Loading...

We've got a brand new version of Simply Wall St! Try it out

Encore Wire

Nasdaq:WIRE
Snowflake Description

Flawless balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WIRE
Nasdaq
$1B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Encore Wire Corporation manufactures and sells electrical building wires and cables for interior electrical wiring in the United States. The last earnings update was 19 days ago. More info.


Add to Portfolio Compare Print
WIRE Share Price and Events
7 Day Returns
-5.2%
NasdaqGS:WIRE
1.3%
US Electrical
0.7%
US Market
1 Year Returns
15.8%
NasdaqGS:WIRE
13.5%
US Electrical
13.7%
US Market
WIRE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Encore Wire (WIRE) -5.2% -0.2% 5.1% 15.8% 37.8% 50.4%
US Electrical 1.3% 9.3% 18.2% 13.5% 30.8% 29.4%
US Market 0.7% 4.7% 6.1% 13.7% 39.2% 44.5%
1 Year Return vs Industry and Market
  • WIRE outperformed the Electrical industry which returned 13.5% over the past year.
  • WIRE outperformed the Market in United States of America which returned 13.7% over the past year.
Price Volatility
WIRE
Industry
5yr Volatility vs Market
Related Companies

WIRE Value

 Is Encore Wire undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Encore Wire to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Encore Wire.

NasdaqGS:WIRE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:WIRE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Electrical Unlevered Beta Simply Wall St/ S&P Global 1.2
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.2 (1 + (1- 21%) (0%))
1.134
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.13
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.134 * 5.96%)
9.49%

Discounted Cash Flow Calculation for NasdaqGS:WIRE using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Encore Wire is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:WIRE DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.49%)
2020 50.70 Analyst x1 46.31
2021 38.81 Est @ -23.45% 32.38
2022 32.76 Est @ -15.59% 24.96
2023 29.45 Est @ -10.1% 20.50
2024 27.61 Est @ -6.25% 17.55
2025 26.63 Est @ -3.56% 15.46
2026 26.19 Est @ -1.67% 13.88
2027 26.09 Est @ -0.35% 12.64
2028 26.24 Est @ 0.57% 11.61
2029 26.56 Est @ 1.22% 10.73
Present value of next 10 years cash flows $206.00
NasdaqGS:WIRE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $26.56 × (1 + 2.73%) ÷ (9.49% – 2.73%)
$403.86
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $403.86 ÷ (1 + 9.49%)10
$163.15
NasdaqGS:WIRE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $206.00 + $163.15
$369.15
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $369.15 / 20.96
$17.61
NasdaqGS:WIRE Discount to Share Price
Calculation Result
Value per share (USD) From above. $17.61
Current discount Discount to share price of $56.96
= -1 x ($56.96 - $17.61) / $17.61
-223.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Encore Wire is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Encore Wire's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Encore Wire's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:WIRE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $3.48
NasdaqGS:WIRE Share Price ** NasdaqGS (2019-11-18) in USD $56.96
United States of America Electrical Industry PE Ratio Median Figure of 31 Publicly-Listed Electrical Companies 17.62x
United States of America Market PE Ratio Median Figure of 2,924 Publicly-Listed Companies 18.25x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Encore Wire.

NasdaqGS:WIRE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:WIRE Share Price ÷ EPS (both in USD)

= 56.96 ÷ 3.48

16.38x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Encore Wire is good value based on earnings compared to the US Electrical industry average.
  • Encore Wire is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Encore Wire's expected growth come at a high price?
Raw Data
NasdaqGS:WIRE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 16.38x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
8.7%per year
United States of America Electrical Industry PEG Ratio Median Figure of 21 Publicly-Listed Electrical Companies 1.31x
United States of America Market PEG Ratio Median Figure of 2,038 Publicly-Listed Companies 1.46x

*Line of best fit is calculated by linear regression .

