NasdaqGS:WIRE

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with acceptable 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


Market Performance


7 Day Return

2.6%

WIRE

3.6%

US Electrical

1.8%

US Market


1 Year Return

30.0%

WIRE

2.0%

US Electrical

7.3%

US Market

Return vs Industry: WIRE exceeded the US Electrical industry which returned 2% over the past year.

Return vs Market: WIRE exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

WIREIndustryMarket
7 Day2.6%3.6%1.8%
30 Day-4.9%-1.2%-0.7%
90 Day4.2%1.8%0.06%
1 Year30.2%30.0%4.2%2.0%9.7%7.3%
3 Year64.1%63.3%41.1%32.7%46.3%36.9%
5 Year53.8%52.4%35.1%21.6%64.5%46.5%

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?

14.91x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: WIRE ($57.07) is trading above our estimate of fair value ($46.33)

Significantly Undervalued: 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 (14.9x) compared to the Electrical industry average (14.9x).

PE vs Market: WIRE is good value based on its PE Ratio (14.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: WIRE is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: WIRE is overvalued based on its PB Ratio (1.6x) compared to the US Electrical industry average (1.5x).


Next Steps

Future Growth

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

5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WIRE's forecast earnings growth (5.5% per year) is above the savings rate (2.7%).

Earnings vs Market: WIRE's earnings (5.5% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: WIRE's earnings are forecast to grow, but not significantly.

Revenue vs Market: WIRE's revenue (2.6% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: WIRE's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

17.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WIRE's earnings have grown by 17.1% per year over the past 5 years.

Accelerating Growth: WIRE's earnings growth over the past year (11.1%) is below its 5-year average (17.1% per year).

Earnings vs Industry: WIRE earnings growth over the past year (11.1%) underperformed the Electrical industry 24%.


Return on Equity

High ROE: WIRE's Return on Equity (10.6%) is considered low.


Return on Assets

ROA vs Industry: WIRE has a higher Return on Assets than the Electrical industry average last year.


Return on Capital Employed

ROCE Improving: WIRE has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Encore Wire's financial position?


Financial Position Analysis

Short Term Liabilities: WIRE's short term assets ($542.0M) exceeds its short term liabilities ($76.2M)

Long Term Liabilities: WIRE's short term assets (542.0M) exceeds its long term liabilities (25.3M)


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

Inventory Level: WIRE has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if WIRE's debt is covered by short term assets.


Next Steps

Dividend

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

0.14%

Current Dividend Yield


Dividend Yield vs Market

company0.1%marketbottom25%1.5%markettop25%3.7%industryaverage2.4%forecastin3Years0.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: WIRE's dividend (0.14%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: WIRE's dividend (0.14%) is low compared to the top 25% of dividend payers in the US market (3.72%).

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

What is the CEO of Encore Wire's salary, the management and board of directors tenure and is there insider trading?

16.5yrs

Average management tenure


CEO

Daniel Jones (56yo)

13.7yrs

Tenure

US$2,640,378

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 ($USD2.64M) is about average for companies of similar size in the US market ($USD2.67M).

Compensation vs Earnings: Daniel's compensation has increased by more than 20% in the past year.


Management Age and Tenure

16.5yrs

Average Tenure

59yo

Average Age

Experienced Management: WIRE's management team is seasoned and experienced (16.5 years average tenure).


Board Age and Tenure

10.0yrs

Average Tenure

65yo

Average Age

Experienced Board: WIRE's board of directors are seasoned and experienced ( 10 years average tenure).


Insider Trading

Insider Buying: WIRE insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$180,00016 Sep 19
Matthew Ford
EntityIndividual
Role
Controller
Assistant Secretary & Controller
Shares3,000
Max PriceUS$60.00
SellUS$236,00026 Feb 19
Matthew Ford
EntityIndividual
Role
Controller
Assistant Secretary & Controller
Shares4,000
Max PriceUS$59.00

Ownership Breakdown


Management Team

  • Daniel Jones (56yo)

    Chairman

    • Tenure: 13.7yrs
    • Compensation: US$2.64m
  • Frank Bilban (63yo)

    VP of Finance

    • Tenure: 19.3yrs
    • Compensation: US$1.47m
  • David Smith (59yo)

    Vice President of Operations

    • Tenure: 27.8yrs
    • Compensation: US$260.23k
  • Kevin Keiffer

    Vice President of Sales & Marketing

    • Tenure: 0yrs
    • Compensation: US$545.92k
  • Matthew Ford

    Assistant Secretary & Controller

    • Tenure: 10.4yrs

Board Members

  • Donald Courtney (88yo)

    Independent Director

    • Tenure: 30.8yrs
  • Daniel Jones (56yo)

    Chairman

    • Tenure: 13.7yrs
    • Compensation: US$2.64m
  • John Wilson (76yo)

    Lead Independent Director

    • Tenure: 4.9yrs
  • Gregory Fisher (69yo)

    Independent Director

    • Tenure: 7.7yrs
  • Scott Weaver (61yo)

    Independent Director

    • Tenure: 17.4yrs
  • Will Thomas (48yo)

    Independent Director

    • Tenure: 12.4yrs

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$1.193b
  • Shares outstanding: 20.91m
  • Website: https://www.encorewire.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WIRENasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 1992
EW3DB (Deutsche Boerse AG)YesCommon StockDEEURJul 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:35
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.