WESCO INTERNATIONAL INC (WCC) Stock Fundamental Analysis
NYSE:WCC - New York Stock Exchange, Inc. - US95082P1057 - Common Stock
WCC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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. WCC has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years WCC has been profitable.
In the past 5 years WCC always reported a positive cash flow from operatings.
1.2 Ratios
WCC has a Return On Assets (4.17%) which is comparable to the rest of the industry.
WCC has a Return On Equity of 12.62%. This is comparable to the rest of the industry: WCC outperforms 42.55% of its industry peers.
WCC's Return On Invested Capital of 8.73% is in line compared to the rest of the industry. WCC outperforms 57.45% 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 9.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.17% | ||
| ROE | 12.62% | ||
| ROIC | 8.73% |
ROA(3y)4.45%
ROA(5y)3.68%
ROE(3y)14.29%
ROE(5y)10.96%
ROIC(3y)9.26%
ROIC(5y)7.75%
1.3 Margins
With a Profit Margin value of 2.92%, WCC is not doing good in the industry: 61.70% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of WCC has grown nicely.
With a Operating Margin value of 5.94%, WCC is not doing good in the industry: 65.96% of the companies in the same industry are doing better.
WCC's Operating Margin has improved in the last couple of years.
The Gross Margin of WCC (21.66%) is worse than 76.60% of its industry peers.
WCC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.94% | ||
| PM (TTM) | 2.92% | ||
| GM | 21.66% |
OM growth 3Y17.41%
OM growth 5Y8.94%
PM growth 3Y77.26%
PM growth 5Y2.65%
GM growth 3Y4.64%
GM growth 5Y2.46%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WCC is destroying value.
WCC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for WCC has been increased compared to 5 years ago.
Compared to 1 year ago, WCC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.09 indicates that WCC is not in any danger for bankruptcy at the moment.
WCC has a Altman-Z score (3.09) which is comparable to the rest of the industry.
WCC has a debt to FCF ratio of 6.32. This is a slightly negative value and a sign of low solvency as WCC would need 6.32 years to pay back of all of its debts.
WCC has a Debt to FCF ratio of 6.32. This is comparable to the rest of the industry: WCC outperforms 59.57% of its industry peers.
WCC has a Debt/Equity ratio of 0.99. This is a neutral value indicating WCC is somewhat dependend on debt financing.
WCC has a Debt to Equity ratio (0.99) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 6.32 | ||
| Altman-Z | 3.09 |
ROIC/WACC0.76
WACC11.46%
2.3 Liquidity
WCC has a Current Ratio of 2.21. This indicates that WCC is financially healthy and has no problem in meeting its short term obligations.
WCC has a Current ratio (2.21) which is in line with its industry peers.
WCC has a Quick Ratio of 1.29. This is a normal value and indicates that WCC is financially healthy and should not expect problems in meeting its short term obligations.
WCC's Quick ratio of 1.29 is in line compared to the rest of the industry. WCC outperforms 59.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The earnings per share for WCC have decreased strongly by -26.99% in the last year.
Measured over the past years, WCC shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.81% on average per year.
The Revenue has decreased by -3.02% in the past year.
WCC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.31% yearly.
EPS 1Y (TTM)-26.99%
EPS 3Y41.53%
EPS 5Y24.81%
EPS Q2Q%-20.27%
Revenue 1Y (TTM)-3.02%
Revenue growth 3Y22.01%
Revenue growth 5Y22.31%
Sales Q2Q%-2.75%
3.2 Future
Based on estimates for the next years, WCC will show a small growth in Earnings Per Share. The EPS will grow by 3.79% on average per year.
Based on estimates for the next years, WCC will show a small growth in Revenue. The Revenue will grow by 2.86% on average per year.
EPS Next Y-15.03%
EPS Next 2Y0.15%
EPS Next 3Y5.54%
EPS Next 5Y3.79%
Revenue Next Year-3.34%
Revenue Next 2Y-0.17%
Revenue Next 3Y1.31%
Revenue Next 5Y2.86%
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
With a Price/Earnings ratio of 16.91, WCC is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as WCC.
Compared to an average S&P500 Price/Earnings ratio of 28.29, WCC is valued a bit cheaper.
WCC is valuated correctly with a Price/Forward Earnings ratio of 13.56.
WCC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WCC is cheaper than 74.47% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WCC to the average of the S&P500 Index (24.44), we can say WCC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.91 | ||
| Fwd PE | 13.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WCC is valued a bit cheaper than the industry average as 61.70% of the companies are valued more expensively.
WCC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. WCC is cheaper than 85.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.24 | ||
| EV/EBITDA | 9.51 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.68
EPS Next 2Y0.15%
EPS Next 3Y5.54%
5. Dividend
5.1 Amount
With a yearly dividend of 0.85%, WCC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.84, WCC has a dividend in line with its industry peers.
With a Dividend Yield of 0.85, WCC pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
5.2 History
WCC does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
WCC pays out 21.65% of its income as dividend. This is a sustainable payout ratio.
