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ENCORE WIRE CORP (WIRE) Stock Fundamental Analysis

NASDAQ:WIRE - Nasdaq - US2925621052 - Common Stock - Currency: USD

289.84  0.01 (0%)

After market: 289.81 -0.03 (-0.01%)

Fundamental Rating

8

We assign a fundamental rating of 8 out of 10 to WIRE. WIRE was compared to 93 industry peers in the Electrical Equipment industry. WIRE gets an excellent profitability rating and is at the same time showing great financial health properties. WIRE is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make WIRE suitable for value investing!


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

WIRE had positive earnings in the past year.
WIRE had a positive operating cash flow in the past year.
In the past 5 years WIRE has always been profitable.
WIRE had a positive operating cash flow in each of the past 5 years.
WIRE Yearly Net Income VS EBIT VS OCF VS FCFWIRE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M 600M 800M

1.2 Ratios

Looking at the Return On Assets, with a value of 15.49%, WIRE belongs to the top of the industry, outperforming 96.51% of the companies in the same industry.
The Return On Equity of WIRE (17.44%) is better than 88.37% of its industry peers.
The Return On Invested Capital of WIRE (15.67%) is better than 95.35% of its industry peers.
WIRE had an Average Return On Invested Capital over the past 3 years of 32.07%. This is significantly above the industry average of 9.89%.
The last Return On Invested Capital (15.67%) for WIRE is well below the 3 year average (32.07%), which needs to be investigated, but indicates that WIRE had better years and this may not be a problem.
Industry RankSector Rank
ROA 15.49%
ROE 17.44%
ROIC 15.67%
ROA(3y)29.95%
ROA(5y)20.86%
ROE(3y)33.74%
ROE(5y)23.55%
ROIC(3y)32.07%
ROIC(5y)22.33%
WIRE Yearly ROA, ROE, ROICWIRE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30 40

1.3 Margins

Looking at the Profit Margin, with a value of 12.45%, WIRE belongs to the top of the industry, outperforming 89.53% of the companies in the same industry.
WIRE's Profit Margin has improved in the last couple of years.
WIRE has a Operating Margin of 14.96%. This is amongst the best in the industry. WIRE outperforms 87.21% of its industry peers.
WIRE's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 23.10%, WIRE perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
WIRE's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 14.96%
PM (TTM) 12.45%
GM 23.1%
OM growth 3Y32.04%
OM growth 5Y17.89%
PM growth 3Y34.51%
PM growth 5Y19.04%
GM growth 3Y18.81%
GM growth 5Y11.65%
WIRE Yearly Profit, Operating, Gross MarginsWIRE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30

10

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WIRE is creating value.
Compared to 1 year ago, WIRE has less shares outstanding
Compared to 5 years ago, WIRE has less shares outstanding
There is no outstanding debt for WIRE. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
WIRE Yearly Shares OutstandingWIRE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M 20M
WIRE Yearly Total Debt VS Total AssetsWIRE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B

2.2 Solvency

An Altman-Z score of 16.28 indicates that WIRE is not in any danger for bankruptcy at the moment.
WIRE has a Altman-Z score of 16.28. This is amongst the best in the industry. WIRE outperforms 96.51% of its industry peers.
There is no outstanding debt for WIRE. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 16.28
ROIC/WACC1.53
WACC10.27%
WIRE Yearly LT Debt VS Equity VS FCFWIRE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B

2.3 Liquidity

A Current Ratio of 7.49 indicates that WIRE has no problem at all paying its short term obligations.
WIRE's Current ratio of 7.49 is amongst the best of the industry. WIRE outperforms 93.02% of its industry peers.
A Quick Ratio of 6.46 indicates that WIRE has no problem at all paying its short term obligations.
WIRE has a Quick ratio of 6.46. This is amongst the best in the industry. WIRE outperforms 93.02% of its industry peers.
Industry RankSector Rank
Current Ratio 7.49
Quick Ratio 6.46
WIRE Yearly Current Assets VS Current LiabilitesWIRE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B

