WESCO International (NYSE:WCC) - Share price, News & Analysis

WCC fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	2/6
Past Performance	3/6
Financial Health	2/6
Dividends	0/6

WCC Overview

WESCO International, Inc. provides business-to-business distribution, logistics, and supply chain solutions in the United States, Canada, and internationally.

Rewards

Trading at 7.6% below our estimate of its fair value

Earnings are forecast to grow 19.69% per year

Earnings grew by 90.6% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Large one-off items impacting financial results

Significant insider selling over the past 3 months

WESCO International Competitors

Fastenal

NasdaqGS:FAST

US$32.2b

W.W. Grainger

NYSE:GWW

US$22.4b

MSC Industrial Direct

NYSE:MSM

US$4.5b

Applied Industrial Technologies

NYSE:AIT

US$3.9b

Price History & Performance

Summary of all time highs, changes and price drops for WESCO International
Historical stock prices
Current Share Price	US$125.00
52 Week High	US$39.45
52 Week Low	US$129.05
Beta	2.4
1 Month Change	4.39%
3 Month Change	17.68%
1 Year Change	211.72%
3 Year Change	149.10%
5 Year Change	141.78%
Change since IPO	525.00%

Recent News & Updates

Sep 24

A Look At The Fair Value Of WESCO International, Inc. (NYSE:WCC)

How far off is WESCO International, Inc. ( NYSE:WCC ) from its intrinsic value? Using the most recent financial data...

Sep 06

Here's Why WESCO International (NYSE:WCC) Has A Meaningful Debt Burden

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

	WCC	US Trade Distributors	US Market
7D	-2.4%	0.8%	0.9%
1Y	211.7%	58.2%	33.4%

Return vs Industry: WCC exceeded the US Trade Distributors industry which returned 58.2% over the past year.

Return vs Market: WCC exceeded the US Market which returned 33.4% over the past year.

Price Volatility

Is WCC's price volatile compared to industry and market?
WCC volatility
WCC Beta	2.4
Industry Beta	1.57
Market Beta	1

Stable Share Price: WCC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: WCC's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1922	18,000	John Engel	https://www.wesco.com

WESCO International, Inc. provides business-to-business distribution, logistics, and supply chain solutions in the United States, Canada, and internationally. It operates in three segments: Electrical & Electronic Solutions (EES), Communications & Security Solutions (CSS), and Utility and Broadband Solutions (UBS). The EES segment supplies products and supply chain solutions, including electrical equipment and supplies, wires and cables, lubricants, pipes, valves, fittings, fasteners, cutting tools, power transmission products, and safety products, as well as assemblies and components; and provides various value-added services, such as supplier consolidation, design and technical support, just-in-time supply and electronic commerce, and supply chain management services to the construction, industrial, and original equipment manufacturing markets.

WESCO International Fundamentals Summary

How do WESCO International's earnings and revenue compare to its market cap?
WCC fundamental statistics
Market Cap	US$6.30b
Earnings (TTM)	US$221.47m
Revenue (TTM)	US$16.91b

28.4x

P/E Ratio

0.4x

P/S Ratio

Is WCC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
WCC income statement (TTM)
Revenue	US$16.91b
Cost of Revenue	US$13.53b
Gross Profit	US$3.38b
Expenses	US$3.16b
Earnings	US$221.47m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 04, 2021

Earnings per share (EPS)	4.40
Gross Margin	19.98%
Net Profit Margin	1.31%
Debt/Equity Ratio	132.0%

How did WCC perform over the long term?

See historical performance and comparison

Valuation

Is WESCO International undervalued compared to its fair value and its price relative to the market?

7.6%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: WCC ($125) is trading below our estimate of fair value ($135.33)

Significantly Below Fair Value: WCC is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: WCC is poor value based on its PE Ratio (28.4x) compared to the US Trade Distributors industry average (22.5x).

PE vs Market: WCC is poor value based on its PE Ratio (28.4x) compared to the US market (18.1x).

Price to Earnings Growth Ratio

PEG Ratio: WCC is poor value based on its PEG Ratio (1.4x)

Price to Book Ratio

PB vs Industry: WCC is good value based on its PB Ratio (1.8x) compared to the US Trade Distributors industry average (2.4x).

Future Growth

How is WESCO International forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

19.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: WCC's forecast earnings growth (19.7% per year) is above the savings rate (2%).

Earnings vs Market: WCC's earnings (19.7% per year) are forecast to grow faster than the US market (14.7% per year).

High Growth Earnings: WCC's earnings are forecast to grow, but not significantly.

Revenue vs Market: WCC's revenue (4.3% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: WCC's revenue (4.3% 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 (14.8%).

Past Performance

How has WESCO International performed over the past 5 years?

2.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: WCC has a large one-off loss of $127.8M impacting its June 30 2021 financial results.

Growing Profit Margin: WCC's current net profit margins (1.3%) are lower than last year (1.4%).

Past Earnings Growth Analysis

Earnings Trend: WCC's earnings have grown by 2.1% per year over the past 5 years.

Accelerating Growth: WCC's earnings growth over the past year (90.6%) exceeds its 5-year average (2.1% per year).

Earnings vs Industry: WCC earnings growth over the past year (90.6%) exceeded the Trade Distributors industry 52.8%.

Return on Equity

High ROE: WCC's Return on Equity (7.9%) is considered low.

Financial Health

How is WESCO International's financial position?

Financial Position Analysis

Short Term Liabilities: WCC's short term assets ($6.0B) exceed its short term liabilities ($3.3B).

Long Term Liabilities: WCC's short term assets ($6.0B) exceed its long term liabilities ($5.5B).

Debt to Equity History and Analysis

Debt Level: WCC's debt to equity ratio (132%) is considered high.

Reducing Debt: WCC's debt to equity ratio has increased from 74.4% to 132% over the past 5 years.

Debt Coverage: WCC's debt is not well covered by operating cash flow (11.1%).

Interest Coverage: WCC's interest payments on its debt are not well covered by EBIT (2.4x coverage).

Balance Sheet

Dividend

What is WESCO International 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

Explore strong dividend paying companies in the Capital Goods industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure

CEO

John Engel (59 yo)

12.08yrs

Tenure

US$11,313,497

Compensation

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

CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD11.31M) is above average for companies of similar size in the US market ($USD6.35M).

Compensation vs Earnings: John's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: WCC's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.

Board Members

Experienced Board: WCC's board of directors are considered experienced (7.4 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: WCC insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2021/10/27 23:00
End of Day Share Price	2021/10/27 00:00
Earnings	2021/06/30
Annual Earnings	2020/12/31

Market Cap

7D

1Y

Updated

Data