WESCO International, Inc.
WESCO International, Inc. Fundamental Analysis
WESCO International, Inc. (WCC) shows moderate financial fundamentals with a PE ratio of 25.48, profit margin of 2.79%, and ROE of 13.70%. The company generates $23.9B in annual revenue with moderate year-over-year growth of 7.76%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze WCC's fundamental strength across five key dimensions:
Efficiency Score
WeakWCC struggles to generate sufficient returns from assets.
Valuation Score
WeakWCC trades at a premium to fair value.
Growth Score
ModerateWCC shows steady but slowing expansion.
Financial Health Score
ModerateWCC shows balanced financial health with some risks.
Profitability Score
WeakWCC struggles to sustain strong margins.
Key Financial Metrics
Is WCC Expensive or Cheap?
P/E Ratio
WCC trades at 25.48 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, WCC's PEG of 4.22 indicates potential overvaluation.
Price to Book
The market values WESCO International, Inc. at 3.38 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.28 times EBITDA. This is generally considered low.
How Well Does WCC Make Money?
Net Profit Margin
For every $100 in sales, WESCO International, Inc. keeps $2.79 as profit after all expenses.
Operating Margin
Core operations generate 5.39 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.70 in profit for every $100 of shareholder equity.
ROA
WESCO International, Inc. generates $3.98 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
WESCO International, Inc. generates limited operating cash flow of $313.54M, signaling weaker underlying cash strength.
Free Cash Flow
WESCO International, Inc. generates weak or negative free cash flow of $212.31M, restricting financial flexibility.
FCF Per Share
Each share generates $4.36 in free cash annually.
FCF Yield
WCC converts 1.26% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.48
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.22
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.38
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.70
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.28
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.12
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How WCC Stacks Against Its Sector Peers
| Metric | WCC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.48 | 26.32 | Neutral |
| ROE | 13.70% | 1286.00% | Weak |
| Net Margin | 2.79% | -41798.00% (disorted) | Weak |
| Debt/Equity | 1.28 | 0.72 | Weak (High Leverage) |
| Current Ratio | 2.12 | 10.61 | Strong Liquidity |
| ROA | 3.98% | -1507802.00% (disorted) | Weak |
WCC outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews WESCO International, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
77.93%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
493.86%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-78.56%
Industry Style: Cyclical, Value, Infrastructure
Declining