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Wesco International
(NYSE:WCC)
Select Model
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Rating:69Neutral
Price Target:
$337.00
â–²(5.62% Upside)
Action:Downgraded
Date:06/03/26
The score is driven primarily by a strong, guidance-raising earnings outlook and supportive technical uptrend. Offsetting factors are moderate fundamental quality due to leverage and inconsistent cash flow conversion, plus a valuation that looks only fair with a low dividend yield.
Positive Factors
Diversified distribution + value‑added services
Wesco's core model combines broad product distribution with inventory management, kitting and contract programs. That mix creates recurring, relationship‑driven revenue streams and higher customer switching costs, supporting steadier demand and margin capture across cycles.
Negative Factors
Elevated leverage limits flexibility
Higher leverage constrains capacity for opportunistic M&A, buybacks or cushioning against demand shocks. With distributer margins thin, sustained elevated debt raises refinancing and coverage risk if volumes or margins weaken, reducing strategic optionality over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified distribution + value‑added services
Wesco's core model combines broad product distribution with inventory management, kitting and contract programs. That mix creates recurring, relationship‑driven revenue streams and higher customer switching costs, supporting steadier demand and margin capture across cycles.
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
$15.00B
Dividend Yield0.72%
Average Volume (3M)523.75K
Price to Earnings (P/E)21.6
Beta (1Y)1.49
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. Volume522,212
30 Day Avg. Volume523,749
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 Cap1.53
Enterprise Value/Revenue0.95
Enterprise Value/Gross Profit4.67
Enterprise Value/Ebitda15.09
Forecast
1Y Price Target
$398.38Price Target Upside24.86% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)16.09
Revenue Forecast (FY)$25.49B
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: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 | 1.52B | 1.47B | 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
Negative
319.06
Price Trends
348.83
Negative
316.60
Negative
283.32
Positive
Market Momentum
-5.40
Positive
32.84
Neutral
8.06
Positive
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 319.06 is below the 20-day moving average (MA) of 348.44, below the 50-day MA of 348.83, and above the 200-day MA of 283.32, indicating a neutral trend. The MACD of -5.40 indicates Positive momentum. The RSI at 32.84 is Neutral, neither overbought nor oversold. The STOCH value of 8.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $63.41B | 35.99 | 47.84% | 0.86% | 6.61% | -4.69% | |
77 Outperform | $12.23B | 30.83 | 21.64% | 0.70% | 7.54% | 6.04% | |
77 Outperform | $55.79B | 42.63 | 33.25% | 2.10% | 10.94% | 12.68% | |
72 Outperform | $6.86B | 29.66 | 15.00% | 3.96% | 4.41% | 16.62% | |
69 Neutral | $15.00B | 21.62 | 13.70% | 0.72% | 11.16% | 6.33% | |
65 Neutral | $44.65B | 21.78 | 35.56% | 1.35% | 2.57% | 9.40% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
WCC
Wesco International
307.89
114.97
59.60%
AIT
Applied Industrial Technologies
330.85
86.82
35.58%
FAST
Fastenal Company
48.60
6.36
15.04%
MSM
MSC Industrial
122.78
36.27
41.93%
GWW
WW Grainger
1,342.98
301.55
28.96%
FERG
Ferguson PLC
230.24
10.30
4.68%
Wesco International Corporate Events
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.