WESCO INTERNATIONAL INC (WCC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WCC - US95082P1057 - Common Stock
258.84 USD
-1.55 (-0.6%)
258.84 USD
0 (0%)
WCC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 50 industry peers in the Trading Companies & Distributors industry. WCC has only an average score on both its financial health and profitability. 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.
In the past year WCC had a positive cash flow from operations.
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
The Return On Assets of WCC (3.82%) is comparable to the rest of the industry.
The Return On Equity of WCC (13.03%) is better than 64.00% of its industry peers.
WCC's Return On Invested Capital of 7.94% is in line compared to the rest of the industry. WCC outperforms 60.00% 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 9.63%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.82% | ||
| ROE | 13.03% | ||
| ROIC | 7.94% |
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 of 2.75%. This is in the lower half of the industry: WCC underperforms 60.00% of its industry peers.
WCC's Profit Margin has improved in the last couple of years.
The Operating Margin of WCC (5.42%) is comparable to the rest of the industry.
WCC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 21.14%, WCC is doing worse than 70.00% 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 | 5.42% | ||
| PM (TTM) | 2.75% | ||
| GM | 21.14% |
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) below the Cost of Capital (WACC), WCC is destroying value.
WCC has less shares outstanding than it did 1 year ago.
WCC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, WCC has an improved debt to assets ratio.
2.2 Solvency
WCC has an Altman-Z score of 3.10. This indicates that WCC is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.10, WCC is in line with its industry, outperforming 52.00% of the companies in the same industry.
WCC has a debt to FCF ratio of 23.00. This is a negative value and a sign of low solvency as WCC would need 23.00 years to pay back of all of its debts.
With a Debt to FCF ratio value of 23.00, WCC perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
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 66.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 23 | ||
| Altman-Z | 3.1 |
ROIC/WACC0.82
WACC9.69%
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 comparable to the rest of the industry.
WCC has a Quick Ratio of 1.20. 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 (1.20) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.2 |
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 small growth in Revenue. The Revenue has grown by 5.28% in the last year.
WCC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.15% yearly.
EPS 1Y (TTM)8.01%
EPS 3Y7.07%
EPS 5Y18.6%
EPS Q2Q%9.5%
Revenue 1Y (TTM)5.28%
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 10.21% on average per year.
The Revenue is expected to grow by 6.00% on average over the next years.
EPS Next Y10.63%
EPS Next 2Y16.18%
EPS Next 3Y15.8%
EPS Next 5Y10.21%
Revenue Next Year7.9%
Revenue Next 2Y6.95%
Revenue Next 3Y6.39%
Revenue Next 5Y6%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 20.41, which indicates a rather expensive current valuation of WCC.
WCC's Price/Earnings ratio is a bit cheaper when compared to the industry. WCC is cheaper than 62.00% of the companies in the same industry.
WCC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.55.
Based on the Price/Forward Earnings ratio of 15.65, the valuation of WCC can be described as correct.
WCC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WCC is cheaper than 80.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WCC to the average of the S&P500 Index (23.78), we can say WCC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.41 | ||
| Fwd PE | 15.65 |
4.2 Price Multiples
WCC's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WCC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.37 | ||
| EV/EBITDA | 12.43 |
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.
A more expensive valuation may be justified as WCC's earnings are expected to grow with 15.80% in the coming years.
PEG (NY)1.92
PEG (5Y)1.1
EPS Next 2Y16.18%
EPS Next 3Y15.8%
5. Dividend
5.1 Amount
WCC has a yearly dividend return of 0.70%, which is pretty low.
Compared to an average industry Dividend Yield of 0.97, WCC has a dividend in line with its industry peers.
With a Dividend Yield of 0.70, WCC pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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 20.26% of its income as dividend. This is a sustainable payout ratio.
