WESCO International, Inc. (WCC)
Industrials · NYQ · US
Fundamentals
Valuation and ratings
WESCO International, Inc. trades at USD326.71, which is 64% below the USD535.53 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 40 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 24.2 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About WESCO International, Inc.
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), Communications & Security Solutions (CSS), and Utility & Broadband Solutions (UBS). The EES segment offers electrical equipment and supplies, automation and connected devices, security, lighting, wire and cable, and safety, as well as maintenance, repair, and operating (MRO) products. This segment also offers project execution solutions, direct and indirect manufacturing supply chain optimization programs, lighting and renewables advisory services, and digital and automation solutions. The CSS segment provides data center, network infrastructure, and security solutions. This segment sells products directly to security and network, professional audio/visual, and systems integrators, as well as data communications contractors. It also provides professional A/V, safety, facilities, and energy management solutions. The UBS segment offers products and services to investor-owned utilities, electric power cooperatives and municipalities, service and wireless providers, broadband operators, and contractors. This segment's products include wires and cables, transformers, transmission and distribution hardware, switches, protective devices, connectors, lighting and connectivity products, conduits, fiber and power cables, pole line hardware, racks, cabinets, safety and MRO products, and wireless devices. It also offers fiber project management, high and medium voltage project design and support, pre-wired meters and capacitor banks, meter testing and advanced metering infrastructure installation, personal protective equipment, dielectric testing, and tool repair, as well as emergency response, storage yard, materials, and logistics management solutions. The company was founded in 1922 and is headquartered in Pittsburgh, Pennsylvania.
WCC passes 4 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
5 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Seth Klarman, BAUPOST GROUP LLC/MA$393.16M · 7.7% of book
- Lyrical Asset Management, LYRICAL ASSET MANAGEMENT LP$166.20M · 2.5% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$138.79M · 0.1% of book
- Christopher Davis, DAVIS SELECTED ADVISERS$104.25M · 0.5% of book
- Capital Research Global, Capital Research Global Investors$74.86M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is WESCO International, Inc. (WCC) undervalued?
Against our discounted cash flow estimate of USD535.53, WCC at USD326.71 is 64% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own WCC?
5 of the institutions we track reported a position in WCC in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is WCC's P/E ratio?
WCC trades at 24.2 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.