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WIRE

Encore WireNasdaqGS:WIRE Stock Report

Market Cap

US$2.8b

7D

-5.1%

1Y

168.4%

Updated

30 Nov, 2021

Data

Company Financials +
WIRE fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends0/6

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

Eaton

NYSE:ETN

US$64.6b

nVent Electric

NYSE:NVT

US$5.9b

Atkore

NYSE:ATKR

US$4.9b

ABB

SWX:ABBN

CHF63.5b

Price History & Performance

Summary of all time highs, changes and price drops for Encore Wire
Historical stock prices
Current Share PriceUS$140.46
52 Week HighUS$151.64
52 Week LowUS$51.36
Beta1.19
1 Month Change4.77%
3 Month Change65.23%
1 Year Change168.41%
3 Year Change195.70%
5 Year Change225.89%
Change since IPO4,956.56%

Recent News & Updates

Nov 29
A Look At The Intrinsic Value Of Encore Wire Corporation (NASDAQ:WIRE)

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...

Nov 12
At US$142, Is Encore Wire Corporation (NASDAQ:WIRE) Worth Looking At Closely?

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...

Sep 24

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.

Shareholder Returns

WIREUS ElectricalUS Market
7D-5.1%-5.4%-2.8%
1Y168.4%26.1%20.0%

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.

Price Volatility

Is WIRE's price volatile compared to industry and market?
WIRE volatility
WIRE Average Weekly Movement5.5%
Electrical Industry Average Movement8.6%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

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

FoundedEmployeesCEOWebsite
19891,289Daniel Joneshttps://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

How do Encore Wire's earnings and revenue compare to its market cap?
WIRE fundamental statistics
Market CapUS$2.85b
Earnings (TTM)US$423.88m
Revenue (TTM)US$2.29b

6.7x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WIRE income statement (TTM)
RevenueUS$2.29b
Cost of RevenueUS$1.59b
Gross ProfitUS$691.42m
ExpensesUS$267.54m
EarningsUS$423.88m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)20.93
Gross Margin30.25%
Net Profit Margin18.54%
Debt/Equity Ratio0.0%

How did WIRE perform over the long term?

See historical performance and comparison

Dividends

0.06%

Current Dividend Yield

0.387%

Payout Ratio

Does WIRE pay a reliable dividends?

See WIRE dividend history and benchmarks
When do you need to buy WIRE by to receive an upcoming dividend?
Encore Wire dividend dates
Ex Dividend DateJan 06 2022
Dividend Pay DateJan 21 2022
Days until Ex dividend35 days
Days until Dividend pay date50 days

Does WIRE pay a reliable dividends?

See WIRE dividend history and benchmarks

Valuation

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

13.2%

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).


Future Growth

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

-40.8%

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


Past Performance

How has Encore Wire performed over the past 5 years?

38.4%

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.


Financial Health

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.


Balance Sheet


Dividend

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

0.055%

Current Dividend Yield


Upcoming Dividend Payment

TodayDec 01 2021Ex Dividend DateJan 06 2022Dividend Pay DateJan 21 202215 days from Ex DividendBuy in the next 35 days to receive the upcoming dividend

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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

14.1yrs

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 ($USD3.24M) is below average for companies of similar size in the US market ($USD5.28M).

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 (14.1 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$2.845b
  • Shares outstanding: 20.26m
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 23:52
End of Day Share Price2021/11/30 00:00
Earnings2021/09/30
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.