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

Undervalued with acceptable track record.

Risks

  • Houston Wire & Cable is not covered by any analysts.

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


Market Performance


7 Day Return

5.1%

HWCC

-3.0%

US Trade Distributors

-0.6%

US Market


1 Year Return

-41.6%

HWCC

-11.7%

US Trade Distributors

0.6%

US Market

HWCC underperformed the Trade Distributors industry which returned -11.7% over the past year.

HWCC underperformed the Market in United States of America which returned 0.6% over the past year.


Share holder returns

HWCCIndustryMarket
7 Day5.1%-3.0%-0.6%
30 Day5.3%5.7%2.2%
90 Day-14.6%1.8%1.1%
1 Year-41.6%-41.6%-10.1%-11.7%2.9%0.6%
3 Year-19.8%-19.8%40.4%34.3%44.6%35.2%
5 Year-58.7%-62.0%23.0%14.2%61.9%44.2%

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

1 month ago | Simply Wall St

What Kind Of Shareholder Owns Most Houston Wire & Cable Company (NASDAQ:HWCC) Stock?

Valuation

Is Houston Wire & Cable undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Houston Wire & Cable's share price is below the future cash flow value, and at a moderate discount (> 20%).

Houston Wire & Cable's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Houston Wire & Cable is good value based on earnings compared to the US Trade Distributors industry average.

Houston Wire & Cable is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Houston Wire & Cable, we can't assess if its growth is good value.


Price Based on Value of Assets

Houston Wire & Cable is good value based on assets compared to the US Trade Distributors industry average.


Next Steps

Future Growth

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

13.8%

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?

-15.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Houston Wire & Cable's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Houston Wire & Cable's 1-year earnings growth exceeds its 5-year average (65.6% vs -15.7%)

Houston Wire & Cable's earnings growth has exceeded the US Trade Distributors industry average in the past year (65.6% vs 0.9%).


Return on Equity

Houston Wire & Cable has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Houston Wire & Cable used its assets less efficiently than the US Trade Distributors industry average last year based on Return on Assets.


Return on Capital Employed

Houston Wire & Cable has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Houston Wire & Cable's financial position?


Financial Position Analysis

Houston Wire & Cable is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Houston Wire & Cable's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Houston Wire & Cable's level of debt (69.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (50.1% vs 69.7% today).

Debt is not well covered by operating cash flow (12%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.3x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Houston Wire & Cable's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Houston Wire & Cable's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Houston Wire & Cable has not reported any payouts.

Unable to verify if Houston Wire & Cable's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Houston Wire & Cable has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


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?

15.7yrs

Average management tenure


CEO

Jim Pokluda (55yo)

7.7yrs

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

Jim's remuneration is higher than average for companies of similar size in United States of America.

Jim's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

15.7yrs

Average Tenure

56yo

Average Age

The average tenure for the Houston Wire & Cable management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

2.1yrs

Average Tenure

63yo

Average Age

The average tenure for the Houston Wire & Cable board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Houston Wire & Cable individual insiders 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$784,88119 Dec 18
Nierenberg Investment Management Company, Inc.
EntityCompany
Shares101,888
Max PriceUS$7.92
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
BuyUS$243,18515 Nov 18
Roy Haley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares41,024
Max PriceUS$6.04
BuyUS$60,28213 Nov 18
Sandford Rothe
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,200
Max PriceUS$5.91

Ownership Breakdown


Management Team

  • Carol Sims (59yo)

    Director of Human Resources

    • Tenure: 25.7yrs
  • Jim Pokluda (55yo)

    President

    • Tenure: 7.7yrs
    • Compensation: US$1.39m
  • Eric Davis (57yo)

    VP & Controller

    • Tenure: 17.7yrs
  • Eric Blankenship (67yo)

    Vice President of National Business Development

    • Tenure: 20.7yrs
  • Terry Smith-Stallard (55yo)

    Assistant Controller

    • Tenure: 13.7yrs
  • Chris Micklas (52yo)

    VP, CFO

    • Tenure: 1.4yrs
    • Compensation: US$586.10k
  • Kayla Draper

    Investor Relations Coordinator & Assistant to the CEO

    • Tenure: 0yrs

Board Members

  • G. Yetman (64yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$129.00k
  • Roy Haley (72yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: US$129.00k
  • Bill Sheffield (70yo)

    Chairman

    • Tenure: 7.7yrs
    • Compensation: US$170.00k
  • Jim Pokluda (55yo)

    President

    • Tenure: 7.7yrs
    • Compensation: US$1.39m
  • Bob Reymond (53yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$90.00k
  • Sandy Rothe (63yo)

    Independent Director

    • Tenure: 0.8yrs
    • Compensation: US$45.00k
  • Margaret Laird (42yo)

    Independent Director

    • Tenure: 0.3yrs

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$78.732m
  • Shares outstanding: 16.65m
  • 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 Analysis2019/09/21 23:54
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
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.