WESCO INTERNATIONAL INC (WCC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WCC - US95082P1057 - Common Stock
286.79 USD
+0.38 (+0.13%)
286.79 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to WCC. WCC was compared to 50 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. While showing a medium growth rate, WCC is valued expensive at the moment.
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.
- WCC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 3.82%, WCC perfoms like the industry average, outperforming 52.00% of the companies in the same industry.
- The Return On Equity of WCC (13.03%) is better than 64.00% of its industry peers.
- With a Return On Invested Capital value of 7.94%, WCC perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for WCC is in line with the industry average of 9.64%.
| 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's Profit Margin of 2.75% is on the low side compared to the rest of the industry. WCC is outperformed by 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.
- In the last couple of years the Operating Margin of WCC has grown nicely.
- WCC has a Gross Margin of 21.14%. This is in the lower half of the industry: WCC underperforms 70.00% of its industry peers.
- In the last couple of years the Gross Margin of WCC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.42% | ||
| 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.
- 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
- An Altman-Z score of 3.16 indicates that WCC is not in any danger for bankruptcy at the moment.
- WCC has a Altman-Z score (3.16) which is in line with its industry peers.
- The Debt to FCF ratio of WCC is 23.00, which is on the high side as it means it would take WCC, 23.00 years of fcf income to pay off all of its debts.
- WCC has a Debt to FCF ratio (23.00) which is in line with 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 64.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 23 | ||
| Altman-Z | 3.16 |
ROIC/WACC0.83
WACC9.61%
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 52.00% of the companies in the same industry.
- A Quick Ratio of 1.20 indicates that WCC should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.20, WCC perfoms like the industry average, outperforming 46.00% of the companies in the same 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.
- 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 5.28%.
- 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.
- WCC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.00% yearly.
EPS Next Y10.62%
EPS Next 2Y16.27%
EPS Next 3Y16.18%
EPS Next 5Y10.21%
Revenue Next Year7.94%
Revenue Next 2Y7.04%
Revenue Next 3Y6.46%
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.
- 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 22.62, WCC is valued on the expensive side.
- WCC's Price/Earnings ratio is in line with the industry average.
- WCC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 17.32, which indicates a rather expensive current valuation of WCC.
- 74.00% of the companies in the same industry are more expensive than WCC, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of WCC to the average of the S&P500 Index (25.98), we can say WCC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.62 | ||
| Fwd PE | 17.32 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WCC is on the same level as its industry peers.
- 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 | 55.81 | ||
| EV/EBITDA | 13.32 |
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 16.18% in the coming years.
PEG (NY)2.13
PEG (5Y)1.22
EPS Next 2Y16.27%
EPS Next 3Y16.18%
5. Dividend
5.1 Amount
- WCC has a yearly dividend return of 0.63%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.31, WCC has a dividend in line with its industry peers.
- With a Dividend Yield of 0.63, WCC pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
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
- 20.26% of the earnings are spent on dividend by WCC. This is a low number and sustainable payout ratio.
DP20.26%
EPS Next 2Y16.27%
EPS Next 3Y16.18%
WESCO INTERNATIONAL INC / WCC FAQ
Can you provide the ChartMill fundamental rating for WESCO INTERNATIONAL INC?
ChartMill assigns a fundamental rating of 4 / 10 to WCC.
Can you provide the valuation status for WESCO INTERNATIONAL INC?
ChartMill assigns a valuation rating of 3 / 10 to WESCO INTERNATIONAL INC (WCC). This can be considered as Overvalued.
Can you provide the profitability details for WESCO INTERNATIONAL INC?
WESCO INTERNATIONAL INC (WCC) has a profitability rating of 5 / 10.
What is the earnings growth outlook for WESCO INTERNATIONAL INC?
The Earnings per Share (EPS) of WESCO INTERNATIONAL INC (WCC) is expected to grow by 10.62% in the next year.
Is the dividend of WESCO INTERNATIONAL INC sustainable?
The dividend rating of WESCO INTERNATIONAL INC (WCC) is 2 / 10 and the dividend payout ratio is 20.26%.