# WESCO International (WCC.US)

Canonical: https://gigainvestors.com/s/WCC

Analysis as of: 2026-10-16T07:33:02.365Z. Financial observations: FY1998–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $346.66 per share; close as of 2026-10-15.

Estimated value: low $264.09 per share, central $374.48 per share, high $438.79 per share. Buy at or below the central value $374.48 per share. Valuation as of 2026-10-16T07:33:02.365Z; scenarios are not confidence intervals.

Expected annual return: 10.5% at the stated quote. About 10.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.22×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.04×

- FY2018: 0.04×

- FY2019: 0.04×

- FY2020: 0.03×

- FY2021: 0.04×

- FY2022: 0.07×

- FY2023: 0.06×

- FY2024: 0.06×

- FY2025: 0.05×

- LTM to Jun 2026: 0.05×

### moat: fail

- ROIC median below threshold

- ROIC, median of available years: 13.5%

- ROIC, second-lowest year: 11.7%

- Typical minus recent gross margin: -0.4 pp

- Typical gross margin (annual median): 21.0%

- Recent gross margin (lower of latest and 3-year median): 21.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 0.4%

- ROIC including acquisitions, ten-year median: 6.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 12.8%

- FY2018: 18.4%

- FY2019: 15.0%

- FY2020: 5.6%

- FY2021: 11.7%

- FY2022: 16.5%

- FY2023: 15.1%

- FY2024: 13.9%

- FY2025: 12.2%

- LTM to Jun 2026: 13.2%

### economics: pass

- Owner earnings / net income, 5-yr: 1.13×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $4.2B

- Net income, five-year total: $3.7B

- Return on incremental invested capital: 20.0%

- Working capital / revenue, annual change: 0.8 pp

- Working capital / revenue, change between three-year averages: 6.2 pp

- Working capital / revenue, final three-year average: 22.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.09×

- FY2023: 1.10×

- FY2024: 1.12×

- FY2025: 1.20×

- LTM to Jun 2026: 1.17×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 16.8% vs 13.9%

- Per-share earnings: 3.38 to 14.18 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.2%

- Ordinary dilution, 5-year annual growth: 1.2%

- Market cap gain: $8.9B

- Cumulative retained earnings: $3.6B

- Diluted shares, 10-year annual growth: -0.2%

- Diluted shares, 5-year annual growth: 1.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 19.6%

- Per-share value change: $10.80

- Per-share value, starting three-year median: $3.38

- Per-share value, ending three-year median: $14.18

- Buybacks concentrated in cheaper years (correlation): 0.49

- Average buyback yield: 2.6%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $4.2B

- Cumulative net income, 10 years: $4.3B

- ROIC, first three-year median: 16.8%

- ROIC, last three-year median: 13.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: $2.10

- FY2017: $3.38

- FY2018: $4.82

- FY2019: $5.14

- FY2020: $2.16

- FY2021: $8.95

- FY2022: $16.42

- FY2023: $14.64

- FY2024: $14.18

- FY2025: $12.93

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: 3.1%

- Receivables to sales index (DSRI): 1.10×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 32.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.20×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 1.02×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.4%

- FY2017: 0.3%

- FY2018: -1.5%

- FY2019: -0.0%

- FY2020: -3.7%

- FY2021: 3.2%

- FY2022: 5.7%

- FY2023: 1.8%

- FY2024: -2.5%

- FY2025: 3.1%

## Holders

- [Seth Klarman](https://gigainvestors.com/BAUPOST): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Christopher Davis](https://gigainvestors.com/DAV): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Richard Pzena](https://gigainvestors.com/PIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Martin Whitman](https://gigainvestors.com/TA): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 5.5% a year for ten years · sales +6.4%

Story as of 2026-10-16T09:59:50.819Z; price observation 2026-10-15.

Price needs cash profits to grow 5.5% a year for ten years

- 2025-05-14: WCC Q1 Earnings Call: Data Center Growth Offsets Utility Weakness as Tariff Uncertainty Looms ([finance.yahoo.com](https://finance.yahoo.com/news/wcc-q1-earnings-call-data-215315973.html))

- 2025-06-13: WESCO's SWOT analysis: datacenter growth boosts stock amid mix challenges ([investing.com](https://www.investing.com/news/swot-analysis/wescos-swot-analysis-datacenter-growth-boosts-stock-amid-mix-challenges-93CH-4095824))

