Wesco Holdings Inc. (6091) AI Stock Analysis

• Market Cap: ¥10.13B
• Dividend Yield: 2.39%
• Average Volume (3M): 51.31K
• Price to Earnings (P/E): 16.9
• Beta (1Y): 0.44
• Revenue Growth: 2.48%
• EPS Growth: 7.84%
• Country: JP
• Employees: 780
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 6.13
• Shares Outstanding: 13,727,553
• 10 Day Avg. Volume: 60,090
• 30 Day Avg. Volume: 51,313
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥776.00
• Price Target Upside: -15.56% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥776.00 ▼(-15.56% Downside)

Wesco Holdings Inc. scores well due to its strong financial performance, marked by consistent revenue growth and effective cost management. The technical indicators suggest bullish momentum, though the high RSI indicates caution for potential overbought conditions. The valuation is attractive with a low P/E ratio and a solid dividend yield, making it appealing for income-focused investors. The absence of notable earnings call highlights or corporate events leaves the financial and technical factors as the primary influences on the score.

Wesco Holdings Inc. Business Overview & Revenue Model

Company Description

Wesco Holdings Inc. (6091) is a diversified company operating in multiple sectors, including industrial distribution, electrical and electronic products, communications, and utilities. The company offers a broad range of products and services, including electrical and industrial components, communications equipment, and logistics services, catering to a wide array of industries such as construction, utilities, and manufacturing.

How the Company Makes Money

Wesco Holdings Inc. generates revenue through the sale of its diverse product offerings, including electrical and industrial components, which are distributed to a variety of industries. The company earns money by leveraging its extensive distribution network to provide value-added services, such as supply chain management and logistics, to its clients. Key revenue streams include product sales, service fees, and fulfillment contracts. Partnerships with suppliers and manufacturers enable Wesco to offer a comprehensive catalog of products, enhancing its market position and contributing to its earnings. Additionally, its focus on customer relationships and tailored solutions supports its profitability.

Wesco Holdings Inc. Financial Statement Overview

Summary

Wesco Holdings Inc. showcases a strong financial foundation characterized by consistent revenue growth, efficient cost management, and robust profitability. The company leverages minimal debt, maintaining stability and a favorable equity position. Cash flow management is effective, though subject to some variability due to investing and capital expenditure activities. Overall, the company is financially sound with a positive trajectory in both income and balance sheet metrics, positioning it well within the engineering & construction industry.

Income Statement

Wesco Holdings Inc. shows a solid financial performance with consistent revenue growth, achieving a 0.85% increase in total revenue from 2023 to 2024. The gross profit margin has improved, indicating effective management of cost of goods sold. The net profit margin has also shown an improvement over the years, reaching 4.88% in 2024, suggesting strong bottom-line profitability. EBIT and EBITDA margins have remained stable, underscoring operational efficiency.

Balance Sheet

The company maintains a strong financial position with a low debt-to-equity ratio of 0.006, indicating minimal financial leverage. The return on equity is robust at 4.75%, reflecting effective use of shareholders' equity to generate profit. The equity ratio is high, with stockholders' equity comprising 77.95% of total assets, highlighting a stable capital structure with considerable equity financing.

Cash Flow

Wesco Holdings Inc. demonstrates healthy cash flow management, with a significant increase in free cash flow from 2023 to 2024. The free cash flow to net income ratio is 0.71, indicating a good conversion of net income into free cash. The operating cash flow to net income ratio stands at 0.96, reflecting strong cash generation from operations. However, the variations in capital expenditures and investing activities suggest potential fluctuations in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.21B	15.73B	15.59B	15.67B	13.77B	13.75B
Gross Profit	4.32B	4.15B	3.97B	3.88B	3.74B	3.58B
EBITDA	1.45B	1.26B	1.24B	1.23B	1.17B	1.11B
Net Income	851.01M	768.06M	672.81M	774.63M	784.96M	514.23M
Balance Sheet
Total Assets	19.53B	20.76B	19.95B	20.20B	19.65B	19.35B
Cash, Cash Equivalents and Short-Term Investments	3.80B	9.24B	8.13B	7.79B	7.48B	8.07B
Total Debt	329.54M	90.39M	98.20M	126.02M	117.39M	152.68M
Total Liabilities	3.71B	4.58B	4.25B	5.02B	5.16B	5.35B
Stockholders Equity	15.83B	16.18B	15.70B	15.18B	14.49B	14.01B
Cash Flow
Free Cash Flow	0.00	548.35M	245.32M	99.23M	161.50M	1.54B
Operating Cash Flow	0.00	738.29M	473.35M	397.56M	614.34M	1.69B
Investing Cash Flow	0.00	488.71M	224.97M	-12.51M	-764.69M	-205.69M
Financing Cash Flow	0.00	-619.41M	-285.42M	-283.60M	-554.75M	-271.44M

Wesco Holdings Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 919.00
• 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 919 is above the 20-day moving average (MA) of 802.50, above the 50-day MA of 745.50, and above the 200-day MA of 656.24, indicating a bullish trend. The MACD of 46.13 indicates Negative momentum. The RSI at 90.87 is Negative, neither overbought nor oversold. The STOCH value of 94.21 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	80 Outperform	11.94B	5.53	10.36%	1.84%	24.64%	35.00%
1905	80 Outperform	8.73B	8.84	5.77%	3.63%	6.74%	543.41%
5915	75 Outperform	7.66B	6.14	4.00%	4.25%	-32.18%	39.56%
6091	75 Outperform	¥10.13B	16.87		2.39%	2.48%	7.84%
1848	63 Neutral	10.24B	4.07	17.77%	2.25%	12.27%	682.78%
1783	61 Neutral	10.03B	173.58	4.39%	―	6.02%	-49.16%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%