WESCO INTERNATIONAL INC (WCC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WCC - US95082P1057 - Common Stock
265.79 USD
-3.86 (-1.43%)
265.79 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to WCC. 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. While showing a medium growth rate, WCC is valued expensive at the moment.
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.
WCC had positive earnings in each of the past 5 years.
In the past 5 years WCC always reported a positive cash flow from operatings.
1.2 Ratios
WCC has a Return On Assets (3.82%) which is in line with its industry peers.
WCC has a Return On Equity of 13.03%. This is in the better half of the industry: WCC outperforms 64.00% of its industry peers.
WCC has a Return On Invested Capital (7.94%) which is comparable to the rest of the 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 9.42%.
| 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.
In the last couple of years the Profit Margin of WCC has grown nicely.
The Operating Margin of WCC (5.42%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of WCC has grown nicely.
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.
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
Compared to 5 years ago, WCC has more shares outstanding
WCC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.12 indicates that WCC is not in any danger for bankruptcy at the moment.
WCC's Altman-Z score of 3.12 is in line compared 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 (23.00) which is in line with its industry peers.
WCC has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external 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 | 3.12 |
ROIC/WACC0.81
WACC9.78%
2.3 Liquidity
A Current Ratio of 2.09 indicates that WCC has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.09, WCC is in line with its industry, outperforming 52.00% of the companies in the same 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 46.00% 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.
WCC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.60% yearly.
The Revenue has been growing slightly by 5.28% in the past year.
The Revenue has been growing by 21.15% on average over the past years. This is a very strong growth!
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 Y10.63%
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
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 20.96.
WCC's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.28. WCC is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 16.07, WCC is valued correctly.
Based on the Price/Forward Earnings ratio, WCC is valued a bit cheaper than the industry average as 72.00% 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 23.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.96 | ||
| Fwd PE | 16.07 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.72 | ||
| EV/EBITDA | 12.75 |
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's earnings are expected to grow with 15.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.97
PEG (5Y)1.13
EPS Next 2Y16.18%
EPS Next 3Y15.8%
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 2.97, 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 2.31.
| 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 2Y16.18%
EPS Next 3Y15.8%
265.79
-3.86 (-1.43%)
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 Cap12.93B
Revenue(TTM)22.94B
Net Income(TTM)631.80M
Analysts83.75
Price Target284.08 (6.88%)
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)18.91%
EPS NQ rev (1m)1.06%
EPS NQ rev (3m)4.08%
EPS NY rev (1m)0.12%
EPS NY rev (3m)1.89%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)3.54%
Revenue NY rev (1m)0.8%
Revenue NY rev (3m)2.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.96 | ||
| Fwd PE | 16.07 | ||
| P/S | 0.56 | ||
| P/FCF | 51.72 | ||
| P/OCF | 39.22 | ||
| P/B | 2.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.75 |
EPS(TTM)12.68
EY4.77%
EPS(NY)16.53
Fwd EY6.22%
FCF(TTM)5.14
FCFY1.93%
OCF(TTM)6.78
OCFY2.55%
SpS471.57
BVpS99.65
TBVpS-5.6
PEG (NY)1.97
PEG (5Y)1.13
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 | 3.12 |
F-Score3
WACC9.78%
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 20.96 and the Price/Book (PB) ratio is 2.67.
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%.