WESCO International
Market Cap
US$1.4b
Last Updated
2020/05/28 02:12 UTC
Data Sources
Company Financials +
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.
Rewards
Risk Analysis
Snowflake Analysis
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
Stable Share Price: WCC's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
20.3%
WCC
7.4%
US Trade Distributors
2.7%
US Market
1 Year Return
-30.0%
WCC
3.5%
US Trade Distributors
9.1%
US Market
Return vs Industry: WCC underperformed the US Trade Distributors industry which returned -0.2% over the past year.
Return vs Market: WCC underperformed the US Market which returned 7.1% over the past year.
Shareholder returns
| WCC | Industry | Market | |
|---|---|---|---|
| 7 Day | 20.3% | 7.4% | 2.7% |
| 30 Day | 22.6% | 10.3% | 4.5% |
| 90 Day | -17.5% | -1.2% | 2.3% |
| 1 Year | -30.0%-30.0% | 5.6%3.5% | 11.5%9.1% |
| 3 Year | -46.0%-46.0% | 14.5%9.3% | 30.6%22.0% |
| 5 Year | -54.4%-54.4% | 24.3%14.7% | 57.2%39.5% |
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
3 days ago | Simply Wall St
Have Insiders Been Selling WESCO International, Inc. (NYSE:WCC) Shares?2 weeks ago | Simply Wall St
How Good Is WESCO International, Inc. (NYSE:WCC) At Creating Shareholder Value?3 weeks ago | Simply Wall St
WESCO International, Inc. Just Missed Earnings And Its EPS Looked Sad - But Analysts Have Updated Their ModelsValuation
Is WESCO International undervalued compared to its fair value and its price relative to the market?
25.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WCC ($33.45) is trading below our estimate of fair value ($44.84)
Significantly Below Fair Value: WCC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: WCC is good value based on its PE Ratio (6.6x) compared to the Trade Distributors industry average (15.2x).
PE vs Market: WCC is good value based on its PE Ratio (6.6x) compared to the US market (15.6x).
Price to Earnings Growth Ratio
PEG Ratio: WCC is good value based on its PEG Ratio (0.5x)
Price to Book Ratio
PB vs Industry: WCC is good value based on its PB Ratio (0.6x) compared to the US Trade Distributors industry average (1.2x).
Next Steps
Future Growth
How is WESCO International forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
13.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WCC's forecast earnings growth (13.2% per year) is above the savings rate (2.2%).
Earnings vs Market: WCC's earnings (13.2% per year) are forecast to grow slower than the US market (21.6% per year).
High Growth Earnings: WCC's earnings are forecast to grow, but not significantly.
Revenue vs Market: WCC's revenue (3.3% per year) is forecast to grow slower than the US market (8.8% per year).
High Growth Revenue: WCC's revenue (3.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: WCC's Return on Equity is forecast to be low in 3 years time (7.1%).
Next Steps
Past Performance
How has WESCO International performed over the past 5 years?
0.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WCC has high quality earnings.
Growing Profit Margin: WCC's current net profit margins (2.6%) are lower than last year (2.8%).
Past Earnings Growth Analysis
Earnings Trend: WCC's earnings have grown by 0.9% per year over the past 5 years.
Accelerating Growth: WCC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: WCC had negative earnings growth (-4.4%) over the past year, making it difficult to compare to the Trade Distributors industry average (-5.5%).
Return on Equity
High ROE: WCC's Return on Equity (9.7%) is considered low.
Next Steps
Financial Health
How is WESCO International's financial position?
Financial Position Analysis
Short Term Liabilities: WCC's short term assets ($2.8B) exceed its short term liabilities ($1.0B).
Long Term Liabilities: WCC's short term assets ($2.8B) exceed its long term liabilities ($2.0B).
Debt to Equity History and Analysis
Debt Level: WCC's debt to equity ratio (69%) is considered high.
Reducing Debt: WCC's debt to equity ratio has reduced from 75.7% to 69% over the past 5 years.
Debt Coverage: WCC's debt is not well covered by operating cash flow (14.9%).
Interest Coverage: WCC's interest payments on its debt are well covered by EBIT (5.4x coverage).
