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Market Cap

US$1.7b

Last Updated

2021/09/18 22:02 UTC

Data Sources

Company Financials +

Executive Summary

Encore Wire Corporation manufactures and sells electrical building wires and cables for interior electrical wiring in the United States. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: WIRE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: WIRE's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-0.4%

WIRE

-1.0%

US Electrical

-0.6%

US Market


1 Year Return

74.8%

WIRE

47.9%

US Electrical

33.8%

US Market

Return vs Industry: WIRE exceeded the US Electrical industry which returned 47.9% over the past year.

Return vs Market: WIRE exceeded the US Market which returned 33.8% over the past year.


Shareholder returns

WIREIndustryMarket
7 Day-0.4%-1.0%-0.6%
30 Day0.5%-0.9%2.0%
90 Day13.6%2.7%4.7%
1 Year75.1%74.8%49.8%47.9%35.8%33.8%
3 Year66.8%66.0%74.5%65.0%60.0%50.1%
5 Year138.1%136.2%115.2%99.3%123.0%98.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Encore Wire undervalued compared to its fair value and its price relative to the market?

6.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WIRE ($84.6) is trading above our estimate of fair value ($20.39)

Significantly Below Fair Value: WIRE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WIRE is good value based on its PE Ratio (6.5x) compared to the US Electrical industry average (23.2x).

PE vs Market: WIRE is good value based on its PE Ratio (6.5x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: WIRE's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: WIRE is good value based on its PB Ratio (1.6x) compared to the US Electrical industry average (3.1x).


Future Growth

How is Encore Wire forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-39.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WIRE's earnings are forecast to decline over the next 3 years (-39.5% per year).

Earnings vs Market: WIRE's earnings are forecast to decline over the next 3 years (-39.5% per year).

High Growth Earnings: WIRE's earnings are forecast to decline over the next 3 years.

Revenue vs Market: WIRE's revenue (8.9% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: WIRE's revenue (8.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has Encore Wire performed over the past 5 years?

25.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WIRE has a high level of non-cash earnings.

Growing Profit Margin: WIRE's current net profit margins (14.1%) are higher than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: WIRE's earnings have grown significantly by 25.3% per year over the past 5 years.

Accelerating Growth: WIRE's earnings growth over the past year (365.3%) exceeds its 5-year average (25.3% per year).

Earnings vs Industry: WIRE earnings growth over the past year (365.3%) exceeded the Electrical industry 22.9%.


Return on Equity

High ROE: WIRE's Return on Equity (25.3%) is considered high.


Financial Health

How is Encore Wire's financial position?


Financial Position Analysis

Short Term Liabilities: WIRE's short term assets ($823.3M) exceed its short term liabilities ($178.1M).

Long Term Liabilities: WIRE's short term assets ($823.3M) exceed its long term liabilities ($33.2M).


Debt to Equity History and Analysis

Debt Level: WIRE is debt free.

Reducing Debt: WIRE has not had any debt for past 5 years.

Debt Coverage: WIRE has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: WIRE has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Encore Wire current dividend yield, its reliability and sustainability?

0.094%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 19 2021Ex Dividend DateSep 30 2021Dividend Pay DateOct 15 202115 days from Ex DividendBuy in the next 11 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: WIRE's dividend (0.094%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: WIRE's dividend (0.094%) is low compared to the top 25% of dividend payers in the US market (3.6%).


Stability and Growth of Payments

Stable Dividend: WIRE is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: WIRE is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WIRE'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?

14.0yrs

Average management tenure


CEO

Daniel Jones (58 yo)

15.58yrs

Tenure

US$3,241,853

Compensation

Mr. Daniel L. Jones has been the Chief Executive Officer and President of Encore Wire Corporation since February 2006 and has been its Chairman since November 2014 and has been its Director since May 1992....


CEO Compensation Analysis

Compensation vs Market: Daniel's total compensation ($USD3.24M) is about average for companies of similar size in the US market ($USD3.69M).

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


Leadership Team

Experienced Management: WIRE's management team is seasoned and experienced (14 years average tenure).


Board Members

Experienced Board: WIRE's board of directors are considered experienced (8.2 years average tenure).


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

Encore Wire Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Encore Wire Corporation
  • Ticker: WIRE
  • Exchange: NasdaqGS
  • Founded: 1989
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: US$1.747b
  • Shares outstanding: 20.65m
  • Website: https://www.encorewire.com

Number of Employees


Location

  • Encore Wire Corporation
  • 1329 Millwood Road
  • McKinney
  • Texas
  • 75069
  • United States

Listings


Biography

Encore Wire Corporation manufactures and sells electrical building wires and cables for interior electrical wiring in the United States. Its products include NM-B cables for use as interior wiring in homes...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:02
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.