Morningstar Rating

Stock Research and Analysis

by Brett Horn

Bulls Say

Money transfers sent by immigrants back to their home countries typically are not discretionary but cover the subsistence needs of their families. For instance, money transfers sent to the Philippines equal 12% of that country's GDP.
In our opinion, MoneyGram has been the primary beneficiary of Western Union's recent issues.
MoneyGram has built an impressive agent network, exceeded only by Western Union. Read more 

Bears Say

Losing Wal-Mart's domestic money transfer business will not only pressure MoneyGram's near-term results, but also lower its scale advantage.
Alternative channels for sending money, such as cell phones, could cut out money transfer companies like MoneyGram.
MoneyGram revenue per agent location is about half of the level generated by Western Union, suggesting its network is of lower quality. Read more 

Management

Following heavy investment losses during the financial crisis and a recapitalization, Thomas H. Lee Partners took a controlling interest and put its own management team in place. Former COO Anthony Ryan took over the CEO role in January 2009 but was   Read more 

Profile

MoneyGram International provides domestic and international money transfers through its global network of more than 300,000 outside agents. It is the second-largest money-transfer   Read more 

3 Banking Takeaways From the Quarter 
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