WESCO: Secular And High-Growth Technology Will Move Past Margin And Cash Flow Pressure

Mar. 28, 2022 3:48 AM ETWESCO International, Inc. (WCC)
Badsha Chowdhury profile picture
Badsha Chowdhury


  • High-growth technologies like conference room infrastructure, automation, and IoT (Internet of Things) growth are WESCO International's current focus.
  • Increased cross-selling opportunities and merger synergies from the Anixter acquisition have enabled to exceed the earlier synergy target and will help expand the operating margin.
  • However, supply chain constraints and key customers' business model shift will adversely affect topline in the short term.
  • A dip in free cashflow generation can disrupt the deleveraging plans.

Warehouse Manager using a laptop

Marko Geber/DigitalVision via Getty Images

WCC’s Drivers Look To Strengthen

WESCO International's (NYSE:WCC) growth path would be impeded by the adverse effect of supply chain constraints and one of the utility customers' shifts from a full revenue model to

Non residential construction

United States Census Bureau

Revenue and Margin

Seeking Alpha

Revenue forecast

Author created, Seeking Alpha, and FRED Economic Research

EBITDA forecast

Author created and Seeking Alpha

Target price

Author created and Seeking Alpha

Total returns

Seeking Alpha

This article was written by

Badsha Chowdhury profile picture
I have more than 14 years of experience in analyzing and writing on stocks. I write on both long and short sides in an unbiased manner. I have been covering the energy sectors for the past 7 years, with the primary focus on the oilfield equipment services sector. I also cover the Industrial Supply industry. I occasionally co-author with Seeking Alpha contributor Thomas Prescott.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Recommended For You


To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.