WESCO International Inc (WCC) stock analysis

P/E above its 5-year median

WESCO International's P/E of 20.3 is above its own 5-year median of 13.6.

P/E above the industry

WESCO International's P/E of 20.3 is above the Wholesale Trade-durable Goods median of 20.3.

EV/EBITDA above its 5-year median

WESCO International's EV/EBITDA of 12.7 is above its 5-year median of 9.4.

P/B above the industry

WESCO International's price-to-book of 2.93 is above the Wholesale Trade-durable Goods median of 2.15.

Trading above fair value

The share price of $327.24 is above our fair value estimate of $266.43.

Margin of safety under 20%

The price is 22.8% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 3.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -5.2% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 22.4% over the last twelve months, against a 5-year average of 44.8% a year.

Growing slower than the industry

Revenue grew 13.5% over the last twelve months; the Wholesale Trade-durable Goods median is 13.5%.

Guidance issued

The latest outlook (Full-year 2026 reported sales growth, Feb 10, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 21.5% over the last twelve months, against 21.1% a year earlier.

Return on equity over 15%

Return on equity was 15.4% over the last twelve months and averaged 15.4% over five years.

Return on capital over 10%

Return on invested capital was 10.7%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

WESCO International's return on equity of 15.4% is above the Wholesale Trade-durable Goods median of 11.1%.

Earnings grew over 5 years

Net income grew 44.8% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 3.0% over the last twelve months, against a 5-year average of 3.2%.

Net margin above the industry

WESCO International's net margin of 3.0% is above the Wholesale Trade-durable Goods median of 2.7%.

High debt

Debt is 110% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 147% five years ago to 110%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 9.0% of total debt; we look for at least 20%.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 2.01 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.18; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

WESCO International paid dividends worth 0.6% of the share price over the last twelve months.

Yield below Treasuries

The 0.6% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; WESCO International yields 0.6%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 12.0% of net income.

Covered by free cash flow

Dividends take 22.9% of free cash flow.