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Wesco International
(NYSE:WCC)
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Rating:66Neutral
Price Target:
$334.00
â–²(0.46% Upside)
Action:Reiterated
Date:07/30/26
The score is anchored by solid but mixed financial fundamentals (steady operating margins and returns, but meaningful leverage and volatile cash conversion). A very strong earnings call with raised guidance and backlog/data-center momentum is a major positive, but near-term technical weakness (below key moving averages) and only moderate valuation support keep the overall score in the mid-60s.
Positive Factors
Data‑center secular growth and backlog
Strong, durable data‑center demand plus a ~60% backlog increase provides multi‑quarter revenue visibility and reduces revenue cyclicality. High backlog tied to multiyear projects supports recurring shipments, cross‑sell opportunities, and long‑term capacity to scale services.
Negative Factors
Elevated leverage limits flexibility
Meaningful leverage reduces financial optionality for opportunistic investment or cushioning in a downturn. Interest burden and debt swings introduce earnings sensitivity and make deleveraging or large bolt‑on investments more challenging over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Data‑center secular growth and backlog
Strong, durable data‑center demand plus a ~60% backlog increase provides multi‑quarter revenue visibility and reduces revenue cyclicality. High backlog tied to multiyear projects supports recurring shipments, cross‑sell opportunities, and long‑term capacity to scale services.
Read all positive factors
Wesco International Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks revenue down by region to reveal geographic strengths and vulnerabilities. For an industrial distributor, geographic mix shows exposure to the U.S. market versus international opportunities, and helps flag risks from local slowdowns, currency swings or concentrated customer bases.
Breaks revenue down by region to reveal geographic strengths and vulnerabilities. For an industrial distributor, geographic mix shows exposure to the U.S. market versus international opportunities, and helps flag risks from local slowdowns, currency swings or concentrated customer bases.
Data provided by:
The Fly
The FlyWesco International (WCC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.07B
Dividend Yield0.56%
Average Volume (3M)653.85K
Price to Earnings (P/E)23.2
Beta (1Y)1.53
Revenue Growth11.16%
EPS Growth6.33%
CountryUS
Employees21,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)14.58
Shares Outstanding48,704,890
10 Day Avg. Volume664,440
30 Day Avg. Volume653,850
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)2.37
Price to Sales (P/S)0.51
P/FCF Ratio472.78
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$407.10Price Target Upside22.44% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)16.13
Revenue Forecast (FY)$25.56B
Wesco International Business Overview & Revenue Model
Company Description
WESCO International, Inc. functions as a prominent global distributor, delivering an array of business-to-business logistical services and sophisticated supply chain management solutions across the United States, Canada, and internationally. The c...
How the Company Makes Money
Wesco primarily makes money by selling a broad assortment of electrical, industrial, and communications/network products to business customers, earning a margin between its purchase cost from manufacturers and the price it charges customers. Reven...
Wesco International Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveyed strong, broad-based operational momentum with multiple record financials (sales, adjusted EBITDA, adjusted EPS), meaningful data center-led growth, substantial backlog expansion, margin expansion across business units, strategic acquisitions and a material multiyear grid services win. Near-term headwinds include working capital intensity impacting free cash flow variability, some mix-driven margin pressure expected in Q3, public power margin dynamics in UBS, and industry capacity constraints (power and labor). Overall, the favorable operating results and raised guidance materially outweigh the challenges highlighted.Positive Updates
Record Sales and Top-Line Growth
Second-quarter sales of $6.7 billion, reported and organic growth of 13% year-over-year; fourth consecutive quarter of double-digit sales growth for the Wesco enterprise.
Negative Updates
Working Capital Intensity and Cash Flow Variability
Working capital intensity remained approximately 20% of sales; Q2 free cash flow modest at $32 million; full-year free cash flow guidance wide at $300 million–$600 million due to incremental working capital needs to support growth.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Sales and Top-Line Growth
Second-quarter sales of $6.7 billion, reported and organic growth of 13% year-over-year; fourth consecutive quarter of double-digit sales growth for the Wesco enterprise.
