WESCO INTERNATIONAL INC (WCC) Stock Fundamental Analysis
NYSE:WCC - New York Stock Exchange, Inc. - US95082P1057 - Common Stock - Currency: USD
Overall WCC gets a fundamental rating of 5 out of 10. We evaluated WCC against 49 industry peers in the Trading Companies & Distributors industry. WCC has an average financial health and profitability rating. WCC is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, WCC could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
WCC had positive earnings in the past year.
WCC had a positive operating cash flow in the past year.
WCC had positive earnings in each of the past 5 years.
Each year in the past 5 years WCC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of WCC (4.38%) is comparable to the rest of the industry.
The Return On Equity of WCC (13.28%) is comparable to the rest of the industry.
WCC's Return On Invested Capital of 8.68% is fine compared to the rest of the industry. WCC outperforms 63.27% of its industry peers.
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 8.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.38% | ||
| ROE | 13.28% | ||
| ROIC | 8.68% |
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 3.03%, WCC perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
In the last couple of years the Profit Margin of WCC has grown nicely.
WCC has a Operating Margin of 5.86%. This is in the lower half of the industry: WCC underperforms 63.27% of its industry peers.
In the last couple of years the Operating Margin of WCC has grown nicely.
WCC has a Gross Margin of 21.60%. This is in the lower half of the industry: WCC underperforms 77.55% of its industry peers.
WCC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.86% | ||
| PM (TTM) | 3.03% | ||
| GM | 21.6% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WCC is still 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
Compared to 1 year ago, WCC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.99 indicates that WCC is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 2.99, WCC perfoms like the industry average, outperforming 53.06% of the companies in the same industry.
The Debt to FCF ratio of WCC is 5.03, which is a neutral value as it means it would take WCC, 5.03 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.03, WCC is doing good in the industry, outperforming 61.22% of the companies in the same industry.
A Debt/Equity ratio of 1.02 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 1.02, WCC is doing worse than 63.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 5.03 | ||
| Altman-Z | 2.99 |
ROIC/WACC0.92
WACC9.42%
2.3 Liquidity
A Current Ratio of 2.20 indicates that WCC has no problem at all paying its short term obligations.
The Current ratio of WCC (2.20) is comparable to the rest of the industry.
WCC has a Quick Ratio of 1.27. This is a normal value and indicates that WCC is financially healthy and should not expect problems in meeting its short term obligations.
WCC has a Quick ratio (1.27) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.2 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
The earnings per share for WCC have decreased by -7.53% in the last year.
The Earnings Per Share has been growing by 18.60% on average over the past years. This is quite good.
The Revenue has decreased by -2.53% in the past 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)-7.53%
EPS 3Y7.07%
EPS 5Y18.6%
EPS Q2Q%-3.91%
Revenue 1Y (TTM)-2.53%
Revenue growth 3Y6.2%
Revenue growth 5Y21.15%
Sales Q2Q%-0.12%
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 8.23% on average per year.
Based on estimates for the next years, WCC will show a small growth in Revenue. The Revenue will grow by 4.73% on average per year.
EPS Next Y11.35%
EPS Next 2Y15.13%
EPS Next 3Y15.16%
EPS Next 5Y8.23%
Revenue Next Year2.79%
Revenue Next 2Y3.61%
Revenue Next 3Y4.01%
Revenue Next 5Y4.73%
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
Based on the Price/Earnings ratio of 13.41, the valuation of WCC can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of WCC indicates a rather cheap valuation: WCC is cheaper than 83.67% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.22. WCC is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.04, the valuation of WCC can be described as reasonable.
Based on the Price/Forward Earnings ratio, WCC is valued cheaply inside the industry as 87.76% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.86. WCC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.41 | ||
| Fwd PE | 10.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WCC is valued a bit cheaper than the industry average as 73.47% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WCC indicates a rather cheap valuation: WCC is cheaper than 93.88% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.9 | ||
| EV/EBITDA | 8.06 |
4.3 Compensation for Growth
WCC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as WCC's earnings are expected to grow with 15.16% in the coming years.
