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Wesco Earnings: End Markets Continue to be Challenged
The market reacted positively to Wesco’s first-quarter earnings. Shares were up nearly 7% in trading on May 2. We now think Wesco’s shares are 15% undervalued.
WESCO International Inc WCC
Bulls Say, Bears Say
Bulls
Wesco's transformative acquisition of Anixter should result in stronger growth and profitability, which should help the stock fetch a higher multiple.
Bears
Amazon Business and other internet-based competitors could disrupt the industrial distribution industry, taking market share and pressuring Wesco’s already low margins.
Is it the right time to buy, sell, or hold?
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News
-
Wesco International Reports First Quarter 2024 Results
-
Wesco Supports American Red Cross Humanitarian Mission Through Annual Disaster Giving Program
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Wesco Announces First Quarter 2024 Earnings Call
-
Vallen Distribution Announces Key Executive Leadership Positions
-
Wesco Repeats as Best Company for Latinos to Work
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Wesco Finalizes Sale of Integrated Supply Business to Vallen Distribution, Inc.
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Wesco and DTE Help To Build Young Entrepreneurs at JA BizTown(R)
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Wesco International Expands Partnership With Habitat for Humanity
Trading Information
- Previous Close Price
- $186.31
- Day Range
- $180.85–186.97
- 52-Week Range
- $122.30–195.43
- Bid/Ask
- $134.43 / $204.88
- Market Cap
- $9.25 Bil
- Volume/Avg
- 1.0 Mil / 695,589
Key Statistics
- Price/Earnings (Normalized)
- 13.52
- Price/Sales
- 0.42
- Dividend Yield (Trailing)
- 0.83%
- Dividend Yield (Forward)
- 0.83%
- Total Yield
- 1.62%
Company Profile
Wesco International is an industrial distributor that has three reportable segments, electrical and electronic solutions, communications and security solutions, and utility and broadband solutions. The company offers more than 1.5 million products to its 140,000 active customers through a distribution network of 800 branches, warehouses, and sales offices, including 43 distribution centers. Wesco generates approximately 74% of its sales in the United States, but it has a global reach, with operations in 50 other countries.
- Sector
- Industrials
- Industry
- Industrial Distribution
- Stock Style Box
- Small Core
- Total Number of Employees
- 20,000
- Website
- https://www.wesco.com
Competitors
Valuation
|
Metric
|
WCC
|
GWW
|
FAST
|
|---|---|---|---|
Price/Earnings (Normalized) | 13.52 | 26.18 | 33.38 |
Price/Book Value | 1.81 | 14.70 | 11.22 |
Price/Sales | 0.42 | 2.87 | 5.22 |
Price/Cash Flow | 10.09 | 20.85 | 29.01 |
Price/Earnings
WCC
GWW
FAST
Financial Strength
|
Metric
|
WCC
|
GWW
|
FAST
|
|---|---|---|---|
Quick Ratio | 1.20 | 1.24 | 1.98 |
Current Ratio | 2.21 | 2.19 | 4.57 |
Interest Coverage | 3.31 | 28.70 | 141.55 |
Quick Ratio
WCC
GWW
FAST
Profitability
|
Metric
|
WCC
|
GWW
|
FAST
|
|---|---|---|---|
Return on Assets (Normalized) | 4.52% | 23.90% | 25.54% |
Return on Equity (Normalized) | 14.11% | 64.29% | 34.39% |
Return on Invested Capital (Normalized) | 9.05% | 33.14% | 29.53% |
Return on Assets
WCC
GWW
FAST
Industrial Distribution Industry Comparables
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
GWW
| W.W. Grainger Inc | Rpcfpdm | Pkwjv | $47.1 Bil | |
FERG
| Ferguson PLC | Pkjlgqsbf | Jhrndjm | $44.2 Bil | |
FAST
| Fastenal Co | Kbtdqznh | Fzmp | $38.3 Bil | |
WSO.B
| Watsco Inc Shs -B- Conv.at any time | — | Kdk | $19.3 Bil | |
WSO
| Watsco Inc Class A | Pjlkpmxd | Wvsyds | $19.1 Bil | |
POOL
| Pool Corp | — | Vpts | $14.5 Bil | |
CNM
| Core & Main Inc Class A | — | Dwcgkf | $11.5 Bil | |
IDDWF
| Indutrade AB | — | Xwfrnq | $9.2 Bil | |
MSM
| MSC Industrial Direct Co Inc Class A | Sdwwbbq | Qzmcs | $5.3 Bil |