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WESCO International Inc WCC

Morningstar Rating
$171.28 +0.43 (0.25%)
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Company Report

Wesco Announces Plan to Sell the Integrated Supply Business for $350 Million

In 1994, Westinghouse Electrical sold its electrical distribution business, Westinghouse Electric Supply, or Wesco, to a private equity firm. Wesco went public in 1999. Since its separation from Westinghouse, Wesco has used most of its cumulative free cash flow on acquisitions, which have expanded its scale, diversified revenue, and fueled a meaningful portion of the company’s growth. Once squarely focused on construction end markets, Wesco now serves a much broader array of customers across industrial, construction, utility, commercial, institutional, and government markets.

Price vs Fair Value

WCC is trading at a 12% discount.
Price
$168.19
Fair Value
$186.00
Uncertainty
Medium
1-Star Price
$266.95
5-Star Price
$251.80
Economic Moat
Bvtryp
Capital Allocation
Lgyxsmz

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.

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News

Trading Information

Previous Close Price
$170.85
Day Range
$170.25172.16
52-Week Range
$121.91195.43
Bid/Ask
$170.25 / $172.39
Market Cap
$8.73 Bil
Volume/Avg
427,512 / 616,260

Key Statistics

Price/Earnings (Normalized)
11.70
Price/Sales
0.40
Dividend Yield (Trailing)
0.90%
Dividend Yield (Forward)
0.90%
Total Yield
1.76%

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 Value
Total Number of Employees
20,000

Competitors

Valuation

Metric
WCC
MSM
GWW
Price/Earnings (Normalized)
11.7016.3627.88
Price/Book Value
1.734.1116.15
Price/Sales
0.401.403.10
Price/Cash Flow
8.9212.1222.36
Price/Earnings
WCC
MSM
GWW

Financial Strength

Metric
WCC
MSM
GWW
Quick Ratio
1.360.701.56
Current Ratio
2.482.022.88
Interest Coverage
3.5521.9427.88
Quick Ratio
WCC
MSM
GWW

Profitability

Metric
WCC
MSM
GWW
Return on Assets (Normalized)
5.08%13.31%23.29%
Return on Equity (Normalized)
16.06%23.86%64.65%
Return on Invested Capital (Normalized)
9.88%17.26%32.58%
Return on Assets
WCC
MSM
GWW
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Economic Moat
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GWW
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FERG
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FAST
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WSO.B
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WSO
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POOL
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CNM
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IDDWF
Indutrade ABLlf$10.1 Bil
MSM
MSC Industrial Direct Co Inc Class ADfjjxhqpNyhrbx$5.6 Bil

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