NasdaqGS:WIRE PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 16.38x ÷ 8.7%

1.89x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Encore Wire is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Encore Wire's assets?
Raw Data
NasdaqGS:WIRE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $36.67
NasdaqGS:WIRE Share Price * NasdaqGS (2019-11-18) in USD $56.96
United States of America Electrical Industry PB Ratio Median Figure of 59 Publicly-Listed Electrical Companies 1.57x
United States of America Market PB Ratio Median Figure of 5,086 Publicly-Listed Companies 1.76x
NasdaqGS:WIRE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:WIRE Share Price ÷ Book Value per Share (both in USD)

= 56.96 ÷ 36.67

1.55x

* Primary Listing of Encore Wire.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Encore Wire is good value based on assets compared to the US Electrical industry average.
X
Value checks
We assess Encore Wire's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electrical industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electrical industry average (and greater than 0)? (1 check)
  5. Encore Wire has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

WIRE Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Encore Wire expected to grow at an attractive rate?
  • Encore Wire's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Encore Wire's earnings growth is positive but not above the United States of America market average.
  • Encore Wire's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:WIRE Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:WIRE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 8.7%
NasdaqGS:WIRE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 3.9%
United States of America Electrical Industry Earnings Growth Rate Market Cap Weighted Average 9.6%
United States of America Electrical Industry Revenue Growth Rate Market Cap Weighted Average 3.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.4%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:WIRE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:WIRE Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,402 80 1
2020-12-31 1,325 91 76 2
2019-12-31 1,280 78 64 2
2019-11-18
NasdaqGS:WIRE Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 1,292 116 73
2019-06-30 1,312 115 80
2019-03-31 1,312 101 80
2018-12-31 1,289 82 78
2018-09-30 1,270 60 82
2018-06-30 1,222 41 72
2018-03-31 1,176 44 65
2017-12-31 1,164 48 67
2017-09-30 1,102 40 50
2017-06-30 1,047 35 42
2017-03-31 995 46 39
2016-12-31 941 59 34

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Encore Wire's earnings are expected to grow by 8.7% yearly, however this is not considered high growth (20% yearly).
  • Encore Wire's revenue is expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:WIRE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Encore Wire Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:WIRE Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 3.80 3.80 3.80 1.00
2020-12-31 3.64 3.98 3.30 2.00
2019-12-31 3.07 3.12 3.01 2.00
2019-11-18
NasdaqGS:WIRE Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 3.48
2019-06-30 3.83
2019-03-31 3.85
2018-12-31 3.75
2018-09-30 3.92
2018-06-30 3.45
2018-03-31 3.11
2017-12-31 3.23
2017-09-30 2.41
2017-06-30 2.02
2017-03-31 1.88
2016-12-31 1.63

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Encore Wire will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Encore Wire's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Encore Wire has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

WIRE Past Performance

  How has Encore Wire performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Encore Wire's growth in the last year to its industry (Electrical).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Encore Wire's year on year earnings growth rate has been positive over the past 5 years.
  • Encore Wire's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Encore Wire's 1-year earnings growth is negative, it can't be compared to the US Electrical industry average.
Earnings and Revenue History
Encore Wire's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Encore Wire Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:WIRE Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 1,292.47 72.62 93.13
2019-06-30 1,312.03 79.90 94.66
2019-03-31 1,311.96 80.21 92.31
2018-12-31 1,288.68 78.15 90.21
2018-09-30 1,270.25 81.61 88.13
2018-06-30 1,221.55 71.89 83.03
2018-03-31 1,176.29 64.74 80.89
2017-12-31 1,164.25 67.02 76.73
2017-09-30 1,102.20 49.93 73.75
2017-06-30 1,047.34 41.97 73.42
2017-03-31 994.64 38.87 70.78
2016-12-31 940.79 33.84 69.35
2016-09-30 952.40 33.39 69.29
2016-06-30 977.99 41.90 66.63
2016-03-31 992.90 45.42 65.77
2015-12-31 1,017.62 47.61 64.49
2015-09-30 1,052.11 41.71 65.75
2015-06-30 1,086.70 38.26 67.08
2015-03-31 1,140.04 37.06 69.46
2014-12-31 1,166.98 37.12 68.88
2014-09-30 1,175.15 43.28 67.08
2014-06-30 1,187.73 46.02 66.79
2014-03-31 1,170.10 51.37 64.76
2013-12-31 1,158.25 46.91 64.45
2013-09-30 1,122.74 40.92 63.35
2013-06-30 1,081.96 32.65 61.94
2013-03-31 1,057.23 19.51 61.05
2012-12-31 1,072.35 19.81 60.98

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Encore Wire has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Encore Wire used its assets more efficiently than the US Electrical industry average last year based on Return on Assets.
  • Encore Wire has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Encore Wire's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electrical industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Encore Wire has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

WIRE Health

 How is Encore Wire's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Encore Wire's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Encore Wire is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Encore Wire's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Encore Wire's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Encore Wire has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Encore Wire Company Filings, last reported 1 month ago.

