Wesco International (WCC) AI Stock Analysis

• Market Cap: $8.39B
• Dividend Yield: 1.02%
• Average Volume (3M): 749.65K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 1.70
• Revenue Growth: -1.80%
• EPS Growth: 9.55%
• Country: US
• Employees: 20,000
• Sector: Industrials
• Sector Strength: 90
• Industry: Industrial - Distribution
• EPS (TTM): 2.21
• Shares Outstanding: 48,803,690
• 10 Day Avg. Volume: 568,554
• 30 Day Avg. Volume: 749,649
• PEG Ratio: 0.02
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.41
• Enterprise Value/Market Cap: 1.55
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 2.80
• Enterprise Value/Ebitda: 2.24
• 1Y Price Target: $200.33
• Price Target Upside: 20.80% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 75 Outperform
• Price Target: $186.00 ▲( 12.16% Upside)

Wesco International's score is driven by its strong technical performance and attractive valuation, supported by solid financial results and strategic growth initiatives. While the earnings call highlighted sector-specific challenges, the company's proactive measures and positive outlook contribute to a favorable investment profile.

Positive Factors

Financial Performance

Wesco International's free cash flow performance is ahead of its peers, showing strong financial recovery.

Growth Opportunities

Wesco International's exposure to electrification, grid upgrades, and datacenters is seen as a positive factor for future growth.

Revenue Potential

Wesco is well-poised to take advantage of higher-margin and recurring service-based revenue from datacenter repair and upgrade cycles.

Negative Factors

Market Uncertainty

Tariff uncertainty has been a large driver of recent market uncertainty, impacting WCC as FX translation will be a headwind.

Operational Management

Wesco International lags behind its peers in inventory and receivables management.

Sales Performance

Wesco International's sales growth is slowing and continues to trail behind electrical suppliers.

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 makes money primarily through the sale and distribution of electrical, industrial, and communications products to a wide range of industries. The company generates revenue through its extensive product offerings, which include electrical equipment, industrial supplies, and communications products. A significant portion of its revenue comes from comprehensive supply chain management services, which help clients optimize their procurement processes and reduce operational costs. Additionally, Wesco benefits from strategic partnerships and long-term contracts with key suppliers and customers, enhancing its ability to offer competitive pricing and maintain steady revenue streams. The company's expansive distribution network and value-added services, such as inventory management, technical support, and logistics solutions, further contribute to its earnings.

Wesco International Financial Statement Overview

Summary

Wesco International demonstrates solid profitability and operational efficiency, despite some inconsistencies in revenue growth and cash flow stability. The company maintains a strong balance sheet with low leverage, suggesting financial resilience. Continued focus on revenue growth and consistent cash flow generation could enhance overall financial performance.

Income Statement

The income statement shows strong profitability with a Gross Profit Margin of 40.68% and a Net Profit Margin of 3.23% for TTM (Trailing-Twelve-Months). However, revenue growth has been inconsistent, with a modest decline of 2.55% from 2023 to 2024 and a slight decrease in EBIT Margin from 2022 to 2023. The company maintains healthy EBITDA margins, indicating efficient operations.

Balance Sheet

The balance sheet indicates a stable financial position with a low Debt-to-Equity Ratio of 0.004 and a strong Equity Ratio of 32.42% in TTM. However, the Return on Equity (ROE) has seen slight fluctuations, currently at 14.03% for TTM, which is respectable but shows room for improvement in terms of profitability from equity.

Cash Flow

The cash flow statement reveals a healthy Free Cash Flow to Net Income Ratio of 0.41 in TTM, indicating good cash profitability. However, the Free Cash Flow Growth Rate has been volatile, with recent declines. The Operating Cash Flow to Net Income Ratio of 0.54 suggests adequate cash conversion from earnings.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
21.81B	21.82B	22.39B	21.42B	18.22B	12.33B
	Gross Profit
4.65B	4.71B	4.84B	4.66B	3.79B	2.33B
	EBIT
1.20B	1.22B	1.41B	1.44B	801.87M	347.04M
	EBITDA
1.43B	1.51B	1.56B	1.61B	1.05B	471.03M
	Net Income Common Stockholders
720.20M	717.60M	765.50M	860.50M	465.40M	100.56M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
681.60M	702.60M	524.10M	527.35M	212.58M	449.13M
	Total Assets
15.52B	15.06B	15.06B	14.81B	12.62B	11.88B
	Total Debt
5.81B	5.68B	5.96B	5.42B	4.71B	4.90B
	Net Debt
5.13B	4.98B	5.44B	4.89B	4.50B	4.45B
	Total Liabilities
10.48B	10.10B	10.03B	10.36B	8.84B	8.54B
	Stockholders Equity
5.04B	4.97B	5.04B	4.45B	3.78B	3.34B
Cash Flow		Free Cash Flow
288.20M	1.01B	400.90M	-88.37M	12.39M	487.26M
	Operating Cash Flow
382.90M	1.10B	493.20M	11.04M	67.14M	543.93M
	Investing Cash Flow
2.50M	40.40M	-89.60M	-283.57M	2.54M	-3.74B
	Financing Cash Flow
-671.50M	-928.30M	-403.90M	584.03M	-310.78M	3.48B

Wesco International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 165.84
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WCC, the sentiment is Negative. The current price of 165.84 is above the 20-day moving average (MA) of 165.36, above the 50-day MA of 159.01, and below the 200-day MA of 174.01, indicating a neutral trend. The MACD of 3.33 indicates Negative momentum. The RSI at 52.01 is Neutral, neither overbought nor oversold. The STOCH value of 40.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WCC.

Wesco International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DXPE	77 Outperform	$1.31B	17.39	19.45%	―	11.94%	34.08%
FAST	77 Outperform	$46.99B	40.86	32.35%	2.02%	3.08%	-0.76%
WCC	75 Outperform	$8.39B	13.00	14.38%	1.02%	-1.80%	9.55%
AIT	72 Outperform	$8.74B	23.01	22.23%	0.70%	0.50%	4.48%
MSM	69 Neutral	$4.53B	21.38	15.53%	4.28%	-5.71%	-31.93%
Sector *	64 Neutral	$4.39B	11.81	5.17%	249.38%	3.98%	-12.17%
SITE	64 Neutral	$5.45B	45.97	7.64%	―	4.73%	-27.46%

Wesco International Corporate Events

Wesco International Reports Q1 2025 Financial Results

Wesco International reported its first quarter 2025 results, showing a slight decrease in net sales by 0.1% year-over-year, but a significant 70% increase in data center sales. The company experienced a 6% organic sales growth, driven by strong performances in its Broadband and OEM businesses, despite continued weakness in its utility business. The company is set to redeem preferred stock in June, which will improve its balance sheet and cash flow. Wesco maintains a positive outlook for 2025, focusing on cross-selling activities and operational improvements amid economic uncertainties.