ENCORE WIRE CORP (WIRE)
US2925621052 - Common Stock
We assign a fundamental rating of 7 out of 10 to WIRE. WIRE was compared to 93 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 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.
WIRE had a positive operating cash flow in the past year.
Each year in the past 5 years WIRE has been profitable.
In the past 5 years WIRE always reported a positive cash flow from operatings.
1.2 Ratios
WIRE has a better Return On Assets (15.49%) than 96.51% of its industry peers.
With an excellent Return On Equity value of 17.44%, WIRE belongs to the best of the industry, outperforming 88.37% of the companies in the same industry.
With an excellent Return On Invested Capital value of 15.67%, WIRE belongs to the best of the industry, outperforming 95.35% of the companies in the same industry.
WIRE had an Average Return On Invested Capital over the past 3 years of 32.07%. This is significantly above the industry average of 11.08%.
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
Looking at the Profit Margin, with a value of 12.45%, WIRE belongs to the top of the industry, outperforming 89.53% of the companies in the same industry.
WIRE's Profit Margin has improved in the last couple of years.
The Operating Margin of WIRE (14.96%) is better than 87.21% of its industry peers.
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
WIRE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, WIRE has less shares outstanding
Compared to 5 years ago, WIRE has less shares outstanding
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
An Altman-Z score of 16.28 indicates that WIRE is not in any danger for 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.
With an excellent Current ratio value of 7.49, WIRE belongs to the best of the industry, outperforming 93.02% of the companies in the same industry.
A Quick Ratio of 6.46 indicates that WIRE has no problem at all paying 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.
WIRE shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -14.05%.
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 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
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.
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
A Price/Earnings ratio of 15.38 indicates a correct valuation of WIRE.
WIRE's Price/Earnings ratio is rather cheap when compared to the industry. WIRE is cheaper than 82.56% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.41, WIRE is valued a bit cheaper.
With a Price/Forward Earnings ratio of 13.92, WIRE is valued correctly.
Based on the Price/Forward Earnings ratio, WIRE is valued cheaply inside the industry as 86.05% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.59, WIRE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.38 | ||
| Fwd PE | 13.92 |
4.2 Price Multiples
89.53% of the companies in the same industry are more expensive than WIRE, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WIRE indicates a rather cheap valuation: WIRE is cheaper than 81.40% of the companies listed 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
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 2.44.
Compared to an average S&P500 Dividend Yield of 2.30, 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.
The dividend of WIRE decreased 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
ENCORE WIRE CORP
NASDAQ:WIRE (7/1/2024, 7:09:14 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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.58B
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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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 | 15.38 | ||
| Fwd PE | 13.92 | ||
| 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)0.37
Profitability
| Industry Rank | Sector 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 Rank | Sector 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-46.84%
EPS 3Y79.91%
EPS 5Y
EPS Q2Q%
EPS Next Y-9.98%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-14.05%
Revenue growth 3Y26.22%
Revenue growth 5Y
Sales 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