- 2025-07-31: Wesco International beats Q2 estimates as data center sales soar ([investing.com](https://www.investing.com/news/earnings/wesco-international-beats-q2-estimates-as-data-center-sales-soar-93CH-4162236))

- 2025-10-31: WESCO International (WCC): Slower 8% Earnings Growth Outlook Reinforces Valuation-Focused Investor Sentiment ([finance.yahoo.com](https://finance.yahoo.com/news/wesco-international-wcc-slower-8-111215835.html))

- 2025-11-02: Revenue Beat: WESCO International, Inc. Beat Analyst Estimates By 5.0% ([finance.yahoo.com](https://finance.yahoo.com/news/revenue-beat-wesco-international-inc-122616478.html))

- 2026-05-02: WCC Q1 Deep Dive: Data Center Momentum Drives Outperformance and Margin Expansion ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/wcc-q1-deep-dive-data-130855076.html))

### Sales · FY2025–2026

sales +6.4%; source https://www.sec.gov/Archives/edgar/data/929008/000092900826000008/wcc-20251231.htm; observed 2026-02-13.

- FY2017: $7.7B 

- FY2018: $8.2B 

- FY2019: $8.4B 

- FY2020: $12B 

- FY2021: $18B 

- FY2022: $21B 

- FY2023: $22B 

- FY2024: $22B 

- FY2025: $24B 

- FY2026: $25B 

### Gross margin · FY2026

gross margin 21.4%; source https://www.sec.gov/Archives/edgar/data/929008/000092900826000008/wcc-20251231.htm; observed 2026-02-13.

- FY2017: 19.3% 

- FY2018: 19.2% 

- FY2019: 18.9% 

- FY2020: 18.9% 

- FY2021: 20.8% 

- FY2022: 21.8% 

- FY2023: 21.6% 

- FY2024: 21.6% 

- FY2025: 21.1% 

- FY2026: 21.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in industrial distribution; annual sales are USD 23.5 billion.

- Source: https://www.sec.gov/Archives/edgar/data/929008/000092900826000008/wcc-20251231.htm (filed 2026-02-13); FY2025: revenue 23510900000; grossProfit 4972000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); WCC.US: 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.

### Why customers stay

Margins ranged from 21.1% to 21.6% during 2023–25; it earns 13.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2023: grossProfit / revenue = 21.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2024: grossProfit / revenue = 21.6%.

- Source: https://www.sec.gov/Archives/edgar/data/929008/000092900826000008/wcc-20251231.htm (filed 2026-02-13); FY2025: grossProfit / revenue = 21.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); 10-year return on capital observations [[2017,0.12832149182025981],[2018,0.1835188432873672],[2019,0.14992823494966298],[2020,0.05628614292349137],[2021,0.11713632361307631],[2022,0.16494483480651853],[2023,0.15055683962991828],[2024,0.13877295118504934],[2025,0.12151481404633804],[2026,0.1316531967283796]]; median 0.13521307395671447. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 22% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/929008/000092900826000008/wcc-20251231.htm (filed 2026-02-13); Gross margin observations: [[2021,0.2081569919033896],[2022,0.21761336314956511],[2023,0.2163795722173579]]; range within 2 percentage points.

### Where the cash goes

Reinvests 4.7% of cash earnings; earns 20% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2016: growth capex 0; upkeep 18000000; cash acquisitions 50890000; owner earnings 150446000. Growth capex plus acquisitions / owner earnings = 0.3382609042447124.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2017: growth capex 0; upkeep 21500000; cash acquisitions 0; owner earnings 205977000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2018: growth capex 0; upkeep 36200000; cash acquisitions 0; owner earnings 254140000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2019: growth capex 0; upkeep 44067000; cash acquisitions 27597000; owner earnings 241466000. Growth capex plus acquisitions / owner earnings = 0.11428938235610811.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2020: growth capex 0; upkeep 56671000; cash acquisitions 3707575000; owner earnings 165489000. Growth capex plus acquisitions / owner earnings = 22.403754932351998.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2021: growth capex 0; upkeep 54746000; cash acquisitions 0; owner earnings 609254000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2022: growth capex 0; upkeep 99412000; cash acquisitions 186800000; owner earnings 940088000. Growth capex plus acquisitions / owner earnings = 0.19870480210363284.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2023: growth capex 0; upkeep 103612000; cash acquisitions 0; owner earnings 843188000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2024: growth capex 0; upkeep 94700000; cash acquisitions 221300000; owner earnings 806100000. Growth capex plus acquisitions / owner earnings = 0.27453169581937725.

