WESCO INTERNATIONAL INC (WCC) Stock Fundamental Analysis
USA - NYSE:WCC - US95082P1057 - Common Stock
225.54 USD
+5.87 (+2.67%)
225.54 USD
0 (0%)
Overall WCC gets a fundamental rating of 5 out of 10. We evaluated WCC against 50 industry peers in the Trading Companies & Distributors industry. Both the profitability and the financial health of WCC get a neutral evaluation. Nothing too spectacular is happening here. 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.
In the past 5 years WCC always reported a positive cash flow from operatings.
1.2 Ratios
WCC has a Return On Assets (3.91%) which is in line with its industry peers.
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.
The Return On Invested Capital of WCC (7.99%) is better than 61.22% 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 10.20%.
| 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
WCC has a Profit Margin (2.85%) which is in line with its industry peers.
In the last couple of years the Profit Margin of WCC has grown nicely.
The Operating Margin of WCC (5.54%) is comparable to the rest of the industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WCC is still creating some value.
Compared to 1 year ago, WCC has less shares outstanding
Compared to 5 years ago, WCC has more shares outstanding
The debt/assets ratio for WCC has been reduced compared to a year ago.
2.2 Solvency
WCC has an Altman-Z score of 3.00. This indicates that WCC is financially healthy and has little risk of bankruptcy at the moment.
WCC has a Altman-Z score of 3.00. This is comparable to the rest of the industry: WCC outperforms 55.10% of its industry peers.
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's Debt to FCF ratio of 9.16 is in line compared to the rest of the industry. WCC outperforms 59.18% of its industry peers.
A Debt/Equity ratio of 1.18 is on the high side and indicates that WCC has dependencies on debt financing.
WCC's Debt to Equity ratio of 1.18 is on the low side compared to the rest of the industry. WCC is outperformed by 67.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 9.16 | ||
| Altman-Z | 3 |
ROIC/WACC0.87
WACC9.19%
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 of 2.09. This is comparable to the rest of the industry: WCC outperforms 53.06% of its industry peers.
WCC has a Quick Ratio of 1.19. This is a normal value and indicates that WCC is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.19, WCC perfoms like the industry average, outperforming 48.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
WCC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.45%.
The Earnings Per Share has been growing by 18.60% on average over the past years. This is quite good.
Looking at the last year, WCC shows a small growth in Revenue. The Revenue has grown by 1.30% 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)-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
WCC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.26% yearly.
Based on estimates for the next years, WCC will show a small growth in Revenue. The Revenue will grow by 5.10% on average per year.
EPS Next Y9.22%
EPS Next 2Y15.35%
EPS Next 3Y14.85%
EPS Next 5Y8.26%
Revenue Next Year5.78%
Revenue Next 2Y5.44%
Revenue Next 3Y5.26%
Revenue Next 5Y5.1%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 18.28, which indicates a rather expensive current valuation of WCC.
Based on the Price/Earnings ratio, WCC is valued a bit cheaper than the industry average as 73.47% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.89, WCC is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.84 indicates a correct valuation of WCC.
WCC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WCC is cheaper than 77.55% of the companies in the same industry.
WCC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.28 | ||
| Fwd PE | 13.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WCC is valued a bit cheaper than 65.31% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WCC is valued a bit cheaper than 77.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.74 | ||
| EV/EBITDA | 11.26 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WCC does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of WCC may justify a higher PE ratio.
A more expensive valuation may be justified as WCC's earnings are expected to grow with 14.85% in the coming years.
PEG (NY)1.98
PEG (5Y)0.98
EPS Next 2Y15.35%
EPS Next 3Y14.85%
5. Dividend
5.1 Amount
With a yearly dividend of 0.83%, WCC is not a good candidate for dividend investing.
WCC's Dividend Yield is a higher than the industry average which is at 1.85.
Compared to an average S&P500 Dividend Yield of 2.31, WCC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
5.2 History
WCC has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
WCC pays out 22.15% of its income as dividend. This is a sustainable payout ratio.
DP22.15%
EPS Next 2Y15.35%
EPS Next 3Y14.85%
225.54
+5.87 (+2.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners101.69%
Inst Owner Change-0.44%
Ins Owners1.77%
Ins Owner Change-0.43%
Market Cap10.97B
Revenue(TTM)22.23B
Net Income(TTM)634.20M
Analysts82.5
Price Target242.06 (7.32%)
Short Float %3.86%
Short Ratio3.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
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)0%
PT rev (3m)14.86%
EPS NQ rev (1m)0.81%
EPS NQ rev (3m)-1.41%
EPS NY rev (1m)0.46%
EPS NY rev (3m)0.74%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)2.65%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)2.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.28 | ||
| Fwd PE | 13.84 | ||
| P/S | 0.49 | ||
| P/FCF | 17.74 | ||
| P/OCF | 15.36 | ||
| P/B | 2.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.26 |
EPS(TTM)12.34
EY5.47%
EPS(NY)16.3
Fwd EY7.23%
FCF(TTM)12.72
FCFY5.64%
OCF(TTM)14.68
OCFY6.51%
SpS456.89
BVpS97.87
TBVpS-8.31
PEG (NY)1.98
PEG (5Y)0.98
Graham Number164.84
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%
ROICexgc growth 3Y1.25%
ROICexgc 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 | 3 |
F-Score4
WACC9.19%
ROIC/WACC0.87
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 Y9.22%
EPS Next 2Y15.35%
EPS Next 3Y14.85%
EPS Next 5Y8.26%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y6.2%
Revenue growth 5Y21.15%
Sales Q2Q%7.66%
Revenue Next Year5.78%
Revenue Next 2Y5.44%
Revenue Next 3Y5.26%
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%
WESCO INTERNATIONAL INC / WCC FAQ
Can you provide the ChartMill fundamental rating for WESCO INTERNATIONAL INC?
ChartMill assigns a fundamental rating of 5 / 10 to WCC.
What is the valuation status for WCC stock?
ChartMill assigns a valuation rating of 5 / 10 to WESCO INTERNATIONAL INC (WCC). This can be considered as Fairly Valued.
Can you provide the profitability details for WESCO INTERNATIONAL INC?
WESCO INTERNATIONAL INC (WCC) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for WCC stock?
The Price/Earnings (PE) ratio for WESCO INTERNATIONAL INC (WCC) is 18.28 and the Price/Book (PB) ratio is 2.3.
How sustainable is the dividend of WESCO INTERNATIONAL INC (WCC) stock?
The dividend rating of WESCO INTERNATIONAL INC (WCC) is 3 / 10 and the dividend payout ratio is 22.15%.