WESCO INTERNATIONAL INC (WCC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WCC - US95082P1057 - Common Stock
287.81 USD
+1.02 (+0.36%)
286 USD
-1.81 (-0.63%)
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 only an average score on both its financial health and profitability. While showing a medium growth rate, WCC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year WCC was profitable.
- WCC had a positive operating cash flow in the past year.
- 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
- WCC's Return On Assets of 3.82% is in line compared to the rest of the industry. WCC outperforms 52.00% of its industry peers.
- Looking at the Return On Equity, with a value of 13.03%, WCC is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 7.94%, WCC is in line with its industry, outperforming 60.00% of the companies in the same 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 9.64%.
| 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
- The Profit Margin of WCC (2.75%) is worse than 60.00% of its industry peers.
- WCC's Profit Margin has improved in the last couple of years.
- 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.
- 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 just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, WCC has less shares outstanding
- Compared to 5 years ago, WCC has more shares outstanding
- The debt/assets ratio for WCC has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.16 indicates that WCC is not in any danger for bankruptcy at the moment.
- WCC has a Altman-Z score of 3.16. This is comparable to the rest of the industry: WCC outperforms 52.00% 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.
- Looking at the Debt to FCF ratio, with a value of 23.00, WCC is in line with its industry, outperforming 52.00% 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's Debt to Equity ratio of 1.18 is on the low side compared to the rest of the industry. WCC is outperformed by 64.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 23 | ||
| Altman-Z | 3.16 |
ROIC/WACC0.83
WACC9.58%
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 has a Current ratio (2.09) which is in line with 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 of 1.20. This is comparable 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
- The Earnings Per Share has grown by an nice 8.01% over the past year.
- The Earnings Per Share has been growing by 18.60% on average over the past years. This is quite good.
- 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
- 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 Y10.62%
EPS Next 2Y16.27%
EPS Next 3Y16.18%
EPS Next 5Y10.21%
Revenue Next Year7.94%
Revenue Next 2Y7.04%
Revenue Next 3Y6.46%
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.
- 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 22.70, the valuation of WCC can be described as rather expensive.
- The rest of the industry has a similar Price/Earnings ratio as WCC.
- WCC is valuated rather cheaply when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
- WCC is valuated rather expensively with a Price/Forward Earnings ratio of 17.38.
- WCC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WCC is cheaper than 72.00% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.96. WCC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.7 | ||
| Fwd PE | 17.38 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of WCC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.01 | ||
| EV/EBITDA | 13.33 |
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 16.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.14
PEG (5Y)1.22
EPS Next 2Y16.27%
EPS Next 3Y16.18%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.63%, WCC is not a good candidate for dividend investing.
- WCC's Dividend Yield is comparable with the industry average which is at 1.31.
- With a Dividend Yield of 0.63, WCC pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
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 2Y16.27%
EPS Next 3Y16.18%
WESCO INTERNATIONAL INC / WCC FAQ
Can you provide the ChartMill fundamental rating for WESCO INTERNATIONAL INC?
ChartMill assigns a fundamental rating of 5 / 10 to WCC.
Can you provide the valuation status for WESCO INTERNATIONAL INC?
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.
What is the earnings growth outlook for WESCO INTERNATIONAL INC?
The Earnings per Share (EPS) of WESCO INTERNATIONAL INC (WCC) is expected to grow by 10.62% in the next year.
Is the dividend of WESCO INTERNATIONAL INC sustainable?
The dividend rating of WESCO INTERNATIONAL INC (WCC) is 2 / 10 and the dividend payout ratio is 20.26%.