Encore Wire
Market Cap
US$1.3b
Last Updated
2021/01/19 00:09 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
Rewards
Risk Analysis
No risks detected for WIRE from our risk checks.
Snowflake Analysis
Flawless balance sheet and fair value.
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 less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: WIRE's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
0.8%
WIRE
-1.7%
US Electrical
-0.4%
US Market
1 Year Return
3.0%
WIRE
44.9%
US Electrical
19.5%
US Market
Return vs Industry: WIRE underperformed the US Electrical industry which returned 44.9% over the past year.
Return vs Market: WIRE underperformed the US Market which returned 19.5% over the past year.
Shareholder returns
| WIRE | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.8% | -1.7% | -0.4% |
| 30 Day | 8.3% | 12.3% | 2.3% |
| 90 Day | 29.9% | 26.8% | 12.7% |
| 1 Year | 3.2%3.0% | 47.8%44.9% | 22.3%19.5% |
| 3 Year | 16.8%16.3% | 66.4%56.9% | 44.4%34.8% |
| 5 Year | 78.1%76.6% | 143.0%123.9% | 128.7%103.3% |
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
6 days ago | Simply Wall St
The Returns At Encore Wire (NASDAQ:WIRE) Provide Us With Signs Of What's To Come3 weeks ago | Simply Wall St
What Can We Conclude About Encore Wire's (NASDAQ:WIRE) CEO Pay?1 month ago | Simply Wall St
Is There Now An Opportunity In Encore Wire Corporation (NASDAQ:WIRE)?Valuation
Is Encore Wire undervalued compared to its fair value and its price relative to the market?
20.23x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: WIRE ($61.11) is trading above our estimate of fair value ($1.04)
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 (20.2x) compared to the US Electrical industry average (31.9x).
PE vs Market: WIRE is good value based on its PE Ratio (20.2x) compared to the US market (21x).
Price to Earnings Growth Ratio
PEG Ratio: WIRE is poor value based on its PEG Ratio (28.9x)
Price to Book Ratio
PB vs Industry: WIRE is good value based on its PB Ratio (1.5x) compared to the US Electrical industry average (4.6x).
Next Steps
Future Growth
How is Encore Wire forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
0.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WIRE's forecast earnings growth (0.7% per year) is below the savings rate (2%).
Earnings vs Market: WIRE's earnings (0.7% per year) are forecast to grow slower than the US market (21.6% per year).
High Growth Earnings: WIRE's earnings are forecast to grow, but not significantly.
Revenue vs Market: WIRE's revenue (6.2% per year) is forecast to grow slower than the US market (10.3% per year).
High Growth Revenue: WIRE's revenue (6.2% 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
Next Steps
Past Performance
How has Encore Wire performed over the past 5 years?
12.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WIRE has high quality earnings.
Growing Profit Margin: WIRE's current net profit margins (5.2%) are lower than last year (5.6%).
Past Earnings Growth Analysis
Earnings Trend: WIRE's earnings have grown by 12.3% per year over the past 5 years.
Accelerating Growth: WIRE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: WIRE had negative earnings growth (-13.8%) over the past year, making it difficult to compare to the Electrical industry average (-18.5%).
Return on Equity
High ROE: WIRE's Return on Equity (7.7%) is considered low.
Next Steps
Financial Health
How is Encore Wire's financial position?
Financial Position Analysis
Short Term Liabilities: WIRE's short term assets ($564.7M) exceed its short term liabilities ($96.1M).
Long Term Liabilities: WIRE's short term assets ($564.7M) exceed its long term liabilities ($31.8M).
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
Next Steps
Dividend
What is Encore Wire current dividend yield, its reliability and sustainability?
0.13%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WIRE's dividend (0.13%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.39%).
High Dividend: WIRE's dividend (0.13%) is low compared to the top 25% of dividend payers in the US market (3.85%).
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?
13.3yrs
Average management tenure
CEO
Daniel Jones (57 yo)
14.92yrs
Tenure
US$2,883,953
Compensation
Mr. Daniel L. Jones has been the Chief Executive Officer and President of Encore Wire Corp. since February 2006. Mr. Jones has been Chairman of Encore Wire Corp. since November 2014. He served as President...
CEO Compensation Analysis
Compensation vs Market: Daniel's total compensation ($USD2.88M) is about average for companies of similar size in the US market ($USD3.88M).
Compensation vs Earnings: Daniel's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 14.92yrs | US$2.88m | 1.95% $ 24.6m | |
| CFO, Treasurer & Secretary | 1.33yrs | no data | 0.12% $ 1.5m | |
| Vice President of Operations | 29yrs | US$260.23k | no data | |
| Vice President of Operations | no data | no data | no data | |
| Vice President of Sales & Marketing | no data | US$545.92k | no data | |
| Assistant Secretary & Controller | 11.67yrs | no data | 0.11% $ 1.4m |
13.3yrs
Average Tenure
57yo
Average Age
Experienced Management: WIRE's management team is seasoned and experienced (13.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 14.92yrs | US$2.88m | 1.95% $ 24.6m | |
| Lead Independent Director | 6.17yrs | no data | 0.044% $ 556.1k | |
| Independent Director | 8.92yrs | no data | 0.042% $ 525.5k | |
| Independent Director | 18.67yrs | no data | 0.12% $ 1.5m | |
| Independent Director | 13.67yrs | no data | 0.042% $ 525.5k | |
| Independent Director | 0.67yr | no data | 0.0053% $ 67.2k |
7.5yrs
Average Tenure
62yo
Average Age
Experienced Board: WIRE's board of directors are considered experienced (7.5 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.
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$1.261b
- Shares outstanding: 20.63m
- Website: https://www.encorewire.com
Number of Employees
Location
- Encore Wire Corporation
- 1329 Millwood Road
- McKinney
- Texas
- 75069
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| WIRE | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Jul 1992 |
| EW3 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jul 1992 |
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/19 00:09 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.