WESCO INTERNATIONAL INC (WCC) Stock Fundamental Analysis
USA - NYSE:WCC - US95082P1057 - Common Stock
246.98 USD
-5.38 (-2.13%)
246.98 USD
0 (0%)
Taking everything into account, WCC scores 5 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year WCC was profitable.
In the past year WCC had a positive cash flow from operations.
In the past 5 years WCC has always been profitable.
WCC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WCC has a Return On Assets of 3.82%. This is comparable to the rest of the industry: WCC outperforms 54.00% of its industry peers.
The Return On Equity of WCC (13.03%) is comparable to the rest of the industry.
The Return On Invested Capital of WCC (7.94%) is better than 62.00% 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 9.31%.
| 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 of 2.75%. This is comparable to the rest of the industry: WCC outperforms 42.00% of its industry peers.
In the last couple of years the Profit Margin of WCC has grown nicely.
WCC has a Operating Margin (5.42%) which is in line with 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 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) just above the Cost of Capital (WACC), WCC is creating some value.
The number of shares outstanding for WCC has been reduced compared to 1 year ago.
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
WCC has an Altman-Z score of 3.08. This indicates that WCC is financially healthy and has little risk of bankruptcy at the moment.
WCC has a Altman-Z score of 3.08. 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 of 23.00. This is comparable to the rest of the industry: WCC outperforms 54.00% 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.
With a Debt to Equity ratio value of 1.18, WCC is not doing good in the industry: 64.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 23 | ||
| Altman-Z | 3.08 |
ROIC/WACC0.95
WACC8.4%
2.3 Liquidity
A Current Ratio of 2.09 indicates that WCC has no problem at all paying its short term obligations.
The Current ratio of WCC (2.09) is comparable to the rest of the industry.
A Quick Ratio of 1.20 indicates that WCC should not have too much problems paying 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.
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.
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
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 Y10.49%
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
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 19.48, WCC is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as WCC.
WCC is valuated rather cheaply when we compare the Price/Earnings ratio to 25.07, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.90, 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 68.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.08, WCC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.48 | ||
| Fwd PE | 14.9 |
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.
WCC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.07 | ||
| EV/EBITDA | 12.16 |
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.
WCC's earnings are expected to grow with 16.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.86
PEG (5Y)1.05
EPS Next 2Y16.32%
EPS Next 3Y16.12%
5. Dividend
5.1 Amount
With a yearly dividend of 0.70%, WCC is not a good candidate for dividend investing.
WCC's Dividend Yield is comparable with the industry average which is at 2.04.
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 | 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
WCC pays out 20.26% of its income as dividend. This is a sustainable payout ratio.
DP20.26%
EPS Next 2Y16.32%
EPS Next 3Y16.12%
246.98
-5.38 (-2.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners101.69%
Inst Owner Change0.49%
Ins Owners1.77%
Ins Owner Change-0.69%
Market Cap12.02B
Revenue(TTM)22.94B
Net Income(TTM)631.80M
Analysts82.35
Price Target247.02 (0.02%)
Short Float %5.5%
Short Ratio4.04
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)1.12%
EPS NQ rev (3m)2.87%
EPS NY rev (1m)1.62%
EPS NY rev (3m)1.91%
Revenue NQ rev (1m)3.08%
Revenue NQ rev (3m)3.25%
Revenue NY rev (1m)1.38%
Revenue NY rev (3m)3.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.48 | ||
| Fwd PE | 14.9 | ||
| P/S | 0.52 | ||
| P/FCF | 48.07 | ||
| P/OCF | 36.45 | ||
| P/B | 2.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.16 |
EPS(TTM)12.68
EY5.13%
EPS(NY)16.57
Fwd EY6.71%
FCF(TTM)5.14
FCFY2.08%
OCF(TTM)6.78
OCFY2.74%
SpS471.48
BVpS99.63
TBVpS-5.6
PEG (NY)1.86
PEG (5Y)1.05
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 | 3.08 |
F-Score3
WACC8.4%
ROIC/WACC0.95
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 19.48 and the Price/Book (PB) ratio is 2.48.
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%.