The market hates Western Union (ticker WU). It’s old tech. Very old. It’s not AI, not crypto, not exciting or sexy. They move money around. Who cares?
Worse: It does not have growing sales, which is the only metric Wall Street really cares about.
But strip away the narrative and look at the math. Western Union announced 4Q earnings today. In the last year, WU generated roughly $400 million in free cash flow against about a $3.1 billion market cap. That’s a ~13% free cash flow yield. That’s a real cash engine.
They paid down some debt and repurchased shares. In fact, shares outstanding are down about 6% y/y and the current dividend yield is 9+ percent.
While the market chases stories, Western Union is quietly generating cash, shrinking the share count, and paying owners to wait. Boring doesn’t trend — but it can be very profitable.
Devotion To Intrinsic Value
Disclosure: Our clients own WU shares.
