| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 53 | 22.8x | 17.3x | Around median | |
Growth | 38 | 12.5% | 7.1% | Bottom tier | |
Quality | 46 | 9.7% | 4.5% | Around median | |
Safety | 46 | 3.6x | 2.6x | Around median | |
Capital Return | 56 | 0.58% | 0.06% | Around median | |
Momentum | 70 | 65.1% | -1.6% | Top tier | |
Sentiment | 78 | 7 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
83% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
WESCO International operates as a global provider of infrastructure solutions through three segments: CSS, EES, and UBS, serving the communications, security, electrical equipment, utilities, and energy markets. Its model is based on providing products, services, and solutions for major projects, with data center capabilities extending from the power grid to the building, then to racks and equipment, in addition to design, installation, operation, maintenance, and optimization. The company uses its OneWesco strategy to sell multiple solutions to the same customer, while data centers accounted for slightly more than 20% of sales during the twelve months ended in Q2 FY2026.
In Q2 FY2026, WESCO reported record revenue of $6.7 billion, with both reported and organic growth of 13%, net income of $209.0 million, and EDGAR EPS of $4.23. On an adjusted basis, EBITDA was $487 million, up 24%, and its margin expanded by 60 basis points to 7.3%, while adjusted EPS rose 35% to $4.57. Gross margin also improved by 70 basis points, while selling, general, and administrative expenses were 14.5% of sales versus 14.4% a year earlier.
Growth was broad-based across all three segments in Q2 FY2026: CSS sales increased 18% and its adjusted EBITDA margin reached a record 10.2%, EES grew 11% with a 9.2% margin and a record gross margin of 24.4%, while UBS sales increased 7% and its EBITDA margin returned to 10%. Data center solutions sales reached $1.5 billion, up approximately 45%, but sales excluding data centers also grew at a mid-single-digit rate, demonstrating that the business did not depend entirely on this market.
The average analyst price target is $402.22, within a relatively wide range of $375 to $440, with a consensus rating of “Buy.” The average is above the 52-week range high of $385.37, while the highest target exceeds that high by approximately 14%, reflecting elevated expectations for continued data center growth and margin improvement. Conversely, the breadth of the target range from $375 to $440 makes the valuation sensitive to the company's ability to execute its backlog and convert growth into free cash flow within the $300–$600 million range in FY2026.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
The most prominent driver is demand for data center infrastructure, as sales from this business reached $1.5 billion in Q2 FY2026 and grew by approximately 45% year over year. WESCO raised its forecast for data center sales growth within CSS to more than 30% in FY2026, while UBS also won a multi-year electrical grid services contract with a hyperscale customer. At the same time, the company's sales excluding data centers grew at a mid-single-digit rate, adding support from construction, industrial, utilities, and broadband.
Revenue reached $6.7 billion, with both reported and organic growth of 13%, while net income according to EDGAR was approximately $209.0 million and EPS was $4.23. On an adjusted basis, EBITDA reached a record $487 million and its margin increased by 60 basis points to 7.3%. Adjusted EPS also rose 35% to $4.57, and the company recorded record levels for sales, adjusted earnings, and backlog.
The company expects organic sales growth of 9% to 11% and reported growth of 10% to 12%, with sales of $26 billion at the midpoint of the range. The expected adjusted EBITDA margin range is 6.9% to 7.1%, while adjusted EPS is expected to range from $16 to $17.50. It also expects free cash flow of $300 to $600 million due to the need for additional working capital investment to support growth.
Automated analysis for informational purposes only — not investment advice.
In Q2 FY2026, CSS sales grew 18% and its adjusted EBITDA margin reached a record 10.2%, driven by approximately 45% growth in data center solutions. EES achieved growth of 11% and an EBITDA margin of 9.2%, with OEM growth of more than 20% and data center sales growth of more than 70%. UBS sales grew 7% and its margin returned to 10%, while its backlog increased 80% due to the multi-year electrical grid services contract.
WESCO completed the transaction on July 1, 2026, adding expertise in critical cooling and thermal management for data centers. The new capabilities include engineering design for HVAC systems, manufacturing, assembly, installation, and after-sales services, areas that were not previously present in the company's portfolio at the same depth. The acquisition strengthens WESCO's presence in Southeast Asia and supports the delivery of solutions extending from design and installation to operation, maintenance, and optimization.
The company expects free cash flow of $300 to $600 million in FY2026, after the business generated $246 million in the first half and $32 million in Q2. Working capital intensity remained near 20% of sales, so management is working to reduce collection and inventory days and tighten commercial terms. Management also expects a slight sequential decline in the adjusted EBITDA margin during Q3 FY2026 due to project mix, while continued competition in utilities is pressuring the UBS margin.