Encore Wire Corporation

NasdaqGS:WIRE 株式レポート

時価総額:US$4.6b

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

Encore Wire 過去の業績

過去 基準チェック /26

Encore Wireは、平均年間37.8%の収益成長を遂げていますが、 Electrical業界の収益は、年間 成長しています。収益は、平均年間17.7% 20%収益成長率で 成長しています。 Encore Wireの自己資本利益率は17.4%であり、純利益率は12.4%です。

主要情報

37.82%

収益成長率

40.62%

EPS成長率

Electrical 業界の成長9.91%
収益成長率19.97%
株主資本利益率17.44%
ネット・マージン12.45%
前回の決算情報31 Mar 2024

最近の業績更新

Recent updates

分析記事 May 23

Encore Wire Corporation's (NASDAQ:WIRE) Low P/E No Reason For Excitement

When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") above 18x, you may...
Seeking Alpha Apr 16

Encore Wire Merger Presents Interesting Proposition

Summary Encore Wire Corporation has agreed to be acquired by Prysmian S.p.A. for $290 per share, causing shares of Encore Wire to surge. The acquisition provides a strong margin of safety for shareholders, and there is potential upside with a go-shop period to solicit better offers. There are risks involved, including the possibility of litigation over whether this deal is fair to shareholders, with several law firms currently opening investigations. Read the full article on Seeking Alpha
分析記事 Apr 03

At US$262, Is It Time To Put Encore Wire Corporation (NASDAQ:WIRE) On Your Watch List?

Encore Wire Corporation ( NASDAQ:WIRE ), might not be a large cap stock, but it led the NASDAQGS gainers with a...
Seeking Alpha Feb 28

Encore Wire: Raising My Price Target To $300, As The Shorts Are Trapped

Summary Encore Wire has exceeded consensus estimates for FY 2023 Adj. EBITDA, with $517.1 million compared to the estimated $418 million. The short sellers of Encore Wire are trapped, with a remarkable 3,356,673 shares sold short as of February 15, 2024. Encore Wire has a low float of only 10 million shares, aggressive stock buybacks, no debt, and favorable industry conditions, making it a strong investment opportunity. Read the full article on Seeking Alpha
Seeking Alpha Feb 19

Encore Wire: Good Business, But No Longer A Value Play (Rating Downgrade)

Summary Encore Wire's stock has seen a significant increase in price, leading to a re-evaluation as a value investor. WIRE has seen declining earnings due to a cycle of contracting margins. Encore Wire is a good business with long-term potential, but at current share prices value investors should sell and seek better opportunities. Read the full article on Seeking Alpha
分析記事 Jan 05

Encore Wire Corporation's (NASDAQ:WIRE) Shares Lagging The Market But So Is The Business

With a price-to-earnings (or "P/E") ratio of 7.5x Encore Wire Corporation ( NASDAQ:WIRE ) may be sending very bullish...
分析記事 Dec 15

At US$210, Is Encore Wire Corporation (NASDAQ:WIRE) Worth Looking At Closely?

Encore Wire Corporation ( NASDAQ:WIRE ), might not be a large cap stock, but it received a lot of attention from a...
分析記事 Nov 08

Encore Wire (NASDAQ:WIRE) Could Become A Multi-Bagger

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...
分析記事 Oct 05

An Intrinsic Calculation For Encore Wire Corporation (NASDAQ:WIRE) Suggests It's 28% Undervalued

Key Insights Using the 2 Stage Free Cash Flow to Equity, Encore Wire fair value estimate is US$244 Encore Wire is...
分析記事 Aug 29

Is Now An Opportune Moment To Examine Encore Wire Corporation (NASDAQ:WIRE)?

