Last Updated: 19 Sep 2024
Executive Summary
WESCO International Inc. (WCC) is a leading provider of business-to-business distribution, logistics, and supply chain solutions. The company has a strong financial position, with a market capitalization of $8.24 billion, EBITDA of $1.49 billion, and EPS of $12.86. WCC's trailing PE ratio is 13.04, and its forward PE ratio is 11.29. The company pays a quarterly dividend of $0.39 per share, which yields 0.98%.
Company Overview
WESCO International was founded in 1922 and is headquartered in Pittsburgh, Pennsylvania. The company operates through two segments: Electrical & Electronic Solutions and Communications & Security Solutions. WESCO's Electrical & Electronic Solutions segment provides electrical and electronic products, services, and solutions to industrial, commercial, and institutional customers. The company's Communications & Security Solutions segment provides communications and security products, services, and solutions to enterprise and government customers.
Fundamental Analysis
WESCO International has a strong financial position. The company's revenue has grown steadily in recent years, and its profit margins have improved. WCC's EBITDA margin is 6.8%, and its net income margin is 3.3%. The company has a strong balance sheet, with $1.5 billion in cash and equivalents and $2.6 billion in debt.
WCC's valuation metrics are attractive. The company's trailing PE ratio of 13.04 is below the industry average of 14.5. WCC's forward PE ratio of 11.29 is also below the industry average. The company's price-to-sales ratio of 0.376 is also below the industry average of 0.45.
Technical Analysis
WESCO International's stock price has been in a downtrend since early 2023. The stock has fallen below its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is 35.4, which indicates that the stock is oversold.
Short Term Outlook
WESCO International's stock price is expected to remain in a downtrend in the short term. The stock is likely to continue to trade below its 50-day and 200-day moving averages. The stock's RSI is likely to remain below 50, which indicates that the stock is oversold.
Long Term Outlook
WESCO International's long-term outlook is positive. The company is expected to continue to grow its revenue and earnings in the coming years. The company's valuation metrics are attractive, and its stock price is expected to rebound in the long term.
Analyst Recommendations
Analysts are bullish on WESCO International. The consensus analyst rating for the stock is "Buy." The average analyst target price for the stock is $189.11.
Conclusion
WESCO International is a strong company with a bright future. The company's financial position is strong, its valuation metrics are attractive, and its long-term outlook is positive. Analysts are bullish on the stock, and the consensus analyst rating is "Buy."
