WAGE - WageWorks: Growth Has Stalled Vote In Favor Of The Takeover
WageWorks, Inc. (NASDAQ:WAGE) provides Consumer-Directed Benefits and Health Savings Accounts. HealthEquity has made a takeover offer and due to the expected subdued growth outlook and high P/E multiple of WageWorks, I would vote in favor of the deal.
Financials
WageWorks is a profitable company operating with reasonable margins. Since listing in 2012, the company's profits margins and return on equity have both averaged around 7%. The company's debt levels are well managed with its total liabilities representing 60% of its total asset value. The company's working capital is adequate with a current ratio