WESCO International, Inc. (WCC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Fastenal Co.

Applied Industrial Technologies, Inc.

W.W. Grainger, Inc.

Core & Main, Inc.

UGI Corp.

WESCO International, Inc.

Pool Corp.

MSC Industrial Direct Co., Inc.

Ferguson Plc

Genuine Parts Co.

Beacon Roofing Supply, Inc.

Why is WESCO International, Inc. ?

Healthy long term growth as Net Sales has grown by an annual rate of 21.77% and Operating profit at 30.42%

Flat results in Jun 25

ROCE(HY) Lowest at 13.78%
INVENTORY TURNOVER RATIO(HY) Lowest at 4.74 times
DEBT-EQUITY RATIO (HY) Highest at 120.12 %

With ROCE of 12.91%, it has a fair valuation with a 1.68 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 41.54%, its profits have risen by 1.5% ; the PEG ratio of the company is 2.6

Market Beating performance in long term as well as near term

Along with generating 41.54% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to WESCO International, Inc. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is WESCO International, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

WESCO International, Inc.

93.72%

1.28

42.34%

S&P 500

22.78%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.79%

EBIT Growth (5y)

19.95%

EBIT to Interest (avg)

3.64

Debt to EBITDA (avg)

3.61

Net Debt to Equity (avg)

0.89

Sales to Capital Employed (avg)

2.16

Tax Ratio

24.70%

Dividend Payout Ratio

13.91%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

12.89%

ROE (avg)

15.36%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.45

EV to EBIT

17.79

EV to EBITDA

15.00

EV to Capital Employed

2.19

EV to Sales

0.97

PEG Ratio

Dividend Yield

0.52%

ROCE (Latest)

12.32%

ROE (Latest)

13.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 5.52

INTEREST COVERAGE RATIO(Q)

Highest at 443.74

RAW MATERIAL COST(Y)

Fallen by 0.37% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 4.87 times

DEBTORS TURNOVER RATIO(HY)

Highest at 5.52 times

OPERATING PROFIT(Q)

Highest at USD 429.1 MM

OPERATING PROFIT MARGIN(Q)

Highest at 7.06 %

-3What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 318.4 MM

Here's what is working for WESCO International, Inc.

Interest Coverage Ratio

Highest at 443.74

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Dividend per share

Highest at USD 5.52 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Profit

Highest at USD 429.1 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 7.06 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Inventory Turnover Ratio

Highest at 4.87 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 5.52 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by 0.37% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 88 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Depreciation

At USD 88 MM has Grown at 42.39%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (USD MM)

Here's what is not working for WESCO International, Inc.

Operating Cash Flow

Lowest at USD 318.4 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)