Encore Wire Corporation ( NASDAQ:WIRE ), is not the largest company out there, but it received a lot of attention from...
分析記事 Jun 27

We Think Encore Wire (NASDAQ:WIRE) Might Have The DNA Of A Multi-Bagger

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...
分析記事 May 17

Why Encore Wire Corporation (NASDAQ:WIRE) Could Be Worth Watching

Encore Wire Corporation ( NASDAQ:WIRE ), is not the largest company out there, but it saw a decent share price growth...
分析記事 Apr 23

Estimating The Fair Value Of Encore Wire Corporation (NASDAQ:WIRE)

Key Insights Using the 2 Stage Free Cash Flow to Equity, Encore Wire fair value estimate is US$137 Current share price...
分析記事 Mar 24

Why We Like The Returns At Encore Wire (NASDAQ:WIRE)

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...
分析記事 Feb 18

New Forecasts: Here's What Analysts Think The Future Holds For Encore Wire Corporation (NASDAQ:WIRE)

Celebrations may be in order for Encore Wire Corporation ( NASDAQ:WIRE ) shareholders, with the analysts delivering a...
分析記事 Feb 15

What Does Encore Wire Corporation's (NASDAQ:WIRE) Share Price Indicate?

Encore Wire Corporation ( NASDAQ:WIRE ), is not the largest company out there, but it received a lot of attention from...
分析記事 Jan 24

We Ran A Stock Scan For Earnings Growth And Encore Wire (NASDAQ:WIRE) Passed With Ease

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even...
分析記事 Nov 17

Why Encore Wire Corporation (NASDAQ:WIRE) Could Be Worth Watching

Encore Wire Corporation ( NASDAQ:WIRE ), is not the largest company out there, but it led the NASDAQGS gainers with a...
分析記事 Oct 24

Do Encore Wire's (NASDAQ:WIRE) Earnings Warrant Your Attention?

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks...
Seeking Alpha Oct 04

Encore Wire Corporation: Still Extremely Undervalued

Summary Encore Wire Corporation is extremely cheap through conservative DCF analysis. They have zero debt, share repurchases, perfect financials and fundamentals. Encore has diverse and patented products, providing value to multiple high-growth industries. Risks in heavy stock ownership and short term copper industry are outweighed by positives. Thesis Encore Wire Corporation (WIRE) is a strong buy despite some bearish cases on short-term copper prices. Through a diverse product line, they reach multiple high growth industries and are extremely cheap through a conservative discounted cash flow ("DCF") analysis. Furthermore, they have zero debt, share repurchases, perfect financials, fundamentals, and are outperforming competition. Risks are present, but there are too many positives going for them. Company Encore Wire Corporation is a low-cost manufacturer of electrical building wire and cable with a significant supply base for interior electrical wiring in commercial, industrial buildings, homes, apartments, manufactured housing, and data centers. Primary customers are distributors and contractors with three whom represent slightly more than ten percent of sales. They pride themselves on customer service with industry-leading fill rate and product innovation by