ENCORE WIRE CORP (WIRE) Fundamental Analysis & Valuation

NASDAQ:WIRE • US2925621052

289.84 USD
0.01 (0%)
At close: Jul 1, 2024
289.81 USD
-0.03 (-0.01%)
After Hours: 7/1/2024, 8:09:14 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This WIRE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

7

Overall WIRE gets a fundamental rating of 7 out of 10. We evaluated WIRE against 91 industry peers in the Electrical Equipment industry. WIRE scores excellent points on both the profitability and health parts. This is a solid base for a good stock. WIRE has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

9

1. WIRE Profitability Analysis

1.1 Basic Checks

  • WIRE had positive earnings in the past year.
  • WIRE had a positive operating cash flow in the past year.
  • Each year in the past 5 years WIRE has been profitable.
  • 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 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.
  • WIRE's Return On Invested Capital of 15.67% is amongst the best of the industry. WIRE outperforms 95.35% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for WIRE is significantly above the industry average of 9.57%.
  • 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 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 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30 40

1.3 Margins

  • WIRE has a better Profit Margin (12.45%) than 89.53% of its industry peers.
  • In the last couple of years the Profit Margin of WIRE has grown nicely.
  • 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.
  • WIRE has a Gross Margin of 23.10%. This is comparable 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 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 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30

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ROAROEROICOperating and Profit MarginShow most profitable peers

10

2. WIRE Health Analysis

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.
  • WIRE has less shares outstanding than it did 1 year 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 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 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.
  • With an excellent Altman-Z score value of 16.28, WIRE belongs to the best of the industry, outperforming 96.51% of the companies in the same industry.
  • 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 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B

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.
  • 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.
  • The Quick ratio of WIRE (6.46) is better than 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 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. WIRE Growth Analysis

3.1 Past

  • WIRE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -46.84%.
  • The Earnings Per Share has been growing by 41.86% on average over the past years. This is a very strong growth
  • 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

  • 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 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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Find the best growth stocksShow best growing peers

6

4. WIRE Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 15.38, which indicates a correct valuation of WIRE.
  • Based on the Price/Earnings ratio, WIRE is valued cheaper than 82.56% of the companies in the same industry.
  • WIRE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.29.
  • A Price/Forward Earnings ratio of 13.92 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 is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.60, 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 20 40 60 80

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, WIRE is valued cheaply inside the industry as 89.53% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, WIRE is valued cheaply inside the industry as 81.40% of the companies are valued more expensively.
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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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. WIRE Dividend Analysis

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 0.26.
  • Compared to an average S&P500 Dividend Yield of 1.82, 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 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 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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WIRE Fundamentals: All Metrics, Ratios and Statistics

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
Earnings (Next)07-23
Inst Owners5.62%
Inst Owner Change0%
Ins Owners1.42%
Ins Owner Change0%
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 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
Graham NumberN/A
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%
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 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%

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.