WESCO INTERNATIONAL INC (WCC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WCC - US95082P1057 - Common Stock
252.12 USD
+7.48 (+3.06%)
252.12 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to WCC. WCC was compared to 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 correct valuation and a medium 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.
In the past 5 years WCC always reported a positive cash flow from operatings.
1.2 Ratios
WCC has a Return On Assets (3.82%) which is in line with its industry peers.
WCC has a Return On Equity of 13.03%. This is in the better half of the industry: WCC outperforms 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.
Measured over the past 3 years, the Average Return On Invested Capital 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
With a Profit Margin value of 2.75%, WCC is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
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.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
WCC has an Altman-Z score of 3.06. This indicates that WCC is financially healthy and has little risk of bankruptcy at the moment.
WCC has a Altman-Z score (3.06) which is comparable to the rest of the 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.
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'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 | 3.06 |
ROIC/WACC0.82
WACC9.64%
2.3 Liquidity
A Current Ratio of 2.09 indicates that WCC has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.09, WCC is in line with its industry, outperforming 52.00% 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.
WCC has a Quick ratio (1.20) which 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.
The Revenue has been growing slightly by 5.28% in the past 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
The Earnings Per Share is expected to grow by 10.21% on average over the next years. This is quite good.
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.
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 19.88, the valuation of WCC can be described as rather expensive.
Based on the Price/Earnings ratio, WCC is valued a bit cheaper than the industry average as 64.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of WCC to the average of the S&P500 Index (26.51), we can say WCC is valued slightly cheaper.
A Price/Forward Earnings ratio of 15.25 indicates a correct valuation of WCC.
Based on the Price/Forward Earnings ratio, WCC is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of WCC to the average of the S&P500 Index (23.13), we can say WCC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.88 | ||
| Fwd PE | 15.25 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as WCC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.06 | ||
| EV/EBITDA | 11.9 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as WCC's earnings are expected to grow with 15.80% in the coming years.
PEG (NY)1.87
PEG (5Y)1.07
EPS Next 2Y16.18%
EPS Next 3Y15.8%
5. Dividend
5.1 Amount
WCC has a yearly dividend return of 0.71%, which is pretty low.
Compared to an average industry Dividend Yield of 0.98, WCC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, WCC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
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%
252.12
+7.48 (+3.06%)
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-0.51%
Market Cap12.27B
Revenue(TTM)22.94B
Net Income(TTM)631.80M
Analysts83.75
Price Target284.08 (12.68%)
Short Float %5.47%
Short Ratio4.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
Yearly Dividend2.79
Dividend Growth(5Y)N/A
DP20.26%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)1.21%
PT rev (3m)17.36%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)3.42%
EPS NY rev (1m)0.12%
EPS NY rev (3m)1.75%
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 | 19.88 | ||
| Fwd PE | 15.25 | ||
| P/S | 0.53 | ||
| P/FCF | 49.06 | ||
| P/OCF | 37.2 | ||
| P/B | 2.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.9 |
EPS(TTM)12.68
EY5.03%
EPS(NY)16.53
Fwd EY6.56%
FCF(TTM)5.14
FCFY2.04%
OCF(TTM)6.78
OCFY2.69%
SpS471.57
BVpS99.65
TBVpS-5.6
PEG (NY)1.87
PEG (5Y)1.07
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 | 3.06 |
F-Score3
WACC9.64%
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.
Can you provide the valuation status for WESCO INTERNATIONAL INC?
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.
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 10.63% 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%.