WESCO INTERNATIONAL INC (WCC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WCC - US95082P1057 - Common Stock
260.39 USD
-17.03 (-6.14%)
260.39 USD
0 (0%)
WCC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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. WCC is valied quite expensively at the moment, while it does show a decent growth rate.
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.
Each year in the past 5 years WCC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.82%, WCC is in line with its industry, outperforming 52.00% of the companies in the same industry.
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 in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WCC is in line with the industry average of 9.41%.
| 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 has a Profit Margin of 2.75%. This is in the lower half of the industry: WCC underperforms 60.00% of its industry peers.
WCC's Profit Margin has improved in the last couple of years.
WCC has a Operating Margin (5.42%) which is comparable to the rest of the industry.
WCC's Operating Margin has improved in the last couple of years.
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.
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
WCC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying 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.
Compared to 1 year ago, WCC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.14 indicates that WCC is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.14, WCC perfoms like the industry average, outperforming 54.00% of the companies in the same industry.
The Debt to FCF ratio of WCC is 23.00, which is on the high side as it means it would take WCC, 23.00 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 23.00, WCC is in line with its industry, outperforming 50.00% 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.
With a Debt to Equity ratio value of 1.18, WCC is not doing good in the industry: 66.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 23 | ||
| Altman-Z | 3.14 |
ROIC/WACC0.81
WACC9.8%
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's Current ratio of 2.09 is in line compared to the rest of the industry. WCC outperforms 52.00% of its industry peers.
WCC has a Quick Ratio of 1.20. 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 (1.20) which is comparable to the rest of the industry.
| 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.
The Revenue has been growing slightly by 5.28% in the past year.
WCC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.15% yearly.
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
Based on estimates for the next years, WCC will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.21% on average per year.
Based on estimates for the next years, WCC will show a small growth in Revenue. The Revenue will grow by 6.00% on average per year.
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
With a Price/Earnings ratio of 20.54, WCC is valued on the expensive side.
WCC's Price/Earnings ratio is in line with the industry average.
WCC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.54.
Based on the Price/Forward Earnings ratio of 15.75, the valuation of WCC can be described as correct.
Based on the Price/Forward Earnings ratio, WCC is valued a bit cheaper than 72.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WCC to the average of the S&P500 Index (23.78), we can say WCC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.54 | ||
| Fwd PE | 15.75 |
4.2 Price Multiples
WCC's Enterprise Value to EBITDA is on the same level as the industry average.
WCC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.67 | ||
| EV/EBITDA | 13.01 |
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.
A more expensive valuation may be justified as WCC's earnings are expected to grow with 15.80% in the coming years.
PEG (NY)1.93
PEG (5Y)1.1
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 2.86, WCC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, WCC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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 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%
260.39
-17.03 (-6.14%)
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 Cap12.67B
Revenue(TTM)22.94B
Net Income(TTM)631.80M
Analysts83.75
Price Target284.08 (9.1%)
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 | 20.54 | ||
| Fwd PE | 15.75 | ||
| P/S | 0.55 | ||
| P/FCF | 50.67 | ||
| P/OCF | 38.42 | ||
| P/B | 2.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.01 |
EPS(TTM)12.68
EY4.87%
EPS(NY)16.53
Fwd EY6.35%
FCF(TTM)5.14
FCFY1.97%
OCF(TTM)6.78
OCFY2.6%
SpS471.57
BVpS99.65
TBVpS-5.6
PEG (NY)1.93
PEG (5Y)1.1
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 | 3.14 |
F-Score3
WACC9.8%
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 20.54 and the Price/Book (PB) ratio is 2.61.
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%.