WESCO International Inc. Common Stock (WCC)

FairStock Score: 42/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

WESCO is a scale distributor in electrical, communications, security, and utility products. Distribution can be a good business when scale and relationships create an edge, but the numbers here show a thin-margin operation. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $6.7B, net income was $209.0M, and diluted EPS was $4.23, better than fiscal Q2 2025, the quarter ended 2025-06-30, when revenue was $5.9B, net income was $174.5M, and diluted EPS was $3.83. That rebound is encouraging. But the annual record is uneven: in FY2025, the period ended 2025-12-31, revenue was $23.5B, net income was $640.2M, and diluted EPS was $13.05; FY2024 net income was $717.6M, and FY2023 net income was $765.5M. Revenue has grown, yet profits slipped from their earlier peak. At the close on 2026-10-13, the price was $362.94. FairStock calculations show a P/E of 25.12, P/B of 3.51, and a Graham Number of $186.61, implying a negative margin of safety of 94.49%. I see no bargain there. ROCE of 5.18% and a latest-quarter net margin of 3.14% suggest limited earning power per dollar of capital. Debt/equity of 1.29 and an Altman Z-score of 2.12 add balance-sheet caution, while trailing free cash flow of $155.1M gives only a 0.9% FCF yield. The computed Lynch category is FAST GROWER, based on five-year profit growth of 44.8% and revenue growth of 13.8%, and PEG is 1.27. That growth is real historically, but the recent annual decline means I would demand a larger discount. The business is steady but not protected enough, and the price already reflects much of the hoped-for recovery.

In plain English: WESCO sells electrical, communications, security, utility, and broadband supplies to businesses. The company is large and recently showed better quarterly sales and profit, but its profit margins are thin, it carries a fair amount of debt, and it generates only a small amount of spare cash relative to its size. At the recent price of $362.94, the shares look expensive compared with conservative estimates based on the company's earnings and accounting net worth, even though the latest quarter improved.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer