WIRE Stock 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$140.46|
|52 Week High||US$151.64|
|52 Week Low||US$51.36|
|1 Month Change||4.77%|
|3 Month Change||65.23%|
|1 Year Change||168.41%|
|3 Year Change||195.70%|
|5 Year Change||225.89%|
|Change since IPO||4,956.56%|
Recent News & Updates
A Look At The Intrinsic Value Of Encore Wire Corporation (NASDAQ:WIRE)
Today we will run through one way of estimating the intrinsic value of Encore Wire Corporation ( NASDAQ:WIRE ) by...
At US$142, Is Encore Wire Corporation (NASDAQ:WIRE) Worth Looking At Closely?
Encore Wire Corporation ( NASDAQ:WIRE ), is not the largest company out there, but it led the NASDAQGS gainers with a...
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.
|WIRE||US Electrical||US Market|
Return vs Industry: WIRE exceeded the US Electrical industry which returned 26.1% over the past year.
Return vs Market: WIRE exceeded the US Market which returned 20% over the past year.
|WIRE Average Weekly Movement||5.5%|
|Electrical Industry Average Movement||8.6%|
|Market Average Movement||6.0%|
|10% most volatile stocks in US Market||15.0%|
|10% least volatile stocks in US Market||2.3%|
Stable Share Price: WIRE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: WIRE's weekly volatility (6%) has been stable over the past year.
About the Company
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|
Is WIRE overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|WIRE income statement (TTM)|
|Cost of Revenue||US$1.59b|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
|Earnings per share (EPS)||20.93|
|Net Profit Margin||18.54%|
How did WIRE perform over the long term?See historical performance and comparison
0.06%Current Dividend Yield
Does WIRE pay a reliable dividends?See WIRE dividend history and benchmarks
|Encore Wire dividend dates|
|Ex Dividend Date||Jan 06 2022|
|Dividend Pay Date||Jan 21 2022|
|Days until Ex dividend||35 days|
|Days until Dividend pay date||50 days|
Does WIRE pay a reliable dividends?See WIRE dividend history and benchmarks
Is Encore Wire undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WIRE ($140.46) is trading below our estimate of fair value ($161.73)
Significantly Below Fair Value: WIRE is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: WIRE is good value based on its PE Ratio (6.7x) compared to the US Electrical industry average (23.2x).
PE vs Market: WIRE is good value based on its PE Ratio (6.7x) compared to the US market (16.8x).
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 (2.4x) compared to the US Electrical industry average (3.3x).
How is Encore Wire forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
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 (-40.8% per year).
Earnings vs Market: WIRE's earnings are forecast to decline over the next 3 years (-40.8% per year).
High Growth Earnings: WIRE's earnings are forecast to decline over the next 3 years.
Revenue vs Market: WIRE's revenue (3.5% per year) is forecast to grow slower than the US market (10.1% per year).
High Growth Revenue: WIRE's revenue (3.5% 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
How has Encore Wire performed over the past 5 years?
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 (18.5%) are higher than last year (5.2%).
Past Earnings Growth Analysis
Earnings Trend: WIRE's earnings have grown significantly by 38.4% per year over the past 5 years.
Accelerating Growth: WIRE's earnings growth over the past year (578.2%) exceeds its 5-year average (38.4% per year).
Earnings vs Industry: WIRE earnings growth over the past year (578.2%) exceeded the Electrical industry 56.7%.
Return on Equity
High ROE: WIRE's Return on Equity (35.1%) is considered high.
How is Encore Wire's financial position?
Financial Position Analysis
Short Term Liabilities: WIRE's short term assets ($925.9M) exceed its short term liabilities ($152.0M).
Long Term Liabilities: WIRE's short term assets ($925.9M) exceed its long term liabilities ($34.5M).
Debt to Equity History and Analysis
Debt Level: WIRE is debt free.
Reducing Debt: WIRE has not had any debt for past 5 years.
Debt Coverage: WIRE has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: WIRE has no debt, therefore coverage of interest payments is not a concern.
What is Encore Wire current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: WIRE's dividend (0.055%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).
High Dividend: WIRE's dividend (0.055%) is low compared to the top 25% of dividend payers in the US market (3.63%).
Stability and Growth of Payments
Stable Dividend: WIRE is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: WIRE is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: WIRE is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of WIRE's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Daniel Jones (58 yo)
Mr. Daniel L. Jones has been the Chief Executive Officer and President of Encore Wire Corporation since February 2006 and has been its Chairman since November 2014 and has been its Director since May 1992....
CEO Compensation Analysis
Compensation vs Market: Daniel's total compensation ($USD3.24M) is below average for companies of similar size in the US market ($USD5.28M).
Compensation vs Earnings: Daniel's compensation has been consistent with company performance over the past year.
Experienced Management: WIRE's management team is seasoned and experienced (14.1 years average tenure).
Experienced Board: WIRE's board of directors are considered experienced (8.3 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Encore Wire Corporation's employee growth, exchange listings and data sources
- Name: Encore Wire Corporation
- Ticker: WIRE
- Exchange: NasdaqGS
- Founded: 1989
- Industry: Electrical Components and Equipment
- Sector: Capital Goods
- Market Cap: US$2.845b
- Shares outstanding: 20.26m
- Website: https://www.encorewire.com
Number of Employees
- Encore Wire Corporation
- 1329 Millwood Road
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/11/30 23:52|
|End of Day Share Price||2021/11/30 00:00|
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.