NasdaqGS:WIRE Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 768.68 0.00 203.94
2019-06-30 752.64 0.00 184.80
2019-03-31 734.64 0.00 177.97
2018-12-31 720.46 0.00 178.41
2018-09-30 694.90 0.00 134.50
2018-06-30 671.33 0.00 102.02
2018-03-31 653.24 0.00 107.83
2017-12-31 641.35 0.00 123.36
2017-09-30 612.64 0.00 101.37
2017-06-30 597.95 0.00 85.86
2017-03-31 587.00 0.00 86.48
2016-12-31 573.11 0.00 95.75
2016-09-30 561.65 0.00 79.93
2016-06-30 554.95 0.00 81.14
2016-03-31 547.29 0.00 78.56
2015-12-31 538.64 0.00 79.15
2015-09-30 526.75 0.00 58.82
2015-06-30 515.31 0.00 45.60
2015-03-31 503.89 0.00 53.27
2014-12-31 493.19 0.00 54.66
2014-09-30 488.37 0.00 38.84
2014-06-30 477.53 0.00 19.09
2014-03-31 467.53 0.00 36.82
2013-12-31 456.58 0.00 36.78
2013-09-30 445.40 0.00 16.15
2013-06-30 431.63 0.00 1.23
2013-03-31 416.34 0.00 32.74
2012-12-31 410.16 0.00 33.88
  • Encore Wire has no debt.
  • Encore Wire has not taken on any debt in the past 5 years.
  • Encore Wire has no debt, it does not need to be covered by operating cash flow.
  • Encore Wire has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Encore Wire's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Encore Wire has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

WIRE Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.14%
Current annual income from Encore Wire dividends. Estimated to be 0.14% next year.
If you bought $2,000 of Encore Wire shares you are expected to receive $3 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Encore Wire's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.42%).
  • Encore Wire's dividend is below the markets top 25% of dividend payers in United States of America (3.65%).
Upcoming dividend payment

Purchase Encore Wire before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:WIRE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United States of America Electrical Industry Average Dividend Yield Market Cap Weighted Average of 19 Stocks 2.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1956 Stocks 2.3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:WIRE Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.08 1.00
2020-12-31 0.08 2.00
2019-12-31 0.08 2.00
2019-11-18
NasdaqGS:WIRE Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-11-13 0.080 0.138
2019-08-08 0.080 0.142
2019-05-08 0.080 0.147
2019-02-22 0.080 0.136
2018-11-14 0.080 0.157
2018-08-08 0.080 0.165
2018-06-28 0.080 0.164
2018-03-08 0.080 0.154
2017-11-08 0.080 0.165
2017-11-02 0.080 0.177
2017-10-31 0.080 0.175
2017-06-09 0.080 0.187
2017-02-27 0.080 0.181
2016-12-12 0.080 0.182
2016-08-19 0.080 0.211
2016-05-17 0.080 0.208
2016-04-04 0.080 0.207
2015-11-16 0.080 0.212
2015-08-19 0.080 0.223
2015-05-13 0.080 0.196
2015-03-20 0.080 0.196
2014-11-17 0.080 0.229
2014-08-14 0.080 0.203
2014-05-09 0.080 0.169
2014-02-25 0.080 0.163
2013-11-12 0.080 0.157
2013-08-14 0.080 0.193
2013-06-07 0.080 0.216
2013-03-12 0.080 0.236
2012-11-21 0.080 0.249
2012-08-15 0.080 0.268
2012-05-07 0.080 0.305
2012-03-12 0.080 0.286
2011-11-15 0.080 0.298
2011-08-23 0.080 0.350
2011-05-11 0.080 0.344
2011-03-08 0.080 0.326
2010-12-01 0.080 0.336
2010-08-19 0.080 0.385
2010-05-18 0.080 0.405
2010-02-19 0.080 0.375
2009-12-01 0.080 0.389
2009-08-21 0.080 0.362
2009-06-30 0.080 0.368
2009-02-18 0.080 0.388
2008-12-11 0.080 0.451

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Encore Wire is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.
  • Encore Wire is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Encore Wire's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Encore Wire's dividends as it is not paying a notable one for United States of America.
Future Payout to shareholders
  • No need to calculate the sustainability of Encore Wire's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Encore Wire's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Encore Wire afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Encore Wire has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

