Morningstar Rating

Stock Research and Analysis

by Brett Horn

Bulls Say

The demographic factor that has driven industry growth--namely, the differential between population growth in developing and developed countries--remains in place for the foreseeable future.
Western Union didn't see a major drop-off during the recession, highlighting the stability of the business.
While the motives for immigrants to relocate to wealthier countries are well understood, developed countries also have incentive to open their borders, as negligible native population growth makes immigration a necessity for GDP growth. Read more 

Bears Say

A weak global economy could limit immigrants' employment opportunities and damp money transfer volume, and conditions in Europe are a headwind.
Alternative channels for sending money, such as cell phones, could cut out money transfer companies like Western Union.
Higher compliance costs will be a headwind in 2014, and it's possible the situation could worsen as the regulatory environment shifts. Read more 

Management

Christina Gold headed the company from 2002 until 2010, when she was replaced by Hikmet Ersek, previously the COO. Given that Ersek has been with Western Union since 1999, we foresaw no major strategic shifts at the time of his ascension, and that notion   Read more 

Profile

Western Union provides domestic and international money transfers through its global network of more than 500,000 outside agents. It is the largest money transfer company   Read more 

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