WESCO INTERNATIONAL INC (WCC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WCC - US95082P1057 - Common Stock
292.29 USD
+0.99 (+0.34%)
292.29 USD
0 (0%)
WCC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 50 industry peers in the Trading Companies & Distributors industry. WCC has only an average score on both its financial health and profitability. 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.
- Each year in the past 5 years WCC has been profitable.
- Each year in the past 5 years WCC had a positive operating cash flow.
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 (7.94%) which is in line with 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 9.64%.
| 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 in the lower half of the industry: WCC underperforms 60.00% of its industry peers.
- In the last couple of years the Profit Margin of WCC has grown nicely.
- Looking at the Operating Margin, with a value of 5.42%, WCC is in line with its industry, outperforming 48.00% of the companies in the same industry.
- WCC's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 21.14%, WCC is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
- 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
- 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 3.18. This indicates that WCC is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of WCC (3.18) is comparable to the rest of the industry.
- The Debt to FCF ratio of WCC is 23.00, which is on the high side as it means it would take WCC, 23.00 years of fcf income to pay off all of its debts.
- WCC has a Debt to FCF ratio (23.00) which is in line with 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 | 3.18 |
ROIC/WACC0.83
WACC9.62%
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.
- 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 in line with its industry peers.
| 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.
- 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.
- Looking at the last year, WCC shows a small growth in Revenue. The Revenue has grown by 5.28% in the last 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 Y10.62%
EPS Next 2Y16.27%
EPS Next 3Y16.18%
EPS Next 5Y10.21%
Revenue Next Year7.94%
Revenue Next 2Y7.04%
Revenue Next 3Y6.46%
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
- WCC is valuated rather expensively with a Price/Earnings ratio of 23.05.
- WCC's Price/Earnings ratio is in line with the industry average.
- WCC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- WCC is valuated rather expensively with a Price/Forward Earnings ratio of 17.65.
- Based on the Price/Forward Earnings ratio, WCC is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
- WCC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.05 | ||
| Fwd PE | 17.65 |
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 | 56.88 | ||
| EV/EBITDA | 13.48 |
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 16.18% in the coming years.
PEG (NY)2.17
PEG (5Y)1.24
EPS Next 2Y16.27%
EPS Next 3Y16.18%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.63%, WCC is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.31, WCC has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, WCC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
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 2Y16.27%
EPS Next 3Y16.18%
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 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.
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 10.62% 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%.