bringing new ideas to copper commodities, including patented SmartColor ID® system, PullPro®, and Reel Payoff® solutions. They also exhibit low-cost production with efficient plant design and an incentivized work force. They are around a thousand employees-strong with majority hourly wage recipients, in which the company focuses heavily on employee compensation. Raw material inputs include copper cathode, copper scrap, PVC thermoplastic compounds, XLPE compounds, aluminum, steel, paper and nylon with the majority of dollar value compounds coming from copper. Insulation raw materials are comprised of pvc resin, clay, and plasticizer. Competitors include Southwire Company, Cerro Wire LLC, General Cable (a company of the Prysmian Group) and AFC Cable Systems, Inc. The company operates in a cyclical industry in residential, commercial, and industrial construction, noting that remodeling activity trends up as new construction slows down. A small company with a small percentage of salary employees means they rely heavily on senior management with no assurance the company will retain key managerial positions. Furthermore, a small number of stockholders own a third of the company, which means a massive selloff could disrupt stock price. Overall, WIRE is bringing a modernized approach to a "boring" industry with further analysis proving it is working perfectly and extremely undervalued. Industry A macro level outlook of copper commodities seems bleak in the short term, but will see excellent growth in the next ten years due to the several different industries demanding these materials. WIRE highlights six key industries in which their product will be used: Data Centers, Renewables, Healthcare, Commercial, Industrial, and Residential with heavy focus on Solar, EV, Petrochemical, Water Waste, and Battery Storage markets. There is no need to overcomplicate the demand for such products, since copper's physical properties and applications aren't quite matched by other materials. Though cyclical in nature, I don't see copper being phased out within ten years and expect to see great demand with such markets over the long term. Financials WIRE valuation metrics are unmatched besides a pretty much nonexistent dividend. However, this is a value and growth play in my opinion, so dividends are not on my radar. Earnings have blasted through expectations, and value compared to similar companies is winning by a landslide. Profits and financials are unparalleled, and even their balance sheet contains no debt and they continue to buy back shares. From a strictly numbers standpoint, this company couldn't be performing any better. Valuation A fair value of $123 per share was calculated by a Ten-Year, Unlevered DCF analysis using CAPM and WACC as a discount and averaging a worst case, best case, and normal case scenarios. Revenue and EBIT projections were used from average results of sixteen analysts for 2022 and 2023 from Financial Modeling Prep. Personal projections were used thereafter with the following extremely conservative assumptions: Revenue
Seeking Alpha Sep 15

