Wesco International (WCC) AI Stock Analysis

• Market Cap: $10.28B
• Dividend Yield: 0.84%
• Average Volume (3M): 604.10K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 1.65
• Revenue Growth: 1.30%
• EPS Growth: -1.09%
• Country: US
• Employees: 20,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 3.39
• Shares Outstanding: 48,662,716
• 10 Day Avg. Volume: 747,152
• 30 Day Avg. Volume: 604,103
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: 0.67
• Enterprise Value/Gross Profit: 3.13
• Enterprise Value/Ebitda: 10.51
• 1Y Price Target: $236.25
• Price Target Upside: 13.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 78 Outperform
• Price Target: $241.00 ▲(16.03% Upside)

Wesco International's overall stock score of 78 reflects its strong financial performance and positive earnings call sentiment. The stock's bullish technical indicators and recent corporate events further support its growth prospects. However, the valuation is fair, and the stock is nearing overbought levels, which may limit short-term upside.

Positive Factors

Revenue Growth

Consistent revenue growth across key segments like CSS and EES demonstrates Wesco's ability to capture market opportunities and expand its customer base, indicating a strong market position and potential for sustained growth.

Data Center Expansion

Significant growth in data center sales highlights Wesco's strategic focus on high-demand sectors, positioning the company well to benefit from trends in digital infrastructure and AI-driven data centers.

Leadership Change

The appointment of a new executive with extensive leadership experience is expected to enhance strategic execution in the EES unit, potentially driving growth in electrification and automation sectors.

Negative Factors

Gross Margin Pressure

Declining gross margins indicate potential challenges in maintaining pricing power and cost efficiency, which could impact profitability if not addressed through strategic cost management.

Utility Segment Challenges

Continued challenges in the utility segment suggest potential headwinds in achieving growth targets, as slower recovery in public power could affect overall sales momentum.

UBS Sales Decline

Declining UBS sales highlight vulnerabilities in certain market segments, indicating the need for strategic adjustments to mitigate utility market headwinds and sustain growth.

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 strong financial health with robust profitability, efficient cash flow management, and a conservative leverage position. Despite a slight dip in net income growth, the company maintains solid operational metrics and a healthy balance sheet.

Income Statement

Wesco International demonstrates strong profitability with a solid gross profit margin of 10.69% and a net profit margin of 2.98% for TTM (Trailing-Twelve-Months). The company shows impressive revenue growth over recent years, with a slight dip in net income. EBIT and EBITDA margins remain robust, supporting operational efficiency.

Balance Sheet

The balance sheet reflects a healthy equity position with a debt-to-equity ratio of 0.01 for TTM, indicating low leverage, which reduces financial risk. The equity ratio of 29.35% is stable, though a slight decline in stockholders' equity suggests potential areas for improvement. Return on equity is moderate at 13.94%, reflecting adequate returns to shareholders.

Cash Flow

Wesco's cash flow statement is strong, with a positive free cash flow growth rate and a high free cash flow to net income ratio of 0.93 for TTM, indicating efficient cash generation. The operating cash flow to net income ratio is also favorable at 1.08, highlighting robust operational cash generation capability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.23B	21.82B	22.39B	21.42B	18.22B	12.33B
Gross Profit	4.75B	4.71B	4.84B	4.66B	3.79B	2.33B
EBITDA	1.41B	1.50B	1.56B	1.61B	1.05B	468.64M
Net Income	662.60M	717.60M	765.50M	860.50M	465.40M	100.56M
Balance Sheet
Total Assets	16.20B	15.06B	15.06B	14.81B	12.62B	11.88B
Cash, Cash Equivalents and Short-Term Investments	667.00M	702.60M	524.10M	527.30M	212.58M	449.13M
Total Debt	6.39B	5.68B	5.96B	5.93B	5.13B	5.31B
Total Liabilities	11.45B	10.10B	10.03B	10.36B	8.84B	8.54B
Stockholders Equity	4.76B	4.97B	5.04B	4.45B	3.78B	3.34B
Cash Flow
Free Cash Flow	618.80M	1.01B	400.90M	-88.37M	12.39M	487.26M
Operating Cash Flow	714.50M	1.10B	493.20M	11.04M	67.14M	543.93M
Investing Cash Flow	-305.60M	40.40M	-89.60M	-283.57M	2.54M	-3.74B
Financing Cash Flow	-455.20M	-928.30M	-403.90M	584.03M	-310.78M	3.48B

Wesco International Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 207.70
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WCC, the sentiment is Neutral. The current price of 207.7 is below the 20-day moving average (MA) of 216.01, below the 50-day MA of 212.38, and above the 200-day MA of 183.82, indicating a neutral trend. The MACD of -0.58 indicates Positive momentum. The RSI at 41.93 is Neutral, neither overbought nor oversold. The STOCH value of 18.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WCC.

Wesco International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DXPE	80 Outperform	1.83B	22.30	18.50%	―	13.93%	48.25%
FAST	80 Outperform	54.56B	46.38	39.08%	1.79%	4.84%	2.98%
WCC	78 Outperform	$10.28B	16.53	13.78%	0.84%	1.30%	-1.09%
MSM	75 Outperform	4.95B	25.63	14.52%	3.82%	-4.11%	-31.26%
AIT	73 Outperform	9.79B	26.16	21.31%	0.67%	1.88%	2.91%
SITE	71 Outperform	5.83B	47.49	7.63%	―	4.38%	-18.94%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Wesco International Corporate Events

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.

Wesco International Reports Strong Q2 2025 Sales Growth

Wesco International reported a 7.7% year-over-year increase in net sales for the second quarter of 2025, with organic sales rising by 7.2%. The company saw significant growth in its data center sales, which surpassed $1 billion, marking a 65% increase from the previous year. The redemption of preferred stock in June improved cash flow and earnings per share, while the company raised its full-year organic sales growth outlook based on positive momentum. Wesco’s backlog increased both year-over-year and sequentially across all business units, and the company remains focused on executing cross-selling initiatives and margin improvement programs.

Wesco International Amends Certificate for Special Meetings

On July 16, 2025, WESCO International, Inc. amended its Restated Certificate of Incorporation to allow stockholders the right to request a special meeting, as approved at the 2025 annual meeting. The amendment and subsequent restatement of the certificate, along with changes to the company’s By-Laws, were filed and became effective on the same day, reflecting procedural and disclosure requirements for stockholder meetings.

Wesco International EVP Resigns, Dirk Naylor Appointed

On June 12, 2025, William C. Geary, II, Executive Vice President and General Manager of Communications & Security Solutions at Wesco International, announced his resignation to pursue another opportunity. The company has appointed Dirk Naylor to fill the vacated role, potentially impacting its operations and strategic direction in the communications and security solutions sector.