Encore Wire Corporation
Encore Wire Corporation Fundamental Analysis
Encore Wire Corporation (WIRE) shows moderate financial fundamentals with a PE ratio of 13.13, profit margin of 14.50%, and ROE of 20.88%. The company generates $2.4B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 94.8/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze WIRE's fundamental strength across five key dimensions:
Efficiency Score
ExcellentWIRE demonstrates superior asset utilization.
Valuation Score
ExcellentWIRE trades at attractive valuation levels.
Growth Score
ModerateWIRE shows steady but slowing expansion.
Financial Health Score
ExcellentWIRE maintains a strong and stable balance sheet.
Profitability Score
ModerateWIRE maintains healthy but balanced margins.
Key Financial Metrics
Is WIRE Expensive or Cheap?
P/E Ratio
WIRE trades at 13.13 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, WIRE's PEG of 0.13 indicates potential undervaluation.
Price to Book
The market values Encore Wire Corporation at 2.80 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.63 times EBITDA. This signals the market has high growth expectations.
How Well Does WIRE Make Money?
Net Profit Margin
For every $100 in sales, Encore Wire Corporation keeps $14.50 as profit after all expenses.
Operating Margin
Core operations generate 17.58 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.88 in profit for every $100 of shareholder equity.
ROA
Encore Wire Corporation generates $18.92 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Encore Wire Corporation produces operating cash flow of $426.18M, showing steady but balanced cash generation.
Free Cash Flow
Encore Wire Corporation generates strong free cash flow of $272.11M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $17.23 in free cash annually.
FCF Yield
WIRE converts 6.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.13
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.13
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.80
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.78
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
7.56
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.21
vs 25 benchmark
ROA
Return on assets percentage
0.19
vs 25 benchmark
ROCE
Return on capital employed
0.25
vs 25 benchmark
How WIRE Stacks Against Its Sector Peers
| Metric | WIRE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.13 | 26.76 | Better (Cheaper) |
| ROE | 20.88% | 1300.00% | Weak |
| Net Margin | 14.50% | -29570.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 7.56 | 10.68 | Strong Liquidity |
| ROA | 18.92% | -1545134.00% (disorted) | Strong |
WIRE outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Encore Wire Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure