Wesco International (WCC) AI Stock Analysis

• Market Cap: $14.39B
• Dividend Yield: 0.72%
• Average Volume (3M): 590.13K
• Price to Earnings (P/E): 22.7
• Beta (1Y): 1.53
• Revenue Growth: 5.28%
• EPS Growth: 1.97%
• Country: US
• Employees: 20,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 3.40
• Shares Outstanding: 48,661,915
• 10 Day Avg. Volume: 737,338
• 30 Day Avg. Volume: 590,128
• PEG Ratio: -11.94
• Price to Book (P/B): 2.41
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 480.54
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 4.40
• Enterprise Value/Ebitda: 14.82
• 1Y Price Target: $307.63
• Price Target Upside: 3.45% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 15.69
• Revenue Forecast (FY): $25.11B

• Rating: 66 Neutral
• Price Target: $319.00 ▲(7.28% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven primarily by mixed fundamentals: strong balance-sheet improvement is offset by a pronounced TTM cash-flow deterioration and some margin pressure. The latest earnings call meaningfully supports the outlook with guidance for stronger 2026 growth and a large free-cash-flow rebound. Technicals are moderately positive (uptrend vs. key moving averages) while valuation is middling given a ~22 P/E and low yield.

Positive Factors

Stronger balance sheet

Material deleveraging and steady equity growth strengthen financial flexibility, lowering refinancing and liquidity risk. A stronger capital base supports investment in digital transformation, opportunistic buybacks and dividend increases while providing resilience across business cycles.

Data-center & CSS secular growth

Rapid data-center and CSS growth represents a durable, higher-margin end-market exposure. Large, recurring project revenues and expanding backlog improve visibility and support outsized segment profitability versus legacy distribution lines over multiple quarters.

Clear 2026 cash & margin improvement plan

Management provided a specific path to materially better cash conversion, margin expansion and disciplined capital allocation (debt paydown, buybacks, dividend hike). Clear targets improve accountability and, if executed, would sustainably enhance balance-sheet optionality.

Negative Factors

Sharp free-cash-flow drop

A steep FCF decline driven by receivables and inventory accumulation reduces near-term financial flexibility and raises execution risk for 2026 targets. Given historical FCF volatility, hitting projected cash conversion will require sustained working-capital discipline across quarters.

Gross margin pressure

Margin compression from project/product mix and competitive pricing in certain end markets is structurally significant for a distributor with thin margins. Persistent mix shifts or aggressive competitor pricing could constrain EBITDA expansion despite revenue growth.

UBS/public-power and broadband cyclicality

Exposure to cyclical utilities and broadband segments produces uneven recovery timing and margin volatility. While other segments offset some weakness, prolonged normalization in public power or broadband could sustain revenue and cash-flow headwinds over multiple quarters.

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 generates revenue primarily through the sale of a broad range of electrical and industrial products to customers in various industries. The company operates on a business-to-business (B2B) model, catering to contractors, industrial manufacturers, and government entities. Key revenue streams include the sale of electrical and electronic equipment, lighting products, safety gear, and communication systems. Additionally, Wesco earns income from services such as inventory management, logistics, and supply chain optimization, which provide customers with tailored solutions to streamline their operations. Strategic partnerships with leading manufacturers in the electrical and industrial sectors further enhance Wesco's product offerings and competitive positioning, contributing significantly to its revenue generation.

Wesco International Financial Statement Overview

Summary

Balance sheet strength is a clear positive (material deleveraging in TTM and steadily rising equity), but operating performance has softened from prior peaks with TTM margin compression and net income below 2022–2024 levels. The biggest drag is cash flow: TTM shows a sharp step-down in operating and free cash flow versus the prior year and historical volatility, which lowers confidence in near-term cash conversion.

Income Statement

Revenue expanded meaningfully from 2020–2023, but growth turned slightly negative in 2024 and then re-accelerated in TTM (Trailing-Twelve-Months). Profitability is solid for a distributor, with net margins improving sharply versus 2020, though margins have compressed in TTM versus 2022–2024 (notably lower gross and operating margins). Net income also softened from 2022–2024 and remained below prior peaks in TTM, suggesting the earnings profile is currently less favorable than the recent high-water mark.

Balance Sheet

Leverage improved dramatically in TTM (Trailing-Twelve-Months), with very low debt relative to equity versus the prior multi-year pattern of roughly 1.1–1.6x. Equity has steadily grown since 2020, supporting a stronger capital base. Returns on equity have been consistently healthy (low-to-mid teens recently), though down from the 2022 peak, indicating profitability is good but not as strong as it was at the cycle high.

Cash Flow

Cash generation is the key weak spot. Operating cash flow and free cash flow were strong in 2023–2024, but TTM (Trailing-Twelve-Months) shows a sharp drop in both operating cash flow and free cash flow, with free cash flow down materially versus the prior year. While free cash flow still covers a meaningful portion of net income in TTM, the steep deterioration and historical volatility (including negative free cash flow in 2022) reduce confidence in near-term cash conversion.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	23.51B	21.82B	22.39B	21.42B	18.22B
Gross Profit	4.77B	4.71B	4.84B	4.66B	3.79B
EBITDA	1.44B	1.50B	1.56B	1.61B	1.05B
Net Income	640.20M	717.60M	765.50M	860.50M	465.40M
Balance Sheet
Total Assets	16.49B	15.06B	15.06B	14.81B	12.62B
Cash, Cash Equivalents and Short-Term Investments	604.80M	702.60M	524.10M	527.30M	212.58M
Total Debt	7.48B	5.68B	5.96B	5.93B	5.13B
Total Liabilities	11.47B	10.10B	10.03B	10.36B	8.84B
Stockholders Equity	5.03B	4.97B	5.04B	4.45B	3.78B
Cash Flow
Free Cash Flow	25.20M	1.01B	400.90M	-88.37M	12.39M
Operating Cash Flow	125.00M	1.10B	493.20M	11.04M	67.14M
Investing Cash Flow	-140.70M	40.40M	-89.60M	-283.57M	2.54M
Financing Cash Flow	-92.70M	-928.30M	-403.90M	584.03M	-310.78M

