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.

Snowflake

Fundamentals

Fair value with moderate growth potential.


Similar Companies

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

-1.0%

HWCC

-0.9%

US Trade Distributors

0.7%

US Market


1 Year Return

-37.6%

HWCC

14.6%

US Trade Distributors

12.9%

US Market

Return vs Industry: HWCC underperformed the US Trade Distributors industry which returned 14.6% over the past year.

Return vs Market: HWCC underperformed the US Market which returned 12.9% over the past year.


Shareholder returns

HWCCIndustryMarket
7 Day-1.0%-0.9%0.7%
30 Day-3.1%8.9%4.4%
90 Day10.8%19.3%7.2%
1 Year-37.6%-37.6%16.7%14.6%15.4%12.9%
3 Year-22.1%-22.1%39.2%33.2%49.1%39.5%
5 Year-66.1%-68.6%33.9%24.6%62.7%44.7%

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?

13.65x

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 (13.7x) compared to the Trade Distributors industry average (17.9x).

PE vs Market: HWCC is good value based on its PE Ratio (13.7x) compared to the US market (18.2x).


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 (1.9x).


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?

20.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HWCC's forecast earnings growth (20.9% per year) is above the savings rate (2.7%).

Earnings vs Market: HWCC's earnings (20.9% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if HWCC's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if HWCC's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if HWCC's Return on Equity is forecast to be high in 3 years time


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 large one-off items impacting its 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 (-6.1%).


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) exceeds its short term liabilities ($36.6M)

Long Term Liabilities: HWCC's short term assets (170.0M) exceeds 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%3.6%industryaverage2.6%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

What is the CEO of Houston Wire & Cable's salary, the management and board of directors tenure and is there insider trading?

15.8yrs

Average management tenure


CEO

Jim Pokluda (55yo)

7.8yrs

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 ($USD1.39M) is above average for companies of similar size in the US market ($USD509.30K).

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


Management Age and Tenure

15.8yrs

Average Tenure

56yo

Average Age

Experienced Management: HWCC's management team is seasoned and experienced (15.8 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

63yo

Average Age

Experienced Board: HWCC's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: HWCC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$18,01606 Sep 19
Roy Haley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,977
Max PriceUS$4.53
BuyUS$26,85703 Sep 19
Roy Haley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,023
Max PriceUS$4.51
BuyUS$163,40029 Aug 19
Roy Haley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares40,000
Max PriceUS$4.19
BuyUS$4,00028 Aug 19
Christopher Micklas
EntityIndividual
Role
Chief Financial Officer
VP, CFO
Shares1,000
Max PriceUS$4.00
BuyUS$39,00028 Aug 19
James Pokluda
EntityIndividual
Role
Chief Executive Officer
President
Shares10,000
Max PriceUS$3.90
BuyUS$4,34027 Aug 19
Robert Reymond
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$4.34
BuyUS$5,01503 Jun 19
Christopher Micklas
EntityIndividual
Role
Chief Financial Officer
VP, CFO
Shares970
Max PriceUS$5.17
BuyUS$14,71629 May 19
G. Yetman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,803
Max PriceUS$5.25
BuyUS$38,31024 May 19
G. Yetman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,015
Max PriceUS$5.50
BuyUS$12,18028 Mar 19
Robert Reymond
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$6.09
BuyUS$36,00025 Mar 19
G. Yetman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,000
Max PriceUS$6.00
BuyUS$124,60011 Dec 18
Roy Haley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,595
Max PriceUS$6.05
BuyUS$11,38307 Dec 18
Roy Haley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,866
Max PriceUS$6.10
BuyUS$18,17904 Dec 18
Roy Haley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,981
Max PriceUS$6.10
BuyUS$51,91130 Nov 18
Roy Haley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares8,524
Max PriceUS$6.09
BuyUS$30,51028 Nov 18
Roy Haley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,015
Max PriceUS$6.09
BuyUS$5,53527 Nov 18
Christopher Micklas
EntityIndividual
Role
Chief Financial Officer
VP, CFO
Shares900
Max PriceUS$6.15
BuyUS$62021 Nov 18
Christopher Micklas
EntityIndividual
Role
Chief Financial Officer
VP, CFO
Shares100
Max PriceUS$6.20
BuyUS$2,98921 Nov 18
Roy Haley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares490
Max PriceUS$6.10
BuyUS$61020 Nov 18
Roy Haley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares100
Max PriceUS$6.10

Ownership Breakdown

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


Management Team

  • Carol Sims (59yo)

    Director of Human Resources

    • Tenure: 25.8yrs
  • Jim Pokluda (55yo)

    President

    • Tenure: 7.8yrs
    • Compensation: US$1.39m
  • Eric Davis (57yo)

    VP & Controller

    • Tenure: 17.8yrs
  • Eric Blankenship (67yo)

    Vice President of National Business Development

    • Tenure: 20.8yrs
  • Terry Smith-Stallard (55yo)

    Assistant Controller

    • Tenure: 13.8yrs
  • Chris Micklas (52yo)

    VP, CFO

    • Tenure: 1.6yrs
    • Compensation: US$586.10k
  • Kayla Draper

    Investor Relations Coordinator & Assistant to the CEO

    • Tenure: 0yrs

Board Members

  • G. Yetman (64yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$129.00k
  • Roy Haley (72yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$129.00k
  • Bill Sheffield (70yo)

    Independent Chairman

    • Tenure: 7.8yrs
    • Compensation: US$170.00k
  • Jim Pokluda (55yo)

    President

    • Tenure: 7.8yrs
    • Compensation: US$1.39m
  • Bob Reymond (53yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$90.00k
  • Sandy Rothe (63yo)

    Independent Director

    • Tenure: 1yrs
    • Compensation: US$45.00k
  • Margaret Laird (42yo)

    Independent Director

    • Tenure: 0.5yrs

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$65.762m
  • 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 p ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/15 23:51
End of Day Share Price2019/11/15 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.