The 3 Most Undervalued Fintech Stocks to Buy in February 2023
WEX (WEX)
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WEX (SNEEZE:WEX) like to say that it is “the global trading platform that simplifies the business of running a business.” It offers fleet cards, fuel management, B2B payments, benefit management and much more solutions through its robust platform. The company’s growth strategy revolves around winning new customers, increasing existing customers’ use of the products and services, adding to the offers, expanding geographically and making strategic acquisitions.
In late November, Wex announced that it had launched The WEX Motorpass Driver app in Australia. The app allows fleet vehicle drivers and employees in construction, retail, manufacturing and other industries to find the best available fuel prices near them in real time.
“The WEX Motorpass Driver App ensures that these businesses, and their drivers, can always find the most cost-effective rate available. The revenue saved can be used by business owners for multiple purposes, including investment for growth or back into the business,” the company’s press release said on the 28th. November.
So although fleet cards are a large part of the operating segment for fleet solutions, the products and services go far beyond a credit card.
More than 80% of the company’s revenue is recurring. In the first nine months of 2022, despite $136.5 million in impairment charges, its adjusted operating income was 697 million dollars44% higher than in 2021.
Trading at just 16.2x after 12 months free cash flow on 508 million dollars and 3.85 times salesthe share is more than reasonably priced for a long-term purchase.
