WESCO INTERNATIONAL INC (WCC) Stock Fundamental Analysis
NYSE:WCC - New York Stock Exchange, Inc. - US95082P1057 - Common Stock - Currency: USD
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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year WCC was profitable.
In the past year WCC had a positive cash flow from operations.
In the past 5 years WCC has always been profitable.
In the past 5 years WCC always reported a positive cash flow from operatings.
1.2 Ratios
WCC has a Return On Assets (4.27%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 13.16%, WCC is in line with its industry, outperforming 55.10% of the companies in the same industry.
The Return On Invested Capital of WCC (8.32%) is better than 67.35% of its industry peers.
WCC had an Average Return On Invested Capital over the past 3 years of 9.61%. This is in line with the industry average of 9.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.27% | ||
| ROE | 13.16% | ||
| ROIC | 8.32% |
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
The Profit Margin of WCC (3.04%) is comparable to the rest of the industry.
WCC's Profit Margin has improved in the last couple of years.
WCC has a Operating Margin (5.73%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of WCC has grown nicely.
WCC's Gross Margin of 21.55% is on the low side compared to the rest of the industry. WCC is outperformed by 73.47% of its industry peers.
In the last couple of years the Gross Margin of WCC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.73% | ||
| PM (TTM) | 3.04% | ||
| GM | 21.55% |
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
WCC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for WCC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.00 indicates that WCC is not in any danger for bankruptcy at the moment.
WCC's Altman-Z score of 3.00 is in line compared to the rest of the industry. WCC outperforms 51.02% of its industry peers.
The Debt to FCF ratio of WCC is 17.90, which is on the high side as it means it would take WCC, 17.90 years of fcf income to pay off all of its debts.
WCC has a Debt to FCF ratio (17.90) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.02 is on the high side and indicates that WCC has dependencies on debt financing.
With a Debt to Equity ratio value of 1.02, WCC is not doing good in the industry: 65.31% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 17.9 | ||
| Altman-Z | 3 |
ROIC/WACC0.85
WACC9.82%
2.3 Liquidity
WCC has a Current Ratio of 2.15. This indicates that WCC is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of WCC (2.15) is comparable to the rest of the industry.
WCC has a Quick Ratio of 1.23. This is a normal value and indicates that WCC is financially healthy and should not expect problems in meeting its short term obligations.
WCC has a Quick ratio of 1.23. This is comparable to the rest of the industry: WCC outperforms 48.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The earnings per share for WCC have decreased by -7.53% 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 decrease in Revenue. The Revenue has decreased by -1.80% in the last year.
The Revenue has been growing by 21.15% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-7.53%
EPS 3Y7.07%
EPS 5Y18.6%
EPS Q2Q%-3.91%
Revenue 1Y (TTM)-1.8%
Revenue growth 3Y6.2%
Revenue growth 5Y21.15%
Sales Q2Q%-0.12%
3.2 Future
WCC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.04% yearly.
Based on estimates for the next years, WCC will show a small growth in Revenue. The Revenue will grow by 4.55% on average per year.
EPS Next Y8.42%
EPS Next 2Y13.74%
EPS Next 3Y15.05%
EPS Next 5Y8.04%
Revenue Next Year3.6%
Revenue Next 2Y3.93%
Revenue Next 3Y4.03%
Revenue Next 5Y4.55%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.61 indicates a correct valuation of WCC.
Compared to the rest of the industry, the Price/Earnings ratio of WCC indicates a rather cheap valuation: WCC is cheaper than 81.63% of the companies listed in the same industry.
WCC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.98, the valuation of WCC can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WCC indicates a somewhat cheap valuation: WCC is cheaper than 79.59% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of WCC to the average of the S&P500 Index (21.60), we can say WCC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.61 | ||
| Fwd PE | 11.98 |
4.2 Price Multiples
71.43% of the companies in the same industry are more expensive than WCC, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WCC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.14 | ||
| EV/EBITDA | 9.42 |
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.
WCC's earnings are expected to grow with 15.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.85
PEG (5Y)0.84
EPS Next 2Y13.74%
EPS Next 3Y15.05%
5. Dividend
5.1 Amount
WCC has a yearly dividend return of 0.98%, which is pretty low.
