289.84 USD
0.01 (0%)
289.81 USD
-0.03 (-0.01%)
WIRE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 91 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year WIRE was profitable.
- WIRE had a positive operating cash flow in the past year.
- 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.
1.2 Ratios
- WIRE has a Return On Assets of 15.49%. This is amongst the best in the industry. WIRE outperforms 96.51% of its industry peers.
- The Return On Equity of WIRE (17.44%) is better than 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 9.92%.
- 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 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 has a Profit Margin of 12.45%. This is amongst the best in the industry. WIRE outperforms 89.53% of its industry peers.
- In the last couple of years the Profit Margin of WIRE has grown nicely.
- With an excellent Operating Margin value of 14.96%, WIRE belongs to the best of the industry, outperforming 87.21% of the companies in the same industry.
- 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WIRE is creating value.
- Compared to 1 year 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.
2.2 Solvency
- WIRE has an Altman-Z score of 16.28. This indicates that WIRE is financially healthy and has little risk of 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 16.28 |
ROIC/WACC1.53
WACC10.27%
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 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.
- WIRE shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 41.86% yearly.
- WIRE shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -14.05%.
- 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.
- 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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- With a Price/Earnings ratio of 15.38, WIRE is valued correctly.
- Based on the Price/Earnings ratio, WIRE is valued cheaply inside the industry as 82.56% of the companies are valued more expensively.
- WIRE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 13.92, which indicates a correct valuation of WIRE.
- WIRE's Price/Forward Earnings ratio is rather cheap when compared to the industry. WIRE is cheaper than 86.05% of the companies in the same industry.
- WIRE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.38 | ||
| Fwd PE | 13.92 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WIRE is valued cheaper than 89.53% of the companies in the same industry.
- 81.40% of the companies in the same industry are more expensive than WIRE, based on the Price/Free Cash Flow ratio.
| 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
- WIRE has a yearly dividend return of 0.03%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.26, WIRE pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.03, WIRE pays less dividend than the S&P500 average, which is at 1.82.
| 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
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.
Can you provide the valuation status for ENCORE WIRE CORP?
ChartMill assigns a valuation rating of 6 / 10 to ENCORE WIRE CORP (WIRE). This can be considered as Fairly Valued.
How profitable is ENCORE WIRE CORP (WIRE) stock?
ENCORE WIRE CORP (WIRE) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for WIRE stock?
The Price/Earnings (PE) ratio for ENCORE WIRE CORP (WIRE) is 15.38 and the Price/Book (PB) ratio is 2.52.
How financially healthy is ENCORE WIRE CORP?
The financial health rating of ENCORE WIRE CORP (WIRE) is 10 / 10.