DP21.65%
EPS Next 2Y0.15%
EPS Next 3Y5.54%
WESCO INTERNATIONAL INC
NYSE:WCC (1/21/2025, 8:04:00 PM)
Premarket: 201 +2.46 (+1.24%)198.54
+6.93 (+3.62%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners94.79%
Inst Owner Change0.14%
Ins Owners1.75%
Ins Owner Change-0.63%
Market Cap9.73B
Analysts83.75
Price Target226.64 (14.15%)
Short Float %2.09%
Short Ratio1.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
Yearly Dividend2.64
Dividend Growth(5Y)N/A
DP21.65%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.6%
Min EPS beat(2)-11.8%
Max EPS beat(2)10.59%
EPS beat(4)1
Avg EPS beat(4)-10.73%
Min EPS beat(4)-32.05%
Max EPS beat(4)10.59%
EPS beat(8)4
Avg EPS beat(8)-4.26%
EPS beat(12)8
Avg EPS beat(12)4.82%
EPS beat(16)11
Avg EPS beat(16)10.4%
Revenue beat(2)1
Avg Revenue beat(2)0.47%
Min Revenue beat(2)-2.41%
Max Revenue beat(2)3.36%
Revenue beat(4)1
Avg Revenue beat(4)-0.56%
Min Revenue beat(4)-3.04%
Max Revenue beat(4)3.36%
Revenue beat(8)3
Avg Revenue beat(8)-0.52%
Revenue beat(12)6
Avg Revenue beat(12)0.39%
Revenue beat(16)7
Avg Revenue beat(16)0.49%
PT rev (1m)1.66%
PT rev (3m)17.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-19.96%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.91 | ||
| Fwd PE | 13.56 | ||
| P/S | 0.45 | ||
| P/FCF | 12.24 | ||
| P/OCF | 10.88 | ||
| P/B | 1.93 | ||
| P/tB | 720.63 | ||
| EV/EBITDA | 9.51 |
EPS(TTM)11.74
EY5.91%
EPS(NY)14.64
Fwd EY7.38%
FCF(TTM)16.22
FCFY8.17%
OCF(TTM)18.24
OCFY9.19%
SpS444.74
BVpS102.91
TBVpS0.28
PEG (NY)N/A
PEG (5Y)0.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.17% | ||
| ROE | 12.62% | ||
| ROCE | 11.4% | ||
| ROIC | 8.73% | ||
| ROICexc | 9.31% | ||
| ROICexgc | 17.65% | ||
| OM | 5.94% | ||
| PM (TTM) | 2.92% | ||
| GM | 21.66% | ||
| FCFM | 3.65% |
ROA(3y)4.45%
ROA(5y)3.68%
ROE(3y)14.29%
ROE(5y)10.96%
ROIC(3y)9.26%
ROIC(5y)7.75%
ROICexc(3y)9.65%
ROICexc(5y)8.08%
ROICexgc(3y)19.3%
ROICexgc(5y)16.97%
ROCE(3y)12.1%
ROCE(5y)10.15%
ROICexcg growth 3Y15.89%
ROICexcg growth 5Y0.3%
ROICexc growth 3Y30.58%
ROICexc growth 5Y5.66%
OM growth 3Y17.41%
OM growth 5Y8.94%
PM growth 3Y77.26%
PM growth 5Y2.65%
GM growth 3Y4.64%
GM growth 5Y2.46%
F-Score5
Asset Turnover1.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 6.32 | ||
| Debt/EBITDA | 3.39 | ||
| Cap/Depr | 54.3% | ||
| Cap/Sales | 0.45% | ||
| Interest Coverage | 3.21 | ||
| Cash Conversion | 60.55% | ||
| Profit Quality | 124.85% | ||
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 3.09 |
F-Score5
WACC11.46%
ROIC/WACC0.76
Cap/Depr(3y)44.67%
Cap/Depr(5y)50.33%
Cap/Sales(3y)0.39%
Cap/Sales(5y)0.43%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-26.99%
EPS 3Y41.53%
EPS 5Y24.81%
EPS Q2Q%-20.27%
EPS Next Y-15.03%
EPS Next 2Y0.15%
EPS Next 3Y5.54%
EPS Next 5Y3.79%
Revenue 1Y (TTM)-3.02%
Revenue growth 3Y22.01%
Revenue growth 5Y22.31%
Sales Q2Q%-2.75%
Revenue Next Year-3.34%
Revenue Next 2Y-0.17%
Revenue Next 3Y1.31%
Revenue Next 5Y2.86%
EBIT growth 1Y-16.44%
EBIT growth 3Y43.25%
EBIT growth 5Y33.25%
EBIT Next Year-18.06%
EBIT Next 3Y-3.26%
EBIT Next 5Y-3.15%
FCF growth 1Y231.35%
FCF growth 3Y-6.29%
FCF growth 5Y9%
OCF growth 1Y273.19%
OCF growth 3Y-3.21%
OCF growth 5Y10.7%