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 94 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.
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
The Return On Assets of WIRE (15.49%) is better than 96.51% of its industry peers.
Looking at the Return On Equity, with a value of 17.44%, WIRE belongs to the top of the industry, outperforming 88.37% of the companies in the same industry.
WIRE's Return On Invested Capital of 15.67% is amongst the best of the industry. WIRE outperforms 95.35% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WIRE is significantly above the industry average of 9.87%.
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 better Profit Margin (12.45%) than 89.53% of its industry peers.
WIRE's Profit Margin has improved in the last couple of years.
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.
In the last couple of years the Operating Margin of WIRE has grown nicely.
The Gross Margin of WIRE (23.10%) is comparable to the rest of the industry.
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
WIRE has less shares outstanding than it did 5 years ago.
WIRE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 16.28 |
ROIC/WACC1.53
WACC10.27%
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 has a Current ratio of 7.49. This is amongst the best in 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.
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
WIRE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -46.84%.
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%.
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
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
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's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.55.
Based on the Price/Forward Earnings ratio of 13.92, the valuation of WIRE can be described as correct.
86.05% of the companies in the same industry are more expensive than WIRE, based on the Price/Forward Earnings ratio.
WIRE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.30, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.38 | ||
| Fwd PE | 13.92 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WIRE indicates a rather cheap valuation: WIRE is cheaper than 89.53% of the companies listed in the same industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.5 | ||
| EV/EBITDA | 9.6 |
4.3 Compensation for Growth
The excellent profitability rating of WIRE 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 4.28, WIRE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, WIRE's dividend is way lower than the S&P500 average.
| 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
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
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-52.56%
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%