Balance Sheet
Next Steps
Dividend
What is WESCO International's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate WCC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate WCC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if WCC's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if WCC's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of WCC's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.0yrs
Average management tenure
CEO
John Engel (57yo)
10.67yrs
Tenure
US$6,642,192
Compensation
Mr. John J. Engel has been the Chief Executive Officer and President of WESCO International Inc. since September 1, 2009 and its Chairman of WESCO International Inc. since May 25, 2011. Mr. Engel served as ...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($USD6.64M) is above average for companies of similar size in the US market ($USD4.80M).
Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 10.67yrs | US$6.64m | 0.35% $4.9m | |
| Senior VP & CFO | 3.58yrs | US$2.34m | 0.061% $854.3k | |
| Senior VP & COO | 0.58yr | US$1.96m | 0.033% $468.1k | |
| Senior VP & General Counsel | 6.33yrs | US$1.33m | 0.040% $555.8k | |
| Senior VP & Chief Human Resources Officer | 1.92yrs | US$1.27m | 0.0085% $119.2k | |
| Vice President of Global Supply Chain & Operations | no data | no data | no data | |
| VP & Chief Information Officer | 4.33yrs | US$987.39k | 0.031% $430.0k | |
| VP of Investor Relations & Treasurer | no data | no data | no data | |
| Director of Investor Relations & Corporate Communications | no data | no data | no data | |
| Group VP & GM of United States | no data | no data | no data |
4.0yrs
Average Tenure
57yo
Average Age
Experienced Management: WCC's management team is considered experienced (4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 10.67yrs | US$6.64m | 0.35% $4.9m | |
| Lead Independent Director | no data | US$248.99k | 0.061% $859.6k | |
| Independent Director | 14.33yrs | US$243.99k | 0.039% $540.9k | |
| Independent Director | 3.5yrs | US$228.69k | 0.010% $144.3k | |
| Independent Director | 6yrs | US$229.82k | 0.012% $165.4k | |
| Independent Director | 12.17yrs | US$238.99k | 0.058% $818.1k | |
| Independent Director | 0.58yr | US$57.24k | 0.0084% $117.8k | |
| Independent Director | 14.33yrs | US$228.99k | 0.027% $373.0k | |
| Independent Director | 1.75yrs | US$228.99k | 0.0082% $114.3k |
7.5yrs
Average Tenure
60yo
Average Age
Experienced Board: WCC's board of directors are considered experienced (7.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
WESCO International, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: WESCO International, Inc.
- Ticker: WCC
- Exchange: NYSE
- Founded: 1922
- Industry: Trading Companies and Distributors
- Sector: Capital Goods
- Market Cap: US$1.401b
- Shares outstanding: 41.87m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| WCC | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | May 1999 |
| WP7 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | May 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 America and internationally. The company sells general supplies, such as wiring devices, fuses, terminals, connectors, boxes, enclosures, fittings, lugs, terminations, wraps, splicing and marking equipment, tools and testers, safety, personal protection, sealants, cutting tools, adhesives, consumables, fasteners, janitorial, and other MRO supplies; communication and metering devices, and racking systems; and solar modules, connectors, and storage batteries. It also distributes wires, cables, raceways, metallic and non-metallic conduits, and coupling and fittings; and communications and security products, including structured cabling systems, broadband products, low voltage specialty systems, specialty wire and cable products, equipment racks and cabinets, access controls, alarms, cameras, and paging and voice solutions. In addition, the company sells electrical distribution and controls comprising circuit breakers, transformers, switchboards, panel boards, metering products, and busway products; lamps, fixtures, ballasts, and lighting control products; and motor control devices, drives, relays, timers, pushbuttons, operator interfaces, switches, interconnects, programmable controllers, industrial computers and network, and surge and power protection products. Further, it provides supply chain management and logistics services; and value-added services in the areas of construction, e-commerce, energy and sustainability, engineering, production support, safety and security, supply chain optimization, training, and working capital. It serves industrial firms, electrical and data communications contractors, utilities, commercial organizations, institutions, and governmental entities. The company was founded in 1922 and is headquartered in Pittsburgh, Pennsylvania.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/05/28 02:12 |
| End of Day Share Price | 2020/05/27 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.