WESCO INTERNATIONAL INC (WCC) Stock Fundamental Analysis
USA - NYSE:WCC - US95082P1057 - Common Stock
259.53 USD
+7.26 (+2.88%)
259.53 USD
0 (0%)
Taking everything into account, WCC scores 5 out of 10 in our fundamental rating. WCC was compared to 51 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
In the past year WCC was profitable.
WCC had a positive operating cash flow in the past year.
Each year in the past 5 years WCC has been profitable.
Each year in the past 5 years WCC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.91%, WCC is in line with its industry, outperforming 52.94% of the companies in the same industry.
WCC has a Return On Equity of 13.32%. This is in the better half of the industry: WCC outperforms 62.75% of its industry peers.
The Return On Invested Capital of WCC (7.99%) is better than 60.78% 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 10.21%.
| 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.
With a Operating Margin value of 5.54%, WCC perfoms like the industry average, outperforming 43.14% of the companies in the same industry.
In the last couple of years the Operating Margin of WCC has grown nicely.
Looking at the Gross Margin, with a value of 21.34%, WCC is doing worse than 68.63% of the companies in the same industry.
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.
The debt/assets ratio for WCC has been reduced compared to a year ago.
2.2 Solvency
WCC has an Altman-Z score of 3.09. This indicates that WCC is financially healthy and has little risk of bankruptcy at the moment.
WCC has a Altman-Z score of 3.09. This is comparable to the rest of the industry: WCC outperforms 58.82% 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.
Looking at the Debt to FCF ratio, with a value of 9.16, WCC is in line with its industry, outperforming 58.82% of the companies in the same industry.
A Debt/Equity ratio of 1.18 is on the high side and indicates that WCC has dependencies on debt financing.
With a Debt to Equity ratio value of 1.18, WCC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 9.16 | ||
| Altman-Z | 3.09 |
ROIC/WACC0.86
WACC9.3%
2.3 Liquidity
A Current Ratio of 2.09 indicates that WCC has no problem at all paying its short term obligations.
WCC has a Current ratio (2.09) which is in line with its industry peers.
A Quick Ratio of 1.19 indicates that WCC should not have too much problems paying its short term obligations.
WCC has a Quick ratio of 1.19. This is comparable to the rest of the industry: WCC outperforms 49.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
WCC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.01%, which is quite good.
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 decrease in Revenue. The Revenue has decreased by -2.53% 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)8.01%
EPS 3Y7.07%
EPS 5Y18.6%
EPS Q2Q%9.5%
Revenue 1Y (TTM)-2.53%
Revenue growth 3Y6.2%
Revenue growth 5Y21.15%
Sales Q2Q%12.93%
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.
The Revenue is expected to grow by 5.10% on average over the next years.
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
Based on the Price/Earnings ratio of 20.47, the valuation of WCC can be described as rather expensive.
62.75% of the companies in the same industry are more expensive than WCC, based on the Price/Earnings ratio.
WCC is valuated rather cheaply when we compare the Price/Earnings ratio to 26.11, which is the current average of the S&P500 Index.
WCC is valuated correctly with a Price/Forward Earnings ratio of 15.92.
Based on the Price/Forward Earnings ratio, WCC is valued a bit cheaper than 64.71% of the companies in the same industry.
WCC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.55, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.47 | ||
| Fwd PE | 15.92 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WCC.
72.55% 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 | 20.41 | ||
| EV/EBITDA | 12.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of WCC may justify a higher PE ratio.
WCC's earnings are expected to grow with 14.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.22
PEG (5Y)1.1
EPS Next 2Y15.35%
EPS Next 3Y14.85%
5. Dividend
5.1 Amount
With a yearly dividend of 0.72%, WCC is not a good candidate for dividend investing.
WCC's Dividend Yield is comparable with the industry average which is at 1.94.
Compared to an average S&P500 Dividend Yield of 2.37, WCC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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 2Y15.35%
EPS Next 3Y14.85%
259.53
+7.26 (+2.88%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners101.69%
Inst Owner Change-1.21%
Ins Owners1.77%
Ins Owner Change-0.43%
Market Cap12.63B
Revenue(TTM)21.82B
Net Income(TTM)634.20M
Analysts82.5
Price Target247.02 (-4.82%)
Short Float %4.03%
Short Ratio3.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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)2.05%
PT rev (3m)17.21%
EPS NQ rev (1m)0.81%
EPS NQ rev (3m)-1.49%
EPS NY rev (1m)0.46%
EPS NY rev (3m)0.74%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)2.6%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.47 | ||
| Fwd PE | 15.92 | ||
| P/S | 0.57 | ||
| P/FCF | 20.41 | ||
| P/OCF | 17.67 | ||
| P/B | 2.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.42 |
EPS(TTM)12.68
EY4.89%
EPS(NY)16.3
Fwd EY6.28%
FCF(TTM)12.72
FCFY4.9%
OCF(TTM)14.68
OCFY5.66%
SpS456.89
BVpS97.87
TBVpS-8.31
PEG (NY)2.22
PEG (5Y)1.1
Graham Number167.1
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 | 3.09 |
F-Score4
WACC9.3%
ROIC/WACC0.86
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)8.01%
EPS 3Y7.07%
EPS 5Y18.6%
EPS Q2Q%9.5%
EPS Next Y9.22%
EPS Next 2Y15.35%
EPS Next 3Y14.85%
EPS Next 5Y8.26%
Revenue 1Y (TTM)-2.53%
Revenue growth 3Y6.2%
Revenue growth 5Y21.15%
Sales Q2Q%12.93%
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 20.47 and the Price/Book (PB) ratio is 2.65.
How sustainable is the dividend of WESCO INTERNATIONAL INC (WCC) stock?
The dividend rating of WESCO INTERNATIONAL INC (WCC) is 2 / 10 and the dividend payout ratio is 22.15%.