Encore Wire Stock: A Growth Story with Potential

February 06, 2023

Encore Wire Corporation (WIRE) is a NASDAQ listed company with a market capitalization of 3.15 billion. As of 2023-02-06, the stock is trading at 171.8 with a change percentage of -0.11 and change of -0.19. Encore Wire Stock has a 52 week high of 175.03 and a 52 week low of 94.39. The 50-day moving average price is 145.73 and the 200-day moving average price is 129.84. The volume for the day was 261309 with an average volume of 172509. The stock’s earnings per share (EPS) is 35.48 and it has a Price to Earnings (P/E) ratio of 4.84.

Encore Wire Earnings Call

Encore Wire announced that it will be releasing its financial results for the fourth quarter and full year of 2022 on February 14th, 2023, after the stock market closes. The company will then host a conference call the following day on February 15th to discuss the results and answer any questions from attendees. The call will take place at 11:00 a.m. Eastern Standard Time, which is equivalent to 10:00 a.m. Central Time, 9:00 a.m. Mountain Time, and 8:00 a.m. Pacific Time.

WIRE Stock Performance and Analysis

In the past 1 day, WIRE stock price has decreased by -0.11%. The price change for the past 5 days is 9.36%, for the past month is 26.82%, for the past 3 months is 23.35%, for the past 6 months is 40.82%, for the year-to-date is 28.77%, and for the past 1 year is 52.05%. The 3 year and 5 year price change is 215.87% and 265.14% respectively.

Revenue, Net Income, and Earnings per Share (EPS) Estimates

For the year 2023-12-31, the estimated revenue is between 2.13 billion and 3.20 billion with an average estimate of 2.66 billion. The estimated EBITDA is between 1.73 billion and 2.59 billion with an average estimate of 2.16 billion. The estimated net income is between 1.31 billion and 1.96 billion with an average estimate of 1.63 billion. The estimated EPS average is 15.39 with a high estimate of 18.46 and low estimate of 12.32.

As of 2021-12-31, the company’s revenue was 2.59 billion with a gross profit of 867.75 million. The cost and expenses were 1.89 billion and the net income was 541.42 million with an EPS of 26.28. The current ratio (TTM) is 8.54 and the net profit margin (TTM) is 0.23.

Encore Wire Stock does not currently have a significant dividend yield with a TTM dividend yield percentage of 0.05. The TTM gross profit margin is 0.36 and the TTM pretax profit margin is 0.3. The TTM return on assets is 0.37 and the TTM return on equity is 0.84.

Valuation and Liquidity Ratios

The company has a low P/E ratio of 4.84, which indicates that the stock is undervalued compared to its peers in the industry. This could be a good opportunity for long-term investors. However, the dividend yield of 0.05% is lower compared to the industry average, which might not be attractive to income seeking investors. Encore Wire Stock has a good current ratio of 8.54, which shows that it is in a good financial position to meet its short-term obligations. The quick ratio of 7.51 and cash ratio of 3.78 also support this. The days of sales outstanding, days of inventory outstanding and operating cycle are in line with the industry standards.

Conclusion and Recommendations

In conclusion, Encore Wire Stock is a financially stable company with a low P/E ratio and good liquidity ratios. The company has a consistent growth over the past few years and is expected to continue its growth trajectory in the future as per analyst estimates. However, the low dividend yield might not be attractive to income-seeking investors. Investors should consider this information and their own investment goals and risk tolerance before making any investment decisions.

Reply

or to participate.