WESCO INTERNATIONAL INC (WCC) Stock Fundamental Analysis
USA - NYSE:WCC - US95082P1057 - Common Stock
214.64 USD
-5.86 (-2.66%)
214.64 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to WCC. WCC was compared to 50 industry peers in the Trading Companies & Distributors industry. WCC has an average financial health and profitability rating. WCC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year WCC was profitable.
WCC had a positive operating cash flow in the past year.
WCC had positive earnings in each of the past 5 years.
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.
WCC's Return On Equity of 13.32% is fine compared to the rest of the industry. WCC outperforms 64.00% of its industry peers.
WCC's Return On Invested Capital of 7.99% is fine compared to the rest of the industry. WCC outperforms 62.00% 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 9.98%.
| 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
With a Profit Margin value of 2.85%, WCC perfoms like the industry average, outperforming 46.00% of the companies in the same 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 44.00% of the companies in the same industry.
In the last couple of years the Operating Margin of WCC has grown nicely.
WCC has a worse Gross Margin (21.34%) than 70.00% of its industry peers.
WCC's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for WCC has been reduced compared to 1 year ago.
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
An Altman-Z score of 2.98 indicates that WCC is not a great score, but indicates only limited risk for bankruptcy at the moment.
WCC has a Altman-Z score (2.98) which is comparable to the rest of the industry.
The Debt to FCF ratio of WCC is 9.16, which is on the high side as it means it would take WCC, 9.16 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WCC (9.16) is comparable to the rest of the 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: 68.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 9.16 | ||
| Altman-Z | 2.98 |
ROIC/WACC0.84
WACC9.47%
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.
The Current ratio of WCC (2.09) is comparable to the rest of the industry.
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 (1.19) which is comparable to the rest of the 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%.
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.
WCC shows a small growth in Revenue. In the last year, the Revenue has grown by 1.30%.
WCC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.15% yearly.
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 Y8.57%
EPS Next 2Y14.6%
EPS Next 3Y14.88%
EPS Next 5Y8.26%
Revenue Next Year5.58%
Revenue Next 2Y5.27%
Revenue Next 3Y5.06%
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.
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
With a Price/Earnings ratio of 17.39, WCC is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of WCC indicates a somewhat cheap valuation: WCC is cheaper than 74.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, WCC is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.34, which indicates a correct valuation of WCC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WCC indicates a somewhat cheap valuation: WCC is cheaper than 76.00% of the companies listed in the same industry.
WCC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.39 | ||
| Fwd PE | 13.34 |
4.2 Price Multiples
WCC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WCC is cheaper than 66.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WCC is valued a bit cheaper than the industry average as 78.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.88 | ||
| EV/EBITDA | 10.88 |
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 14.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.03
PEG (5Y)0.94
EPS Next 2Y14.6%
EPS Next 3Y14.88%
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 comparable with the industry average which is at 2.40.
Compared to an average S&P500 Dividend Yield of 2.41, 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
22.15% of the earnings are spent on dividend by WCC. This is a low number and sustainable payout ratio.
DP22.15%
EPS Next 2Y14.6%
EPS Next 3Y14.88%
214.64
-5.86 (-2.66%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners102.17%
Inst Owner Change0.66%
Ins Owners1.87%
Ins Owner Change-0.42%
Market Cap10.44B
Analysts82.5
Price Target242.06 (12.77%)
Short Float %3.68%
Short Ratio2.64
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)3.08%
PT rev (3m)18.77%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)-1.72%
EPS NY rev (1m)0.14%
EPS NY rev (3m)-0.14%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)2.88%
Revenue NY rev (1m)1.86%
Revenue NY rev (3m)1.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.39 | ||
| Fwd PE | 13.34 | ||
| P/S | 0.47 | ||
| P/FCF | 16.88 | ||
| P/OCF | 14.62 | ||
| P/B | 2.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.88 |
EPS(TTM)12.34
EY5.75%
EPS(NY)16.09
Fwd EY7.5%
FCF(TTM)12.72
FCFY5.92%
OCF(TTM)14.68
OCFY6.84%
SpS456.89
BVpS97.87
TBVpS-8.31
PEG (NY)2.03
PEG (5Y)0.94
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 | 2.98 |
F-Score4
WACC9.47%
ROIC/WACC0.84
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 Y8.57%
EPS Next 2Y14.6%
EPS Next 3Y14.88%
EPS Next 5Y8.26%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y6.2%
Revenue growth 5Y21.15%
Sales Q2Q%7.66%
Revenue Next Year5.58%
Revenue Next 2Y5.27%
Revenue Next 3Y5.06%
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%