Compared to an average industry Dividend Yield of 3.00, WCC pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.98, WCC pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
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
21.14% of the earnings are spent on dividend by WCC. This is a low number and sustainable payout ratio.
DP21.14%
EPS Next 2Y13.74%
EPS Next 3Y15.05%
NYSE:WCC (7/1/2025, 3:24:59 PM)
189.84
+4.64 (+2.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners100.16%
Inst Owner Change2.35%
Ins Owners1.85%
Ins Owner Change2.37%
Market Cap9.26B
Analysts85
Price Target206.86 (8.97%)
Short Float %4.83%
Short Ratio3.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
Yearly Dividend2.79
Dividend Growth(5Y)N/A
DP21.14%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.37%
Min EPS beat(2)-5.55%
Max EPS beat(2)-3.19%
EPS beat(4)1
Avg EPS beat(4)-2.49%
Min EPS beat(4)-11.8%
Max EPS beat(4)10.59%
EPS beat(8)2
Avg EPS beat(8)-6.83%
EPS beat(12)6
Avg EPS beat(12)-3.06%
EPS beat(16)10
Avg EPS beat(16)5.69%
Revenue beat(2)2
Avg Revenue beat(2)0.62%
Min Revenue beat(2)0.54%
Max Revenue beat(2)0.69%
Revenue beat(4)3
Avg Revenue beat(4)0.54%
Min Revenue beat(4)-2.41%
Max Revenue beat(4)3.36%
Revenue beat(8)3
Avg Revenue beat(8)-0.78%
Revenue beat(12)6
Avg Revenue beat(12)-0.23%
Revenue beat(16)9
Avg Revenue beat(16)0.63%
PT rev (1m)-0.2%
PT rev (3m)-8.7%
EPS NQ rev (1m)-0.81%
EPS NQ rev (3m)-3.88%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)-2.67%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)2.85%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.61 | ||
| Fwd PE | 11.98 | ||
| P/S | 0.42 | ||
| P/FCF | 32.14 | ||
| P/OCF | 24.19 | ||
| P/B | 1.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.42 |
EPS(TTM)12.16
EY6.41%
EPS(NY)15.85
Fwd EY8.35%
FCF(TTM)5.91
FCFY3.11%
OCF(TTM)7.85
OCFY4.13%
SpS446.98
BVpS103.18
TBVpS-1.92
PEG (NY)1.85
PEG (5Y)0.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.27% | ||
| ROE | 13.16% | ||
| ROCE | 10.88% | ||
| ROIC | 8.32% | ||
| ROICexc | 8.84% | ||
| ROICexgc | 16.84% | ||
| OM | 5.73% | ||
| PM (TTM) | 3.04% | ||
| GM | 21.55% | ||
| FCFM | 1.32% |
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-Score6
Asset Turnover1.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 17.9 | ||
| Debt/EBITDA | 3.58 | ||
| Cap/Depr | 50.89% | ||
| Cap/Sales | 0.43% | ||
| Interest Coverage | 3.25 | ||
| Cash Conversion | 26.68% | ||
| Profit Quality | 43.49% | ||
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 3 |
F-Score6
WACC9.82%
ROIC/WACC0.85
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)-7.53%
EPS 3Y7.07%
EPS 5Y18.6%
EPS Q2Q%-3.91%
EPS Next Y8.42%
EPS Next 2Y13.74%
EPS Next 3Y15.05%
EPS Next 5Y8.04%
Revenue 1Y (TTM)-1.8%
Revenue growth 3Y6.2%
Revenue growth 5Y21.15%
Sales Q2Q%-0.12%
Revenue Next Year3.6%
Revenue Next 2Y3.93%
Revenue Next 3Y4.03%
Revenue Next 5Y4.55%
EBIT growth 1Y-10.12%
EBIT growth 3Y10.33%
EBIT growth 5Y29.86%
EBIT Next Year17.25%
EBIT Next 3Y11.21%
EBIT Next 5Y6.58%
FCF growth 1Y269.02%
FCF growth 3Y333.07%
FCF growth 5Y41.05%
OCF growth 1Y628.5%
OCF growth 3Y154.08%
OCF growth 5Y37.46%