Skip to Content

WESCO International Inc WCC

Morningstar Rating
$144.20 +1.63 (1.14%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

We Expect Near-Term Challenges for Wesco, but Remain Positive on Long-Term Prospects

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 26% discount.
Price
$142.55
Fair Value
$415.00
Uncertainty
Medium
1-Star Price
$994.60
5-Star Price
$243.60
Economic Moat
Gzmsg
Capital Allocation
Lqlldhv

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?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if WCC is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$142.57
Day Range
$144.20145.66
52-Week Range
$121.91195.07
Bid/Ask
$144.02 / $144.36
Market Cap
$7.35 Bil
Volume/Avg
128,927 / 506,711

Key Statistics

Price/Earnings (Normalized)
8.90
Price/Sales
0.33
Dividend Yield (Trailing)
1.05%
Dividend Yield (Forward)
1.05%
Total Yield
2.08%

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
Mid Value
Total Number of Employees
20,000

Competitors

Valuation

Metric
WCC
FAST
GWW
Price/Earnings (Normalized)
8.9034.8226.60
Price/Book Value
1.4511.9814.89
Price/Sales
0.335.472.87
Price/Cash Flow
9.0230.2920.70
Price/Earnings
WCC
FAST
GWW

Financial Strength

Metric
WCC
FAST
GWW
Quick Ratio
1.361.981.60
Current Ratio
2.484.572.85
Interest Coverage
3.55141.5527.71
Quick Ratio
WCC
FAST
GWW

Profitability

Metric
WCC
FAST
GWW
Return on Assets (Normalized)
5.08%25.46%24.73%
Return on Equity (Normalized)
16.06%34.85%71.01%
Return on Invested Capital (Normalized)
9.88%29.44%34.84%
Return on Assets
WCC
FAST
GWW
See how this stock stacks up to its competitors with Morningstar Investor

Industrial Distribution Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
GWW
W.W. Grainger IncMprtrj$46.7 Bil
FERG
Ferguson PLCVxqcwk$40.9 Bil
FAST
Fastenal CoKtm$40.2 Bil
POOL
Pool CorpXbs$15.1 Bil
WSO.B
Watsco Inc Shs -B- Conv.at any timeRltfr$15.0 Bil
WSO
Watsco Inc Class ARxqdhl$15.0 Bil
IDDWF
Indutrade ABNgrl$9.7 Bil
CNM
Core & Main Inc Class AHhbnrng$8.4 Bil
MSM
MSC Industrial Direct Co Inc Class ANjdccq$5.6 Bil

Sponsor Center