WESCO INTERNATIONAL INC (WCC) Stock Fundamental Analysis
USA - NYSE:WCC - US95082P1057 - Common Stock
252.36 USD
+3.34 (+1.34%)
256 USD
+3.64 (+1.44%)
WCC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 50 industry peers in the Trading Companies & Distributors industry. WCC has an average financial health and profitability rating. 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.
WCC had a positive operating cash flow in the past year.
Each year in the past 5 years WCC has 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 (3.82%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 13.03%, WCC is in line with its industry, outperforming 60.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.94%, WCC is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WCC 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's Profit Margin of 2.75% is in line compared 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.
Looking at the Operating Margin, with a value of 5.42%, WCC is in line with its industry, outperforming 44.00% 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.
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.
Compared to 1 year ago, WCC has less shares outstanding
Compared to 5 years ago, WCC has more shares outstanding
Compared to 1 year ago, WCC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.08 indicates that WCC is not in any danger for bankruptcy at the moment.
WCC has a Altman-Z score (3.08) 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.
With a Debt to FCF ratio value of 23.00, WCC perfoms like the industry average, outperforming 54.00% of the companies in the same 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 64.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 23 | ||
| Altman-Z | 3.08 |
ROIC/WACC0.95
WACC8.39%
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 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's Quick ratio of 1.20 is in line compared to the rest of the industry. WCC outperforms 44.00% of its industry peers.
| 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.
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
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 Y10.49%
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 19.90.
WCC's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.47, WCC is valued a bit cheaper.
A Price/Forward Earnings ratio of 15.23 indicates a correct valuation of WCC.
68.00% 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 rather cheap valuation when compared to the S&P500 average which is at 35.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.9 | ||
| Fwd PE | 15.23 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WCC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.12 | ||
| 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.
WCC has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as WCC's earnings are expected to grow with 16.12% in the coming years.
PEG (NY)1.9
PEG (5Y)1.07
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.
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
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%
252.36
+3.34 (+1.34%)
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 Cap12.28B
Revenue(TTM)22.94B
Net Income(TTM)631.80M
Analysts82.35
Price Target247.02 (-2.12%)
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 | 19.9 | ||
| Fwd PE | 15.23 | ||
| P/S | 0.54 | ||
| P/FCF | 49.12 | ||
| P/OCF | 37.25 | ||
| P/B | 2.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.16 |
EPS(TTM)12.68
EY5.02%
EPS(NY)16.57
Fwd EY6.57%
FCF(TTM)5.14
FCFY2.04%
OCF(TTM)6.78
OCFY2.68%
SpS471.48
BVpS99.63
TBVpS-5.6
PEG (NY)1.9
PEG (5Y)1.07
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
WACC8.39%
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 19.9 and the Price/Book (PB) ratio is 2.53.
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%.