WESCO INTERNATIONAL INC

Where It Passes

Where It Falls Short

• Debt & Leverage0% pass✓ 2✗ 13▾

  No clean pass — all 12 investors flag at least one debt & leverage criterion

  LT Debt vs Net Current AssetsLT Debt $6.0B vs NCA $5.8B

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 1.15, IC: 3.4x

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity1.10

  ✗Lynch< 0.33

  Cash - Long-term Debt$-5.1B

  ✗LynchPositive preferred

  LT Debt / Total Assets Change33.50% -> 34.90%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities2.01

  ✓Dreman> 1.5✓SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity1.10

  ✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x

  Debt Levels1.10

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=3.4x, D/EBITDA=4.0x

  ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity1.10

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-1.1045; #3328/4210 (top 79.0%)

  ✗AsnessTop 30% of eligible cross-section
• Profitability6% pass✓ 13✗ 22▾

  15 of 16 flag WCC's profitability — Graham, Buffett, Lynch +12 more

  Net income / market capitalization+5.05%; #1675/6340 (top 26.4%)

  ✓AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive EPS (10 years)18/26 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)26/26 years positive

  ✓BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)14.8%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)5.2% (latest)

  ✓BuffettStable or rising over 10 years

  Free Cash Flow Proxy$738.0M

  ✓BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)0.46

  ✓Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR53.9%

  ✓Lynch15-30% (Fast Grower); > 0% to pass

  ROE14.5%

  ✗Lynch> 15%

  EBIT / Enterprise Value7.0%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=7.0%, ROC=26.6%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets3.88%

  ✓PiotroskiROA > 0

  ROA Change YoY4.76% -> 3.88% (delta: -0.88%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=0.76%, ROA=3.88%

  ✗PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY21.6% -> 21.1%

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue4.0%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity14.5%

  ✓Dreman> 12%

  Margin of SafetyP/E=24.7x, P/B=3.2x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity14.1% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value-62.4% (IV=$198.20 vs Price=$321.79)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency26/26 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue5.6%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity14.5%

  ✗Ackman>= 15%

  5-Year EPS CAGR53.9% CAGR over 5 years

  ✓Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend6.3% (2023) -> 5.2% (2025)

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 21.6% -> 21.1%, operating margin 6.3% -> 5.2%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  Gross profit / total assets+30.14%; #1422/3702 (top 38.4%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity+14.53%; #1210/5226 (top 23.2%)

  ✓AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0078; #677/5884 (top 11.5%)

  ✓AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR53.9% over 5 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years10/10 years positive

  ✓Schloss>= 70% positive over 5-10 observed years (app rule)
• Valuation models10% pass✓ 1✗ 9▾

  Models split on WCC at $321.79 — fair values range $6.68–$326.25

  Graham fair value$172.76

  ✗Graham-86.3% margin vs $321.79

  Buffett fair value$176.19

  ✗Buffett-82.6% margin vs $321.79

  Lynch fair value$326.25

  ✓Lynch+1.4% margin vs $321.79

  Greenblatt fair value$205.49

  ✗Greenblatt-56.6% margin vs $321.79

  Dreman fair value$198.20

  ✗Dreman-62.4% margin vs $321.79

  Munger fair value$6.68

  ✗Munger-4717.2% margin vs $321.79

  Pabrai fair value$184.54

  ✗Pabrai-74.4% margin vs $321.79

  Akre fair value$245.21

  ✗Akre-31.2% margin vs $321.79

  Ackman fair value$8.37

  ✗Ackman-3744.6% margin vs $321.79

  Templeton fair value$188.43

  ✗Templeton-70.8% margin vs $321.79
• Valuation15% pass✓ 5✗ 23▾

  11 of 13 flag WCC's valuation — Graham, Greenblatt, Dreman +8 more

  Net income / market capitalization+5.05%; #1675/6340 (top 26.4%)

  ✓AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Price / 3-yr avg EPS24.4x

  ✗Graham<= 15x

  Price-to-Book Ratio3.2x

  ✗Graham<= 1.5x

  P/E x P/B77.10

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)0.46

  ✓Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value7.0%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=7.0%, ROC=26.6%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS24.7x

