WESCO INTERNATIONAL INC (WCC) Stock Fundamental Analysis
USA - NYSE:WCC - US95082P1057 - Common Stock
216 USD
+1.28 (+0.6%)
216 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 an average financial health and profitability rating. WCC has a correct valuation and a medium 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.
WCC had positive earnings in each of the past 5 years.
WCC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.91%, WCC is in line with its industry, outperforming 54.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.32%, WCC is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
With a Return On Invested Capital value of 7.99%, WCC perfoms like the industry average, outperforming 60.00% 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 10.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.91% | ||
| ROE | 13.32% | ||
| ROIC | 7.99% |
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 2.85%. This is comparable to the rest of the industry: WCC outperforms 44.00% of its industry peers.
WCC's Profit Margin has improved in the last couple of years.
WCC has a Operating Margin of 5.54%. This is comparable to the rest of the industry: WCC outperforms 42.00% of its industry peers.
WCC's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 21.34%, 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 | 5.54% | ||
| PM (TTM) | 2.85% | ||
| GM | 21.34% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WCC is still creating some 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
WCC has an Altman-Z score of 2.98. This is not the best score and indicates that WCC is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.98, WCC perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
The Debt to FCF ratio of WCC is 9.16, which is on the high side as it means it would take WCC, 9.16 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.16, WCC is in line with its industry, outperforming 58.00% 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 68.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 9.16 | ||
| Altman-Z | 2.98 |
ROIC/WACC0.85
WACC9.38%
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.
With a Current ratio value of 2.09, WCC perfoms like the industry average, outperforming 52.00% of the companies in the same industry.
A Quick Ratio of 1.19 indicates that WCC should not have too much problems paying its short term obligations.
WCC's Quick ratio of 1.19 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 | 1.19 |
3. Growth
3.1 Past
The earnings per share for WCC have decreased by -2.45% in the last year.
The Earnings Per Share has been growing by 18.60% on average over the past years. This is quite good.
WCC shows a small growth in Revenue. In the last year, the Revenue has grown by 1.30%.
The Revenue has been growing by 21.15% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-2.45%
EPS 3Y7.07%
EPS 5Y18.6%
EPS Q2Q%5.61%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y6.2%
Revenue growth 5Y21.15%
Sales Q2Q%7.66%
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 8.26% yearly.
Based on estimates for the next years, WCC will show a small growth in Revenue. The Revenue will grow by 5.10% on average per year.
EPS Next Y8.57%
EPS Next 2Y14.6%
EPS Next 3Y14.88%
EPS Next 5Y8.26%
Revenue Next Year5.58%
Revenue Next 2Y5.27%
Revenue Next 3Y5.06%
Revenue Next 5Y5.1%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
A Price/Earnings ratio of 17.50 indicates a rather expensive valuation of WCC.
74.00% of the companies in the same industry are more expensive than WCC, based on the Price/Earnings ratio.
WCC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.43, WCC is valued correctly.
76.00% of the companies in the same industry are more expensive than WCC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, WCC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.5 | ||
| Fwd PE | 13.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WCC is valued a bit cheaper than the industry average as 66.00% of the companies are valued more expensively.
WCC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WCC is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.99 | ||
| EV/EBITDA | 10.88 |
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 has a very decent profitability rating, which may justify a higher PE ratio.
WCC's earnings are expected to grow with 14.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.04
PEG (5Y)0.94
EPS Next 2Y14.6%
EPS Next 3Y14.88%
5. Dividend
5.1 Amount
With a yearly dividend of 0.83%, WCC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.74, WCC has a dividend in line with its industry peers.
With a Dividend Yield of 0.83, WCC pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
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 22.15% of its income as dividend. This is a sustainable payout ratio.
DP22.15%
EPS Next 2Y14.6%
EPS Next 3Y14.88%
216
+1.28 (+0.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners102.17%
Inst Owner Change0.66%
Ins Owners1.87%
Ins Owner Change-0.42%
Market Cap10.51B
Analysts82.5
Price Target242.06 (12.06%)
Short Float %3.41%
Short Ratio2.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Yearly Dividend2.79
Dividend Growth(5Y)N/A
DP22.15%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.54%
Min EPS beat(2)-5.55%
Max EPS beat(2)0.47%
EPS beat(4)2
Avg EPS beat(4)0.58%
Min EPS beat(4)-5.55%
Max EPS beat(4)10.59%
EPS beat(8)3
Avg EPS beat(8)-4.59%
EPS beat(12)6
Avg EPS beat(12)-3.49%
EPS beat(16)10
Avg EPS beat(16)3.49%
Revenue beat(2)2
Avg Revenue beat(2)0.46%
Min Revenue beat(2)0.38%
Max Revenue beat(2)0.54%
Revenue beat(4)4
Avg Revenue beat(4)1.24%
Min Revenue beat(4)0.38%
Max Revenue beat(4)3.36%
Revenue beat(8)4
Avg Revenue beat(8)-0.22%
Revenue beat(12)6
Avg Revenue beat(12)-0.39%
Revenue beat(16)9
Avg Revenue beat(16)0.36%
PT rev (1m)3.08%
PT rev (3m)18.77%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)-1.72%
EPS NY rev (1m)0.14%
EPS NY rev (3m)-0.14%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)2.88%
Revenue NY rev (1m)1.86%
Revenue NY rev (3m)1.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.5 | ||
| Fwd PE | 13.43 | ||
| P/S | 0.47 | ||
| P/FCF | 16.99 | ||
| P/OCF | 14.71 | ||
| P/B | 2.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.88 |
EPS(TTM)12.34
EY5.71%
EPS(NY)16.09
Fwd EY7.45%
FCF(TTM)12.72
FCFY5.89%
OCF(TTM)14.68
OCFY6.8%
SpS456.89
BVpS97.87
TBVpS-8.31
PEG (NY)2.04
PEG (5Y)0.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.91% | ||
| ROE | 13.32% | ||
| ROCE | 10.46% | ||
| ROIC | 7.99% | ||
| ROICexc | 8.47% | ||
| ROICexgc | 15.85% | ||
| OM | 5.54% | ||
| PM (TTM) | 2.85% | ||
| GM | 21.34% | ||
| FCFM | 2.78% |
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-Score4
Asset Turnover1.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 9.16 | ||
| Debt/EBITDA | 3.97 | ||
| Cap/Depr | 50.82% | ||
| Cap/Sales | 0.43% | ||
| Interest Coverage | 3.65 | ||
| Cash Conversion | 50.34% | ||
| Profit Quality | 97.57% | ||
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 2.98 |
F-Score4
WACC9.38%
ROIC/WACC0.85
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)-2.45%
EPS 3Y7.07%
EPS 5Y18.6%
EPS Q2Q%5.61%
EPS Next Y8.57%
EPS Next 2Y14.6%
EPS Next 3Y14.88%
EPS Next 5Y8.26%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y6.2%
Revenue growth 5Y21.15%
Sales Q2Q%7.66%
Revenue Next Year5.58%
Revenue Next 2Y5.27%
Revenue Next 3Y5.06%
Revenue Next 5Y5.1%
EBIT growth 1Y-9.04%
EBIT growth 3Y10.33%
EBIT growth 5Y29.86%
EBIT Next Year16.64%
EBIT Next 3Y11.64%
EBIT Next 5Y7.14%
FCF growth 1Y132.9%
FCF growth 3Y333.07%
FCF growth 5Y41.05%
OCF growth 1Y89.14%
OCF growth 3Y154.08%
OCF growth 5Y37.46%