Is the business good?
How good a business is WEX?
WEX Inc. earns 45% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
45%
Return on invested capital · cost of capital 9.0% · 36 points above what the capital costs: growth creates value
- Operating margin
- 25%
Operating margin · Software - Infrastructure median 6.1% · 12 months to Q1 2026
- Cash conversion
- 1.42×
Cash conversion · 0.02× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −11%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −5.9% |
| FY2021 | 18% |
| FY2022 | 20% |
| FY2023 | 25% |
| FY2024 | 26% |
| FY2025 | 25% |
Details›
- Gross margin12 months to Q1 2026
- 59%
- Operating margin12 months to Q1 2026
- 25%
- Net margin12 months to Q1 2026
- 12%
- Free cash flow margin
- 16%
- Revenue, trailing twelve months
- $2.70B
- Free cash flow, trailing twelve months
- $439M
- Net income, trailing twelve months
- $310M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 45%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Software - Infrastructure
Ranks #20 of 78 by Smart Score