Wesco International Inc

Consumer Discretionary
Telecommunications Equipment
www.wesco.com

Earnings Score
Moat Score
Safety Score

Market Cap $10.15B
PE 16
Debt $5.02B
Cash $706.80M
EV $14.46B
FCF $794.80M

Earnings

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Sales & Net Margins

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Earnings	$636.70M
EBIT	$1.24B
ROE	13%
ROA	8%
FCF	$794.80M
Equity	$5.04B
Growth Stability	35%
PE	15.94
PEG	0.28
PB	2.01
P/FCF	12.77
P/S	0.47
Price/Cash	0.07
Debt/Equity	1
Debt/FCF	6.32
Net Margins	3%
Gross Margins	22%
Op. Margins	6%
Earnings CAGR	24%
Sales Growth YoY	-3%
Sales Growth QoQ	0%
Sales CAGR	18%
FCF CAGR	6%
Equity CAGR	13%
Earnings Stability	0.56
Earnings Growth YoY	-13%
Earnings Growth QoQ	-13%
Earnings CAGR 5Y	58%

Sales CAGR 5Y	25%
FCF CAGR 5Y	16%
Equity CAGR 5Y	17%
Earnings CAGR 3Y	6%
Sales CAGR 3Y	6%
FCF CAGR 3Y	227%
Equity CAGR 3Y	11%
Market Cap	$10.15B
Revenue	$21.79B
Dividend Yield	1%
Payout Ratio	13%
Assets	$15.28B
Total Debt	$5.02B
Cash	$706.80M
Shares Outstanding	49.1M
EV	14.46B
Earnings Score	85%
Moat Score	83%
Safety Score	53%
Final Score	73%
Working Capital	4.76B
Current Ratio	2.21
Gross Profit	$4.72B
Shares Growth 3y	-0%
Equity Growth QoQ	4%
Equity Growth YoY	3%

Assets & ROA

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Stockholders Equity & ROE

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Wesco International is a value-added industrial distributor that has three reportable segments, electrical and electronic solutions, communications and security solutions, and utility and broadband solutions. The company offers more than 1.5 million products to its 140,000 active customers through a distribution network of 800 branches, warehouses, and sales offices, including 43 distribution centers. Wesco generates 72% of its sales in the United States, but it has a global reach, with operations in 50 other countries.

SEC Filings

Direct access to Wesco International Inc (WCC) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Wesco International Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Wesco International Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 24%

Stability 56%

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Wesco International Inc Discounted Cash Flow

Fully customizable DCF calculator online for Wesco International Inc.

Years

Calculation mode

= $12B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$795M	$842M	$893M	$947M	$1B	$1.1B	$1.1B	$1.2B	$1.3B	$1.3B	$1.4B	$14B
DCF		$766M	$738M	$711M	$685M	$660M	$636M	$613M	$591M	$569M	$549M	$5.5B
Value	$12B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	3%	3%	1%	2%	3%	3%	1%	2%	4%	3%	3%
ROA	-	8%	7%	7%	8%	7%	3%	6%	10%	9%	8%
ROE	-	12%	5%	8%	11%	10%	2%	11%	18%	14%	13%

Bad Net Margins (3.12%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	6.54	5.05	10.96	4.95	7.32	11.32	386.56	-62.74	13.4	6.32
Debt over Equity	0.85	0.96	0.71	0.66	0.6	0.58	1.65	1.27	1.24	1.07	1
Growth Stability	-	-	-	84%	100%	100%	35%	100%	100%	100%	35%

Bad Debt/FCF ratio (6.32)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (1)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (35%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-5%	-2%	5%	6%	2%	47%	48%	18%	5%	25%
Earnings YoY growth	-	-24%	-51%	61%	38%	-1%	-68%	479%	97%	-12%	58%
Equity YoY growth	-	-8%	13%	5%	1%	6%	48%	13%	18%	13%	17%
FCF YoY growth	-	13%	8%	-55%	104%	-31%	170%	-97%	-813%	-554%	16%