Wesco International (WCC) AI Stock Analysis

• Market Cap: $14.68B
• Dividend Yield: 0.72%
• Average Volume (3M): 587.38K
• Price to Earnings (P/E): 23.1
• Beta (1Y): 1.54
• Revenue Growth: 5.28%
• EPS Growth: 1.97%
• Country: US
• Employees: 20,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 3.40
• Shares Outstanding: 48,661,915
• 10 Day Avg. Volume: 806,011
• 30 Day Avg. Volume: 587,384
• PEG Ratio: -11.94
• Price to Book (P/B): 2.41
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 480.54
• Enterprise Value/Market Cap: 1.42
• Enterprise Value/Revenue: 0.89
• Enterprise Value/Gross Profit: 4.29
• Enterprise Value/Ebitda: 14.46
• 1Y Price Target: $307.63
• Price Target Upside: 7.37% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 15.69
• Revenue Forecast (FY): $25.11B

• Rating: 69 Neutral
• Price Target: $330.00 ▲(15.18% Upside)
• Action: Downgraded Date: 02/11/26
• Date: Action: Downgraded 02/11/26

The score is anchored by solid balance-sheet improvement and a constructive 2026 outlook (growth, margins, and a large expected free-cash-flow rebound). Offsetting these positives are weak and volatile recent cash generation and a relatively demanding valuation with a low dividend yield; technicals are supportive and help lift the overall score.

Positive Factors

Secular data-center demand & backlog strength

Material exposure to AI-driven data center buildouts is a durable growth vector: large, repeatable project revenue and a record backlog (company-wide backlog +19%, CSS backlog +40%) provide multi-month visibility, supporting sustained revenue and margin leverage over the 2–6 month horizon.

Meaningful balance-sheet deleveraging

Significant deleveraging and steady equity growth strengthen financial flexibility. A lower leverage base supports capital allocation (dividend increase, buybacks, selective M&A) and reduces refinancing risk, improving resilience to cyclical revenue swings and preserving investment capacity.

Tech-enabled supply-chain transformation

Ongoing digitalization and AI-enabled logistics are structural advantages for an MRO distributor: they can sustainably reduce net working capital, improve service levels, and raise operating efficiency, supporting margin durability and stronger cash conversion over time.

Negative Factors

Weak and volatile free cash flow generation

Sharp deterioration and historical volatility in operating and free cash flow undermine perennial distributors' capital flexibility. Persistent working-capital swings constrain the firm's ability to fund buybacks, M&A, or cover rising interest costs without relying on additional leverage or equity actions.

Margin pressure from mix and public-power competition

Sustained product and project mix headwinds plus aggressive pricing in public power (notably transformers) can compress already-thin distributor margins. If competitive intensity or adverse mix persists, margin recovery will be harder and could limit structural EBITDA margin expansion.

UBS segment exposure and near-term headwinds

Underperformance in the UBS segment highlights exposure to cyclical municipal/public-power demand and product-specific price competition. Prolonged weakness in these end markets would reduce consolidated growth and limit margin upside even if other segments perform well.

Wesco International Business Overview & Revenue Model

Company Description

WESCO International, Inc. provides business-to-business distribution, logistics services, and supply chain solutions in the United States, Canada, and internationally. It operates through three segments: Electrical & Electronic Solutions (EES), Communications & Security Solutions (CSS), and Utility and Broadband Solutions (UBS). The EES segment supplies products and supply chain solutions, including electrical equipment and supplies, automation and connected devices, security, lighting, wire and cable, and safety, as well as maintenance, repair, and operating (MRO) products. This segment also offers contractor solutions, direct and indirect manufacturing supply chain optimization programs, lighting and renewables advisory services, and digital and automation solutions. The CSS segment operates in the network infrastructure and security markets. This segment sells products directly to end-users or through various channels, including data communications contractors, security, network, professional audio/visual, and systems integrators. It also provides safety and energy management solutions. The UBS segment offers products and services to investor-owned utilities; public power companies; and service and wireless providers, broadband operators, and contractors. This segment's products include wire and cable, transformers, transmission and distribution hardware, switches, protective devices, connectors, conduits, pole line hardware, racks, cabinets, safety and MRO products, and point-to-point wireless devices. This segment also offers various service solutions, including fiber project management, high and medium voltage project design and support, pre-wired meters and capacitor banks, meter testing and metering infrastructure installation, personal protective equipment dielectric testing, and tool repair, as well as emergency response, storage yard, materials, and logistics management. The company was founded in 1922 and is headquartered in Pittsburgh, Pennsylvania.

How the Company Makes Money

Wesco International generates revenue primarily through the sale of a broad range of electrical and industrial products to customers in various industries. The company operates on a business-to-business (B2B) model, catering to contractors, industrial manufacturers, and government entities. Key revenue streams include the sale of electrical and electronic equipment, lighting products, safety gear, and communication systems. Additionally, Wesco earns income from services such as inventory management, logistics, and supply chain optimization, which provide customers with tailored solutions to streamline their operations. Strategic partnerships with leading manufacturers in the electrical and industrial sectors further enhance Wesco's product offerings and competitive positioning, contributing significantly to its revenue generation.

Wesco International Financial Statement Overview

Summary

Balance sheet strength is a clear positive (meaningful deleveraging in TTM and steady equity growth), but profitability has softened versus prior peaks and the biggest concern is cash generation: TTM operating and free cash flow fell sharply and has been volatile historically, reducing confidence in near-term cash conversion.

Income Statement

Revenue expanded meaningfully from 2020–2023, but growth turned slightly negative in 2024 and then re-accelerated in TTM (Trailing-Twelve-Months). Profitability is solid for a distributor, with net margins improving sharply versus 2020, though margins have compressed in TTM versus 2022–2024 (notably lower gross and operating margins). Net income also softened from 2022–2024 and remained below prior peaks in TTM, suggesting the earnings profile is currently less favorable than the recent high-water mark.

