WESCO INTERNATIONAL INC (WCC) Stock Fundamental Analysis
USA - NYSE:WCC - US95082P1057 - Common Stock
213.78 USD
-4.62 (-2.12%)
213.78 USD
0 (0%)
Overall WCC gets a fundamental rating of 5 out of 10. We evaluated WCC against 49 industry peers in the Trading Companies & Distributors industry. WCC has an average financial health and profitability rating. WCC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year WCC was profitable.
In the past year WCC had a positive cash flow from operations.
In the past 5 years WCC has always been profitable.
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 55.10% of the companies in the same industry.
WCC has a better Return On Equity (13.32%) than 63.27% of its industry peers.
WCC has a better Return On Invested Capital (7.99%) than 61.22% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WCC is in line with the industry average of 10.04%.
| 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
Looking at the Profit Margin, with a value of 2.85%, WCC is in line with its industry, outperforming 44.90% of the companies in the same industry.
WCC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 5.54%, WCC is in line with its industry, outperforming 42.86% of the companies in the same industry.
In the last couple of years the Operating Margin of WCC has grown nicely.
With a Gross Margin value of 21.34%, WCC is not doing good in the industry: 69.39% 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
WCC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
WCC has less shares outstanding than it did 1 year ago.
WCC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, WCC has an improved debt to assets ratio.
2.2 Solvency
WCC has an Altman-Z score of 2.97. 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 2.97, WCC perfoms like the industry average, outperforming 55.10% 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.
WCC has a Debt to FCF ratio (9.16) which is comparable to the rest of the industry.
WCC has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.18, WCC is doing worse than 67.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 9.16 | ||
| Altman-Z | 2.97 |
ROIC/WACC0.87
WACC9.16%
2.3 Liquidity
A Current Ratio of 2.09 indicates that WCC has no problem at all paying its short term obligations.
WCC has a Current ratio of 2.09. This is comparable to the rest of the industry: WCC outperforms 53.06% of its industry peers.
A Quick Ratio of 1.19 indicates that WCC should not have too much problems paying its short term obligations.
WCC has a Quick ratio (1.19) which is in line with 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%.
WCC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.15% yearly.
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
The Earnings Per Share is expected to grow by 8.26% on average over the next years. This is quite good.
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 Y8.72%
EPS Next 2Y15.06%
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
Based on the Price/Earnings ratio of 17.32, the valuation of WCC can be described as rather expensive.
Based on the Price/Earnings ratio, WCC is valued a bit cheaper than 73.47% of the companies in the same industry.
WCC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.42.
With a Price/Forward Earnings ratio of 13.18, WCC is valued correctly.
WCC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WCC is cheaper than 75.51% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.94. WCC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.32 | ||
| Fwd PE | 13.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WCC indicates a somewhat cheap valuation: WCC is cheaper than 63.27% of the companies listed in the same industry.
77.55% of the companies in the same industry are more expensive than WCC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.81 | ||
| EV/EBITDA | 10.85 |
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.
A more expensive valuation may be justified as WCC's earnings are expected to grow with 14.88% in the coming years.
PEG (NY)1.99
PEG (5Y)0.93
EPS Next 2Y15.06%
EPS Next 3Y14.88%
5. Dividend
5.1 Amount
WCC has a yearly dividend return of 0.83%, which is pretty low.
Compared to an average industry Dividend Yield of 1.82, WCC pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.83, WCC pays less dividend than the S&P500 average, which is at 2.36.
| 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
22.15% of the earnings are spent on dividend by WCC. This is a low number and sustainable payout ratio.
DP22.15%
EPS Next 2Y15.06%
EPS Next 3Y14.88%
213.78
-4.62 (-2.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners101.69%
Inst Owner Change0.31%
Ins Owners1.77%
Ins Owner Change-0.43%
Market Cap10.40B
Analysts82.5
Price Target242.06 (13.23%)
Short Float %3.72%
Short Ratio2.62
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)0%
PT rev (3m)14.86%
EPS NQ rev (1m)0.95%
EPS NQ rev (3m)-0.78%
EPS NY rev (1m)0.14%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.32 | ||
| Fwd PE | 13.18 | ||
| P/S | 0.47 | ||
| P/FCF | 16.81 | ||
| P/OCF | 14.56 | ||
| P/B | 2.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.85 |
EPS(TTM)12.34
EY5.77%
EPS(NY)16.22
Fwd EY7.59%
FCF(TTM)12.72
FCFY5.95%
OCF(TTM)14.68
OCFY6.87%
SpS456.89
BVpS97.87
TBVpS-8.31
PEG (NY)1.99
PEG (5Y)0.93
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 | 2.97 |
F-Score4
WACC9.16%
ROIC/WACC0.87
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 Y8.72%
EPS Next 2Y15.06%
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 Year16.49%
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%