ENCORE WIRE CORP (WIRE) Stock Fundamental Analysis
NASDAQ:WIRE - Nasdaq - US2925621052 - Common Stock - Currency: USD
WIRE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 97 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. WIRE is not valued too expensively and it also shows a decent growth rate.
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.
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 better Return On Equity (17.44%) 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.
The Average Return On Invested Capital over the past 3 years for WIRE is significantly above the industry average of 9.66%.
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 has a Gross Margin (23.10%) which is in line with 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.
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
An Altman-Z score of 16.28 indicates that WIRE is not in any danger for 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.
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.
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.
With an excellent Quick ratio value of 6.46, WIRE belongs to the best 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.
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.
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-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.
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
WIRE is valuated correctly with a Price/Earnings ratio of 15.38.
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 24.21, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.92, the valuation of WIRE can be described as correct.
Based on the Price/Forward Earnings ratio, WIRE is valued cheaper than 86.05% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WIRE to the average of the S&P500 Index (20.44), we can say WIRE is valued slightly cheaper.
| 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 5.41.
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 paid a dividend for at least 10 years, which is 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
0.41% of the earnings are spent on dividend by WIRE. This is a low number and 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 Change-51.94%
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 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
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%
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 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%