WESCO INTERNATIONAL INC (WCC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WCC - US95082P1057 - Common Stock
269.65 USD
-3.71 (-1.36%)
269.65 USD
0 (0%)
Taking everything into account, WCC scores 4 out of 10 in our fundamental rating. 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. WCC is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
WCC had positive earnings in the past year.
In the past year WCC had a positive cash flow from operations.
WCC had positive earnings in each of the past 5 years.
WCC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WCC has a Return On Assets (3.82%) which is comparable to the rest of the industry.
WCC has a better Return On Equity (13.03%) than 64.00% of its industry peers.
WCC has a Return On Invested Capital of 7.94%. This is comparable 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 9.42%.
| 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.
In the last couple of years the Profit Margin of WCC has grown nicely.
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.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WCC is destroying value.
Compared to 1 year ago, WCC has less shares outstanding
The number of shares outstanding for WCC has been increased compared to 5 years ago.
Compared to 1 year ago, WCC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.12 indicates that WCC is not in any danger for bankruptcy at the moment.
WCC has a Altman-Z score of 3.12. This is comparable to the rest of the industry: WCC outperforms 56.00% 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 has a Debt to FCF ratio (23.00) which 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.
WCC's Debt to Equity ratio of 1.18 is on the low side compared to the rest of the industry. WCC is outperformed by 64.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 23 | ||
| Altman-Z | 3.12 |
ROIC/WACC0.81
WACC9.76%
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.
WCC has a Current ratio of 2.09. This is comparable to the rest of the industry: WCC outperforms 52.00% of its industry peers.
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.
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%.
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)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
WCC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.21% yearly.
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 Y10.63%
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 21.27, WCC is valued on the expensive side.
WCC's Price/Earnings is on the same level as the industry average.
WCC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.34.
With a Price/Forward Earnings ratio of 16.31, WCC is valued correctly.
Based on the Price/Forward Earnings ratio, WCC is valued a bit cheaper than 72.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WCC to the average of the S&P500 Index (23.56), we can say WCC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.27 | ||
| Fwd PE | 16.31 |
4.2 Price Multiples
WCC's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as WCC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.47 | ||
| EV/EBITDA | 12.75 |
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)2
PEG (5Y)1.14
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 2.97, WCC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, WCC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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
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%
269.65
-3.71 (-1.36%)
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-0.74%
Market Cap13.12B
Revenue(TTM)22.94B
Net Income(TTM)631.80M
Analysts83.75
Price Target284.08 (5.35%)
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)18.91%
EPS NQ rev (1m)1.06%
EPS NQ rev (3m)4.08%
EPS NY rev (1m)0.12%
EPS NY rev (3m)1.89%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)3.54%
Revenue NY rev (1m)0.8%
Revenue NY rev (3m)2.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.27 | ||
| Fwd PE | 16.31 | ||
| P/S | 0.57 | ||
| P/FCF | 52.47 | ||
| P/OCF | 39.79 | ||
| P/B | 2.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.75 |
EPS(TTM)12.68
EY4.7%
EPS(NY)16.53
Fwd EY6.13%
FCF(TTM)5.14
FCFY1.91%
OCF(TTM)6.78
OCFY2.51%
SpS471.57
BVpS99.65
TBVpS-5.6
PEG (NY)2
PEG (5Y)1.14
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 | 3.12 |
F-Score3
WACC9.76%
ROIC/WACC0.81
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 4 / 10 to WCC.
What is the valuation status for WCC stock?
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.
Can you provide the PE and PB ratios for WCC stock?
The Price/Earnings (PE) ratio for WESCO INTERNATIONAL INC (WCC) is 21.27 and the Price/Book (PB) ratio is 2.71.
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%.