DB:WP7

Stock Analysis Report

WESCO International

Executive Summary

WESCO International, Inc. distributes electrical, industrial, and communications maintenance, repair and operating (MRO) and original equipment manufacturers products and construction materials in North America and internationally.

Snowflake

Fundamentals

Very undervalued with adequate balance sheet.


Similar Companies

Share Price & News

How has WESCO International's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.5%

DB:WP7

-1.7%

DE Trade Distributors

0.2%

DE Market


1 Year Return

-24.7%

DB:WP7

-20.4%

DE Trade Distributors

-10.0%

DE Market

WP7 underperformed the Trade Distributors industry which returned -21.6% over the past year.

WP7 underperformed the Market in Germany which returned -10.4% over the past year.


Share holder returns

WP7IndustryMarket
7 Day-0.5%-1.7%0.2%
30 Day-8.2%-3.6%-3.3%
90 Day-13.5%-7.8%-3.9%
1 Year-24.7%-24.7%-18.1%-20.4%-7.1%-10.0%
3 Year-23.6%-23.6%-9.7%-16.3%11.3%1.7%
5 Year-37.3%-37.3%6.7%-4.8%25.8%8.4%

Price Volatility Vs. Market

How volatile is WESCO International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is WESCO International undervalued based on future cash flows and its price relative to the stock market?

45%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

WESCO International's share price is below the future cash flow value, and at a moderate discount (> 20%).

WESCO International's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

WESCO International is good value based on earnings compared to the DE Trade Distributors industry average.

WESCO International is good value based on earnings compared to the Germany market.


Price Based on Expected Growth

WESCO International is good value based on expected growth next year.


Price Based on Value of Assets

WESCO International is good value based on assets compared to the DE Trade Distributors industry average.


Next Steps

Future Growth

How is WESCO International expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

WESCO International's revenue is expected to grow by 3% yearly, however this is not considered high growth (20% yearly).

WESCO International's earnings are expected to grow by 9% yearly, however this is not considered high growth (20% yearly).

WESCO International's revenue growth is positive but not above the Germany market average.

WESCO International's earnings growth is positive but not above the Germany market average.

WESCO International's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if WESCO International will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has WESCO International performed over the past 5 years?

-6.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

WESCO International's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

WESCO International's 1-year earnings growth exceeds its 5-year average (29.2% vs -6.9%)

WESCO International's earnings growth has not exceeded the DE Trade Distributors industry average in the past year (29.2% vs 32.1%).


Return on Equity

WESCO International has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

WESCO International used its assets more efficiently than the DE Trade Distributors industry average last year based on Return on Assets.


Return on Capital Employed

WESCO International's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is WESCO International's financial position?


Financial Position Analysis

WESCO International is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

WESCO International's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

WESCO International's level of debt (68.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (83% vs 68.4% today).

Debt is not well covered by operating cash flow (13.8%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.1x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.8x debt.


Next Steps

Dividend

What is WESCO International's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate WESCO International's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate WESCO International's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as WESCO International has not reported any payouts.

Unable to verify if WESCO International's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as WESCO International has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of WESCO International's salary, the management and board of directors tenure and is there insider trading?

4.6yrs

Average management tenure


CEO

John Engel (57yo)

9.9yrs

Tenure

US$7,431,924

Compensation

Mr. John J. Engel has been the Chief Executive Officer and President of WESCO International Inc. since September 1, 2009 and its Chairman of WESCO International Inc. since May 25, 2011. Mr. Engel served as ...


CEO Compensation Analysis

John's remuneration is higher than average for companies of similar size in Germany.

John's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.6yrs

Average Tenure

57yo

Average Age

The tenure for the WESCO International management team is about average.


Board Age and Tenure

8.3yrs

Average Tenure

61.5yo

Average Age

The tenure for the WESCO International board of directors is about average.


Insider Trading

WESCO International individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$65,34907 Jun 19
Lynn Utter
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,513
Max PriceUS$43.19
BuyUS$13,889,87427 Mar 19
Blue Harbour Group, L.P.
EntityCompany
Shares305,600
Max PriceUS$45.61
BuyUS$88,46915 Mar 19
Christine Wolf
EntityIndividual
Shares1,874
Max PriceUS$47.21
SellUS$141,71407 Mar 19
James Singleton
EntityIndividual
Role
Lead Director
Lead Director
Shares3,000
Max PriceUS$47.24

Ownership Breakdown


Management Team

  • John Engel (57yo)

    Chairman

    • Tenure: 9.9yrs
    • Compensation: US$7.43m
  • Nelson Squires (58yo)

    Group VP and GM of Canada

    • Tenure: 0.0yrs
  • Diane Lazzaris (52yo)

    Senior VP & General Counsel

    • Tenure: 5.6yrs
    • Compensation: US$1.55m
  • Dave Schulz (53yo)

    Senior VP & CFO

    • Tenure: 2.8yrs
    • Compensation: US$2.58m
  • Brian Begg

    VP & Treasurer

    • Tenure: 10.8yrs
  • Juan Picon (49yo)

    Group VP & GM of United States

    • Tenure: 0.0yrs
  • Will Ruthrauff

    Director of Investor Relations

    • Tenure: 0.0yrs
  • Robert Minicozzi (57yo)

    VP & Chief Information Officer

    • Tenure: 3.6yrs
    • Compensation: US$987.39k
  • Christine Wolf (58yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 1.2yrs
    • Compensation: US$996.78k
  • Hemant Porwal

    Vice President of Global Supply Chain & Operations

    • Tenure: 0.0yrs

Board Members

  • Jamie Singleton (63yo)

    Lead Director

    • Tenure: 0.0yrs
    • Compensation: US$249.00k
  • John Engel (57yo)

    Chairman

    • Tenure: 9.9yrs
    • Compensation: US$7.43m
  • Steve Raymund (64yo)

    Independent Director

    • Tenure: 13.6yrs
    • Compensation: US$244.00k
  • Matt Espe (60yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$229.00k
  • Bobby Griffin (70yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$224.00k
  • John Morgan (65yo)

    Independent Director

    • Tenure: 11.4yrs
    • Compensation: US$239.00k
  • Lynn Utter (56yo)

    Independent Director

    • Tenure: 13.6yrs
    • Compensation: US$229.00k
  • Eash Sundaram (48yo)

    Director

    • Tenure: 1.0yrs
    • Compensation: US$102.10k

Company Information

WESCO International, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: WESCO International, Inc.
  • Ticker: WP7
  • Exchange: DB
  • Founded: 1922
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: US$1.858b
  • Listing Market Cap: US$1.674b
  • Shares outstanding: 42.48m
  • Website: https://www.wesco.com

Number of Employees


Location

  • WESCO International, Inc.
  • 225 West Station Square Drive
  • Suite 700
  • Pittsburgh
  • Pennsylvania
  • 15219
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WCCNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 1999
WP7DB (Deutsche Boerse AG)YesCommon StockDEEURMay 1999

Biography

WESCO International, Inc. distributes electrical, industrial, and communications maintenance, repair and operating (MRO) and original equipment manufacturers products and construction materials in North Am ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 20:51
End of Day Share Price2019/08/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.