ENCORE WIRE CORP (WIRE) Stock Fundamental Analysis
USA - NASDAQ:WIRE - US2925621052 - Common Stock
289.84 USD
0.01 (0%)
289.81 USD
-0.03 (-0.01%)
WIRE gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 91 industry peers in the Electrical Equipment industry. WIRE has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. A decent growth rate in combination with a cheap valuation! Better keep an eye on WIRE. This makes WIRE very considerable for value investing!
1. Profitability
1.1 Basic Checks
WIRE had positive earnings in the past year.
In the past year WIRE had a positive cash flow from operations.
Each year in the past 5 years WIRE has been profitable.
In the past 5 years WIRE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of WIRE (15.49%) is better than 96.51% of its industry peers.
WIRE has a Return On Equity of 17.44%. This is amongst the best in the industry. WIRE outperforms 88.37% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.67%, WIRE belongs to the top of the industry, outperforming 95.35% of the companies in the same industry.
WIRE had an Average Return On Invested Capital over the past 3 years of 32.07%. This is significantly above the industry average of 10.42%.
The 3 year average ROIC (32.07%) for WIRE is well above the current ROIC(15.67%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector 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%
1.3 Margins
WIRE's Profit Margin of 12.45% is amongst the best of the industry. WIRE outperforms 89.53% of its industry peers.
In the last couple of years the Profit Margin of WIRE has grown nicely.
WIRE's Operating Margin of 14.96% is amongst the best of the industry. WIRE outperforms 87.21% of its industry peers.
WIRE's Operating Margin has improved in the last couple of years.
WIRE's Gross Margin of 23.10% is in line compared to the rest of the industry. WIRE outperforms 50.00% of its industry peers.
In the last couple of years the Gross Margin of WIRE has grown nicely.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
WIRE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, WIRE has less shares outstanding
The number of shares outstanding for WIRE has been reduced compared to 5 years ago.
WIRE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 16.28 indicates that WIRE is not in any danger for bankruptcy at the moment.
WIRE's Altman-Z score of 16.28 is amongst the best of the industry. WIRE outperforms 96.51% of its industry peers.
WIRE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 16.28 |
ROIC/WACC1.53
WACC10.27%
2.3 Liquidity
WIRE has a Current Ratio of 7.49. This indicates that WIRE is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 7.49, WIRE belongs to the top of the industry, outperforming 93.02% of the companies in the same industry.
A Quick Ratio of 6.46 indicates that WIRE has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 6.46, WIRE belongs to the top of the industry, outperforming 93.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.49 | ||
| Quick Ratio | 6.46 |
3. Growth
3.1 Past
The earnings per share for WIRE have decreased strongly by -46.84% in the last year.
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.
The Revenue for WIRE has decreased by -14.05% in the past year. This is quite bad
The Revenue has been growing by 14.78% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to decrease by -1.42% on average over the next years.
The Revenue is expected to grow by 9.06% on average over the next years. This is quite good.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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 25.89, 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 cheaper than 86.05% of the companies in the same industry.
WIRE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.38 | ||
| Fwd PE | 13.92 |
4.2 Price Multiples
WIRE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WIRE is cheaper than 89.53% of the companies in the same industry.
WIRE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. WIRE is cheaper than 81.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.5 | ||
| EV/EBITDA | 9.6 |
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
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 3.41.
With a Dividend Yield of 0.03, WIRE pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector 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.
The dividend of WIRE decreased in the last 3 years.
Dividend Growth(5Y)0.02%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
WIRE pays out 0.41% of its income as dividend. This is a sustainable payout ratio.
DP0.41%
EPS Next 2Y-1.42%
EPS Next 3YN/A
289.84
0.01 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners5.62%
Inst Owner Change0%
Ins Owners1.42%
Ins Owner ChangeN/A
Market Cap4.58B
Revenue(TTM)2.54B
Net Income(TTM)316.20M
Analysts84.44
Price Target295.8 (2.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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 Rank | Sector 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
Graham NumberN/A
Profitability
| Industry Rank | Sector 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%
ROICexgc growth 3Y36.81%
ROICexgc 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 Rank | Sector 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%
ENCORE WIRE CORP / WIRE FAQ
Can you provide the ChartMill fundamental rating for ENCORE WIRE CORP?
ChartMill assigns a fundamental rating of 7 / 10 to WIRE.
What is the valuation status for WIRE stock?
ChartMill assigns a valuation rating of 6 / 10 to ENCORE WIRE CORP (WIRE). This can be considered as Fairly Valued.
Can you provide the profitability details for ENCORE WIRE CORP?
ENCORE WIRE CORP (WIRE) has a profitability rating of 9 / 10.
What is the financial health of ENCORE WIRE CORP (WIRE) stock?
The financial health rating of ENCORE WIRE CORP (WIRE) is 10 / 10.
What is the earnings growth outlook for ENCORE WIRE CORP?
The Earnings per Share (EPS) of ENCORE WIRE CORP (WIRE) is expected to decline by -9.98% in the next year.