ENCORE WIRE CORP (WIRE)

US2925621052 - Common Stock

280.57  -1.43 (-0.51%)

After market: 280.57 0 (0%)

Fundamental Rating

7

Overall WIRE gets a fundamental rating of 7 out of 10. We evaluated WIRE against 86 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.



9

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 has a Return On Assets of 15.49%. This is amongst the best in the industry. WIRE outperforms 96.47% of its industry peers.
WIRE has a better Return On Equity (17.44%) than 87.06% of its industry peers.
WIRE's Return On Invested Capital of 15.67% is amongst the best of the industry. WIRE outperforms 95.29% 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 10.94%.
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 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%

1.3 Margins

With an excellent Profit Margin value of 12.45%, WIRE belongs to the best of the industry, outperforming 89.41% of the companies in the same industry.
WIRE's Profit Margin has improved in the last couple of years.
WIRE's Operating Margin of 14.96% is amongst the best of the industry. WIRE outperforms 88.24% of its industry peers.
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 52.94% of its industry peers.
WIRE's Gross Margin has improved in the last couple of years.
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%

10

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.
WIRE has less shares outstanding than it did 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 15.89 indicates that WIRE is not in any danger for bankruptcy at the moment.
WIRE has a Altman-Z score of 15.89. This is amongst the best in the industry. WIRE outperforms 98.82% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 15.89
ROIC/WACC1.45
WACC10.8%

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.
The Current ratio of WIRE (7.49) is better than 92.94% 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.
WIRE has a Quick ratio of 6.46. This is amongst the best in the industry. WIRE outperforms 94.12% of its industry peers.
Industry RankSector Rank
Current Ratio 7.49
Quick Ratio 6.46

4

3. Growth

3.1 Past

The earnings per share for WIRE have decreased strongly by -46.84% in the last year.
Measured over the past years, WIRE shows a very strong growth in Earnings Per Share. The EPS has been growing by 41.86% on average per year.
The Revenue for WIRE has decreased by -14.05% in the past year. This is quite bad
WIRE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.78% yearly.
EPS 1Y (TTM)-46.84%
EPS 3Y79.91%
EPS 5Y41.86%
EPS growth Q2Q-39.69%
Revenue 1Y (TTM)-14.05%
Revenue growth 3Y26.22%
Revenue growth 5Y14.78%
Revenue growth 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 -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

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.

6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 14.88 indicates a correct valuation of WIRE.
Compared to the rest of the industry, the Price/Earnings ratio of WIRE indicates a rather cheap valuation: WIRE is cheaper than 83.53% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.60. WIRE is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 15.25, WIRE is valued correctly.
83.53% of the companies in the same industry are more expensive than WIRE, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.15. WIRE is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 14.88
Fwd PE 15.25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, WIRE is valued cheaper than 89.41% 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 82.35% of the companies in the same industry.
Industry RankSector Rank
P/FCF 17.9
EV/EBITDA 9.24

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)0.36
EPS Next 2Y-7.35%
EPS Next 3YN/A

4

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 2.22, 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 2.32.
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 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-7.35%
EPS Next 3YN/A

ENCORE WIRE CORP

NASDAQ:WIRE (5/17/2024, 7:00:03 PM)

After market: 280.57 0 (0%)

280.57

-1.43 (-0.51%)

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 Cap4.43B
Analysts
Price Target
Dividend
Industry RankSector 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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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 RankSector Rank
PE 14.88
Fwd PE 15.25
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)0.36
Profitability
Industry RankSector Rank
ROA 15.49%
ROE 17.44%
ROCE
ROIC
ROICexc
ROICexgc
OM 14.96%
PM (TTM) 12.45%
GM 23.1%
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 Turnover1.24
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 7.49
Quick Ratio 6.46
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)-46.84%
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)-14.05%
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