Wesco International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 297.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 297.36 is below the 20-day moving average (MA) of 298.16, above the 50-day MA of 278.92, and above the 200-day MA of 228.94, indicating a neutral trend. The MACD of 4.20 indicates Positive momentum. The RSI at 53.14 is Neutral, neither overbought nor oversold. The STOCH value of 34.21 is Neutral, 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
GWW	77 Outperform	$53.37B	31.70	48.10%	0.86%	4.83%	-3.60%
FERG	76 Outperform	£51.20B	26.47	32.90%	1.35%	4.92%	18.72%
FAST	75 Outperform	$52.20B	41.56	33.30%	2.10%	6.92%	5.98%
AIT	72 Outperform	$10.53B	26.86	22.02%	0.70%	4.03%	5.93%
WCC	66 Neutral	$14.39B	22.67	12.91%	0.72%	5.28%	1.97%
MSM	64 Neutral	$5.23B	25.59	14.84%	3.96%	-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 Refinances Debt With New Senior Notes

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 the 2034 tranche from a previously planned $650 million. The unsecured, unsubordinated notes will be guaranteed by Wesco and its subsidiary Anixter Inc. and will be sold only to qualified institutional buyers in the U.S. and certain non-U.S. investors under standard private placement exemptions.

Wesco Distribution plans to use the net proceeds, together with borrowings and temporary repayments under its receivables securitization facility and asset-based revolving credit facility, to redeem all of its outstanding 7.250% senior notes due 2028 on or after June 15, 2026 and to reduce borrowings under its ABL facility. The transaction effectively refinances higher-cost 2028 debt with longer-dated notes, which is expected to optimize Wesco’s capital structure and extend its debt maturity profile, potentially lowering interest expense and improving financial flexibility for stakeholders.

The most recent analyst rating on (WCC) stock is a Buy with a $313.00 price target. To see the full list of analyst forecasts on Wesco International stock, see the WCC Stock Forecast page.

Wesco International Announces Chief Financial Officer Transition

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 CFO until a mutually agreed transition date, after which he would shift into an advisory role prior to retirement.

The effective date of the CFO handover to Indraneel “Neel” Dev was February 16, 2026, marking his assumption of the Executive Vice President and CFO roles. Schulz will continue as Executive Vice President and special advisor to the CEO until his retirement on May 31, 2026, providing continuity in financial leadership during the transition period.

The most recent analyst rating on (WCC) stock is a Buy with a $313.00 price target. To see the full list of analyst forecasts on Wesco International stock, see the WCC Stock Forecast page.

Wesco International Posts Record 2025 Results, Raises Dividend

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 growth and a 19% increase in backlog. While earnings growth was mixed and free cash flow fell sharply due to higher working capital investment, management highlighted strong performance in the CSS and EES segments, challenges in UBS, ongoing digitalization and AI initiatives, a 2026 outlook calling for mid- to high-single-digit organic growth and margin expansion, and plans to lift the annual dividend by over 10% to $2.00 per share, signaling confidence in continued market outperformance.

The most recent analyst rating on (WCC) stock is a Buy with a $304.00 price target. To see the full list of analyst forecasts on Wesco International stock, see the WCC Stock Forecast page.

Wesco International Announces CFO Transition and New Appointment

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 agreed date in February 2026 and then serve as executive vice president and special advisor to the CEO, with the company emphasizing that his decision was not due to any disagreement over its operations or policies.

To ensure continuity, Wesco said Indraneel “Neel” Dev will join as executive vice president and chief financial officer in February 2026, bringing senior finance experience from Congruex, Lumen Technologies and other telecom and infrastructure firms. His appointment, backed by a substantial mix of salary, cash bonus, equity incentives and severance protections, signals Wesco’s intent to reinforce its financial leadership as it pursues growth initiatives and value creation for shareholders during the CFO transition.

The most recent analyst rating on (WCC) stock is a Buy with a $304.00 price target. To see the full list of analyst forecasts on Wesco International stock, see the WCC Stock Forecast page.

Wesco International Elects New Independent Directors

On December 5, 2025, Wesco International‘s Board of Directors elected Michael L. Carter and David C. Wajsgras as independent directors, effective January 1, 2026. This change aligns with the company’s ongoing board refreshment strategy, as two current directors, Bobby Griffin and Steve Raymund, will retire in May 2026. The new appointments bring extensive expertise in capital markets, mergers and acquisitions, and global industrial sectors, which are expected to support Wesco’s strategic execution and long-term value creation for customers and shareholders.

The most recent analyst rating on (WCC) stock is a Buy with a $293.00 price target. To see the full list of analyst forecasts on Wesco International stock, see the WCC Stock Forecast page.