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ENCORE WIRE CORP (WIRE) Stock Fundamental Analysis

USA - NASDAQ:WIRE - US2925621052 - Common Stock

289.84 USD
0.01 (0%)
Last: 7/1/2024, 8:09:14 PM
289.81 USD
-0.03 (-0.01%)
After Hours: 7/1/2024, 8:09:14 PM
Fundamental Rating

7

Overall WIRE gets a fundamental rating of 7 out of 10. We evaluated WIRE against 92 industry peers in the Electrical Equipment industry. Both the health and profitability get an excellent rating, making WIRE a very profitable company, without any liquidiy or solvency issues. WIRE is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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9

1. Profitability

1.1 Basic Checks

In the past year WIRE was profitable.
In the past year WIRE had a positive cash flow from operations.
WIRE had positive earnings in each of the past 5 years.
Each year in the past 5 years WIRE had a positive operating cash flow.
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

With an excellent Return On Assets value of 15.49%, WIRE belongs to the best of the industry, outperforming 96.51% of the companies in the same industry.
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.
With an excellent Return On Invested Capital value of 15.67%, WIRE belongs to the best of the industry, outperforming 95.35% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WIRE is significantly above the industry average of 9.86%.
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

WIRE's Profit Margin of 12.45% is amongst the best of the industry. WIRE outperforms 89.53% of its industry peers.
WIRE's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 14.96%, WIRE belongs to the top of the industry, outperforming 87.21% of the companies in the same industry.
In the last couple of years the Operating Margin of WIRE has grown nicely.
With a Gross Margin value of 23.10%, WIRE perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Gross Margin of WIRE has grown nicely.
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

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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.
WIRE has less shares outstanding than it did 1 year ago.
The number of shares outstanding for WIRE has been reduced compared to 5 years ago.
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.
The Altman-Z score of WIRE (16.28) is better than 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 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.
WIRE has a Quick Ratio of 6.46. This indicates that WIRE is financially healthy and has no problem in meeting 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 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

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4

3. Growth

3.1 Past

The earnings per share for WIRE have decreased strongly by -46.84% in the last year.
WIRE shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 41.86% yearly.
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

Based on estimates for the next years, WIRE will show a decrease in Earnings Per Share. The EPS will decrease by -1.42% on average per year.
WIRE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.06% yearly.
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.
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

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6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 15.38, the valuation of WIRE can be described as correct.
82.56% of the companies in the same industry are more expensive than WIRE, based on the Price/Earnings ratio.
WIRE is valuated rather cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.92, WIRE is valued correctly.
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 is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.71, which is the current average of the S&P500 Index.
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

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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 3.03.
Compared to an average S&P500 Dividend Yield of 2.38, 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.
The dividend of WIRE decreased 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

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
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

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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 Change-100%
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%