ENCORE WIRE CORP (WIRE)
US2925621052 - Common Stock
Taking everything into account, WIRE scores 7 out of 10 in our fundamental rating. WIRE was compared to 87 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 has a decent growth rate and is not valued too expensively.
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.
In the past 5 years WIRE has always been profitable.
Each year in the past 5 years WIRE had a positive operating cash flow.
1.2 Ratios
WIRE's Return On Assets of 18.92% is amongst the best of the industry. WIRE outperforms 97.65% of its industry peers.
With an excellent Return On Equity value of 21.31%, WIRE belongs to the best of the industry, outperforming 92.94% of the companies in the same industry.
WIRE has a Return On Invested Capital of 19.29%. This is amongst the best in the industry. WIRE outperforms 96.47% 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 10.32%.
The 3 year average ROIC (32.07%) for WIRE is well above the current ROIC(19.29%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.92% | ||
| ROE | 21.31% | ||
| ROIC | 19.29% |
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 14.50%. This is amongst the best in the industry. WIRE outperforms 92.94% of its industry peers.
In the last couple of years the Profit Margin of WIRE has grown nicely.
Looking at the Operating Margin, with a value of 17.58%, WIRE belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
WIRE's Operating Margin has improved in the last couple of years.
WIRE has a Gross Margin (25.54%) which is comparable to the rest of the industry.
WIRE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.58% | ||
| PM (TTM) | 14.5% | ||
| GM | 25.54% |
OM growth 3Y32.04%
OM growth 5Y17.89%
PM growth 3Y34.51%
PM growth 5Y19.04%
GM growth 3Y18.81%
GM growth 5Y11.65%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WIRE is creating value.
The number of shares outstanding for WIRE has been reduced compared to 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.
2.2 Solvency
WIRE has an Altman-Z score of 16.62. This indicates that WIRE is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 16.62, WIRE belongs to the best of the industry, outperforming 96.47% of the companies in the same industry.
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 | 16.62 |
ROIC/WACC1.88
WACC10.26%
2.3 Liquidity
A Current Ratio of 7.56 indicates that WIRE has no problem at all paying its short term obligations.
WIRE has a better Current ratio (7.56) than 91.76% of its industry peers.
WIRE has a Quick Ratio of 6.54. This indicates that WIRE is financially healthy and has no problem in meeting its short term obligations.
WIRE has a Quick ratio of 6.54. This is amongst the best in the industry. WIRE outperforms 92.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.56 | ||
| Quick Ratio | 6.54 |
3. Growth
3.1 Past
WIRE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.96%.
The Earnings Per Share has been growing by 41.86% on average over the past years. This is a very strong growth
WIRE shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -14.91%.
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)-41.96%
EPS 3Y79.91%
EPS 5Y41.86%
EPS growth Q2Q-50.48%
Revenue 1Y (TTM)-14.91%
Revenue growth 3Y26.22%
Revenue growth 5Y14.78%
Revenue growth Q2Q-8.66%
3.2 Future
Based on estimates for the next years, WIRE will show a decrease in Earnings Per Share. The EPS will decrease by -7.35% on average per year.
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-20.18%
EPS Next 2Y-7.35%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.2%
Revenue Next 2Y0.85%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.26 indicates a correct valuation of WIRE.
Based on the Price/Earnings ratio, WIRE is valued cheaper than 87.06% 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 25.20.
Based on the Price/Forward Earnings ratio of 16.61, the valuation of WIRE can be described as correct.
WIRE's Price/Forward Earnings ratio is rather cheap when compared to the industry. WIRE is cheaper than 82.35% of the companies in the same industry.
WIRE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.26 | ||
| Fwd PE | 16.61 |
4.2 Price Multiples
WIRE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WIRE is cheaper than 91.76% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WIRE is valued cheaply inside the industry as 89.41% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.42 | ||
| EV/EBITDA | 8.06 |
4.3 Compensation for Growth
The excellent profitability rating of WIRE may justify a higher PE ratio.
WIRE's earnings are expected to decrease with -7.35% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.32
EPS Next 2Y-7.35%
EPS Next 3YN/A
5. Dividend
5.1 Amount
WIRE has a yearly dividend return of 0.03%, which is pretty low.
WIRE's Dividend Yield is a higher than the industry average which is at 2.50.
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.
WIRE has decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.02%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
0.37% of the earnings are spent on dividend by WIRE. This is a low number and sustainable payout ratio.
DP0.37%
EPS Next 2Y-7.35%
EPS Next 3YN/A
ENCORE WIRE CORP
NASDAQ:WIRE (4/25/2024, 7:25:26 PM)
After market: 284.06 0 (0%)284.06
+1.65 (+0.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.48B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.03% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.26 | ||
| Fwd PE | 16.61 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.92% | ||
| ROE | 21.31% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.58% | ||
| PM (TTM) | 14.5% | ||
| GM | 25.54% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 7.56 | ||
| Quick Ratio | 6.54 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-41.96%
EPS 3Y79.91%
EPS 5Y
EPS growth Q2Q
EPS Next Y-20.18%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-14.91%
Revenue growth 3Y26.22%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y