WESCO INTERNATIONAL INC (WCC) Stock Fundamental Analysis
USA - NYSE:WCC - US95082P1057 - Common Stock
215.87 USD
+1.98 (+0.93%)
215.87 USD
0 (0%)
Taking everything into account, WCC scores 5 out of 10 in our fundamental rating. WCC was compared to 49 industry peers in the Trading Companies & Distributors industry. WCC has only an average score on both its financial health and profitability. WCC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
WCC had positive earnings in the past year.
In the past year WCC had a positive cash flow from operations.
In the past 5 years WCC has always been profitable.
WCC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.91%, WCC is in line with its industry, outperforming 55.10% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.32%, WCC is in the better half of the industry, outperforming 63.27% of the companies in the same industry.
WCC has a Return On Invested Capital of 7.99%. This is in the better half of the industry: WCC outperforms 61.22% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WCC is in line with the industry average of 10.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.91% | ||
| ROE | 13.32% | ||
| ROIC | 7.99% |
ROA(3y)4.84%
ROA(5y)3.67%
ROE(3y)15.12%
ROE(5y)11.65%
ROIC(3y)9.61%
ROIC(5y)8.15%
1.3 Margins
Looking at the Profit Margin, with a value of 2.85%, WCC is in line with its industry, outperforming 44.90% of the companies in the same industry.
WCC's Profit Margin has improved in the last couple of years.
WCC's Operating Margin of 5.54% is in line compared to the rest of the industry. WCC outperforms 42.86% of its industry peers.
WCC's Operating Margin has improved in the last couple of years.
WCC has a worse Gross Margin (21.34%) than 69.39% of its industry peers.
In the last couple of years the Gross Margin of WCC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.54% | ||
| PM (TTM) | 2.85% | ||
| GM | 21.34% |
OM growth 3Y3.9%
OM growth 5Y7.19%
PM growth 3Y10.55%
PM growth 5Y2.55%
GM growth 3Y1.24%
GM growth 5Y2.69%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WCC is destroying value.
Compared to 1 year ago, WCC has less shares outstanding
Compared to 5 years ago, WCC has more shares outstanding
Compared to 1 year ago, WCC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.98 indicates that WCC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.98, WCC perfoms like the industry average, outperforming 55.10% of the companies in the same industry.
WCC has a debt to FCF ratio of 9.16. This is a negative value and a sign of low solvency as WCC would need 9.16 years to pay back of all of its debts.
WCC has a Debt to FCF ratio (9.16) which is in line with its industry peers.
WCC has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
WCC has a worse Debt to Equity ratio (1.18) than 67.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 9.16 | ||
| Altman-Z | 2.98 |
ROIC/WACC0.83
WACC9.65%
2.3 Liquidity
WCC has a Current Ratio of 2.09. This indicates that WCC is financially healthy and has no problem in meeting its short term obligations.
WCC has a Current ratio (2.09) which is comparable to the rest of the industry.
A Quick Ratio of 1.19 indicates that WCC should not have too much problems paying its short term obligations.
WCC's Quick ratio of 1.19 is in line compared to the rest of the industry. WCC outperforms 48.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
The earnings per share for WCC have decreased by -2.45% in the last year.
Measured over the past years, WCC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.60% on average per year.
Looking at the last year, WCC shows a small growth in Revenue. The Revenue has grown by 1.30% in the last year.
Measured over the past years, WCC shows a very strong growth in Revenue. The Revenue has been growing by 21.15% on average per year.
EPS 1Y (TTM)-2.45%
EPS 3Y7.07%
EPS 5Y18.6%
EPS Q2Q%5.61%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y6.2%
Revenue growth 5Y21.15%
Sales Q2Q%7.66%
3.2 Future
Based on estimates for the next years, WCC will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.26% on average per year.
WCC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.10% yearly.
EPS Next Y8.72%
EPS Next 2Y15.06%
EPS Next 3Y14.88%
EPS Next 5Y8.26%
Revenue Next Year5.58%
Revenue Next 2Y5.27%
Revenue Next 3Y5.06%
Revenue Next 5Y5.1%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
WCC is valuated rather expensively with a Price/Earnings ratio of 17.49.
Compared to the rest of the industry, the Price/Earnings ratio of WCC indicates a somewhat cheap valuation: WCC is cheaper than 73.47% of the companies listed in the same industry.
WCC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
WCC is valuated correctly with a Price/Forward Earnings ratio of 13.31.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WCC indicates a somewhat cheap valuation: WCC is cheaper than 73.47% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.32, WCC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.49 | ||
| Fwd PE | 13.31 |
4.2 Price Multiples
WCC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WCC is cheaper than 65.31% of the companies in the same industry.
WCC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WCC is cheaper than 77.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.98 | ||
| EV/EBITDA | 10.92 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
WCC has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as WCC's earnings are expected to grow with 14.88% in the coming years.
PEG (NY)2.01
PEG (5Y)0.94
EPS Next 2Y15.06%
EPS Next 3Y14.88%
5. Dividend
5.1 Amount
WCC has a yearly dividend return of 0.85%, which is pretty low.