Balance Sheet

Leverage improved dramatically in TTM (Trailing-Twelve-Months), with very low debt relative to equity versus the prior multi-year pattern of roughly 1.1–1.6x. Equity has steadily grown since 2020, supporting a stronger capital base. Returns on equity have been consistently healthy (low-to-mid teens recently), though down from the 2022 peak, indicating profitability is good but not as strong as it was at the cycle high.

Cash Flow

Cash generation is the key weak spot. Operating cash flow and free cash flow were strong in 2023–2024, but TTM (Trailing-Twelve-Months) shows a sharp drop in both operating cash flow and free cash flow, with free cash flow down materially versus the prior year. While free cash flow still covers a meaningful portion of net income in TTM, the steep deterioration and historical volatility (including negative free cash flow in 2022) reduce confidence in near-term cash conversion.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	23.51B	21.82B	22.39B	21.42B	18.22B
Gross Profit	4.77B	4.71B	4.84B	4.66B	3.79B
EBITDA	1.44B	1.50B	1.56B	1.61B	1.05B
Net Income	640.20M	717.60M	765.50M	860.50M	465.40M
Balance Sheet
Total Assets	16.49B	15.06B	15.06B	14.81B	12.62B
Cash, Cash Equivalents and Short-Term Investments	604.80M	702.60M	524.10M	527.30M	212.58M
Total Debt	7.48B	5.68B	5.96B	5.93B	5.13B
Total Liabilities	11.47B	10.10B	10.03B	10.36B	8.84B
Stockholders Equity	5.03B	4.97B	5.04B	4.45B	3.78B
Cash Flow
Free Cash Flow	25.20M	1.01B	400.90M	-88.37M	12.39M
Operating Cash Flow	125.00M	1.10B	493.20M	11.04M	67.14M
Investing Cash Flow	-140.70M	40.40M	-89.60M	-283.57M	2.54M
Financing Cash Flow	-92.70M	-928.30M	-403.90M	584.03M	-310.78M

Wesco International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 286.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WCC, the sentiment is Positive. The current price of 286.51 is below the 20-day moving average (MA) of 297.23, above the 50-day MA of 277.70, and above the 200-day MA of 226.93, indicating a neutral trend. The MACD of 6.38 indicates Positive momentum. The RSI at 53.17 is Neutral, neither overbought nor oversold. The STOCH value of 59.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WCC.

Wesco International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GWW	77 Outperform	$53.92B	32.04	48.10%	0.86%	4.83%	-3.60%
FERG	76 Outperform	$50.84B	26.28	32.90%	1.35%	4.92%	18.72%
FAST	75 Outperform	$52.79B	42.03	33.30%	2.10%	6.92%	5.98%
AIT	72 Outperform	$10.42B	26.57	22.02%	0.70%	4.03%	5.93%
WCC	69 Neutral	$14.68B	23.13	12.91%	0.72%	5.28%	1.97%
MSM	64 Neutral	$5.22B	25.56	14.84%	3.96%	-1.35%	-22.24%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Wesco International Corporate Events

Wesco International Posts Record 2025 Results, Raises Dividend

Wesco International reported record fourth-quarter and full-year 2025 results on February 10, 2026, with quarterly net sales up 10.3% year on year to $6.1 billion and full-year sales rising 7.8% to $23.5 billion, including strong data center growth and a 19% increase in backlog. While earnings growth was mixed and free cash flow fell sharply due to higher working capital investment, management highlighted strong performance in the CSS and EES segments, challenges in UBS, ongoing digitalization and AI initiatives, a 2026 outlook calling for mid- to high-single-digit organic growth and margin expansion, and plans to lift the annual dividend by over 10% to $2.00 per share, signaling confidence in continued market outperformance.

The most recent analyst rating on (WCC) stock is a Buy with a $304.00 price target. To see the full list of analyst forecasts on Wesco International stock, see the WCC Stock Forecast page.

Wesco International Announces CFO Transition and New Appointment

On February 10, 2026, Wesco International Inc. announced that long-serving Executive Vice President and Chief Financial Officer Dave Schulz plans to retire effective May 31, 2026, after nearly a decade in the role. Schulz will remain CFO until an agreed date in February 2026 and then serve as executive vice president and special advisor to the CEO, with the company emphasizing that his decision was not due to any disagreement over its operations or policies.

To ensure continuity, Wesco said Indraneel “Neel” Dev will join as executive vice president and chief financial officer in February 2026, bringing senior finance experience from Congruex, Lumen Technologies and other telecom and infrastructure firms. His appointment, backed by a substantial mix of salary, cash bonus, equity incentives and severance protections, signals Wesco’s intent to reinforce its financial leadership as it pursues growth initiatives and value creation for shareholders during the CFO transition.

The most recent analyst rating on (WCC) stock is a Buy with a $304.00 price target. To see the full list of analyst forecasts on Wesco International stock, see the WCC Stock Forecast page.

Wesco International Elects New Independent Directors

On December 5, 2025, Wesco International‘s Board of Directors elected Michael L. Carter and David C. Wajsgras as independent directors, effective January 1, 2026. This change aligns with the company’s ongoing board refreshment strategy, as two current directors, Bobby Griffin and Steve Raymund, will retire in May 2026. The new appointments bring extensive expertise in capital markets, mergers and acquisitions, and global industrial sectors, which are expected to support Wesco’s strategic execution and long-term value creation for customers and shareholders.

The most recent analyst rating on (WCC) stock is a Buy with a $293.00 price target. To see the full list of analyst forecasts on Wesco International stock, see the WCC Stock Forecast page.