Wesco International (WCC) AI Stock Analysis

• Market Cap: $12.26B
• Dividend Yield: 0.69%
• Average Volume (3M): 627.95K
• Price to Earnings (P/E): 19.8
• Beta (1Y): 1.68
• Revenue Growth: 5.28%
• EPS Growth: 1.97%
• Country: US
• Employees: 20,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 3.92
• Shares Outstanding: 48,646,230
• 10 Day Avg. Volume: 866,957
• 30 Day Avg. Volume: 627,950
• PEG Ratio: -2.90
• Price to Book (P/B): 1.81
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 8.95
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 0.72
• Enterprise Value/Gross Profit: 3.43
• Enterprise Value/Ebitda: 11.71
• 1Y Price Target: $263.00
• Price Target Upside: 2.50% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 13.4
• Revenue Forecast (FY): $23.32B

• Rating: 74 Outperform
• Price Target: $293.00 ▲(14.19% Upside)

Wesco International's strong earnings call performance and technical momentum are key strengths, driving the overall score. However, financial performance concerns, particularly around profitability and leverage, along with moderate valuation, temper the overall outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, reinforcing Wesco's competitive position.

Market Position

Wesco's ability to outperform the market highlights its strong competitive position and robust product offerings, supporting long-term growth.

Data Center Growth

Rapid growth in the data center segment aligns with industry trends in digitalization, positioning Wesco for sustained future growth.

Negative Factors

Increased Leverage

Higher leverage could limit financial flexibility and increase risk, potentially impacting Wesco's long-term financial health.

Free Cash Flow Concerns

Decreased free cash flow raises concerns about Wesco's ability to generate cash, which is crucial for funding operations and growth.

Gross Margin Pressure

Margin contraction indicates potential pricing pressures or increased costs, which could affect profitability if not addressed.

Wesco International Business Overview & Revenue Model

Company Description

Wesco International, Inc. (WCC) is a leading provider of electrical, industrial, and communications products and services, serving a diverse range of sectors including construction, utilities, manufacturing, and telecommunications. The company operates through various segments, including electrical and electronic materials, and offers a broad portfolio of products such as lighting, wiring, safety equipment, and automation solutions. With a strong focus on supply chain management and value-added services, Wesco supports its customers in optimizing their operations and enhancing efficiency.

How the Company Makes Money

Wesco International generates revenue primarily through the sale of electrical and industrial products, as well as providing related services. The company's revenue model is based on a combination of direct sales to customers, distribution partnerships, and supply chain solutions. Key revenue streams include the sale of electrical components and systems, lighting solutions, safety and security products, and automation technologies. Additionally, Wesco benefits from long-term contracts with large customers in various industries, which provide a stable source of income. Strategic partnerships with manufacturers and suppliers also enhance its product offerings and contribute to its earnings by enabling Wesco to offer competitive pricing and comprehensive solutions to its clients.

Wesco International Financial Statement Overview

Summary

Wesco International shows positive revenue growth but faces pressure on profitability margins. The balance sheet indicates increased leverage, posing potential risks if not managed. Cash flow generation is weak, though the free cash flow to net income ratio remains relatively strong.

Income Statement

Wesco International shows a stable revenue growth with a 3.14% increase in the TTM period. The gross profit margin remains healthy at 20.89%, though slightly lower than previous years. Net profit margin has decreased to 2.81%, indicating some pressure on profitability. The EBIT and EBITDA margins have also declined, suggesting increased operational costs or pricing pressures.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.35, reflecting higher leverage which could pose a risk if not managed carefully. Return on equity is at 13.17%, showing a decline from previous years, indicating reduced efficiency in generating profits from shareholders' equity. The equity ratio stands at 29.24%, suggesting a moderate level of financial stability.

Cash Flow

Free cash flow has significantly decreased by 59.60% in the TTM period, raising concerns about cash generation capabilities. The operating cash flow to net income ratio is low at 0.072, indicating potential challenges in converting income into cash. However, the free cash flow to net income ratio remains relatively strong at 75.83%, suggesting some resilience in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.93B	21.82B	22.39B	21.42B	18.22B	12.33B
Gross Profit	4.78B	4.71B	4.84B	4.66B	3.79B	2.33B
EBITDA	1.40B	1.50B	1.56B	1.61B	1.05B	468.64M
Net Income	645.80M	717.60M	765.50M	860.50M	465.40M	100.56M
Balance Sheet
Total Assets	16.55B	15.06B	15.06B	14.81B	12.62B	11.88B
Cash, Cash Equivalents and Short-Term Investments	571.90M	702.60M	524.10M	527.30M	212.58M	449.13M
Total Debt	6.51B	5.68B	5.96B	5.93B	5.13B	5.31B
Total Liabilities	11.71B	10.10B	10.03B	10.36B	8.84B	8.54B
Stockholders Equity	4.84B	4.97B	5.04B	4.45B	3.78B	3.34B
Cash Flow
Free Cash Flow	250.00M	1.01B	400.90M	-88.37M	12.39M	487.26M
Operating Cash Flow	329.70M	1.10B	493.20M	11.04M	67.14M	543.93M
Investing Cash Flow	-309.70M	40.40M	-89.60M	-283.57M	2.54M	-3.74B
Financing Cash Flow	-148.20M	-928.30M	-403.90M	584.03M	-310.78M	3.48B