Encore Wire: Copper Prices Will Remain Elevated Despite The Fed's Best Efforts

Summary A friendly reminder that WIRE will be reporting FQ3'22 earnings on 25 October 2022. Copper prices will likely remain elevated, due to massive global demand in the EV and green energy markets for the next few years, especially in China. The bear market will only worsen over the next few weeks, as the Fed is poised to announce a 75 basis point hike on 20 September. Investors may potentially see $100s levels soon, though current prices look attractive enough for speculative long-term investing. Investment Thesis Encore Wire Corporation (WIRE) has a long runway for growth, given the robust demand in the data center, EV, and green energy sectors. The global data center industry is expected to grow by $615.96B through 2026 at an impressive CAGR of 21.98%, with 35% attributed to the North American market. In addition, the US EV market is expected to grow tremendously from $28.04B in 2021 to $137.4B in 2028 at a CAGR of 25.4%, with the US renewable market projected to grow from 826B kWh generation in 2021 to 1170B kWh in 2027 at a CAGR of 6%. Combined with WIRE's elevated inventory levels of $121.42M in FQ2'22, representing an increase of 4.3% QoQ and 38.1% YoY, we expect to see improved sales ahead indeed as demand continues to outstrip supply. Though there are some concerns about the drastic fall in copper prices thus far, we must also remind investors that current levels still represent notable increases from pre-pandemic levels by over 25%. Thereby, further contributing to WIRE's improved financial performance over the next few quarters during a bear market condition, if not years, once the macroeconomics improves by 2024, leading to a potential bull run market between 2009 and 2019. WIRE Is Bound For Success Post Reopening Cadence S&P Capital IQ In the last twelve months (LTM), WIRE reported excellent revenues of $2.96B and gross margins of 36.1%, representing YoY growth of 14.2% and 2.6 percentage points, respectively, despite the rising inflation and global supply chain issues. This has directly contributed to its improved profitability, with net incomes of $0.68B and net income margins of 23.2% at the same time, indicating an increase of 25.9% and 2.3 percentage points YoY, respectively. S&P Capital IQ Therefore, we are not surprised by WIRE's improved Free Cash Flow ("FCF") generation, with an FCF of $0.48B and an FCF margin of 16.4% in the LTM, representing an excellent increase of 62.4% and 4.8 percentage points YoY, respectively. With further investments in its business and 1.1M of shares repurchased by H1'22, the company continues to report robust cash and equivalents of $0.46B in the latest quarter. Thereby, indicating its massive liquidity ahead, despite the worsening macroeconomics and its zero reliance on debts. S&P Capital IQ WIRE's management also took the chance to re-invest into the business, with increased capital expenditures of $134.7M to net PPE assets of $0.56B in the LTM. A total of $170M in Capex is also planned for FY2022 indicating an increase of 43.7% YoY, with another $170M planned in 2023 and $100M in 2024. Thereby, further expanding the company's production capacity and output, which will prove to be top and bottom lines accretive as copper prices continue to be elevated compared to pre-pandemic levels. Copper Prices Trading Economics On the other side of the world, there are reports of a 26% YoY increase in copper imports for August in China, possibly attributed to the lower prices compared to 2021 highs. However, we are more optimistic, since the country is expected to install a record high of 157 GWs of green energies from wind turbines and solar panels in 2022, representing a notable increase of 25% YoY from last year's previous record. In addition, a total of 1,200 GW of wind and solar installation in China is planned by the end of the decade. Fun fact, the US government planned 207 GW of solar energy and 73.4 GW of wind energy installation over the next five years. As a result, given that China is the largest importer of copper, accounting for 60.7% of global needs in 2021, with the first eight months of 2022 already reporting an 8.1% increase YoY, we expect to see current copper prices holding for a little longer. Thereby, contributing to WIRE's sustained performance ahead. WIRE's Fundamental Performance Remains Intact For Now S&P Capital IQ Over the next two years, WIRE is expected to report an adj. revenue and an adj. net income growth at a CAGR of 18.80% and 50.90%, respectively, between FY2019 and FY2023. It is apparent that consensus estimates are very optimistic about its forward execution, given the improvement in its net income margins from 4.6% in FY2019, 20.9% in FY2021, and finally settling at 11.88% by FY2023. In the meantime, WIRE is expected to report revenues of $2.89B and net incomes of $606.8M in FY2022, representing stellar YoY growth of 11.54% and 12.07%, respectively, despite the tougher YoY comparison. With projected net income margins of 20.98% in FY2022, it is unlikely that we will see a drastic fall in its stock valuations to pre-pandemic levels. For FQ3'22, analysts are projecting revenues of $0.69B and EPS of $6.82, representing a YoY decline of -3.24% and -19.92%, respectively. However, it is important to note that this fall is only attributed to the lower copper prices, instead of the company's fundamental performance.
分析記事 Aug 16

