NYSE:WCC

Stock Analysis Report

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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 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

WCCIndustryMarket
7 Day20.3%7.4%2.7%
30 Day22.6%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

Valuation

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

  • Explore strong dividend paying companies in the Capital Goods industry.

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

NamePositionTenureCompensationOwnership
John Engel
Chairman10.67yrsUS$6.64m0.35% $4.9m
David Schulz
Senior VP & CFO3.58yrsUS$2.34m0.061% $854.3k
Nelson Squires
Senior VP & COO0.58yrUS$1.96m0.033% $468.1k
Diane Lazzaris
Senior VP & General Counsel6.33yrsUS$1.33m0.040% $555.8k
Christine Wolf
Senior VP & Chief Human Resources Officer1.92yrsUS$1.27m0.0085% $119.2k
Hemant Porwal
Vice President of Global Supply Chain & Operationsno datano datano data
Robert Minicozzi
VP & Chief Information Officer4.33yrsUS$987.39k0.031% $430.0k
Brian Begg
VP of Investor Relations & Treasurerno datano datano data
William Ruthrauff
Director of Investor Relations & Corporate Communicationsno datano datano data
Juan Picon
Group VP & GM of United Statesno datano datano data

4.0yrs

Average Tenure

57yo

Average Age

Experienced Management: WCC's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Engel
Chairman10.67yrsUS$6.64m0.35% $4.9m
James Singleton
Lead Independent Directorno dataUS$248.99k0.061% $859.6k
Steven Raymund
Independent Director14.33yrsUS$243.99k0.039% $540.9k
Matthew Espe
Independent Director3.5yrsUS$228.69k0.010% $144.3k
Bobby Griffin
Independent Director6yrsUS$229.82k0.012% $165.4k
John Morgan
Independent Director12.17yrsUS$238.99k0.058% $818.1k
Laura Thompson
Independent Director0.58yrUS$57.24k0.0084% $117.8k
Lynn Utter
Independent Director14.33yrsUS$228.99k0.027% $373.0k
Easwaran Sundaram
Independent Director1.75yrsUS$228.99k0.0082% $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

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 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/28 02:12
End of Day Share Price2020/05/27 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.