Wesco International (WCC) AI Stock Analysis

• Market Cap: $12.57B
• Dividend Yield: 0.72%
• Average Volume (3M): 520.22K
• Price to Earnings (P/E): 20.3
• Beta (1Y): 1.62
• 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: 493,508
• 30 Day Avg. Volume: 520,222
• 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: 1.30
• Enterprise Value/Revenue: 0.72
• Enterprise Value/Gross Profit: 3.43
• Enterprise Value/Ebitda: 11.71
• 1Y Price Target: $288.00
• Price Target Upside: 15.02% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 13.38
• Revenue Forecast (FY): $23.37B

• Rating: 75 Outperform
• Price Target: $303.00 ▲(21.01% Upside)

Wesco International's strong technical momentum and positive earnings call are significant strengths, driving the overall score. However, financial performance concerns, particularly in profitability and leverage, along with a high valuation, temper the score.

Positive Factors

Record Sales Growth

Record sales growth indicates strong market demand and effective sales strategies, supporting long-term revenue expansion and market position.

Data Center Segment Surge

Rapid growth in the data center segment highlights Wesco's ability to capitalize on digitalization trends, enhancing its competitive edge in a high-demand market.

Strategic Board Refreshment

The addition of experienced directors supports strategic execution and long-term value creation, strengthening governance and leadership.

Negative Factors

Increased Leverage

Higher leverage can increase financial risk and limit flexibility, potentially impacting long-term financial stability and growth capacity.

Reduced Free Cash Flow

A significant reduction in free cash flow raises concerns about cash generation and the ability to fund operations and growth initiatives sustainably.

Gross Margin Contraction

Declining gross margins suggest pricing pressures or increased costs, which could erode profitability if not addressed, affecting long-term financial health.

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

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: Neutral
• Last Price: 250.39
• 50DMA: Positive
• 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 250.39 is below the 20-day moving average (MA) of 262.81, above the 50-day MA of 246.88, and above the 200-day MA of 200.28, indicating a neutral trend. The MACD of 3.38 indicates Positive momentum. The RSI at 43.14 is Neutral, neither overbought nor oversold. The STOCH value of 19.13 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
WCC	75 Outperform	$12.57B	20.27	13.06%	0.72%	5.28%	1.97%
AIT	74 Outperform	$9.75B	24.86	22.10%	0.71%	4.03%	5.93%
GWW	73 Outperform	$48.60B	28.53	48.98%	0.87%	4.83%	-3.60%
FAST	72 Outperform	$48.61B	39.70	32.74%	2.09%	6.92%	5.98%
MSM	69 Neutral	$4.78B	24.05	14.34%	3.97%	-1.35%	-22.24%
FERG	65 Neutral	$43.94B	22.71	32.90%	1.35%	4.92%	18.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Wesco International Corporate Events

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.

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.

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.