At US$131, Is It Time To Put Encore Wire Corporation (NASDAQ:WIRE) On Your Watch List?

Encore Wire Corporation ( NASDAQ:WIRE ), is not the largest company out there, but it led the NASDAQGS gainers with a...
Seeking Alpha Aug 10

Encore Wire: Ride The Energy Transition With A Boring Business

Demand for copper wire is gaining strength as the demand for electricity rapidly increases. Thanks to their integrated business model, Encore Wire has been very effective at controlling costs. The benefits of a strong balance sheet with zero long-term debt will be amplified in a high interest rate environment. Investment Thesis Encore Wire (WIRE) is a low-cost manufacturer of electrical building wire and cable. They are a significant supplier of building wire (copper and aluminum) for commercial, industrial, and residential buildings. Thanks to their vertically integrated business model and efficient manufacturing processes, they hold an industry-leading fill rate and have been meeting the rising demand for electric wire. Many industries (data center, renewables, EV charging, and healthcare) are driving this trend, and I believe Encore is an excellent investment choice for the long-term investor. The following are the main reasons: Demand for electrical wire will continue to substantially increase, driven by a multitude of sources (data center, renewable, healthcare, residential, and EV infrastructure). Encore's business model and manufacturing efficiency is enabling them to meet the strong demand, while still managing costs very effectively. A superb balance sheet with zero long term debt provides stability and a competitive edge during an environment of high interest rates. Multifaceted Demand Drivers As we all know, the demand for electricity has been steadily rising, and that trend brings a relentlessly rising demand for electric wire. On top of growth from traditional commercial, industrial, and residential building applications, several new trends are boosting demand even further. The proliferation of data centers is a recent trend that contributes to rising demand for wire. Many companies now appreciate the power of large data and artificial intelligence, and are building out powerful data centers. These data centers consume a great deal of energy, requiring a large amount of electrical wire. Also, renewable energy sources such as solar and wind require substantial electric wirings, and the Senate's recent bill will further fuel the construction of renewable energy plants. Additionally, the ongoing EV transition demands wires for its infrastructure (EV charging stations, larger distribution capacity, and battery storage). All of these sources will contribute to long-lasting growth for Encore Wire. Demand Drivers for Encore (Encore Investor Relations) Energy Usage in Information and Communication Technology Sector (AKCP) Strong Cost Control Encore has a vertically integrated business model, which means they own most of their supply chain from raw material to delivery, along with a highly efficient manufacturing site. These two factors have contributed to a superb gross margin throughout their history, and have been accentuated over the past couple of years. The sharply rising demand, along with constraints in the supply chain, have caused prices on both raw materials and finished electrical wires to increase significantly in the past couple of years. While many of Encore's competitors have struggled, Encore has actually thrived in this environment. Their strong logistics, supply chain, and operations not only allowed them to control costs, but also enhanced their gross margin. With several planned CAPEX investments (new service center, expansion of manufacturing capacity, and modernization of facilities) on the horizon, I expect Encore to maintain these competitive advantages. Gross margin of Encore (Encore Investor Relations) Strong Balance Sheet To fight inflation, the Federal Reserve has been raising interest rates. This environment typically brings challenges for companies with weak financial security. Interest payments increase and chew on the profit margin. Meanwhile, a recessionary environment causes the availability of capital on the market to shrink. Encore Wire won't have these challenges because they carry zero long-term debt and $469 M cash on hand. Also, their revolving line of credit remains untapped. Therefore, rising interest rates won't reduce their profit margin, so Encore shouldn't run into issues in executing their CAPEX plan. Intrinsic Value Estimation Since my last article, Encore's business grew substantially, and their cash flow has improved. I updated my DCF model to estimate a new intrinsic value. For the estimation, I utilized the free cash flow ($368 M) and current WACC of 8.0% as the discount rate. For the base case, I assumed free cash flow growth of 10% (long term EPS growth expectation) for the next 5 years and zero growth afterwards (zero terminal growth). For the bullish and very bullish case, I assumed operating cash flow growth of 12% and 14%, respectively, for the next 5 years and zero growth afterwards. The estimation showed that the current stock is severely undervalued. With multifaceted growth drivers, a strong balance sheet, and superb business model, I expect Wire to achieve a great upside in the long run. Price Target Upside Base Case $253.89 107% Bullish Case $273.28 122% Very Bullish Case $294.00 139% The assumptions and data used for the price target estimation are summarized below: WACC: 8.0% Cash Flow Growth Rate: 10% (Base Case), 12% (Bullish Case), 14% (Very Bullish Case) Current Free Cash Flow: $368 M Current Stock Price: $122.89 (08/08/2022) Tax rate: 20% Separately, I performed a downside calculation based on Encore's beta (1.27) using S&P 500's standard deviation (~6%, past 12 month). This calculation suggests a potential downside of -16% (with 95% confidence level). The take home is that the potential upside here is much greater than the potential downside. Cappuccino Stock Rating Weighting WIRE Economic Moat Strength 30% 4 Financial Strength 30% 5 Growth Rate vs. Sector 15% 4 Margin of Safety 15% 5 Sector Outlook 10% 4 Overall 4.5 Economic Moat Strength (4/5)
分析記事 Jul 26

Is Now The Time To Put Encore Wire (NASDAQ:WIRE) On Your Watchlist?

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks...

