Wex Inc. (NYSE: WEX) has announced an amendment to its share repurchase program, authorizing the repurchase of up to an additional $400 million worth of the company's common stock, expanding the total authorization to $1.05 billion. The share repurchase program, initially announced in August 2022 and amended in October 2022, previously allowed for the repurchase of up to $650 million through December 31, 2025. This amendment increases the repurchase authorization to $1.05 billion through the same period.
As of today, Wex has repurchased approximately $478 million of its common stock under the program, including about $41.5 million in 2024, representing 2.8 million shares since the inception of the program. Consequently, the company has approximately $572 million of capacity remaining under the repurchase authorization, as amended.
Melissa Smith, Wex's Chair, CEO, and President, commented on the decision, saying, "We remain focused on driving sustainable cash generation to power our strategic growth investments and maintain our solid balance sheet, all while returning capital to shareholders. Our board and management team continue to view share repurchases as an important part of our capital allocation strategy, and believe expanding the authorization of this program to over $1 billion reflects our commitment to driving long-term value for our shareholders."
The company's shares have moved 2.7%, and are now trading at a price of $221.56.
Under the amended program, repurchases may be made on a discretionary basis from time to time through open market purchases, privately negotiated transactions, accelerated share repurchase programs, or other derivative transactions, among other methods.
Wex (NYSE: WEX) is a global commerce platform that simplifies the business of running a business, offering embedded, personalized solutions for its customers worldwide, with a focus on overcoming complexity and reaching their full potential.
The company's full 8-K submission is available here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $1,493 | $1,724 | $1,560 | $1,851 | $2,351 | $2,503 |
| Operating Margins | 26% | 22% | -6% | 18% | 20% | 26% |
| Net Margins | 11% | 9% | -18% | 7% | 7% | 11% |
| Net Income (M) | $170 | $156 | -$284 | $135 | $167 | $270 |
| Net Interest Expense (M) | $38 | $42 | $157 | $128 | $131 | $131 |
| Depreciation & Amort. (M) | $200 | $142 | $157 | $160 | $158 | $165 |
| Diluted Shares (M) | 44 | 44 | 44 | 45 | 45 | 43 |
| Earnings Per Share | $3.86 | $2.26 | -$5.56 | $2.99 | $4.5 | $6.21 |
| EPS Growth | n/a | -41.45% | -346.02% | 153.78% | 50.5% | 38.0% |
| Avg. Price | $170.43 | $194.75 | $162.12 | $187.45 | $163.2 | $215.77 |
| P/E Ratio | 43.7 | 85.04 | -29.16 | 61.26 | 35.95 | 34.36 |
| Free Cash Flow (M) | $313 | $560 | $656 | -$129 | $567 | $580 |
| EV / EBITDA | 15.75 | 19.92 | 140.14 | 21.34 | 14.52 | 11.51 |
| Total Debt (M) | $2,350 | $2,935 | $3,027 | $3,030 | $2,725 | $957 |
| Net Debt / EBITDA | 3.12 | 4.02 | 33.12 | 4.86 | 2.87 | -0.0 |
| Current Ratio | 1.47 | 1.26 | 1.28 | 1.2 | 1.08 | 1.03 |