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)127.4x

  ✗Dreman< 8x

  Price / Book Value per Share3.2x

  ✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Valuation ReasonablenessP/E=24.7x, OE Yield=4.6%

  ✓MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF YieldP/E=24.7x, FCF Yield=0.2%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=24.7x, P/B=3.2x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-62.4% (IV=$198.20 vs Price=$321.79)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share632.1x

  ✗Ackman<= 25

  Price vs. Trailing Low207% of trailing low ($155.30)

  ✗Templeton<= 120% of trailing low (certified split-adjusted live window)

  Positive book equity / market capitalization+0.3473; #3475/6449 (top 53.9%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS24.7x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E2.21

  ✓Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per ShareN/A (non-positive TBVPS)

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change+41.7%

  ✓SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+1.6627; #1236/5247 (top 23.6%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+2.65%; #2116/4519 (top 46.8%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+6.02%; #2086/6202 (top 33.6%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Growth25% pass✓ 5✗ 8▾

  6 of 8 flag WCC's growth — Graham, Lynch, Dreman +3 more

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)0.46

  ✓Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR53.9%

  ✓Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthInv: 15.5% vs Rev: 13.5%

  ✗LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency26/26 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth4.5%

  ✗Ackman>= 5%

  Positive EPS Growth Frequency2/5 years with positive EPS growth

  ✗AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR53.9% CAGR over 5 years

  ✓Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendgross margin 21.6% -> 21.1%, operating margin 6.3% -> 5.2%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR13.8%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR53.9% over 5 years

  ✗Neff7%-20% annualized
• Verdicts29% pass✓ 4✗ 10▾

  Split decision: 9 FAIL · 3 PASS · 3 NEUTRAL · 1 BUY

  Overall verdict

  ✗GrahamFAIL (2/9)✓BuffettPASS (5/9)✗LynchFAIL (3/7)✗GreenblattRank #765✓PiotroskiPASS (F-Score 4)✗DremanFAIL (3/11)✓MungerPASS (2/4)✗PabraiFAIL (0/3)✗AkreFAIL (1/6)✗MarksFAIL (2/5)✗AckmanFAIL (2/9)✗TempletonFAIL (3/8)•SleepNEUTRAL (4/6)✓AsnessBUY (Rank #286/2370 (Top 12.1%))•NeffNEUTRAL (4/6)•SchlossNEUTRAL (4/7)✗OshaughnessyFAIL (Rank #392/963 (Top 40.7%))
• Cash Flow50% pass✓ 6✗ 6▾

  5 of 10 pass — Piotroski, Dreman, Pabrai +2 more object

  Free Cash Flow Proxy$738.0M

  ✓BuffettPositive and growing

  FCF Positive and Growing$415.8M

  ✓LynchPositive and growing

  Operating Cash Flow$125.0M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=0.76%, ROA=3.88%

  ✗PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)127.4x

  ✗Dreman< 8x

  P/E or FCF YieldP/E=24.7x, FCF Yield=0.2%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive25/26 years FCF positive

  ✓MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap2.6%

  ✗Ackman>= 4%

  Price / FCF per Share632.1x

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency26/26 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$415.8M

  ✓Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization+2.65%; #2116/4519 (top 46.8%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Efficiency50% pass✓ 6✗ 5▾

  4 of 8 pass — Piotroski, Munger, Akre +1 more object

  Current Ratio2.01

  ✓Graham>= 2.0

  ROIC (3-5 yr avg)10.2%

  ✓Buffett> 10%

  ROIC - WACC+0.2%

  ✓BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)26.6%

  ✓Greenblatt> 25%

  Current Ratio Change YoY2.20 -> 2.20

  ✓PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY1.45x -> 1.43x

  ✗PiotroskiImproved YoY

  Current Assets / Current Liabilities2.01

  ✓Dreman> 1.5

  Return on Invested Capital10.0%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=10.7%; FY2024: ROIC=9.6%; FY2025: ROIC=9.0%

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROIC8.8% (RR=88% x ROIC=10.0%)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)0/5 years above 12% (latest 9.0%)

  ✗SleepROIC > 12% in a majority of years