WESCO International Inc WCC

Morningstar Rating
$337.25 +3.08 (0.92%)
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Company Report

Wesco Is a Main Beneficiary of the Data Center Buildout and US Infrastructure Tax Dollars

Since its initial public offering in 1999, 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, commercial, and utility markets. It competes in highly fragmented distribution markets, but the firm's large scale, global footprint, expansive supplier base, and broad service offering differentiate it from smaller local and regional competitors.

Price vs Fair Value

WCC is trading at a 344% premium.
Price
$334.19
Fair Value
$275.00
Uncertainty
Medium
1-Star Price
$557.00
5-Star Price
$244.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Countercyclical cash generation supports a flexible leverage strategy and enables Wesco to make acquisitions during periods when companies are most likely to be distressed and sold at a discount.

Bears

Wesco’s acquisition strategy has potentially diluted returns but fueled much of its past growth.

Articles & Videos

Trading Information

Previous Close Price
$334.19
Day Range
$335.14344.93
52-Week Range
$171.36377.90
Bid/Ask
$337.19 / $337.44
Shares Outstanding
48.70M
Market Cap
$16.43B
Volume/Avg
150,333 / 586,378

Key Statistics

Price/Earnings (Normalized)
25.24
Price/Sales
0.72
Dividend Yield (Trailing)
0.52%
Dividend Yield (Forward)
0.56%
Total Yield
1.02%

Company Profile

Wesco can be traced back to the late 1800s but was officially founded in 1922, acting as the distribution arm of Westinghouse Electric. Throughout the 1900s, Wesco entered and subsequently exited the consumer electronics, transit, bottling, and nuclear plant distribution markets. It was sold to a private equity firm in 1994 and then went public in 1999, and numerous acquisitions have since been made to fill the gaps in Wesco’s geographical and product coverage. Today, the firm primarily distributes electrical, networking, security, and utility equipment used in the construction and repair of structures such as offices, data centers, power transmission lines, and manufacturing plants. Wesco has operations around the globe but generates the majority of its revenue in the United States.
Sector
Industrials
Industry
Industrial Distribution
Stock Style Box
Mid Value
Total Number of Employees
21,000

Competitors

Valuation

Metric
WCC
GWW
FAST
Price/Earnings (Normalized)
25.2432.2240.90
Price/Book Value
3.3915.9813.40
Price/Sales
0.723.466.35
Price/Cash Flow
17.2525.0336.06
Price/Earnings
WCC
GWW
FAST

Financial Strength

Metric
WCC
GWW
FAST
Quick Ratio
1.161.512.13
Current Ratio
2.122.694.39
Interest Coverage
3.2632.46310.80
Quick Ratio
WCC
GWW
FAST

Profitability

Metric
WCC
GWW
FAST
Return on Assets (Normalized)
4.26%21.59%25.89%
Return on Equity (Normalized)
14.05%52.72%33.85%
Return on Invested Capital (Normalized)
8.81%29.26%30.03%
Return on Assets
WCC
GWW
FAST

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