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit outpaces operating cash flow, watch accruals and working capital. Conversion is worsening vs a year ago.
Profits are tracking sales roughly one-for-one, limited operating leverage either way.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 25% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is WEX?
WEX Inc. earns 86% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 77 points above what the capital costs: growth creates value
- Operating margin
- 25%
Operating margin · Software - Infrastructure median 5.8% · 12 months to Q2 2026
- Cash conversion
- 0.51×
Cash conversion · 0.86× a year ago · the operating profit has not turned into cash yet
- Share count, year on year
- +1.5%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | −5.9% |
| FY2021 | 18% |
| FY2022 | 20% |
| FY2023 | 25% |
| FY2024 | 26% |
| FY2025 | 25% |
Details›
- Gross margin12 months to Q2 2026
- 60%
- Operating margin12 months to Q2 2026
- 25%
- Net margin12 months to Q2 2026
- 13%
- Free cash flow margin
- 3.2%
- Revenue, trailing twelve months
- $2.79B
- Free cash flow, trailing twelve months
- $88M
- Net income, trailing twelve months
- $351M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 86%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Software, Infrastructure
Ranks #8 of 80 by RyuScore