NasdaqGS:HWCC

Stock Analysis Report

Executive Summary

Houston Wire & Cable Company, through its subsidiaries, sells electrical and mechanical wire and cable, industrial fasteners, hardware, and related services in the United States.

Rewards

PE ratio (13.5x) is below the US market (18.4x)

Risk Analysis

Earnings have declined by -11.78% per year over past 5 years

Debt is not well covered by operating cash flow

Large one-off items impacting financial results

Profit margins (1.4%) are lower than last year (2.6%)

+ 1 more risk


Snowflake Analysis

Fair value with mediocre balance sheet.


Similar Companies

Fastenal

NasdaqGS:FAST

Share Price & News

How has Houston Wire & Cable's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HWCC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.8%

HWCC

2.9%

US Trade Distributors

1.5%

US Market


1 Year Return

-35.5%

HWCC

9.9%

US Trade Distributors

20.1%

US Market

Return vs Industry: HWCC underperformed the US Trade Distributors industry which returned 9.9% over the past year.

Return vs Market: HWCC underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

HWCCIndustryMarket
7 Day-0.8%2.9%1.5%
30 Day-4.6%-2.2%1.4%
90 Day1.3%1.3%8.7%
1 Year-35.5%-35.5%12.0%9.9%22.7%20.1%
3 Year-43.4%-43.4%21.2%15.5%50.1%40.5%
5 Year-59.8%-62.3%43.2%32.4%73.1%54.1%

Price Volatility Vs. Market

How volatile is Houston Wire & Cable's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Houston Wire & Cable undervalued compared to its fair value and its price relative to the market?

13.48x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate HWCC's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate HWCC's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: HWCC is good value based on its PE Ratio (13.5x) compared to the Trade Distributors industry average (16.6x).

PE vs Market: HWCC is good value based on its PE Ratio (13.5x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HWCC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HWCC is good value based on its PB Ratio (0.6x) compared to the US Trade Distributors industry average (1.7x).


Next Steps

Future Growth

How is Houston Wire & Cable forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.1%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Houston Wire & Cable has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Houston Wire & Cable performed over the past 5 years?

-11.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HWCC has a large one-off loss of $2.3M impacting its September 30 2019 financial results.

Growing Profit Margin: HWCC's current net profit margins (1.4%) are lower than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: HWCC's earnings have declined by -11.8% per year over the past 5 years.

Accelerating Growth: HWCC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HWCC had negative earnings growth (-46.3%) over the past year, making it difficult to compare to the Trade Distributors industry average (3.5%).


Return on Equity

High ROE: HWCC's Return on Equity (4.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Houston Wire & Cable's financial position?


Financial Position Analysis

Short Term Liabilities: HWCC's short term assets ($170.0M) exceed its short term liabilities ($36.6M).

Long Term Liabilities: HWCC's short term assets ($170.0M) exceed its long term liabilities ($87.2M).


Debt to Equity History and Analysis

Debt Level: HWCC's debt to equity ratio (74.9%) is considered high.

Reducing Debt: HWCC's debt to equity ratio has increased from 48.8% to 74.9% over the past 5 years.

Debt Coverage: HWCC's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: HWCC's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet

Inventory Level: HWCC has a high level of physical assets or inventory.

Debt Coverage by Assets: HWCC's debt is covered by short term assets (assets are 2.2x debt).


Next Steps

Dividend

What is Houston Wire & Cable's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate HWCC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate HWCC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HWCC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HWCC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: HWCC is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HWCC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

16.1yrs

Average management tenure


CEO

Jim Pokluda (55yo)

8.1yrs

Tenure

US$1,391,936

Compensation

Mr. James L. Pokluda III, also known as Jim, has been the Chief Executive Officer of Houston Wire & Cable Company since January 1, 2012 and has been its President since May 2011. Previously, Mr. Pokluda se ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD1.39M) is above average for companies of similar size in the US market ($USD521.92K).

Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
James Pokluda
President8.1yrsUS$1.39m3.43% $2.2m
Christopher Micklas
VP, CFO1.8yrsUS$586.10k1.29% $840.7k
Eric Blankenship
Vice President of National Business Development21.1yrsno datano data
Carol Sims
Director of Human Resources26.1yrsno datano data
Eric Davis
VP & Controller18.1yrsno datano data
Terry Smith-Stallard
Assistant Controller14.1yrsno datano data
Kayla Draper
Investor Relations Coordinator & Assistant to the CEO0yrsno datano data

16.1yrs

Average Tenure

56yo

Average Age

Experienced Management: HWCC's management team is seasoned and experienced (16.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Pokluda
President8.1yrsUS$1.39m3.43% $2.2m
G. Yetman
Independent Director5.3yrsUS$129.00k0.11% $70.0k
Roy Haley
Independent Director2.5yrsUS$129.00k1.52% $990.0k
William Sheffield
Independent Chairman8.1yrsUS$170.00k0.12% $79.2k
Robert Reymond
Independent Director1.7yrsUS$90.00k0.018% $11.9k
Sandford Rothe
Independent Director1.3yrsUS$45.00k0.062% $40.4k
Margaret Laird
Independent Director0.8yrsno datano data

2.5yrs

Average Tenure

63yo

Average Age

Experienced Board: HWCC's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Houston Wire & Cable Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Houston Wire & Cable Company
  • Ticker: HWCC
  • Exchange: NasdaqGS
  • Founded: 1975
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: US$64.942m
  • Shares outstanding: 16.40m
  • Website: https://www.houwire.com

Number of Employees


Location

  • Houston Wire & Cable Company
  • 10201 North Loop East
  • Houston
  • Texas
  • 77029
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HWCCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2006
H6JDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2006

Biography

Houston Wire & Cable Company, through its subsidiaries, sells electrical and mechanical wire and cable, industrial fasteners, hardware, and related services in the United States. It offers wire and cable products, including continuous and interlocked armor cables; control and power cables; electronic wires and cables; flexible and portable cords; instrumentation and thermocouple cables; lead and high temperature cables; medium voltage cables; and premise and category wires and cables, primary and secondary aluminum distribution cables, and steel wire ropes and wire rope slings, as well as synthetic fiber rope slings, chains, shackles, and other related hardware and corrosion resistant products. The company also provides private branded products comprising its proprietary brand LifeGuard, a low-smoke zero-halogen cable. Its products are used in maintenance, repair, and operations activities, and related projects; larger-scale projects in the utility, industrial, and infrastructure markets; and a range of industrial applications, such as communications, energy, engineering and construction, general manufacturing, marine construction and marine transportation, mining, infrastructure, oilfield services, petrochemical, transportation, utility, wastewater treatment, and food and beverage. Houston Wire & Cable Company was founded in 1975 and is headquartered in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:26
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.