Stock fact sheet · data as of
WEX Inc. (WEX): fair value, margin of safety and Wheel Score
Technology · Software - Infrastructure · United States · Value
Is WEX undervalued?
WEX Inc. (WEX) closed at 174.59 on 16 Oct 2026, 12% above the GLS average fair value of 155.54. Only 2 of the 8 models that produced a number value the shares above the current price. The margin of safety is negative, so the stock fails the "below fair value" rule of the Sunday Scan; a premium of this size is common for companies whose growth the models are conservative about.
The 8 models disagree widely: Payback Time gives 69.31 while DCF gives 402.84. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files WEX under Value: positive earnings at a P/E of 18 or less.
Nine valuation models for WEX
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 402.84 | +131% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 93.88 | -46% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 244.66 | +40% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 82.15 | -53% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 72.28 | -59% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 166.89 | -4% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 69.31 | -60% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 112.33 | -36% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -101.29 | -158% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 190.57 | +9% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - WEX passes 5 of the nine Piotroski tests, which falls one point short of the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 5.8 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are thin or negative - ROIC 5.0%, ROE 24.6%, ROA 2.1% - with debt at 3.94 times equity and a free-cash-flow yield of 1.8%. Debt of 3.94 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
WEX Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Payment Processing Revenue 46%, Account Servicing Revenue 24%, Product and Service, Other 17% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 3/10 and Congressional trading 5/10 on the GLS smart-money scales; the last recorded insider buy was on 14 Sep 2026.
| Piotroski F-score | 5 / 9 | ROIC | 5.0% |
|---|---|---|---|
| GLS Moat | 5.8 / 10 | ROE | 24.6% |
| Debt / equity | 3.94 | ROA | 2.1% |
| Free-cash-flow yield | 1.8% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 3 · 5 / 10 |
Wheel Score 63: Fair
WEX scores 63 out of 100 on the Wheel Score (Fair band, 50-64): a usable but unremarkable fit for the wheel strategy. The parts: Value 7/25, Health 11/20, Moat 9/15, Premium 20/20, Stability 16/20. Value (7/25) is where the points are missing.
Implied volatility is 46% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 2,381 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 571k shares a day on a market cap of $6.0B, with a beta of 0.84; the Stability part of the Wheel Score gives that 16 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 7 / 25 | -12% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 9 / 15 | moat 5.8/10 | |
| Premium | 20 / 20 | implied volatility 46% | |
| Stability | 16 / 20 | 571k shares/day, $6.0B cap, beta 0.84 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
WEX Inc. reports earnings on 28 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Software - Infrastructure
The 12 companies below are the closest to WEX Inc. by market cap within the Software - Infrastructure industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| MBGL Mobility Global Inc | 18.72 | 8.46 | -121% | 45Weak | $5.5B |
| DOX Amdocs Limited | 60.68 | 78.72 | +23% | 82Prime | $6.5B |
| BOX Box, Inc. | 39.48 | 34.36 | -15% | 71Good | $5.4B |
| VRNS Varonis Systems, Inc. | 47.06 | 21.28 | -121% | 45Weak | $5.4B |
| QLYS Qualys, Inc. | 189.63 | 172.61 | -10% | 74Good | $6.6B |
| ACIW ACI Worldwide, Inc. | 52.55 | 68.94 | +24% | 89Prime | $5.3B |
| ZVLO zvelo, Inc. | 252.00 | - | - | 36No options | $6.7B |
| BB BlackBerry Limited | 8.70 | 3.04 | -186% | 59Fair | $5.1B |
| PATH UiPath Inc. | 13.06 | 19.08 | +32% | 88Prime | $6.9B |
| RELY Remitly Global, Inc. | 23.49 | 45.35 | +48% | 80Prime | $5.0B |
| CORZ Core Scientific, Inc. | 14.46 | - | - | 45Weak | $4.6B |
| S SentinelOne, Inc. | 22.82 | 17.05 | -34% | 45Weak | $7.8B |
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Start free See the Sunday ScanQuestions about WEX
Is WEX undervalued right now?
No: at 174.59 the stock trades 12% above the GLS average fair value of 155.54 (data as of 16 Oct 2026). The margin of safety is negative.
What is the Wheel Score of WEX and what does it mean?
WEX scores 63 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for WEX?
155.54 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does WEX Inc. report earnings next?
The next earnings report is due on 28 Oct 2026 (after the close), 12 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does WEX have listed options, and how liquid are they?
Yes. The nightly snapshot found 364 listed contracts with 2,381 open interest across all expiries and implied volatility of 46% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.