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Wesco International Inc
NYSE:WCC

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Wesco International Inc Logo
Wesco International Inc
NYSE:WCC
Watchlist
Price: 171.25 USD 0.23%
Updated: Mar 28, 2024

Intrinsic Value

WESCO International, Inc. is a holding company, which engages in the provision of electrical, industrial, communications maintenance, repair and operating, and original equipment manufacturers product... [ Read More ]

The intrinsic value of one WCC stock under the Base Case scenario is 174.93 USD. Compared to the current market price of 171.25 USD, Wesco International Inc is Undervalued by 2%.

Key Points:
WCC Intrinsic Value
Base Case
174.93 USD
Undervaluation 2%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation Backtest
Wesco International Inc

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Fundamental Analysis

Moderate Sales Growth with Stabilizing Margins
2023-Q4 Earnings Call

Moderate Sales Growth with Stabilizing Margins

In a transformative period, the company faced a sales slump, with organic sales down around 3% amid project delays, mainly within the CSS business. However, sales were up 5% annually, indicative of positive momentum. Adjusted EBITDA remained stable year-on-year, though margins faced slight compression, with headwinds from lower volume rebates and heightened SG&A. A $700 million midpoint free cash flow projection sets a record, reflecting committed efforts at working capital optimization. The 2024 outlook envisions revenue growth up 1% to 4%, organic sales flat to rising 3%, and an adjusted EBITDA margin goal between 7.5% to 7.9%.

Financials

Balance Sheet Decomposition
Wesco International Inc

Current Assets 8.4B
Cash & Short-Term Investments 524.1m
Receivables 4.1B
Other Current Assets 3.8B
Non-Current Assets 6.7B
PP&E 1.2B
Intangibles 5.1B
Other Non-Current Assets 364.6m
Current Liabilities 3.4B
Accounts Payable 2.4B
Accrued Liabilities 348.4m
Other Current Liabilities 608.5m
Non-Current Liabilities 6.6B
Long-Term Debt 5.3B
Other Non-Current Liabilities 1.3B
Efficiency

Earnings Waterfall
Wesco International Inc

Revenue
22.4B USD
Cost of Revenue
-17.5B USD
Gross Profit
4.8B USD
Operating Expenses
-3.4B USD
Operating Income
1.5B USD
Other Expenses
-770.4m USD
Net Income
708.1m USD

Free Cash Flow Analysis
Wesco International Inc

Last Value
3-Years Average
FCF Margin
Conversion Rate
History
Components
Chart
Table
What is Free Cash Flow?
Fundamental Scores

WCC Profitability Score
Profitability Due Diligence

Wesco International Inc's profitability score is 53/100. The higher the profitability score, the more profitable the company is.

Exceptional 3-Years Revenue Growth
ROE is Increasing
Positive Gross Profit
Positive 3-Year Average ROE
53/100
Profitability
Score

Wesco International Inc's profitability score is 53/100. The higher the profitability score, the more profitable the company is.

WCC Solvency Score
Solvency Due Diligence

Wesco International Inc's solvency score is 43/100. The higher the solvency score, the more solvent the company is.

Short-Term Solvency
High Altman Z-Score
Long-Term Solvency
Average D/E
43/100
Solvency
Score

Wesco International Inc's solvency score is 43/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

WCC Price Targets Summary
Wesco International Inc

Wall Street analysts forecast WCC stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for WCC is 182.38 USD with a low forecast of 166.65 USD and a high forecast of 210 USD.

Lowest
Price Target
166.65 USD
3% Downside
Average
Price Target
182.38 USD
6% Upside
Highest
Price Target
210 USD
23% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

Ownership

WCC Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
9 Months
12 Months
Why is insider trading important?

Shareholder Return

WCC Price
Wesco International Inc

1M 1M
+17%
6M 6M
+17%
1Y 1Y
+20%
3Y 3Y
+107%
5Y 5Y
+224%
10Y 10Y
+110%
Annual Price Range
171.25
52w Low
122.87
52w High
193.83
Price Metrics
Average Annual Return 26.97%
Standard Deviation of Annual Returns 33.06%
Max Drawdown -74%
Shares Statistics
Market Capitalization 8.7B USD
Shares Outstanding 50 953 600
Percentage of Shares Shorted 1.99%

WCC Return Decomposition
Main factors of price return

What is price return decomposition?

Company Profile

Wesco International Inc Logo
Wesco International Inc

Country

United States of America

Industry

Trading Companies & Distributors

Market Cap

8.7B USD

Dividend Yield

0.9%

Description

WESCO International, Inc. is a holding company, which engages in the provision of electrical, industrial, communications maintenance, repair and operating, and original equipment manufacturers products. The company is headquartered in Pittsburgh, Pennsylvania and currently employs 18,000 full-time employees. The firm conducts its businesses through three segments: Electrical & Electronic Solutions (EES), Communications & Security Solutions (CSS) and Utility & Broadband Solutions (UBS). The EES segment supplies a range of products and solutions primarily to the construction, industrial and original equipment manufacturer (OEM) markets. Its EES segment supplies various products, including electrical equipment and supplies, automation and connected devices (the Internet of things), security, lighting, wire and cable, safety, and maintenance, repair and operating (MRO) products. Its CSS segment operates in the network infrastructure and security markets. The UBS segment provides products and services to investor-owned utilities, public power companies, including municipalities, as well as global service providers, wireless providers and broadband operators.

Contact

PENNSYLVANIA
Pittsburgh
225 W Station Square Dr Ste 700
+14124542200.0
http://www.wesco.com/

IPO

1999-05-12

Employees

18 000

Officers

Chairman, President & CEO
Mr. John J. Engel
Executive VP & CFO
Mr. David S. Schulz
Executive VP and Chief Information & Digital Officer
Mr. Akash Khurana
Executive VP and GM of Communications & Security Solutions (CSS)
Mr. William Clayton Geary II
Executive VP and GM of Electrical & Electronic Solutions
Mr. Nelson John Squires III
Executive Vice President of Supply Chain & Operations
Mr. Hemant Porwal
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Senior VP, Corporate Controller & Chief Accounting Officer
Mr. Matthew S. Kulasa
Senior Vice President of Investor Relations
Mr. Scott Louis Gaffner C.F.A.
Executive VP & General Counsel
Ms. Diane E. Lazzaris Esq.
Executive VP & Chief Human Resources Officer
Ms. Christine A. Wolf
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See Also

Discover More
What is the Intrinsic Value of one WCC stock?

The intrinsic value of one WCC stock under the Base Case scenario is 174.93 USD.

Is WCC stock undervalued or overvalued?

Compared to the current market price of 171.25 USD, Wesco International Inc is Undervalued by 2%.