4

3. Growth

3.1 Past

WIRE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -46.84%.
Measured over the past years, WIRE shows a very strong growth in Earnings Per Share. The EPS has been growing by 41.86% on average per year.
Looking at the last year, WIRE shows a very negative growth in Revenue. The Revenue has decreased by -14.05% in the last year.
Measured over the past years, WIRE shows a quite strong growth in Revenue. The Revenue has been growing by 14.78% on average per year.
EPS 1Y (TTM)-46.84%
EPS 3Y79.91%
EPS 5Y41.86%
EPS Q2Q%-39.69%
Revenue 1Y (TTM)-14.05%
Revenue growth 3Y26.22%
Revenue growth 5Y14.78%
Sales Q2Q%-4.21%

3.2 Future

WIRE is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.42% yearly.
Based on estimates for the next years, WIRE will show a quite strong growth in Revenue. The Revenue will grow by 9.06% on average per year.
EPS Next Y-9.98%
EPS Next 2Y-1.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.38%
Revenue Next 2Y4.78%
Revenue Next 3Y8.74%
Revenue Next 5Y9.06%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
WIRE Yearly Revenue VS EstimatesWIRE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B
WIRE Yearly EPS VS EstimatesWIRE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

7

4. Valuation

4.1 Price/Earnings Ratio

WIRE is valuated correctly with a Price/Earnings ratio of 15.38.
Based on the Price/Earnings ratio, WIRE is valued cheaply inside the industry as 82.56% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.52, WIRE is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.92, which indicates a correct valuation of WIRE.
Based on the Price/Forward Earnings ratio, WIRE is valued cheaply inside the industry as 86.05% of the companies are valued more expensively.
WIRE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.58.
Industry RankSector Rank
PE 15.38
Fwd PE 13.92
WIRE Price Earnings VS Forward Price EarningsWIRE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

89.53% of the companies in the same industry are more expensive than WIRE, based on the Enterprise Value to EBITDA ratio.
81.40% of the companies in the same industry are more expensive than WIRE, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 18.5
EV/EBITDA 9.6
WIRE Per share dataWIRE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150

4.3 Compensation for Growth

WIRE has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.37
EPS Next 2Y-1.42%
EPS Next 3YN/A

4

5. Dividend

5.1 Amount

With a yearly dividend of 0.03%, WIRE is not a good candidate for dividend investing.
WIRE's Dividend Yield is a higher than the industry average which is at 4.27.
Compared to an average S&P500 Dividend Yield of 2.35, WIRE's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.03%

5.2 History

The dividend of WIRE has a limited annual growth rate of 0.02%.
WIRE has been paying a dividend for at least 10 years, so it has a reliable track record.
WIRE has decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.02%
Div Incr Years0
Div Non Decr Years2
WIRE Yearly Dividends per shareWIRE Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.02 0.04 0.06 0.08

5.3 Sustainability

0.41% of the earnings are spent on dividend by WIRE. This is a low number and sustainable payout ratio.
DP0.41%
EPS Next 2Y-1.42%
EPS Next 3YN/A
WIRE Yearly Income VS Free CF VS DividendWIRE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M 600M
WIRE Dividend Payout.WIRE Dividend Payout, showing the Payout Ratio.WIRE Dividend Payout.PayoutRetained Earnings

ENCORE WIRE CORP

NASDAQ:WIRE (7/1/2024, 8:09:14 PM)

After market: 289.81 -0.03 (-0.01%)

