ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. WESCO International's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 7.29%.
As of today (2026-06-25), WESCO International's WACC % is 13.50%. WESCO International's ROC % is 7.93% (calculated using TTM income statement data).
WESCO International earns returns that do not match up to its cost of capital. It will destroy value as it grows.
WESCO International (NYSE:WCC) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, WESCO International's WACC % is 13.50%. WESCO International's ROC % is 7.93% (calculated using TTM income statement data).
WESCO International earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
WESCO International ROC % Related Terms
WESCO International ROC % Historical Data
* Premium members only.
The historical data trend for WESCO International's ROC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
WESCO International (WCC) has a ROC % of 7.29% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on WESCO International and its competitors.
Is WESCO International's ROC % too high?
WESCO International's current ROC % is 7.29%. The Industrial Distribution industry median ROC % is 6.25. WESCO International's value of 7.29% is 16.7% above this industry median. Overall, WESCO International has a GF Score™ of 84/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does WESCO International's ROC % compare to WSO and QXO?
WESCO International's ROC % of 7.29% can be compared against companies in the Industrial Distribution industry. The industry median ROC % is 6.25. WESCO International's value of 7.29% is 16.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for an Industrial Distribution company?
The median ROC % among Industrial Distribution companies is 6.25, based on 156 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. WESCO International's current ROC % of 7.29% is 16.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on WESCO International and its competitors. For the Industrial Distribution industry, the median ROC % is 6.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. WESCO International's current ROC % is 7.29%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is WESCO International stock overvalued right now?
Based on GuruFocus' analysis, WESCO International (WCC) is currently considered Significantly Overvalued. The stock's GF Value™ is $204.39, compared to a current price of $365.35 — trading 78.8% above its estimated fair value. The current ROC % is 7.29% and 16.7% above the Industrial Distribution industry median of 6.25. WESCO International's overall GF Score™ is 84/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For WESCO International (WCC), the current ROC % is 7.29% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is WESCO International (WCC) Overvalued in 2026?
Based on GuruFocus' analysis, WESCO International stock appears to be overvalued.
The current stock price of $365.35 is trading 78.8% above its estimated GF Value™ of $204.39.
GuruFocus considers WESCO International to be Significantly Overvalued.
Key valuation signals for WCC:
ROC %: 7.29%
GF Value™: $204.39 vs. price of $365.35 (78.8% above fair value)
Industry Position: 16.7% above the Industrial Distribution median
No single metric tells the full story. See the WCC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Wesco can be traced back to the late 1800s but was officially founded in 1922, acting as the distribution arm of Westinghouse Electric. Throughout the 1900s, Wesco entered and subsequently exited the consumer electronics, transit, bottling, and nuclear plant distribution markets. It was sold to a private equity firm in 1994 and then went public in 1999, and numerous acquisitions have since been made to fill the gaps in Wesco's geographical and product coverage. Today, the firm primarily distributes electrical, networking, security, and utility equipment used in the construction and repair of structures such as offices, data centers, power transmission lines, and manufacturing plants. Wesco has operations around the globe but generates the majority of its revenue in the United States.
84GF Score
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