WESCO INTERNATIONAL INC (WCC)
US95082P1057 - Common Stock
WCC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 51 industry peers in the Trading Companies & Distributors industry. WCC has an average financial health and profitability rating. WCC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year WCC was profitable.
WCC had a positive operating cash flow in the past year.
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
With a Return On Assets value of 4.03%, WCC perfoms like the industry average, outperforming 43.14% of the companies in the same industry.
WCC has a Return On Equity (12.59%) which is comparable to the rest of the industry.
The Return On Invested Capital of WCC (9.21%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for WCC is below the industry average of 11.48%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.03% | ||
| ROE | 12.59% | ||
| ROIC | 9.21% |
ROA(3y)4.45%
ROA(5y)3.68%
ROE(3y)14.29%
ROE(5y)10.96%
ROIC(3y)9.26%
ROIC(5y)7.75%
1.3 Margins
With a Profit Margin value of 2.82%, WCC is not doing good in the industry: 64.71% of the companies in the same industry are doing better.
WCC's Profit Margin has improved in the last couple of years.
WCC has a Operating Margin of 6.23%. This is in the lower half of the industry: WCC underperforms 60.78% of its industry peers.
WCC's Operating Margin has improved in the last couple of years.
WCC has a worse Gross Margin (21.49%) than 74.51% of its industry peers.
In the last couple of years the Gross Margin of WCC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.23% | ||
| PM (TTM) | 2.82% | ||
| GM | 21.49% |
OM growth 3Y17.41%
OM growth 5Y8.94%
PM growth 3Y77.26%
PM growth 5Y2.65%
GM growth 3Y4.64%
GM growth 5Y2.46%
2. Health
2.1 Basic Checks
WCC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for WCC has been increased compared to 1 year ago.
WCC has more shares outstanding than it did 5 years ago.
WCC has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of WCC is 3.72, which is a good value as it means it would take WCC, 3.72 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.72, WCC is doing good in the industry, outperforming 60.78% of the companies in the same industry.
A Debt/Equity ratio of 1.04 is on the high side and indicates that WCC has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.04, WCC is doing worse than 60.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 3.72 | ||
| Altman-Z | N/A |
ROIC/WACC1.01
WACC9.12%
2.3 Liquidity
WCC has a Current Ratio of 2.21. This indicates that WCC is financially healthy and has no problem in meeting its short term obligations.
WCC has a Current ratio (2.21) which is in line with its industry peers.
WCC has a Quick Ratio of 1.33. This is a normal value and indicates that WCC is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of WCC (1.33) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The earnings per share for WCC have decreased strongly by -20.59% in the last year.
WCC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.81% yearly.
Looking at the last year, WCC shows a small growth in Revenue. The Revenue has grown by 0.92% in the last year.
The Revenue has been growing by 22.31% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-20.59%
EPS 3Y41.53%
EPS 5Y24.81%
EPS growth Q2Q-38.67%
Revenue 1Y (TTM)0.92%
Revenue growth 3Y22.01%
Revenue growth 5Y22.31%
Revenue growth Q2Q-3.11%
3.2 Future
Based on estimates for the next years, WCC will show a small growth in Earnings Per Share. The EPS will grow by 4.98% on average per year.
WCC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.30% yearly.
EPS Next Y-0.13%
EPS Next 2Y7.41%
EPS Next 3Y6.57%
EPS Next 5Y4.98%
Revenue Next Year0.94%
Revenue Next 2Y2.51%
Revenue Next 3Y2.78%
Revenue Next 5Y3.3%
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 14.07, which indicates a correct valuation of WCC.
WCC's Price/Earnings ratio is a bit cheaper when compared to the industry. WCC is cheaper than 64.71% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.15, WCC is valued rather cheaply.
WCC is valuated reasonably with a Price/Forward Earnings ratio of 10.99.
Based on the Price/Forward Earnings ratio, WCC is valued a bit cheaper than the industry average as 70.59% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.20, WCC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.07 | ||
| Fwd PE | 10.99 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WCC indicates a somewhat cheap valuation: WCC is cheaper than 66.67% of the companies listed in the same industry.
94.12% of the companies in the same industry are more expensive than WCC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.74 | ||
| EV/EBITDA | 8.69 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.57
EPS Next 2Y7.41%
EPS Next 3Y6.57%
5. Dividend
5.1 Amount
With a yearly dividend of 0.85%, WCC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.72, WCC has a dividend in line with its industry peers.
With a Dividend Yield of 0.85, WCC pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
5.2 History
WCC does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
WCC pays out 21.65% of its income as dividend. This is a sustainable payout ratio.
DP21.65%
EPS Next 2Y7.41%
EPS Next 3Y6.57%
WESCO INTERNATIONAL INC
NYSE:WCC (5/17/2024, 7:04:00 PM)
After market: 185.05 0 (0%)185.05
+3.12 (+1.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.40B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.07 | ||
| Fwd PE | 10.99 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.03% | ||
| ROE | 12.59% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.23% | ||
| PM (TTM) | 2.82% | ||
| GM | 21.49% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-20.59%
EPS 3Y41.53%
EPS 5Y
EPS growth Q2Q
EPS Next Y-0.13%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.92%
Revenue growth 3Y22.01%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y