Wesco International Stock Fair Value – WESCO INTERNATIONAL Reports Fourth Quarter Results with 30.8% Increase in Total Revenue for Fiscal Year 2022.
March 27, 2023
Earnings Overview
On February 14, 2023, WESCO INTERNATIONAL ($NYSE:WCC) reported their fourth quarter results for fiscal year 2022, revealing total revenue of USD 218.9 million – a 30.8% increase from the previous year – and net income of USD 5558.5 million, a 14.6% increase from the year prior. The results were reported on December 31, 2022.
Transcripts Simplified
WESCO International reported an all-time fourth quarter record in sales and cross-sell, with sales up 15% compared to the prior year on a reported basis. Supply chain challenges have continued to impact the business, but the company has seen signs of pressure easing in certain product categories. Gross margin was a fourth quarter record at 21.9%, up 110 basis points versus the prior year.
Adjusted EBITDA and adjusted diluted EPS were also fourth quarter records, increasing 41% and 30%, respectively, from the prior year. January results were encouraging, with sales up approximately 17% year-over-year.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Wesco International. More…
| Total Revenues | Net Income | Net Margin |
| 21.42k | 803.06 | 4.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Wesco International. More…
| Operations | Investing | Financing |
| 11.04 | -283.57 | 584.03 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Wesco International. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 14.81k | 10.36k | 87.75 |
Key Ratios Snapshot
Some of the financial key ratios for Wesco International are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 36.8% | 60.7% | 6.7% |
| FCF Margin | ROE | ROA |
| -0.4% | 20.8% | 6.1% |
Stock Price
This significant growth resulted in shares of WESCO INTERNATIONAL opening at $158.8 and closing 8.2% higher at $165.7 from the prior closing price of $153.2. This impressive financial report is due to WESCO INTERNATIONAL’s efforts to increase sales within their existing customer base, as well as their efforts to expand into new markets with innovative and competitive product offerings. The company has also seen growth in their industrial distribution segment, and their electrical segment has also seen a surge in sales due to the high demand for their products in the current market. The strong performance of WESCO INTERNATIONAL’s fourth quarter results have instilled confidence in investors, who have responded positively to this financial report.
This increase in stock price can be attributed to the company’s commitment to innovation and providing customers with quality products and efficient services. As the company continues to meet the challenges of the changing market, investors are optimistic that WESCO INTERNATIONAL will continue to deliver strong financial results for the remainder of the fiscal year. Live Quote…
Analysis – Wesco International Stock Fair Value
We at GoodWhale conducted an analysis of WESCO INTERNATIONAL‘s fundamentals, and accordingly estimated the intrinsic value of their shares to be around $121.1. This figure was calculated using our proprietary Valuation Line, which is a complex algorithm that takes into account a range of factors such as financials, capital structure, and risk profile. As of today, the stock is being traded at $165.7, making it nearly 36.9% overvalued. More…
Peers
The Company’s primary competitors are Fastenal Co, MSC Industrial Direct Co Inc, and Addtech AB.
– Fastenal Co ($NASDAQ:FAST)
The company’s market cap is $27.97B as of 2022 and its ROE is 28.04%. The company is engaged in the distribution of industrial and construction supplies.
– MSC Industrial Direct Co Inc ($NYSE:MSM)
MSC Industrial Direct Co, Inc. engages in the distribution of metalworking and maintenance, repair, and operations (MRO) products and services. It operates through the following segments: Metalworking Solutions Group, MRO Solutions Group, and Fluid Power & Automation Solutions Group. The Metalworking Solutions Group segment offers cutting tools, measuring instruments, tooling components, abrasives, and machine tools. The MRO Solutions Group segment comprises of products used to maintain, repair, and operate facilities and equipment. The Fluid Power & Automation Solutions Group segment provides fluid power components and systems, and automation and control products. The company was founded by Martin Schwartz in 1941 and is headquartered in Melville, NY.
MSC Industrial Direct Co Inc has a market cap of 4.71B as of 2022 and a Return on Equity of 22.14%. The company engages in the distribution of metalworking and maintenance, repair, and operations (MRO) products and services. It operates through the following segments: Metalworking Solutions Group, MRO Solutions Group, and Fluid Power & Automation Solutions Group. The Metalworking Solutions Group segment offers cutting tools, measuring instruments, tooling components, abrasives, and machine tools. The MRO Solutions Group segment comprises of products used to maintain, repair, and operate facilities and equipment. The Fluid Power & Automation Solutions Group segment provides fluid power components and systems, and automation and control products.
– Addtech AB ($LTS:0QI7)
Addtech AB is a Swedish company that provides technology solutions for industrial customers. The company has a market cap of 36 billion as of 2022 and a return on equity of 28.17%. Addtech’s solutions include products and services for automation, motion control, and fluid power. The company operates in four segments: Automation, Motion, Fluid Power, and Industrial Supplies. Addtech employs approximately 3,700 people and has sales offices in Europe, North America, and Asia.
Summary
WESCO International reported their fourth quarter results for FY 2022, showing positive results with a 30.8% increase in revenue and 14.6% increase in net income compared to the previous year. These figures were reported on February 14, 2023, and the stock price saw a corresponding increase. For investors, WESCO International offers a strong potential for growth, as their revenue and net income have seen consistent growth over the past few years. With their focus on innovation and diversification, WESCO International looks set to continue this trend.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
