Wesco International (WCC)
NYSE:WCC
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Wesco International
(NYSE:WCC)
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Rating:66Neutral
Price Target:
$278.00
â–¼(-7.18% Downside)
Action:ReiteratedDate:02/28/26
The score is driven primarily by mixed fundamentals: a much stronger balance sheet and solid profitability are weighed down by a sharp recent drop in cash generation. Technicals remain supportive on a longer-term trend but are neutral near-term, valuation is only moderately attractive (P/E with low yield), and the earnings call adds support via constructive 2026 guidance and a credible plan to improve free cash flow.
Positive Factors
Stronger balance sheet and lower leverage
Material deleveraging and steady equity growth strengthen capital flexibility and reduce refinancing risk. A lower leverage profile supports sustained investment in logistics, tech transformation, opportunistic buybacks, and a larger dividend, improving resilience through industry cycles.
Negative Factors
Sharp deterioration in cash generation
A pronounced fall in cash conversion versus recent years reduces financial flexibility and raises execution risk for the 2026 FCF rebound target. Volatile cash flows constrain capital allocation choices and increase sensitivity to working-capital swings in project-driven end markets.
Read all positive and negative factors
Positive Factors
Negative Factors
Stronger balance sheet and lower leverage
Material deleveraging and steady equity growth strengthen capital flexibility and reduce refinancing risk. A lower leverage profile supports sustained investment in logistics, tech transformation, opportunistic buybacks, and a larger dividend, improving resilience through industry cycles.
Read all positive factors
Wesco International (WCC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.58B
Dividend Yield0.72%
Average Volume (3M)557.39K
Price to Earnings (P/E)18.9
Beta (1Y)1.53
Revenue Growth5.28%
EPS Growth1.97%
CountryUS
Employees20,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)3.40
Shares Outstanding48,661,915
10 Day Avg. Volume417,712
30 Day Avg. Volume557,386
Financial Highlights & Ratios
PEG Ratio-11.94
Price to Book (P/B)2.41
Price to Sales (P/S)0.52
P/FCF Ratio480.54
Enterprise Value/Market Cap1.47
Enterprise Value/Revenue0.91
Enterprise Value/Gross Profit4.42
Enterprise Value/Ebitda14.90
Forecast
1Y Price Target
$308.43Price Target Upside2.97% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)15.65
Revenue Forecast (FY)$25.17B
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), Co...
How the Company Makes Money
Wesco primarily makes money by selling products and solutions it sources from manufacturers to business customers at a markup, recognizing revenue when goods and related services are delivered under customer contracts. Its revenue is largely gener...
Wesco International Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call emphasized strong top-line momentum driven by an exceptional data center cycle, record backlog, solid segment-level performance (particularly CSS and EES), an upgraded shareholder return profile, and a constructive 2026 outlook for revenue, margins, EPS, and materially improved free cash flow. Offsetting these positives are 2025 cash conversion weaknesses, gross margin pressure from project mix and public power competition (impacting UBS), higher interest expense from financing activity, and some seasonal/inventory-driven working capital builds. Overall, management presented a credible path to improved cash generation and margin expansion in 2026 while acknowledging near-term working capital and public power headwinds.Positive Updates
Record Quarterly and Strong Full-Year Sales
Q4 revenue of $6.1 billion, up 10% year-over-year with 9% organic growth; full-year sales of $23.5 billion, up 8% with organic sales up 9%.
Negative Updates
Weak Free Cash Flow in 2025
Free cash flow for full-year 2025 was only $54 million, pressured by higher accounts receivable and a meaningful inventory build during a period of strong sales growth.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Quarterly and Strong Full-Year Sales
Q4 revenue of $6.1 billion, up 10% year-over-year with 9% organic growth; full-year sales of $23.5 billion, up 8% with organic sales up 9%.
Read all positive updates
Company Guidance
Management guided 2026 to reported sales growth of 5–8% (organic 4–7%), including a roughly one‑point benefit from FX, with ~2–5 points of volume and ~2 points of carryover pricing assumed (no M&A or workday impact); by segment they expect CSS (≈39% of revenue) to grow high‑single‑digits+ with data center up mid‑teens, EES to grow mid‑single‑digits, and UBS to grow low‑to‑mid‑single‑digits with grid services accelerating to double‑digit growth and public power returning to growth by year‑end. They forecast adjusted EBITDA margin of 6.6%–7.0%, adjusted diluted EPS of $14.50–$16.50 (midpoint ≈20% growth), and free cash flow of $500M–$800M while net working capital is expected to grow at roughly half the rate of sales (reducing NWC% and improving cash conversion). Near‑term priorities include continued tech‑enabled transformation investments, debt reduction and opportunistic buybacks, and a >10% dividend increase to $2.00/share (~$100M annualized); Q1 is expected to show high‑single‑digit reported sales growth, an improved EBITDA margin, and a Q1 tax rate of ~25%.Wesco International Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
78
Positive
Cash Flow
38
Negative
| 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
Positive
299.52
Price Trends
282.29
Positive
272.88
Positive
243.14
Positive
Market Momentum
1.28
Negative
60.38
Neutral
77.65
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 299.52 is above the 20-day moving average (MA) of 267.05, above the 50-day MA of 282.29, and above the 200-day MA of 243.14, indicating a bullish trend. The MACD of 1.28 indicates Negative momentum. The RSI at 60.38 is Neutral, neither overbought nor oversold. The STOCH value of 77.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $55.48B | 28.33 | 45.93% | 0.86% | 4.83% | -3.60% | |
75 Outperform | $56.38B | 36.60 | 32.83% | 2.10% | 6.92% | 5.98% | |
72 Outperform | $10.68B | 25.36 | 21.74% | 0.70% | 4.03% | 5.93% | |
66 Neutral | $14.58B | 18.89 | 13.02% | 0.72% | 5.28% | 1.97% | |
66 Neutral | $49.31B | 28.00 | 35.56% | 1.35% | 4.92% | 18.72% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $5.37B | 31.30 | 15.00% | 3.96% | -1.35% | -22.24% |
* Industrials Sector Average
WCC
Wesco International
299.52
152.31
103.47%
AIT
Applied Industrial Technologies
286.41
62.28
27.79%
FAST
Fastenal Company
49.10
9.61
24.34%
MSM
MSC Industrial
96.13
21.41
28.65%
GWW
WW Grainger
1,172.21
186.94
18.97%
FERG
Ferguson PLC
253.68
91.45
56.37%
Wesco International Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Wesco International Completes $1.5 Billion Senior Notes Offering
Positive
Feb 27, 2026
On February 27, 2026, WESCO Distribution completed a private offering of $650 million in 5.250% senior notes due 2031 and $850 million in 5.500% senior notes due 2034, both issued at par and governed by an indenture with U.S. Bank Trust Company as...
Business Operations and StrategyPrivate Placements and Financing
Wesco International Refinances Debt With New Senior Notes
Positive
Feb 25, 2026
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 th...
Executive/Board Changes
Wesco International Announces Chief Financial Officer Transition
Neutral
Feb 17, 2026
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...
Business Operations and StrategyDividendsFinancial Disclosures
Wesco International Posts Record 2025 Results, Raises Dividend
Positive
Feb 10, 2026
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 growt...
Executive/Board Changes
Wesco International Announces CFO Transition and New Appointment
Positive
Feb 10, 2026
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 ...
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.