WESCO INTERNATIONAL INC (WCC) Stock Fundamental Analysis
NYSE:WCC - US95082P1057 - Common Stock
222.2 USD
+11.18 (+5.3%)
222.2 USD
0 (0%)
Overall WCC gets a fundamental rating of 5 out of 10. We evaluated WCC against 48 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 is not valued too expensively and it also shows a decent growth rate.
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
Looking at the Return On Assets, with a value of 3.91%, WCC is in line with its industry, outperforming 52.08% of the companies in the same industry.
WCC has a Return On Equity (13.32%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 7.99%, WCC is in line with its industry, outperforming 56.25% of the companies in the same industry.
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 9.78%.
| 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
The Profit Margin of WCC (2.85%) is comparable to the rest of the 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 43.75% 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 75.00% 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) just above the Cost of Capital (WACC), WCC is creating some value.
Compared to 1 year ago, WCC has less shares outstanding
The number of shares outstanding for WCC has been increased compared to 5 years ago.
WCC has a better debt/assets ratio than last year.
2.2 Solvency
WCC has an Altman-Z score of 2.97. This is not the best score and indicates that WCC is in the grey zone with still only limited risk for bankruptcy at the moment.
WCC has a Altman-Z score (2.97) which is in line with 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 58.33% of 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 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 9.16 | ||
| Altman-Z | 2.97 |
ROIC/WACC0.85
WACC9.37%
2.3 Liquidity
A Current Ratio of 2.09 indicates that WCC has no problem at all paying its short term obligations.
With a Current ratio value of 2.09, WCC perfoms like the industry average, outperforming 54.17% of the companies in the same industry.
A Quick Ratio of 1.19 indicates that WCC should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.19, WCC perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| 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.
WCC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.60% yearly.
WCC shows a small growth in Revenue. In the last year, the Revenue has grown by 1.30%.
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
The Earnings Per Share is expected to grow by 8.26% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.10% on average over the next years.
EPS Next Y8.42%
EPS Next 2Y13.74%
EPS Next 3Y15.05%
EPS Next 5Y8.26%
Revenue Next Year3.65%
Revenue Next 2Y4%
Revenue Next 3Y4.04%
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
The Price/Earnings ratio is 18.01, 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 72.92% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of WCC to the average of the S&P500 Index (27.24), we can say WCC is valued slightly cheaper.
WCC is valuated correctly with a Price/Forward Earnings ratio of 14.02.
Based on the Price/Forward Earnings ratio, WCC is valued a bit cheaper than 79.17% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.82. WCC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.01 | ||
| Fwd PE | 14.02 |
4.2 Price Multiples
WCC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WCC is cheaper than 62.50% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WCC is valued a bit cheaper than 77.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.52 | ||
| EV/EBITDA | 10.78 |
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's earnings are expected to grow with 15.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.14
PEG (5Y)0.97
EPS Next 2Y13.74%
EPS Next 3Y15.05%
5. Dividend
5.1 Amount
WCC has a yearly dividend return of 0.88%, which is pretty low.
WCC's Dividend Yield is a higher than the industry average which is at 1.75.
With a Dividend Yield of 0.88, WCC pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
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
WCC pays out 22.15% of its income as dividend. This is a sustainable payout ratio.
DP22.15%
EPS Next 2Y13.74%
EPS Next 3Y15.05%
222.2
+11.18 (+5.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners102.17%
Inst Owner Change0.7%
Ins Owners1.87%
Ins Owner Change1.6%
Market Cap10.84B
Analysts82.5
Price Target234.82 (5.68%)
Short Float %3.16%
Short Ratio2.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
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)13.52%
PT rev (3m)13.29%
EPS NQ rev (1m)-1.71%
EPS NQ rev (3m)-3.65%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.28%
Revenue NQ rev (1m)2.72%
Revenue NQ rev (3m)3.19%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.01 | ||
| Fwd PE | 14.02 | ||
| P/S | 0.49 | ||
| P/FCF | 17.52 | ||
| P/OCF | 15.18 | ||
| P/B | 2.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.78 |
EPS(TTM)12.34
EY5.55%
EPS(NY)15.85
Fwd EY7.13%
FCF(TTM)12.68
FCFY5.71%
OCF(TTM)14.64
OCFY6.59%
SpS455.58
BVpS97.59
TBVpS-8.29
PEG (NY)2.14
PEG (5Y)0.97
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 | 2.97 |
F-Score4
WACC9.37%
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)-2.45%
EPS 3Y7.07%
EPS 5Y18.6%
EPS Q2Q%5.61%
EPS Next Y8.42%
EPS Next 2Y13.74%
EPS Next 3Y15.05%
EPS Next 5Y8.26%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y6.2%
Revenue growth 5Y21.15%
Sales Q2Q%7.66%
Revenue Next Year3.65%
Revenue Next 2Y4%
Revenue Next 3Y4.04%
Revenue Next 5Y5.1%
EBIT growth 1Y-9.04%
EBIT growth 3Y10.33%
EBIT growth 5Y29.86%
EBIT Next Year16.64%
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%