WESCO INTERNATIONAL INC (WCC) Stock Fundamental Analysis
USA - NYSE:WCC - US95082P1057 - Common Stock
255.43 USD
-1.95 (-0.76%)
255.43 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to WCC. WCC was compared to 51 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 not valued too expensively and it also shows 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.
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's Return On Assets of 3.82% is in line compared to the rest of the industry. WCC outperforms 52.94% of its industry peers.
WCC has a Return On Equity of 13.03%. This is in the better half of the industry: WCC outperforms 60.78% of its industry peers.
WCC has a better Return On Invested Capital (7.94%) than 60.78% 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 10.19%.
| 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 in line with its industry peers.
In the last couple of years the Profit Margin of WCC has grown nicely.
WCC has a Operating Margin of 5.42%. This is comparable to the rest of the industry: WCC outperforms 43.14% of its industry peers.
In the last couple of years the Operating Margin of WCC has grown nicely.
WCC has a worse Gross Margin (21.14%) than 68.63% 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
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.
The debt/assets ratio for WCC has been reduced compared to a year ago.
2.2 Solvency
WCC has an Altman-Z score of 3.09. This indicates that WCC is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.09, WCC is in the better half of the industry, outperforming 60.78% of the companies in the same 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 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 has a Debt to Equity ratio of 1.18. This is in the lower half of the industry: WCC underperforms 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 23 | ||
| Altman-Z | 3.09 |
ROIC/WACC0.86
WACC9.23%
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 (2.09) which is in line with 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
The Earnings Per Share has grown by an nice 8.01% over the past year.
The Earnings Per Share has been growing by 18.60% on average over the past years. This is quite good.
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
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.
The Revenue is expected to grow by 6.00% on average over the next years.
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
Based on the Price/Earnings ratio of 20.14, the valuation of WCC can be described as rather expensive.
WCC's Price/Earnings is on the same level as the industry average.
WCC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.06.
The Price/Forward Earnings ratio is 15.41, which indicates a correct valuation of WCC.
WCC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WCC is cheaper than 70.59% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WCC to the average of the S&P500 Index (32.73), we can say WCC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.14 | ||
| Fwd PE | 15.41 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WCC.
WCC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.72 | ||
| EV/EBITDA | 12.27 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
WCC has a very decent profitability rating, which 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)1.92
PEG (5Y)1.08
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.
Compared to an average industry Dividend Yield of 2.20, WCC has a dividend in line with its industry peers.
With a Dividend Yield of 0.70, WCC pays less dividend than the S&P500 average, which is at 2.37.
| 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%
255.43
-1.95 (-0.76%)
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 Cap12.43B
Revenue(TTM)22.94B
Net Income(TTM)631.80M
Analysts82.35
Price Target247.02 (-3.29%)
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 | 20.14 | ||
| Fwd PE | 15.41 | ||
| P/S | 0.54 | ||
| P/FCF | 49.72 | ||
| P/OCF | 37.7 | ||
| P/B | 2.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.27 |
EPS(TTM)12.68
EY4.96%
EPS(NY)16.57
Fwd EY6.49%
FCF(TTM)5.14
FCFY2.01%
OCF(TTM)6.78
OCFY2.65%
SpS471.48
BVpS99.63
TBVpS-5.6
PEG (NY)1.92
PEG (5Y)1.08
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
WACC9.23%
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 5 / 10.
Can you provide the PE and PB ratios for WCC stock?
The Price/Earnings (PE) ratio for WESCO INTERNATIONAL INC (WCC) is 20.14 and the Price/Book (PB) ratio is 2.56.
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%.