WESCO INTERNATIONAL INC (WCC) Stock Fundamental Analysis
NYSE:WCC - New York Stock Exchange, Inc. - US95082P1057 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to WCC. WCC was compared to 48 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on WCC. With these ratings, WCC could be worth investigating further for value investing!.
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
With a Return On Assets value of 4.38%, WCC perfoms like the industry average, outperforming 54.17% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.28%, WCC is in line with its industry, outperforming 56.25% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.68%, WCC is doing good in the industry, outperforming 62.50% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WCC is in line with the industry average of 9.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.38% | ||
| ROE | 13.28% | ||
| ROIC | 8.68% |
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 3.03%, WCC perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
In the last couple of years the Profit Margin of WCC has grown nicely.
WCC has a worse Operating Margin (5.86%) than 64.58% of its industry peers.
In the last couple of years the Operating Margin of WCC has grown nicely.
WCC has a worse Gross Margin (21.60%) than 75.00% of its industry peers.
WCC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.86% | ||
| PM (TTM) | 3.03% | ||
| GM | 21.6% |
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.
The number of shares outstanding for WCC has been reduced compared to 1 year ago.
WCC has more shares outstanding than it did 5 years ago.
WCC has a better debt/assets ratio than last year.
2.2 Solvency
WCC has an Altman-Z score of 2.99. This indicates that WCC is financially healthy and has little risk of bankruptcy at the moment.
WCC has a Altman-Z score (2.99) which is comparable to the rest of the industry.
The Debt to FCF ratio of WCC is 5.03, which is a neutral value as it means it would take WCC, 5.03 years of fcf income to pay off all of its debts.
WCC's Debt to FCF ratio of 5.03 is fine compared to the rest of the industry. WCC outperforms 62.50% of its industry peers.
WCC has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
WCC has a Debt to Equity ratio of 1.02. This is in the lower half of the industry: WCC underperforms 60.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 5.03 | ||
| Altman-Z | 2.99 |
ROIC/WACC0.91
WACC9.53%
2.3 Liquidity
WCC has a Current Ratio of 2.20. This indicates that WCC is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.20, WCC perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
WCC has a Quick Ratio of 1.27. This is a normal value and indicates that WCC is financially healthy and should not expect problems in meeting its short term obligations.
WCC has a Quick ratio of 1.27. This is comparable to the rest of the industry: WCC outperforms 54.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.2 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
WCC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.10%.
The Earnings Per Share has been growing by 18.60% on average over the past years. This is quite good.
WCC shows a decrease in Revenue. In the last year, the revenue decreased by -2.53%.
The Revenue has been growing by 21.15% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-16.1%
EPS 3Y7.07%
EPS 5Y18.6%
EPS Q2Q%19.25%
Revenue 1Y (TTM)-2.53%
Revenue growth 3Y6.2%
Revenue growth 5Y21.15%
Sales Q2Q%0.48%
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 8.23% yearly.
WCC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.73% yearly.
EPS Next Y11.35%
EPS Next 2Y15.13%
EPS Next 3Y15.16%
EPS Next 5Y8.23%
Revenue Next Year2.79%
Revenue Next 2Y3.61%
Revenue Next 3Y4.01%
Revenue Next 5Y4.73%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
Based on the Price/Earnings ratio of 11.83, the valuation of WCC can be described as reasonable.
WCC's Price/Earnings ratio is rather cheap when compared to the industry. WCC is cheaper than 81.25% of the companies in the same industry.
When comparing the Price/Earnings ratio of WCC to the average of the S&P500 Index (28.29), we can say WCC is valued rather cheaply.
A Price/Forward Earnings ratio of 10.62 indicates a reasonable valuation of WCC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WCC indicates a rather cheap valuation: WCC is cheaper than 83.33% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.32. WCC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.83 | ||
| Fwd PE | 10.62 |
4.2 Price Multiples
WCC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WCC is cheaper than 68.75% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WCC is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.03 | ||
| EV/EBITDA | 8.03 |
4.3 Compensation for Growth
WCC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as WCC's earnings are expected to grow with 15.16% in the coming years.
PEG (NY)1.04
PEG (5Y)0.64
EPS Next 2Y15.13%
EPS Next 3Y15.16%
5. Dividend
5.1 Amount
WCC has a Yearly Dividend Yield of 1.12%.