- Source: https://www.sec.gov/Archives/edgar/data/929008/000092900826000008/wcc-20251231.htm (filed 2026-02-13); FY2025: growth capex 0; upkeep 99800000; cash acquisitions 36100000; owner earnings 768200000. Growth capex plus acquisitions / owner earnings = 0.04699297058057798.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); Incremental return on capital 0.20031830496632105, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); Dividend observations: [[2016,0],[2017,30139000],[2018,30139000],[2019,30139000],[2020,30139000],[2021,57408000],[2022,57408000],[2023,57400000],[2024,138900000],[2025,115700000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/929008/000092900826000008/wcc-20251231.htm (filed 2026-02-13); FY2025: cash repurchases 615300000 USD.

### Are managers owners

Insiders own 1.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); WCC.US SharesStats.PercentInsiders = 1.844 percentage points; cache date 2026-10-16.

### What could break it

US import tariffs could raise product costs.

- Source: https://www.sec.gov/Archives/edgar/data/929008/000092900826000008/wcc-20251231.htm (filed 2026-02-13); may also affect our business and financial condition in ways that we currently cannot predict. Certain geopolitical conflicts, and resulting international responses, have contributed to further volatility and uncertainty in the global financial and commodities markets, resulting in fluctuations in oil and commodity prices. There can be no assurance that economic and political instability, both domestically and internationally (for example, resulting from the geopolitical conflicts, changes in the creditworthiness of the U.S. or any government, changes to economic or trade policies, sanctions, tariffs or participation in trade agreements or economic and political unions) will not adversely affect our results of operations, cash flows or financial position in the future.

Volatile trade policies, including a shift toward a “reciprocal” tariff regime in the U.S., and retaliatory measures by foreign governments, could materially increase our costs, disrupt supply availability and lead times, reduce price competitiveness, and adversely affect demand for our products and services.

Global trade policy remains highly volatile. Sudden, material changes in U.S. and foreign tariff rates, scope, exclusions and enforcement, particularly following the adoption of a “reciprocal” tariff approach by the U.S., as well as retaliatory actions by other jurisdictions, including counter-tariffs and expanded export controls on critical minerals, components, and technologies, could negatively affect the availability and cost of certain products and inputs, extend lead times and impair our ability to fulfill customer orders. These measures may also increase our logistics, compliance and working capital costs, and contribute to broader inflationary pressures. We may be unable to pass through incremental costs to customers in a timely manner or at all without adversely affecting our price competitiveness or margins. If we are unable to adjust pricing, sourcing or inventory strategies effectively, or if customers reduce or defer purchases (including due to demand destruction arising from higher end-market prices), our business, financial condition and results of operations could be materially adversely affected.

Our global operations expose us to political, economic, legal, currency and other risks.

We operate a network of more than 700 sites, including distribution centers, fulfillment centers and sales offices with operations in approximately 50 countries. Approximately one-third of our employee population are non-U.S. employees. We derive approximately 26% of our revenues from sales outside of the U.S. As a result, we are subject to additional risks associated with owning and operating businesses in these foreign markets and jurisdictions.

Operating in the global marketplace exposes us to a number of risks including:

•geopolitical and security issues, including armed c

### What the price says

The price assumes cash profits grow 5.5% yearly over ten years; actual growth was 11.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); Ten-year compound average after fade. Initial solved rate 0.06571345856578203. Price 346.66; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 5.041490481011653 → FY2025 15.519191919191918. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $54.20 per share