PEG (NY)1.18
PEG (5Y)0.72
EPS Next 2Y15.13%
EPS Next 3Y15.16%
5. Dividend
5.1 Amount
WCC has a Yearly Dividend Yield of 1.11%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.07, WCC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, WCC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
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 Years0
Div Non Decr Years0
5.3 Sustainability
21.04% of the earnings are spent on dividend by WCC. This is a low number and sustainable payout ratio.
DP21.04%
EPS Next 2Y15.13%
EPS Next 3Y15.16%
163.03
+11 (+7.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners97.16%
Inst Owner Change1.65%
Ins Owners1.73%
Ins Owner Change2.11%
Market Cap7.96B
Analysts85
Price Target221.48 (35.85%)
Short Float %3.26%
Short Ratio1.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
Yearly Dividend2.79
Dividend Growth(5Y)N/A
DP21.04%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.7%
Min EPS beat(2)-3.19%
Max EPS beat(2)10.59%
EPS beat(4)1
Avg EPS beat(4)-3.51%
Min EPS beat(4)-11.8%
Max EPS beat(4)10.59%
EPS beat(8)3
Avg EPS beat(8)-5.63%
EPS beat(12)7
Avg EPS beat(12)2.58%
EPS beat(16)11
Avg EPS beat(16)10.76%
Revenue beat(2)2
Avg Revenue beat(2)2.02%
Min Revenue beat(2)0.69%
Max Revenue beat(2)3.36%
Revenue beat(4)2
Avg Revenue beat(4)0.37%
Min Revenue beat(4)-2.41%
Max Revenue beat(4)3.36%
Revenue beat(8)3
Avg Revenue beat(8)-0.74%
Revenue beat(12)6
Avg Revenue beat(12)0.2%
Revenue beat(16)8
Avg Revenue beat(16)0.58%
PT rev (1m)-5.85%
PT rev (3m)-2.28%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-7.74%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-6.86%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.41 | ||
| Fwd PE | 10.04 | ||
| P/S | 0.36 | ||
| P/FCF | 7.9 | ||
| P/OCF | 7.22 | ||
| P/B | 1.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.06 |
EPS(TTM)12.16
EY7.46%
EPS(NY)16.24
Fwd EY9.96%
FCF(TTM)20.63
FCFY12.65%
OCF(TTM)22.57
OCFY13.84%
SpS447.11
BVpS101.86
TBVpS-2.98
PEG (NY)1.18
PEG (5Y)0.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.38% | ||
| ROE | 13.28% | ||
| ROCE | 11.35% | ||
| ROIC | 8.68% | ||
| ROICexc | 9.26% | ||
| ROICexgc | 17.96% | ||
| OM | 5.86% | ||
| PM (TTM) | 3.03% | ||
| GM | 21.6% | ||
| FCFM | 4.61% |
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-Score5
Asset Turnover1.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 5.03 | ||
| Debt/EBITDA | 3.45 | ||
| Cap/Depr | 51.69% | ||
| Cap/Sales | 0.43% | ||
| Interest Coverage | 3.86 | ||
| Cash Conversion | 75.36% | ||
| Profit Quality | 152.48% | ||
| Current Ratio | 2.2 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 2.99 |
F-Score5
WACC9.42%
ROIC/WACC0.92
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)-7.53%
EPS 3Y7.07%
EPS 5Y18.6%
EPS Q2Q%-3.91%
EPS Next Y11.35%
EPS Next 2Y15.13%
EPS Next 3Y15.16%
EPS Next 5Y8.23%
Revenue 1Y (TTM)-2.53%
Revenue growth 3Y6.2%
Revenue growth 5Y21.15%
Sales Q2Q%-0.12%
Revenue Next Year2.79%
Revenue Next 2Y3.61%
Revenue Next 3Y4.01%
Revenue Next 5Y4.73%
EBIT growth 1Y-13.56%
EBIT growth 3Y10.33%
EBIT growth 5Y29.86%
EBIT Next Year17.63%
EBIT Next 3Y11.33%
EBIT Next 5Y6.77%
FCF growth 1Y151.06%
FCF growth 3Y333.07%
FCF growth 5Y41.05%
OCF growth 1Y123.28%
OCF growth 3Y154.08%
OCF growth 5Y37.46%