Wesco International (WCC)
NYSE:WCC
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Wesco International
(NYSE:WCC)
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Rating:71Outperform
Price Target:
$386.00
â–²(20.98% Upside)
Action:Upgraded
Date:05/01/26
The score is driven primarily by improving forward outlook from the latest earnings call (raised 2026 guidance, strong backlog and data-center-led momentum) and strong technical strength (price above major moving averages with positive MACD). Offsetting this is only mid-level financial quality due to elevated leverage and notably volatile/weak cash conversion, while valuation is reasonable but not compelling and the dividend yield is minimal.
Positive Factors
Data-center revenue acceleration
Data centers have become a material, high-growth end market representing roughly one-fifth to one-quarter of sales in recent periods. Persistent hyperscale cloud and enterprise infrastructure demand can sustain multi-quarter organic growth, drive higher-margin project work, and deepen customer relationships that support recurring, larger contracts.
Negative Factors
Elevated leverage
Higher leverage reduces financial flexibility and increases sensitivity to macro or interest-rate shocks. With debt-to-equity materially higher than prior years, the company has less headroom for opportunistic M&A or margin compression, and must prioritize debt service and covenant management over optional capital allocation in stress scenarios.
Read all positive and negative factors
Positive Factors
Negative Factors
Data-center revenue acceleration
Data centers have become a material, high-growth end market representing roughly one-fifth to one-quarter of sales in recent periods. Persistent hyperscale cloud and enterprise infrastructure demand can sustain multi-quarter organic growth, drive higher-margin project work, and deepen customer relationships that support recurring, larger contracts.
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
$17.05B
Dividend Yield0.72%
Average Volume (3M)637.37K
Price to Earnings (P/E)22.0
Beta (1Y)1.52
Revenue Growth11.16%
EPS Growth6.33%
CountryUS
Employees20,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)14.24
Shares Outstanding48,704,890
10 Day Avg. Volume686,435
30 Day Avg. Volume637,372
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 Cap1.34
Enterprise Value/Revenue0.94
Enterprise Value/Gross Profit4.65
Enterprise Value/Ebitda14.94
Forecast
1Y Price Target
$374.00Price Target Upside17.22% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)16.02
Revenue Forecast (FY)$25.45B
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), Co...
How the Company Makes Money
Wesco primarily makes money by selling products and solutions it sources from manufacturers to business customers at a markup, recognizing revenue when goods and related services are delivered under customer contracts. Its revenue is largely gener...
Wesco International Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational quarter with record sales, exceptional data center-driven growth, margin expansion, robust free cash flow, and an improved full-year outlook. Key achievements include record backlog, meaningful segment EBITDA improvements (especially CSS and EES), and a successful debt refinancing. Offsetting risks are concentrated in UBS margin pressure, project timing volatility (affecting industrial and data center pacing), ongoing ERP/digital investment costs with benefits yet to be realized, and supply-chain/lead-time constraints. Overall, the positives — including raised guidance and strong cash generation — materially outweigh the noted headwinds.Positive Updates
Record Quarterly Sales
Reported sales of $6.1 billion in Q1, up 14% year over year (12% organic); third consecutive quarter of double-digit sales growth.
Negative Updates
UBS Profitability Pressure
UBS adjusted EBITDA declined 5% to $131 million and adjusted EBITDA margin decreased 120 basis points to 9.6%, driven by gross margin pressure and higher SG&A as a percentage of sales (weakness in transformers and wire & cable).
Read all updates
Q1-2026 Updates
Positive
Negative
Record Quarterly Sales
Reported sales of $6.1 billion in Q1, up 14% year over year (12% organic); third consecutive quarter of double-digit sales growth.
