Wesco Holdings Inc. (6091) AI Stock Analysis

• Market Cap: ¥9.77B
• Dividend Yield: 2.87%
• Average Volume (3M): 10.60K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.49
• Revenue Growth: 2.50%
• EPS Growth: 12.45%
• Country: JP
• Employees: 780
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 16.02
• Shares Outstanding: 13,727,553
• 10 Day Avg. Volume: 8,820
• 30 Day Avg. Volume: 10,596
• PEG Ratio: 1.70
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 8.96
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥962.00 ▲(15.07% Upside)
• Action: Reiterated Date: 10/03/25
• Date: Action: Reiterated 10/03/25

Wesco Holdings Inc. demonstrates a solid financial foundation with strong cash flow and low leverage, contributing significantly to its overall score. The technical analysis supports a positive outlook with bullish momentum and stable indicators. The valuation is attractive, with a reasonable P/E ratio and a solid dividend yield, making the stock appealing to both growth and income investors.

Positive Factors

Strong Cash Flow

Strong free cash flow generation indicates effective cash management, providing the company with flexibility for investments and debt reduction.

Low Leverage

Low leverage enhances financial stability, reducing risk and providing the company with more options for future growth and investment.

Diverse Revenue Streams

A diversified revenue base across multiple sectors and services reduces dependency on a single market, enhancing resilience against sector-specific downturns.

Negative Factors

Inconsistent Revenue Growth

Inconsistent revenue growth can signal market or operational challenges, potentially impacting long-term profitability and strategic planning.

Decreasing Net Profit Margin

A declining net profit margin suggests challenges in converting revenue into net income, which could affect overall profitability if not addressed.

Return on Equity Decline

A decrease in return on equity indicates less efficient use of shareholder funds, potentially impacting investor confidence and future capital raising.

Wesco Holdings Inc. Business Overview & Revenue Model

Company Description

Wesco Holdings Inc. engages in general construction consulting business in Japan. The company is also involved in photocopy and binding, aquarium, sports facility management, and public interest businesses. Wesco Holdings Inc. was founded in 1970 and is based in Okayama, Japan.

How the Company Makes Money

Wesco Holdings generates revenue through several key streams. Primarily, the company earns income from its real estate investments, which include rental income from properties it owns and operates. Additionally, Wesco engages in financial services, providing loans and investment opportunities that yield interest and fees. The technology sector contributes to the revenue through partnerships and investments in tech startups, allowing for potential capital gains and dividends. Significant partnerships with financial institutions and real estate developers enhance its market presence and revenue-generating capabilities, while strategic investments in emerging technologies help capture growth opportunities in the evolving market landscape.

Wesco Holdings Inc. Financial Statement Overview

Summary

Wesco Holdings Inc. presents a stable financial position with strong cash flow generation and low leverage. While profitability margins are consistent, there is room for improvement in revenue growth and return on equity. The company should focus on enhancing operational efficiency and exploring growth opportunities to improve its financial performance further.

Income Statement

Wesco Holdings Inc. shows a stable gross profit margin around 26%, indicating consistent cost management. However, the net profit margin has slightly decreased over the years, reflecting challenges in converting revenue into net income. Revenue growth has been inconsistent, with a notable decline in the latest period, suggesting potential market or operational challenges. EBIT and EBITDA margins are stable but show room for improvement to enhance profitability.

Balance Sheet

The company maintains a very low debt-to-equity ratio, indicating strong financial stability and low leverage risk. The equity ratio is healthy, reflecting a solid capital structure. However, return on equity has slightly decreased, suggesting a need for more efficient use of equity to generate profits.

Cash Flow

Wesco Holdings Inc. demonstrates strong free cash flow generation, with significant growth in recent periods, indicating effective cash management. The operating cash flow to net income ratio is improving, suggesting better cash conversion efficiency. However, the free cash flow to net income ratio shows some variability, indicating potential fluctuations in cash flow relative to earnings.

Breakdown	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	16.11B	15.73B	15.59B	15.67B	13.77B
Gross Profit	4.28B	4.15B	3.97B	3.88B	3.74B
EBITDA	1.26B	1.26B	1.24B	1.23B	1.17B
Net Income	774.00M	768.06M	672.81M	774.63M	784.96M
Balance Sheet
Total Assets	21.24B	20.76B	19.95B	20.20B	19.65B
Cash, Cash Equivalents and Short-Term Investments	9.67B	9.24B	8.13B	7.79B	7.48B
Total Debt	59.00M	90.39M	98.20M	174.02M	163.39M
Total Liabilities	4.99B	4.58B	4.25B	5.02B	5.16B
Stockholders Equity	16.25B	16.18B	15.70B	15.18B	14.49B
Cash Flow
Free Cash Flow	1.06B	548.35M	245.32M	99.23M	161.50M
Operating Cash Flow	1.18B	738.29M	473.35M	397.56M	614.34M
Investing Cash Flow	37.25M	488.71M	224.97M	-12.51M	-764.69M
Financing Cash Flow	-779.00M	-619.41M	-285.42M	-283.60M	-554.75M

Wesco Holdings Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 836.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6091, the sentiment is Positive. The current price of 836 is below the 20-day moving average (MA) of 870.50, below the 50-day MA of 855.98, and above the 200-day MA of 789.09, indicating a bullish trend. The MACD of 15.78 indicates Negative momentum. The RSI at 71.21 is Negative, neither overbought nor oversold. The STOCH value of 86.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6091.

Wesco Holdings Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1798	82 Outperform	¥15.65B	5.70	―	1.60%	22.31%	101.45%
1905	77 Outperform	¥9.41B	10.95	―	4.09%	-8.48%	54.87%
6091	75 Outperform	¥9.77B	14.75	―	2.87%	2.50%	12.45%
5915	72 Outperform	¥10.30B	19.87	―	3.74%	-29.79%	278.17%
1848	64 Neutral	¥11.54B	4.48	―	2.33%	7.66%	562.50%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1783	55 Neutral	¥11.90B	-58.52	―	―	7.00%	-182.47%