WCC's Dividend Yield is a higher than the industry average which is at 1.77.
Compared to an average S&P500 Dividend Yield of 2.44, WCC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
5.2 History
WCC has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
22.15% of the earnings are spent on dividend by WCC. This is a low number and sustainable payout ratio.
DP22.15%
EPS Next 2Y15.06%
EPS Next 3Y14.88%
215.87
+1.98 (+0.93%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners101.69%
Inst Owner Change-0.03%
Ins Owners1.77%
Ins Owner Change-0.43%
Market Cap10.50B
Analysts82.5
Price Target242.06 (12.13%)
Short Float %3.72%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
Yearly Dividend2.79
Dividend Growth(5Y)N/A
DP22.15%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.54%
Min EPS beat(2)-5.55%
Max EPS beat(2)0.47%
EPS beat(4)2
Avg EPS beat(4)0.58%
Min EPS beat(4)-5.55%
Max EPS beat(4)10.59%
EPS beat(8)3
Avg EPS beat(8)-4.59%
EPS beat(12)6
Avg EPS beat(12)-3.49%
EPS beat(16)10
Avg EPS beat(16)3.49%
Revenue beat(2)2
Avg Revenue beat(2)0.46%
Min Revenue beat(2)0.38%
Max Revenue beat(2)0.54%
Revenue beat(4)4
Avg Revenue beat(4)1.24%
Min Revenue beat(4)0.38%
Max Revenue beat(4)3.36%
Revenue beat(8)4
Avg Revenue beat(8)-0.22%
Revenue beat(12)6
Avg Revenue beat(12)-0.39%
Revenue beat(16)9
Avg Revenue beat(16)0.36%
PT rev (1m)2.11%
PT rev (3m)17.02%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-1.72%
EPS NY rev (1m)0.14%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)2.71%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.49 | ||
| Fwd PE | 13.31 | ||
| P/S | 0.47 | ||
| P/FCF | 16.98 | ||
| P/OCF | 14.7 | ||
| P/B | 2.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.92 |
EPS(TTM)12.34
EY5.72%
EPS(NY)16.22
Fwd EY7.51%
FCF(TTM)12.72
FCFY5.89%
OCF(TTM)14.68
OCFY6.8%
SpS456.89
BVpS97.87
TBVpS-8.31
PEG (NY)2.01
PEG (5Y)0.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.91% | ||
| ROE | 13.32% | ||
| ROCE | 10.46% | ||
| ROIC | 7.99% | ||
| ROICexc | 8.47% | ||
| ROICexgc | 15.85% | ||
| OM | 5.54% | ||
| PM (TTM) | 2.85% | ||
| GM | 21.34% | ||
| FCFM | 2.78% |
ROA(3y)4.84%
ROA(5y)3.67%
ROE(3y)15.12%
ROE(5y)11.65%
ROIC(3y)9.61%
ROIC(5y)8.15%
ROICexc(3y)10.13%
ROICexc(5y)8.54%
ROICexgc(3y)19.5%
ROICexgc(5y)17.57%
ROCE(3y)12.57%
ROCE(5y)10.66%
ROICexcg growth 3Y1.25%
ROICexcg growth 5Y3.88%
ROICexc growth 3Y5.99%
ROICexc growth 5Y6.02%
OM growth 3Y3.9%
OM growth 5Y7.19%
PM growth 3Y10.55%
PM growth 5Y2.55%
GM growth 3Y1.24%
GM growth 5Y2.69%
F-Score4
Asset Turnover1.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 9.16 | ||
| Debt/EBITDA | 3.97 | ||
| Cap/Depr | 50.82% | ||
| Cap/Sales | 0.43% | ||
| Interest Coverage | 3.65 | ||
| Cash Conversion | 50.34% | ||
| Profit Quality | 97.57% | ||
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 2.98 |
F-Score4
WACC9.65%
ROIC/WACC0.83
Cap/Depr(3y)52.71%
Cap/Depr(5y)46.47%
Cap/Sales(3y)0.44%
Cap/Sales(5y)0.41%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.45%
EPS 3Y7.07%
EPS 5Y18.6%
EPS Q2Q%5.61%
EPS Next Y8.72%
EPS Next 2Y15.06%
EPS Next 3Y14.88%
EPS Next 5Y8.26%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y6.2%
Revenue growth 5Y21.15%
Sales Q2Q%7.66%
Revenue Next Year5.58%
Revenue Next 2Y5.27%
Revenue Next 3Y5.06%
Revenue Next 5Y5.1%
EBIT growth 1Y-9.04%
EBIT growth 3Y10.33%
EBIT growth 5Y29.86%
EBIT Next Year16.49%
EBIT Next 3Y11.64%
EBIT Next 5Y7.14%
FCF growth 1Y132.9%
FCF growth 3Y333.07%
FCF growth 5Y41.05%
OCF growth 1Y89.14%
OCF growth 3Y154.08%
OCF growth 5Y37.46%