Wesco International Stock Fair Value – WESCO INTERNATIONAL Reports FY2022 Q4 Earnings Results on February 14 2023
February 23, 2023
Earnings Overview
On February 14 2023, WESCO INTERNATIONAL ($NYSE:WCC) released their fourth quarter earnings report for the fiscal year ending December 31 2022. Their total revenue was USD 218.9 million, a growth of 30.8% compared to the prior year. Net income amounted to USD 5558.5 million, an increase of 14.6% year over year.
Transcripts Simplified
WESCO International reported record fourth quarter and full year sales of an all-time high for their fourth quarter. They attributed the success to their ability to cross-sell WESCO and Anixter products and services, strong pricing, volume and share gains, as well as supplier rebates. Fourth quarter gross margin was 21.9%, up 110 basis points from the prior year.
Adjusted EBITDA was a record 41% higher than the prior year, and adjusted diluted EPS was $4.13 or 30% higher, also a record. Going into the first quarter, preliminary results show January sales up 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 | 82.55 |
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% | 20.7% | 6.0% |
Stock Price
WESCO INTERNATIONAL reported its financial results for the fourth quarter of fiscal year 2022 on Tuesday, February 14, 2023. The stock opened at $158.8 and closed at $165.7, representing an 8.2% increase from the prior closing price of $153.2. These results are undoubtedly a testament to the strength of WESCO INTERNATIONAL, whose excellent performance over the course of Fiscal Year 2022 has been reflected in their stock performance and financial results. Live Quote…
Analysis – Wesco International Stock Fair Value
GoodWhale has conducted a thorough analysis of WESCO INTERNATIONAL‘s wellbeing. After consideration of all data and metrics, our proprietary Valuation Line estimates the fair value of WESCO INTERNATIONAL share to be around $115.6. However, at present WESCO INTERNATIONAL stock is traded at $165.7, overvalued by 43.3%. This discrepancy can be attributed to market sentiment and investor confidence in the company’s long-term prospects. We believe that investors should consider buying WESCO INTERNATIONAL at its fair value level in order to take full advantage of this potential upside. More…
Peers
The Company’s primary competitors are Fastenal Co, MSC Industrial Direct Co Inc, and Addtech AB.
– Fastenal Co ($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‘s fourth quarter earnings results reported on February 14, 2023 showed strong growth compared to the same period last year. Total revenue increased by 30.8%, while net income increased by 14.6%. The stock price responded positively to the news, reflecting investor confidence in the company’s performance.
In the long-term, WESCO International’s continued growth in revenue and profits demonstrate a solid investment opportunity for shareholders. With a stable and diverse range of products, investors should continue to look at WESCO International as an attractive investment option.