収支内訳

Encore Wire の稼ぎ方とお金の使い方。LTMベースの直近の報告された収益に基づく。


収益と収入の歴史

NasdaqGS:WIRE 収益、費用、利益 ( )USD Millions
日付収益収益G+A経費研究開発費
31 Mar 242,5403162080
31 Dec 232,5683722060
30 Sep 232,6284602050
30 Jun 232,7535702080
31 Mar 232,9556762200
31 Dec 223,0187181970
30 Sep 223,0127051940
30 Jun 222,9656891830
31 Mar 222,8726621740
31 Dec 212,5935411690
30 Sep 212,2864241440
30 Jun 211,9092691260
31 Mar 211,418991060
31 Dec 201,27776970
30 Sep 201,19863920
30 Jun 201,18058890
31 Mar 201,26363920
31 Dec 191,27558940
30 Sep 191,29273930
30 Jun 191,31280950
31 Mar 191,31280920
31 Dec 181,28978900
30 Sep 181,27082880
30 Jun 181,22272830
31 Mar 181,17665810
31 Dec 171,16467770
30 Sep 171,10250740
30 Jun 171,04742730
31 Mar 1799539710
31 Dec 1694134690
30 Sep 1695233690
30 Jun 1697842670
31 Mar 1699345660
31 Dec 151,01848640
30 Sep 151,05242660
30 Jun 151,08738670
31 Mar 151,14037690
31 Dec 141,16737690
30 Sep 141,17543670
30 Jun 141,18846670
31 Mar 141,17051650
31 Dec 131,15847640
30 Sep 131,12341630

質の高い収益: WIREは 高品質の収益 を持っています。

利益率の向上: WIREの現在の純利益率 (12.4%)は、昨年(22.9%)よりも低くなっています。


フリー・キャッシュフローと収益の比較


過去の収益成長分析

収益動向: WIREの収益は過去 5 年間で年間37.8%増加しました。

成長の加速: WIREは過去 1 年間の収益成長がマイナスであったため、5 年間の平均と比較することはできません。

収益対業界: WIREは過去 1 年間で収益成長率がマイナス ( -53.2% ) となったため、 Electrical業界平均 ( 26.1% ) と比較することが困難です。


株主資本利益率

高いROE: WIREの 自己資本利益率 ( 17.4% ) は 低い とみなされます。


総資産利益率


使用総資本利益率


過去の好業績企業の発掘

企業分析と財務データの現状

データ最終更新日(UTC時間)
企業分析2024/07/03 11:29
終値2024/07/03 00:00
収益2024/03/31
年間収益2023/12/31

データソース

企業分析に使用したデータはS&P Global Market Intelligence LLC のものです。本レポートを作成するための分析モデルでは、以下のデータを使用しています。データは正規化されているため、ソースが利用可能になるまでに時間がかかる場合があります。

パッケージデータタイムフレーム米国ソース例
会社財務10年
  • 損益計算書
  • キャッシュ・フロー計算書
  • 貸借対照表
アナリストのコンセンサス予想+プラス3年
  • 予想財務
  • アナリストの目標株価
市場価格30年
  • 株価
  • 配当、分割、措置
所有権10年
  • トップ株主
  • インサイダー取引
マネジメント10年
  • リーダーシップ・チーム
  • 取締役会
主な進展10年
  • 会社からのお知らせ

* 米国証券を対象とした例であり、非米国証券については、同等の規制書式および情報源を使用

特に断りのない限り、すべての財務データは1年ごとの期間に基づいていますが、四半期ごとに更新されます。これは、TTM(Trailing Twelve Month)またはLTM(Last Twelve Month)データとして知られています。詳細はこちら

分析モデルとスノーフレーク

本レポートを生成するために使用した分析モデルの詳細は当社のGithubページでご覧いただけます。また、レポートの使用方法に関するガイドYoutubeのチュートリアルも掲載しています。

シンプリー・ウォールストリート分析モデルを設計・構築した世界トップクラスのチームについてご紹介します。

業界およびセクターの指標

私たちの業界とセクションの指標は、Simply Wall Stによって6時間ごとに計算されます。

アナリスト筋

Encore Wire Corporation 1 これらのアナリストのうち、弊社レポートのインプットとして使用した売上高または利益の予想を提出したのは、 。アナリストの投稿は一日中更新されます。8

アナリスト機関
Liam BurkeBrean Capital Historical (Janney Montgomery)
Christopher MooreCJS Securities, Inc.
Brent ThielmanD.A. Davidson & Co.