The stock price of WCC dropped by -21.12% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
WCC's Dividend Yield is comparable with the industry average which is at 2.26.
Compared to an average S&P500 Dividend Yield of 2.51, WCC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
5.2 History
WCC has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
21.04% of the earnings are spent on dividend by WCC. This is a low number and sustainable payout ratio.
DP21.04%
EPS Next 2Y15.13%
EPS Next 3Y15.16%
NYSE:WCC (4/21/2025, 11:19:43 AM)
144.92
-6.23 (-4.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners97.16%
Inst Owner Change0.15%
Ins Owners1.73%
Ins Owner Change2.11%
Market Cap7.07B
Analysts85
Price Target226.58 (56.35%)
Short Float %2.97%
Short Ratio1.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
Yearly Dividend2.79
Dividend Growth(5Y)N/A
DP21.04%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.7%
Min EPS beat(2)-3.19%
Max EPS beat(2)10.59%
EPS beat(4)1
Avg EPS beat(4)-3.51%
Min EPS beat(4)-11.8%
Max EPS beat(4)10.59%
EPS beat(8)3
Avg EPS beat(8)-5.63%
EPS beat(12)7
Avg EPS beat(12)2.58%
EPS beat(16)11
Avg EPS beat(16)10.76%
Revenue beat(2)2
Avg Revenue beat(2)2.02%
Min Revenue beat(2)0.69%
Max Revenue beat(2)3.36%
Revenue beat(4)2
Avg Revenue beat(4)0.37%
Min Revenue beat(4)-2.41%
Max Revenue beat(4)3.36%
Revenue beat(8)3
Avg Revenue beat(8)-0.74%
Revenue beat(12)6
Avg Revenue beat(12)0.2%
Revenue beat(16)8
Avg Revenue beat(16)0.58%
PT rev (1m)-3.69%
PT rev (3m)-0.03%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-7.74%
EPS NY rev (1m)0.17%
EPS NY rev (3m)-6.86%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.83 | ||
| Fwd PE | 10.62 | ||
| P/S | 0.32 | ||
| P/FCF | 7.03 | ||
| P/OCF | 6.42 | ||
| P/B | 1.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.03 |
EPS(TTM)12.25
EY8.45%
EPS(NY)13.64
Fwd EY9.41%
FCF(TTM)20.63
FCFY14.23%
OCF(TTM)22.57
OCFY15.57%
SpS447.11
BVpS101.86
TBVpS-2.98
PEG (NY)1.04
PEG (5Y)0.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.38% | ||
| ROE | 13.28% | ||
| ROCE | 11.35% | ||
| ROIC | 8.68% | ||
| ROICexc | 9.26% | ||
| ROICexgc | 17.96% | ||
| OM | 5.86% | ||
| PM (TTM) | 3.03% | ||
| GM | 21.6% | ||
| FCFM | 4.61% |
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%
ROICexcg growth 3Y1.25%
ROICexcg 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-Score5
Asset Turnover1.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 5.03 | ||
| Debt/EBITDA | 3.45 | ||
| Cap/Depr | 51.69% | ||
| Cap/Sales | 0.43% | ||
| Interest Coverage | 3.86 | ||
| Cash Conversion | 75.36% | ||
| Profit Quality | 152.48% | ||
| Current Ratio | 2.2 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 2.99 |
F-Score5
WACC9.53%
ROIC/WACC0.91
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)-16.1%
EPS 3Y7.07%
EPS 5Y18.6%
EPS Q2Q%19.25%
EPS Next Y11.35%
EPS Next 2Y15.13%
EPS Next 3Y15.16%
EPS Next 5Y8.23%
Revenue 1Y (TTM)-2.53%
Revenue growth 3Y6.2%
Revenue growth 5Y21.15%
Sales Q2Q%0.48%
Revenue Next Year2.79%
Revenue Next 2Y3.61%
Revenue Next 3Y4.01%
Revenue Next 5Y4.73%
EBIT growth 1Y-13.56%
EBIT growth 3Y10.33%
EBIT growth 5Y29.86%
EBIT Next Year17.63%
EBIT Next 3Y11.33%
EBIT Next 5Y6.77%
FCF growth 1Y151.06%
FCF growth 3Y333.07%
FCF growth 5Y41.05%
OCF growth 1Y123.28%
OCF growth 3Y154.08%
OCF growth 5Y37.46%