289.84

0.01 (0%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)04-23 2024-04-23/amc
Earnings (Next)07-23 2024-07-23/amc
Inst Owners5.62%
Inst Owner Change0%
Ins Owners1.42%
Ins Owner Change0%
Market Cap4.58B
Analysts84.44
Price Target295.8 (2.06%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.03%
Yearly Dividend0.08
Dividend Growth(5Y)0.02%
DP0.41%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.84%
Min EPS beat(2)-0.01%
Max EPS beat(2)3.68%
EPS beat(4)2
Avg EPS beat(4)-1.01%
Min EPS beat(4)-9.13%
Max EPS beat(4)3.68%
EPS beat(8)6
Avg EPS beat(8)24.21%
EPS beat(12)10
Avg EPS beat(12)98.92%
EPS beat(16)13
Avg EPS beat(16)87.27%
Revenue beat(2)2
Avg Revenue beat(2)4.23%
Min Revenue beat(2)3.3%
Max Revenue beat(2)5.16%
Revenue beat(4)2
Avg Revenue beat(4)-2.15%
Min Revenue beat(4)-15.52%
Max Revenue beat(4)5.16%
Revenue beat(8)5
Avg Revenue beat(8)1.84%
Revenue beat(12)9
Avg Revenue beat(12)11.59%
Revenue beat(16)11
Avg Revenue beat(16)9.41%
PT rev (1m)-0.57%
PT rev (3m)0.93%
EPS NQ rev (1m)-5.99%
EPS NQ rev (3m)17.94%
EPS NY rev (1m)0%
EPS NY rev (3m)12.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.65%
Revenue NY rev (1m)0%
Revenue NY rev (3m)7.75%
Valuation
Industry RankSector Rank
PE 15.38
Fwd PE 13.92
P/S 1.8
P/FCF 18.5
P/OCF 11.04
P/B 2.52
P/tB 2.52
EV/EBITDA 9.6
EPS(TTM)18.85
EY6.5%
EPS(NY)20.83
Fwd EY7.19%
FCF(TTM)15.67
FCFY5.41%
OCF(TTM)26.25
OCFY9.06%
SpS160.86
BVpS114.82
TBVpS114.82
PEG (NY)N/A
PEG (5Y)0.37
Profitability
Industry RankSector Rank
ROA 15.49%
ROE 17.44%
ROCE 20.28%
ROIC 15.67%
ROICexc 23.31%
ROICexgc 23.31%
OM 14.96%
PM (TTM) 12.45%
GM 23.1%
FCFM 9.74%
ROA(3y)29.95%
ROA(5y)20.86%
ROE(3y)33.74%
ROE(5y)23.55%
ROIC(3y)32.07%
ROIC(5y)22.33%
ROICexc(3y)49.11%
ROICexc(5y)33.56%
ROICexgc(3y)49.11%
ROICexgc(5y)33.56%
ROCE(3y)41.53%
ROCE(5y)28.92%
ROICexcg growth 3Y36.81%
ROICexcg growth 5Y15.54%
ROICexc growth 3Y36.81%
ROICexc growth 5Y15.54%
OM growth 3Y32.04%
OM growth 5Y17.89%
PM growth 3Y34.51%
PM growth 5Y19.04%
GM growth 3Y18.81%
GM growth 5Y11.65%
F-Score5
Asset Turnover1.24
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 507.95%
Cap/Sales 6.58%
Interest Coverage 250
Cash Conversion 100.39%
Profit Quality 78.25%
Current Ratio 7.49
Quick Ratio 6.46
Altman-Z 16.28
F-Score5
WACC10.27%
ROIC/WACC1.53
Cap/Depr(3y)529.19%
Cap/Depr(5y)465.14%
Cap/Sales(3y)5.3%
Cap/Sales(5y)5.35%
Profit Quality(3y)69.59%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-46.84%
EPS 3Y79.91%
EPS 5Y41.86%
EPS Q2Q%-39.69%
EPS Next Y-9.98%
EPS Next 2Y-1.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-14.05%
Revenue growth 3Y26.22%
Revenue growth 5Y14.78%
Sales Q2Q%-4.21%
Revenue Next Year5.38%
Revenue Next 2Y4.78%
Revenue Next 3Y8.74%
Revenue Next 5Y9.06%
EBIT growth 1Y-55.5%
EBIT growth 3Y66.66%
EBIT growth 5Y35.31%
EBIT Next Year-10.23%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-40.1%
FCF growth 3YN/A
FCF growth 5Y39.31%
OCF growth 1Y-22.81%
OCF growth 3Y99.3%
OCF growth 5Y41.03%