Read all positive updates
Company Guidance
WESCO raised its 2026 outlook, now targeting reported sales growth of 6–9% (organic 5–8%), implying roughly $24.9–$25.6 billion of revenue, with adjusted EBITDA margin of 6.6–7.0% and adjusted diluted EPS of $15–$17; free cash flow is expected to be $500–$800 million (with historically ~70% of cash flow in H2), FX and pricing assumptions unchanged, and no change to interest expense guidance (management assumes no rate cuts). The company exited Q1 at 3.2x net debt/adjusted EBITDA after a $1.5 billion refinancing expected to deliver >$20 million of annualized interest savings; it also raised CSS guidance to low double‑digit growth with data‑center sales now expected to be up >20% for the year. Near term, WESCO expects Q2 EBITDA margin to be roughly flat year‑over‑year (incentive comp ≈25 bps headwind), April MTD sales per workday up ~10%, and reported Q2 sales up high single digits.Wesco International Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
56
Neutral
Cash Flow
44
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 24.25B | 23.51B | 21.82B | 22.39B | 21.42B | 18.22B |
| Gross Profit | 4.91B | 4.74B | 4.71B | 4.84B | 4.66B | 3.79B |
| EBITDA | 1.53B | 1.46B | 1.50B | 1.56B | 1.61B | 1.05B |
| Net Income | 675.70M | 640.20M | 717.60M | 765.50M | 860.50M | 465.40M |
Balance Sheet | ||||||
| Total Assets | 16.96B | 16.49B | 15.06B | 15.06B | 14.81B | 12.62B |
| Cash, Cash Equivalents and Short-Term Investments | 696.60M | 604.80M | 702.60M | 524.10M | 527.30M | 212.58M |
| Total Debt | 6.51B | 7.48B | 5.68B | 5.96B | 5.93B | 5.13B |
| Total Liabilities | 11.87B | 11.47B | 10.10B | 10.03B | 10.36B | 8.84B |
| Stockholders Equity | 5.10B | 5.03B | 4.97B | 5.04B | 4.45B | 3.78B |
Cash Flow | ||||||
| Free Cash Flow | 215.60M | 25.20M | 1.01B | 400.90M | -88.37M | 12.39M |
| Operating Cash Flow | 318.40M | 125.00M | 1.10B | 493.20M | 11.04M | 67.14M |
| Investing Cash Flow | -106.20M | -140.70M | 40.40M | -89.60M | -283.57M | 2.54M |
| Financing Cash Flow | -203.20M | -92.70M | -928.30M | -403.90M | 584.03M | -310.78M |
Wesco International Technical Analysis
Positive
319.06
Price Trends
306.81
Positive
295.12
Positive
263.36
Positive
Market Momentum
12.57
Positive
55.84
Neutral
21.79
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 319.06 is below the 20-day moving average (MA) of 344.35, above the 50-day MA of 306.81, and above the 200-day MA of 263.36, indicating a bullish trend. The MACD of 12.57 indicates Positive momentum. The RSI at 55.84 is Neutral, neither overbought nor oversold. The STOCH value of 21.79 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 | $58.74B | 23.24 | 46.57% | 0.86% | 6.61% | -4.69% | |
77 Outperform | $11.32B | 24.95 | 21.64% | 0.70% | 7.54% | 6.04% | |
74 Outperform | $50.15B | 39.20 | 33.25% | 2.10% | 10.94% | 12.68% | |
71 Outperform | $17.05B | 22.02 | 13.70% | 0.72% | 11.16% | 6.33% | |
65 Neutral | $43.77B | 27.41 | 35.56% | 1.35% | -0.80% | -9.36% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $5.93B | 31.30 | 15.00% | 3.96% | 2.16% | -2.18% |
* Industrials Sector Average
WCC
Wesco International
349.98
185.27
112.48%
AIT
Applied Industrial Technologies
306.25
83.67
37.59%
FAST
Fastenal Company
43.68
3.79
9.49%
MSM
MSC Industrial
106.17
30.20
39.75%
GWW
WW Grainger
1,244.05
171.99
16.04%
FERG
Ferguson PLC
225.68
50.43
28.77%
Wesco International Corporate Events
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...
Business Operations and StrategyPrivate Placements and Financing
Wesco International Completes $1.5 Billion Senior Notes Offering
Positive
Feb 27, 2026
On February 27, 2026, WESCO Distribution completed a private offering of $650 million in 5.250% senior notes due 2031 and $850 million in 5.500% senior notes due 2034, both issued at par and governed by an indenture with U.S. Bank Trust Company as...
Business Operations and StrategyPrivate Placements and Financing
Wesco International Refinances Debt With New Senior Notes
Positive
Feb 25, 2026
On February 24, 2026, Wesco International announced that its subsidiary, Wesco Distribution, had launched and priced a private offering of $650 million in 5.250% senior notes due 2031 and $850 million in 5.500% senior notes due 2034, increasing th...
Executive/Board Changes
Wesco International Announces Chief Financial Officer Transition
Neutral
Feb 17, 2026
Wesco International, Inc. announced a planned chief financial officer transition in February 2026, reflecting an orderly leadership change in its finance organization. The company reported that David S. Schulz remained Executive Vice President and...
Business Operations and StrategyDividendsFinancial Disclosures
Wesco International Posts Record 2025 Results, Raises Dividend
Positive
Feb 10, 2026
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 growt...
Executive/Board Changes
Wesco International Announces CFO Transition and New Appointment
Positive
Feb 10, 2026
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 ...
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.