Josh Arnold
Long/short equity

WEX Inc.: Best Of Breed Payment Solutions Provider But At A Premium Price

Overview and Thesis

WEX Inc. (NYSEMKT:WEX) provides payment solutions to various customers all over the world. It operates under two segments: Fleet Payments, which offers payment processing, account servicing and transaction processing to government and corporate clients, and Other Payments, which provides payment processing and transaction monitoring including single use accounts and prepaid cards. This segment primarily serves small and medium sized businesses as well as some government organizations. Shares are up modestly in the past year but since 2009, shares have risen roughly 800% on strong operating results and strategic acquisitions. The company's Other Payment segment is growing at a blistering pace but it is too small to carry the mid-to-low single-digit growth of the Fleet business....

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