WESCO INTERNATIONAL INC (WCC) Stock Fundamental Analysis
USA - NYSE:WCC - US95082P1057 - Common Stock
256.75 USD
-1.26 (-0.49%)
256.75 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. 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.
WCC had a positive operating cash flow in the past year.
Each year in the past 5 years WCC has been profitable.
In the past 5 years WCC always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 3.82%, WCC perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
With a decent Return On Equity value of 13.03%, WCC is doing good in the industry, outperforming 60.78% of the companies in the same industry.
WCC's Return On Invested Capital of 7.94% is fine compared to the rest of the industry. WCC outperforms 62.75% 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 10.12%.
| 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 (2.75%) which is comparable to the rest of the industry.
WCC's Profit Margin has improved in the last couple of years.
WCC's Operating Margin of 5.42% is in line compared to the rest of the industry. WCC outperforms 43.14% of its industry peers.
WCC's Operating Margin has improved in the last couple of years.
WCC has a Gross Margin of 21.14%. This is in the lower half of the industry: WCC underperforms 68.63% of its industry peers.
WCC's Gross Margin has improved in the last couple of years.
| 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
WCC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
WCC has less shares outstanding than it did 1 year ago.
WCC has more shares outstanding than it did 5 years ago.
WCC has a better debt/assets ratio than last year.
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 in the better half of the industry: WCC outperforms 62.75% of its industry peers.
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.
WCC's Debt to FCF ratio of 23.00 is in line compared to the rest of the industry. WCC outperforms 54.90% of its industry peers.
A Debt/Equity ratio of 1.18 is on the high side and indicates that WCC has dependencies on debt financing.
The Debt to Equity ratio of WCC (1.18) is worse than 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 23 | ||
| Altman-Z | 3.09 |
ROIC/WACC0.86
WACC9.22%
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.
With a Current ratio value of 2.09, WCC perfoms like the industry average, outperforming 52.94% of the companies in the same 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.
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.
The Revenue has been growing slightly by 5.28% in the past year.
The Revenue has been growing by 21.15% on average over the past years. This is a very strong growth!
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.
Based on estimates for the next years, WCC will show a small growth in Revenue. The Revenue will grow by 6.00% on average per year.
EPS Next Y10.49%
EPS Next 2Y16.32%
EPS Next 3Y16.12%
EPS Next 5Y10.21%
Revenue Next Year7.04%
Revenue Next 2Y6.39%
Revenue Next 3Y6.29%
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
WCC is valuated rather expensively with a Price/Earnings ratio of 20.25.
WCC's Price/Earnings is on the same level as the industry average.
WCC is valuated rather cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.49, WCC is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WCC indicates a somewhat cheap valuation: WCC is cheaper than 66.67% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of WCC to the average of the S&P500 Index (34.59), we can say WCC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.25 | ||
| Fwd PE | 15.49 |
4.2 Price Multiples
WCC's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as WCC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.97 | ||
| EV/EBITDA | 12.36 |
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.
The decent profitability rating of WCC may justify a higher PE ratio.
A more expensive valuation may be justified as WCC's earnings are expected to grow with 16.12% in the coming years.
PEG (NY)1.93
PEG (5Y)1.09
EPS Next 2Y16.32%
EPS Next 3Y16.12%
5. Dividend
5.1 Amount
WCC has a yearly dividend return of 0.70%, which is pretty low.
WCC's Dividend Yield is comparable with the industry average which is at 2.24.
Compared to an average S&P500 Dividend Yield of 2.36, WCC's dividend is way lower than the S&P500 average.
| 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
20.26% of the earnings are spent on dividend by WCC. This is a low number and sustainable payout ratio.
DP20.26%
EPS Next 2Y16.32%
EPS Next 3Y16.12%
256.75
-1.26 (-0.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners101.69%
Inst Owner Change-1.36%
Ins Owners1.77%
Ins Owner Change-0.65%
Market Cap12.49B
Revenue(TTM)22.94B
Net Income(TTM)631.80M
Analysts82.35
Price Target247.02 (-3.79%)
Short Float %4.03%
Short Ratio3.34
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)2.05%
PT rev (3m)5.2%
EPS NQ rev (1m)2.34%
EPS NQ rev (3m)3.9%
EPS NY rev (1m)1.62%
EPS NY rev (3m)1.91%
Revenue NQ rev (1m)3.08%
Revenue NQ rev (3m)4.1%
Revenue NY rev (1m)1.38%
Revenue NY rev (3m)3.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.25 | ||
| Fwd PE | 15.49 | ||
| P/S | 0.54 | ||
| P/FCF | 49.97 | ||
| P/OCF | 37.89 | ||
| P/B | 2.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.36 |
EPS(TTM)12.68
EY4.94%
EPS(NY)16.57
Fwd EY6.46%
FCF(TTM)5.14
FCFY2%
OCF(TTM)6.78
OCFY2.64%
SpS471.48
BVpS99.63
TBVpS-5.6
PEG (NY)1.93
PEG (5Y)1.09
Graham Number168.59
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 | 3.09 |
F-Score3
WACC9.22%
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 Y10.49%
EPS Next 2Y16.32%
EPS Next 3Y16.12%
EPS Next 5Y10.21%
Revenue 1Y (TTM)5.28%
Revenue growth 3Y6.2%
Revenue growth 5Y21.15%
Sales Q2Q%12.93%
Revenue Next Year7.04%
Revenue Next 2Y6.39%
Revenue Next 3Y6.29%
Revenue Next 5Y6%
EBIT growth 1Y-3.87%
EBIT growth 3Y10.33%
EBIT growth 5Y29.86%
EBIT Next Year16.49%
EBIT Next 3Y11.64%
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 6 / 10.
Can you provide the PE and PB ratios for WCC stock?
The Price/Earnings (PE) ratio for WESCO INTERNATIONAL INC (WCC) is 20.25 and the Price/Book (PB) ratio is 2.58.
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%.