WESCO INTERNATIONAL INC (WCC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WCC - US95082P1057 - Common Stock
260.39 USD
-17.03 (-6.14%)
260.39 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. 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.
WCC had a positive operating cash flow in the past year.
In the past 5 years WCC has always been profitable.
In the past 5 years WCC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of WCC (3.82%) is comparable to the rest of the industry.
WCC's Return On Equity of 13.03% is fine compared to the rest of the industry. WCC outperforms 64.00% of its industry peers.
With a Return On Invested Capital value of 7.94%, WCC perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
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 9.41%.
| 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.
WCC's Operating Margin of 5.42% is in line compared to the rest of the industry. WCC outperforms 48.00% of its industry peers.
In the last couple of years the Operating Margin of WCC has grown nicely.
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.
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) below the Cost of Capital (WACC), WCC is destroying 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.
The debt/assets ratio for WCC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.10 indicates that WCC is not in any danger for bankruptcy at the moment.
WCC's Altman-Z score of 3.10 is in line compared to the rest of the industry. WCC outperforms 52.00% 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.
The Debt to FCF ratio of WCC (23.00) 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 worse Debt to Equity ratio (1.18) than 66.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 23 | ||
| Altman-Z | 3.1 |
ROIC/WACC0.81
WACC9.8%
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.
With a Quick ratio value of 1.20, WCC perfoms like the industry average, outperforming 46.00% of the companies in the same 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.
WCC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.60% yearly.
Looking at the last year, WCC shows a small growth in Revenue. The Revenue has grown by 5.28% in the last 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.
WCC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.00% yearly.
EPS Next Y10.63%
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
With a Price/Earnings ratio of 20.54, WCC is valued on the expensive side.
62.00% of the companies in the same industry are more expensive than WCC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of WCC to the average of the S&P500 Index (26.54), we can say WCC is valued slightly cheaper.
The Price/Forward Earnings ratio is 15.75, which indicates a correct valuation of WCC.
80.00% of the companies in the same industry are more expensive than WCC, based on the Price/Forward Earnings ratio.
WCC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.54 | ||
| Fwd PE | 15.75 |
4.2 Price Multiples
WCC's Enterprise Value to EBITDA ratio is in line with the industry average.
WCC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.67 | ||
| EV/EBITDA | 12.43 |
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.
WCC's earnings are expected to grow with 15.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.93
PEG (5Y)1.1
EPS Next 2Y16.18%
EPS Next 3Y15.8%
5. Dividend
5.1 Amount
With a yearly dividend of 0.70%, WCC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.23, 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 1.96.
| 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 2Y16.18%
EPS Next 3Y15.8%
260.39
-17.03 (-6.14%)
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 Cap12.67B
Revenue(TTM)22.94B
Net Income(TTM)631.80M
Analysts83.75
Price Target284.08 (9.1%)
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)17.36%
EPS NQ rev (1m)1.06%
EPS NQ rev (3m)3.42%
EPS NY rev (1m)0.12%
EPS NY rev (3m)1.89%
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 | 20.54 | ||
| Fwd PE | 15.75 | ||
| P/S | 0.55 | ||
| P/FCF | 50.67 | ||
| P/OCF | 38.42 | ||
| P/B | 2.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.43 |
EPS(TTM)12.68
EY4.87%
EPS(NY)16.53
Fwd EY6.35%
FCF(TTM)5.14
FCFY1.97%
OCF(TTM)6.78
OCFY2.6%
SpS471.57
BVpS99.65
TBVpS-5.6
PEG (NY)1.93
PEG (5Y)1.1
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 | 3.1 |
F-Score3
WACC9.8%
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 20.54 and the Price/Book (PB) ratio is 2.61.
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%.