Read all positive updates
Company Guidance
Management raised full‑year 2026 guidance materially: organic sales growth now 9–11% (was 5–8%), reported sales growth 10–12% (≈$26B reported sales at the midpoint), adjusted EBITDA margin 6.9–7.1% (midpoint implies >$100M incremental EBITDA vs prior guide), and adjusted diluted EPS $16.00–$17.50 (≈+$0.75 at the midpoint); free cash flow is now expected to be $300–$600M for the year (H1 FCF $246M; Q2 FCF $32M) amid ~20% working‑capital intensity, net debt/adjusted EBITDA improved to ~3.0x (from 3.4x), and $50M of buybacks YTD (including $25M in Q2) after redeeming the 2028 notes. Segment guidance: CSS mid‑to‑high‑teens (CSS data‑center sales >30% YoY), EES high‑single‑digits, UBS mid‑single‑digits; July MTD sales per workday were up ~mid‑teens and management expects Q3 sales to grow low double‑digits YoY with Q3 EBITDA margin slightly below Q2.Wesco International Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
68
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.01B | 23.51B | 21.82B | 22.39B | 21.42B | 18.22B |
| Gross Profit | 2.48B | 4.74B | 4.71B | 4.84B | 4.66B | 3.79B |
| EBITDA | 1.57B | 1.47B | 1.50B | 1.56B | 1.61B | 1.05B |
| Net Income | 710.20M | 640.20M | 717.60M | 765.50M | 860.50M | 465.40M |
Balance Sheet | ||||||
| Total Assets | 17.81B | 16.49B | 15.06B | 15.06B | 14.81B | 12.62B |
| Cash, Cash Equivalents and Short-Term Investments | 808.90M | 604.80M | 702.60M | 524.10M | 527.30M | 212.58M |
| Total Debt | 25.00M | 7.48B | 5.68B | 5.96B | 5.93B | 5.13B |
| Total Liabilities | 12.60B | 11.47B | 10.10B | 10.03B | 10.36B | 8.84B |
| Stockholders Equity | 5.21B | 5.03B | 4.97B | 5.04B | 4.45B | 3.78B |
Cash Flow | ||||||
| Free Cash Flow | 155.10M | 25.20M | 1.01B | 400.90M | -88.37M | 12.39M |
| Operating Cash Flow | 264.30M | 125.00M | 1.10B | 493.20M | 11.04M | 67.14M |
| Investing Cash Flow | -111.80M | -140.70M | 40.40M | -89.60M | -283.57M | 2.54M |
| Financing Cash Flow | -6.30M | -92.70M | -928.30M | -403.90M | 584.03M | -310.78M |
Wesco International Technical Analysis
Positive
332.48
Price Trends
343.32
Negative
323.33
Positive
294.27
Positive
Market Momentum
-3.86
Negative
48.99
Neutral
57.20
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 332.48 is above the 20-day moving average (MA) of 326.86, below the 50-day MA of 343.32, and above the 200-day MA of 294.27, indicating a neutral trend. The MACD of -3.86 indicates Negative momentum. The RSI at 48.99 is Neutral, neither overbought nor oversold. The STOCH value of 57.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WCC.
Wesco International Risk Analysis
Wesco International disclosed 32 risk factors in its most recent earnings report. Wesco International reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Wesco International Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $64.16B | 37.48 | 47.84% | 0.67% | 6.61% | -4.69% | |
77 Outperform | $12.36B | 32.44 | 21.64% | 0.56% | 7.54% | 6.04% | |
75 Outperform | $54.83B | 40.76 | 34.03% | 1.96% | 12.54% | 13.58% | |
72 Outperform | $6.76B | 30.14 | 16.55% | 2.77% | 4.41% | 16.62% | |
66 Neutral | $15.07B | 23.22 | 14.07% | 0.57% | 11.16% | 6.33% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
WCC
Wesco International
342.67
140.62
69.60%
AIT
Applied Industrial Technologies
339.85
77.51
29.54%
FAST
Fastenal Company
46.66
2.19
4.92%
MSM
MSC Industrial
121.46
39.37
47.96%
GWW
WW Grainger
1,355.49
431.09
46.63%
Wesco International Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Wesco International Raises Outlook After Record Q2 Results
Positive
Jul 30, 2026
Wesco International reported record second-quarter 2026 net sales of $6.7 billion, up 13% year over year, driven by 12.6% organic growth and a roughly 45% surge in data center sales to $1.5 billion. The company achieved record backlog up about 60%...
Executive/Board ChangesShareholder Meetings
Wesco International Details CFO Transition and Advisory Role
Positive
Jun 2, 2026
Wesco International detailed leadership transition steps following the retirement of former Executive Vice President and Chief Financial Officer David S. Schulz on May 31, 2026, with Schulz entering a consulting services agreement effective June 1...
Business Operations and StrategyFinancial Disclosures
Wesco International Posts Record Q1 2026 Results, Raises Outlook
Positive
Apr 30, 2026
On April 30, 2026, Wesco International reported record first-quarter 2026 results, with net sales rising 13.8% year over year to $6.1 billion and organic sales up 12.3%, driven by strong volume growth across all segments and a sharp increase in da...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.