Wesco International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 256.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 256.59 is above the 20-day moving average (MA) of 228.26, above the 50-day MA of 220.61, and above the 200-day MA of 189.54, indicating a bullish trend. The MACD of 10.50 indicates Negative momentum. The RSI at 68.41 is Neutral, neither overbought nor oversold. The STOCH value of 85.75 is Negative, 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
WCC	74 Outperform	$12.26B	19.78	13.06%	0.69%	5.28%	1.97%
AIT	74 Outperform	$9.67B	24.67	22.10%	0.68%	4.03%	5.93%
GWW	73 Outperform	$45.45B	26.68	48.98%	0.90%	4.83%	-3.60%
FERG	69 Neutral	£48.03B	26.28	32.29%	1.33%	3.80%	9.26%
FAST	67 Neutral	$47.41B	38.72	32.74%	2.10%	6.92%	5.98%
MSM	64 Neutral	$4.82B	24.23	14.34%	3.92%	-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 Reports Record Sales and Optimism

WESCO International’s latest earnings call painted a picture of robust growth and optimism, despite facing certain challenges. The company reported strong sales growth across its segments, particularly in data centers, and improved earnings per share. However, challenges remain in the utility segment and a reduced free cash flow outlook. Despite these hurdles, the company’s positive outlook and raised guidance suggest an overall strong performance.

Wesco International Reports Strong Q3 2025 Performance

Wesco International, a Fortune 500 company headquartered in Pittsburgh, Pennsylvania, is a leading provider of business-to-business distribution, logistics services, and supply chain solutions, offering a comprehensive portfolio of products and services across various sectors including electrical and electronic solutions, communications and security solutions, and utility and broadband solutions.

Wesco International Reports Record Q3 2025 Sales Growth

Wesco International reported record third-quarter 2025 net sales of $6.2 billion, marking a 12.9% year-over-year increase. The company experienced significant growth in organic sales, particularly in the data center sector, which saw a 60% rise. The company’s operating margin improved, and it raised its full-year outlook for sales growth, adjusted EBITDA, and adjusted EPS. Despite a reduction in its free cash flow outlook due to increased working capital, Wesco remains focused on cross-selling initiatives and margin improvement, positioning itself for continued growth in 2026.

The most recent analyst rating on (WCC) stock is a Hold with a $222.00 price target. To see the full list of analyst forecasts on Wesco International stock, see the WCC Stock Forecast page.

Wesco International Announces Release Agreement with Mr. Squires

On September 10, 2025, Wesco International entered into a Release agreement with Mr. Squires, which will be effective on September 18, 2025, unless revoked by Mr. Squires before that date. The agreement includes a general release of claims, non-competition, non-solicitation, non-disparagement, and confidentiality provisions, along with severance and tax equalization benefits related to equity grants during Mr. Squires’ expatriate assignment.

The most recent analyst rating on (WCC) stock is a Buy with a $255.00 price target. To see the full list of analyst forecasts on Wesco International stock, see the WCC Stock Forecast page.

Wesco International Appoints New Executive for EES Unit

Wesco International announced the appointment of Daniel Castillo as Executive Vice President and General Manager of its Electrical and Electronic Solutions (EES) unit, effective September 1, 2025. Castillo, who brings extensive leadership experience from companies like Brinks, JELD-WEN, and Cree Lighting, will succeed Nelson Squires, who is retiring on September 30, 2025. This leadership change comes as Wesco’s EES unit reports a 6% year-over-year sales increase in the second quarter, driven by growth in OEM, Construction, and Industrial sectors, and is poised to capitalize on trends in electrification, AI-driven data centers, automation, IoT, and reshoring to North America.

The most recent analyst rating on (WCC) stock is a Buy with a $241.00 price target. To see the full list of analyst forecasts on Wesco International stock, see the WCC Stock Forecast page.