DP20.26%
EPS Next 2Y16.18%
EPS Next 3Y15.8%
258.84
-1.55 (-0.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners104.31%
Inst Owner Change1.35%
Ins Owners1.74%
Ins Owner Change-0.76%
Market Cap12.59B
Revenue(TTM)22.94B
Net Income(TTM)631.80M
Analysts83.75
Price Target284.08 (9.75%)
Short Float %5.85%
Short Ratio4.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
Yearly Dividend2.79
Dividend Growth(5Y)N/A
DP20.26%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.85%
Min EPS beat(2)0.47%
Max EPS beat(2)1.23%
EPS beat(4)2
Avg EPS beat(4)-1.76%
Min EPS beat(4)-5.55%
Max EPS beat(4)1.23%
EPS beat(8)3
Avg EPS beat(8)-6.25%
EPS beat(12)6
Avg EPS beat(12)-3.43%
EPS beat(16)10
Avg EPS beat(16)3.18%
Revenue beat(2)2
Avg Revenue beat(2)2.19%
Min Revenue beat(2)0.38%
Max Revenue beat(2)3.99%
Revenue beat(4)4
Avg Revenue beat(4)1.4%
Min Revenue beat(4)0.38%
Max Revenue beat(4)3.99%
Revenue beat(8)5
Avg Revenue beat(8)0.42%
Revenue beat(12)7
Avg Revenue beat(12)0.12%
Revenue beat(16)10
Avg Revenue beat(16)0.64%
PT rev (1m)15%
PT rev (3m)17.36%
EPS NQ rev (1m)1.06%
EPS NQ rev (3m)3.42%
EPS NY rev (1m)0.12%
EPS NY rev (3m)1.89%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)3.37%
Revenue NY rev (1m)0.8%
Revenue NY rev (3m)2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.41 | ||
| Fwd PE | 15.65 | ||
| P/S | 0.55 | ||
| P/FCF | 50.37 | ||
| P/OCF | 38.19 | ||
| P/B | 2.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.43 |
EPS(TTM)12.68
EY4.9%
EPS(NY)16.53
Fwd EY6.39%
FCF(TTM)5.14
FCFY1.99%
OCF(TTM)6.78
OCFY2.62%
SpS471.57
BVpS99.65
TBVpS-5.6
PEG (NY)1.92
PEG (5Y)1.1
Graham Number168.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.82% | ||
| ROE | 13.03% | ||
| ROCE | 10.39% | ||
| ROIC | 7.94% | ||
| ROICexc | 8.34% | ||
| ROICexgc | 15.14% | ||
| OM | 5.42% | ||
| PM (TTM) | 2.75% | ||
| GM | 21.14% | ||
| FCFM | 1.09% |
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-Score3
Asset Turnover1.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 23 | ||
| Debt/EBITDA | 3.99 | ||
| Cap/Depr | 41.64% | ||
| Cap/Sales | 0.35% | ||
| Interest Coverage | 3.5 | ||
| Cash Conversion | 22.97% | ||
| Profit Quality | 39.57% | ||
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 3.1 |
F-Score3
WACC9.69%
ROIC/WACC0.82
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 Y10.63%
EPS Next 2Y16.18%
EPS Next 3Y15.8%
EPS Next 5Y10.21%
Revenue 1Y (TTM)5.28%
Revenue growth 3Y6.2%
Revenue growth 5Y21.15%
Sales Q2Q%12.93%
Revenue Next Year7.9%
Revenue Next 2Y6.95%
Revenue Next 3Y6.39%
Revenue Next 5Y6%
EBIT growth 1Y-3.87%
EBIT growth 3Y10.33%
EBIT growth 5Y29.86%
EBIT Next Year17.86%
EBIT Next 3Y12.48%
EBIT Next 5Y8.71%
FCF growth 1Y-66.3%
FCF growth 3Y333.07%
FCF growth 5Y41.05%
OCF growth 1Y-61.01%
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 4 / 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 5 / 10.
Can you provide the PE and PB ratios for WCC stock?
The Price/Earnings (PE) ratio for WESCO INTERNATIONAL INC (WCC) is 20.41 and the Price/Book (PB) ratio is 2.6.
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 20.26%.