| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 0/6 |
| Past Performance | 5/6 |
| Financial Health | 6/6 |
| Dividends | 0/6 |
WIRE Overview
Encore Wire Corporation manufactures and sells electrical building wires and cables for interior electrical wiring in the United States.
Encore Wire Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$115.33 |
| 52 Week High | US$45.65 |
| 52 Week Low | US$119.72 |
| Beta | 1.04 |
| 1 Month Change | 18.54% |
| 3 Month Change | 45.97% |
| 1 Year Change | 145.75% |
| 3 Year Change | 158.99% |
| 5 Year Change | 238.71% |
| Change since IPO | 4,051.88% |
Recent News & Updates
Encore Wire: Exciting Profit From Boring Business
YoY revenue growth, EBITDA growth, and EBIT growth for WIRE are 61.81%, 307.21%, and 380.69%, respectively. EBIT margin (18.22%), EBITDA margin (19.33%), and net income margin (14.11%) are far above sector medians. Vertical integration presents several benefits including cost reduction, operational flexibility, and high efficiency. Despite profitability and growth potential, the stock price is at a discount (FWD P/E ratio of 5.86) compared to the sector median (21.14) and WIRE’s 5-year average (17.22). I believe the market is undervaluing its revenue growth potential and profitability, and the stock price will rise sharply in the near future.
Is Now The Time To Put Encore Wire (NASDAQ:WIRE) On Your Watchlist?
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...
Encore Wire Setting New Records On The Back Of Exceptional Copper Spreads
Encore Wire had a blowout second quarter, with strong volume (up 33% yoy) and incredibly strong pricing (up 130%) driving almost 200% revenue growth and fantastic copper spreads. Encore Wire's historical revenue growth has never been particularly impressive, partly due to the impact of copper prices versus demand volume growth, but management has managed to consistently grow BVPS. It's a struggle to make discounted cash flow and forward EBITDA methodologies work given this spike, but the shares could still have some upside on the basis of P/BV.
Analysts Just Shipped A Sizeable Upgrade To Their Encore Wire Corporation (NASDAQ:WIRE) Estimates
Encore Wire Corporation ( NASDAQ:WIRE ) shareholders will have a reason to smile today, with the analysts making...
Shareholder Returns
| WIRE | US Electrical | US Market | |
|---|---|---|---|
| 7D | 4.4% | 1.9% | 1.9% |
| 1Y | 145.7% | 50.3% | 33.4% |
Return vs Industry: WIRE exceeded the US Electrical industry which returned 45.4% over the past year.
Return vs Market: WIRE exceeded the US Market which returned 30.3% over the past year.
Price Volatility
| WIRE volatility | |
|---|---|
| WIRE Beta | 1.04 |
| Industry Beta | 1.36 |
| Market Beta | 1 |
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.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1989 | 1,289 | Daniel Jones | https://www.encorewire.com |
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, apartments, and manufactured housing; THHN/THWN-2 cables and metal-clad and armored cables for use as wiring in commercial and industrial buildings; UF-B cables; XHHW-2 cables; RHH/RHW-2 cables; USE-2 cables; and other types of wire products. The company sells its products to wholesale electrical distributors primarily through independent manufacturers’ representatives.
Encore Wire Fundamentals Summary
| WIRE fundamental statistics | |
|---|---|
| Market Cap | US$2.38b |
| Earnings (TTM) | US$269.35m |
| Revenue (TTM) | US$1.91b |
8.8x
P/E Ratio1.2x
P/S RatioIs WIRE overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| WIRE income statement (TTM) | |
|---|---|
| Revenue | US$1.91b |
| Cost of Revenue | US$1.43b |
| Gross Profit | US$474.11m |
| Expenses | US$204.76m |
| Earnings | US$269.35m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Oct 26, 2021
| Earnings per share (EPS) | 13.04 |
| Gross Margin | 24.83% |
| Net Profit Margin | 14.11% |
| Debt/Equity Ratio | 0.0% |
How did WIRE perform over the long term?
See historical performance and comparisonDividends
0.07%
Current Dividend Yield0.61%
Payout RatioValuation
Is Encore Wire undervalued compared to its fair value and its price relative to the market?
8.84x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: WIRE ($116.86) is trading above our estimate of fair value ($21.45)
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 (9x) compared to the US Electrical industry average (23.7x).
PE vs Market: WIRE is good value based on its PE Ratio (9x) compared to the US market (18.2x).
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 (2.3x) compared to the US Electrical industry average (3.3x).
Future Growth
How is Encore Wire forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
-36.3%
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 (9.9% 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 54.8%.
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?
0.068%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WIRE's dividend (0.068%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.28%).
High Dividend: WIRE's dividend (0.068%) is low compared to the top 25% of dividend payers in the US market (3.48%).
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)
15.67yrs
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 below average for companies of similar size in the US market ($USD5.18M).
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 (8.3 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 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$2.381b
- 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
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/26 22:30 |
| End of Day Share Price | 2021/10/26 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.