- 2016-11: $67.90 per share

- 2016-12: $66.55 per share

- 2017-01: $70.70 per share

- 2017-02: $69.50 per share

- 2017-03: $69.55 per share

- 2017-04: $60.95 per share

- 2017-05: $61.15 per share

- 2017-06: $57.30 per share

- 2017-07: $51.25 per share

- 2017-08: $50.45 per share

- 2017-09: $58.25 per share

- 2017-10: $63.15 per share

- 2017-11: $65.55 per share

- 2017-12: $68.15 per share

- 2018-01: $68.15 per share

- 2018-02: $62.25 per share

- 2018-03: $62.05 per share

- 2018-04: $59.55 per share

- 2018-05: $59.35 per share

- 2018-06: $57.10 per share

- 2018-07: $61.00 per share

- 2018-08: $61.15 per share

- 2018-09: $61.45 per share

- 2018-10: $50.18 per share

- 2018-11: $53.41 per share

- 2018-12: $48.00 per share

- 2019-01: $52.40 per share

- 2019-02: $54.45 per share

- 2019-03: $53.01 per share

- 2019-04: $57.24 per share

- 2019-05: $46.83 per share

- 2019-06: $50.65 per share

- 2019-07: $50.74 per share

- 2019-08: $45.08 per share

- 2019-09: $47.77 per share

- 2019-10: $50.15 per share

- 2019-11: $52.62 per share

- 2019-12: $59.39 per share

- 2020-01: $48.41 per share

- 2020-02: $40.57 per share

- 2020-03: $22.85 per share

- 2020-04: $25.87 per share

- 2020-05: $33.30 per share

- 2020-06: $35.11 per share

- 2020-07: $38.87 per share

- 2020-08: $46.85 per share

- 2020-09: $44.02 per share

- 2020-10: $41.24 per share

- 2020-11: $65.22 per share

- 2020-12: $78.50 per share

- 2021-01: $76.11 per share

- 2021-02: $80.28 per share

- 2021-03: $86.53 per share

- 2021-04: $91.72 per share

- 2021-05: $106.57 per share

- 2021-06: $102.82 per share

- 2021-07: $106.45 per share

- 2021-08: $117.02 per share

- 2021-09: $115.32 per share

- 2021-10: $129.56 per share

- 2021-11: $124.13 per share

- 2021-12: $131.59 per share

- 2022-01: $121.89 per share

- 2022-02: $121.73 per share

- 2022-03: $130.14 per share

- 2022-04: $123.26 per share

- 2022-05: $125.58 per share

- 2022-06: $107.10 per share

- 2022-07: $127.84 per share

- 2022-08: $131.68 per share

- 2022-09: $119.38 per share

- 2022-10: $137.77 per share

- 2022-11: $128.92 per share

- 2022-12: $125.20 per share

- 2023-01: $149.01 per share

- 2023-02: $165.58 per share

- 2023-03: $154.54 per share

- 2023-04: $144.00 per share

- 2023-05: $137.38 per share

- 2023-06: $179.06 per share

- 2023-07: $175.57 per share

- 2023-08: $161.85 per share

- 2023-09: $143.82 per share

- 2023-10: $128.20 per share

- 2023-11: $155.85 per share

- 2023-12: $173.88 per share

- 2024-01: $173.52 per share

- 2024-02: $149.49 per share

- 2024-03: $171.28 per share

- 2024-04: $152.75 per share

- 2024-05: $179.49 per share

- 2024-06: $158.52 per share

- 2024-07: $174.95 per share

- 2024-08: $165.38 per share

- 2024-09: $167.98 per share

- 2024-10: $191.97 per share

- 2024-11: $211.57 per share

- 2024-12: $180.96 per share

- 2025-01: $185.00 per share

- 2025-02: $180.47 per share

- 2025-03: $155.30 per share

- 2025-04: $162.96 per share

- 2025-05: $167.89 per share

- 2025-06: $185.20 per share

- 2025-07: $206.96 per share

- 2025-08: $219.84 per share

- 2025-09: $211.50 per share

- 2025-10: $259.53 per share

- 2025-11: $267.41 per share

- 2025-12: $244.64 per share

- 2026-01: $289.43 per share

- 2026-02: $289.50 per share

- 2026-03: $273.62 per share

- 2026-04: $349.12 per share

- 2026-05: $361.17 per share

- 2026-06: $345.43 per share

- 2026-07: $343.49 per share

- 2026-08: $340.40 per share

- 2026-09: $359.59 per share

- 2026-10: $346.66 per share

## Annual estimated value (USD per share)

- FY2016: low $56.04 per share, central $63.76 per share, high $74.05 per share

- FY2017: low $58.62 per share, central $66.71 per share, high $77.47 per share

- FY2018: low $59.54 per share, central $68.58 per share, high $79.70 per share

- FY2019: low $63.95 per share, central $76.88 per share, high $89.55 per share

- FY2020: low $87.99 per share, central $107.46 per share, high $124.61 per share

- FY2021: low $126.99 per share, central $166.98 per share, high $195.39 per share

- FY2022: low $171.46 per share, central $239.57 per share, high $280.84 per share

- FY2023: low $191.06 per share, central $265.15 per share, high $310.82 per share

- FY2024: low $214.30 per share, central $293.16 per share, high $342.88 per share

- FY2025: low $241.24 per share, central $343.40 per share, high $402.91 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/929008/000092900826000008/wcc-20251231.htm); period 2025-12-31, filed 2026-02-13.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.