WIRE Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Daniel Jones
COMPENSATION $2,640,378
AGE 56
TENURE AS CEO 13.8 years
CEO Bio

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 and Chief Operating Officer of Encore Wire Corp. from May 1998 to February 2006, he previously held the positions of Chief Operating Officer from October 1997 until May 1998. He served as an Executive Vice President of Encore Wire Corp. since May 1997 till October 1997. He served as Vice President of Sales and Marketing at Encore from 1992 to May 1997, after serving as Director of Sales since joining Encore Wire Corp. /DE/ in November 1989. Mr. Jones has been a Director at Encore Wire Corp. since May 1992 and performed the duties of the Chief Executive Officer in an Interim capacity from May 2005 to February 2006. Mr. Jones serves as a Director of Baylor Scott & White Medical Center - McKinney.

CEO Compensation
  • Daniel's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • Daniel's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Encore Wire management team in years:

16.6
Average Tenure
59
Average Age
  • The average tenure for the Encore Wire management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Daniel Jones

TITLE
Chairman
COMPENSATION
$3M
AGE
56
TENURE
13.8 yrs

Frank Bilban

TITLE
VP of Finance
COMPENSATION
$1M
AGE
63
TENURE
19.4 yrs

David Smith

TITLE
Vice President of Operations
COMPENSATION
$260K
AGE
59
TENURE
27.8 yrs

Kevin Keiffer

TITLE
Vice President of Sales & Marketing
COMPENSATION
$546K

Matthew Ford

TITLE
Assistant Secretary & Controller
TENURE
10.5 yrs
Board of Directors Tenure

Average tenure and age of the Encore Wire board of directors in years:

10.1
Average Tenure
65
Average Age
  • The average tenure for the Encore Wire board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Daniel Jones

TITLE
Chairman
COMPENSATION
$3M
AGE
56
TENURE
5 yrs

John Wilson

TITLE
Lead Independent Director
AGE
76
TENURE
5 yrs

Scott Weaver

TITLE
Independent Director
AGE
61
TENURE
17.5 yrs

Gregory Fisher

TITLE
Independent Director
AGE
69
TENURE
7.8 yrs

Donald Courtney

TITLE
Independent Director
AGE
88
TENURE
30.8 yrs

Will Thomas

TITLE
Independent Director
AGE
48
TENURE
12.5 yrs
Who owns this company?
Recent Insider Trading
  • Encore Wire individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
14. Nov 19 Sell Frank Bilban Individual 12. Nov 19 13. Nov 19 -10,000 $59.55 $-592,360
16. Sep 19 Sell Matthew Ford Individual 13. Sep 19 13. Sep 19 -3,000 $60.00 $-180,000
26. Feb 19 Sell Matthew Ford Individual 22. Feb 19 22. Feb 19 -4,000 $59.00 $-236,000
X
Management checks
We assess Encore Wire's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Encore Wire has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

WIRE News

Simply Wall St News

Why Encore Wire Corporation's (NASDAQ:WIRE) CEO Pay Matters To You

Check out our latest analysis for Encore Wire How Does Daniel Jones's Compensation Compare With Similar Sized Companies? … At the time of writing our data says that Encore Wire Corporation has a market cap of US$1.1b, and is paying total annual CEO compensation of US$2.6m. … Boasting a total shareholder return of 39% over three years, Encore Wire Corporation has done well by shareholders.

Simply Wall St -

Here’s What Encore Wire Corporation’s (NASDAQ:WIRE) Return On Capital Can Tell Us

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Encore Wire: 0.13 = US$100m ÷ (US$854m - US$76m) (Based on the trailing twelve months to June 2019.) Therefore, Encore Wire has an ROCE of 13%. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise. … In addition to low current liabilities (making a negligible impact on ROCE), Encore Wire earns a sound return on capital employed.

Simply Wall St -

How Much Are Encore Wire Corporation (NASDAQ:WIRE) Insiders Taking Off The Table?

So we'll take a look at whether insiders have been buying or selling shares in Encore Wire Corporation (NASDAQ:WIRE). … NasdaqGS:WIRE Recent Insider Trading, August 9th 2019 Does Encore Wire Boast High Insider Ownership? … Our analysis of Encore Wire insider transactions leaves us cautious.

Simply Wall St -

Does Encore Wire Corporation's (NASDAQ:WIRE) Past Performance Indicate A Stronger Future?

View our latest analysis for Encore Wire How WIRE fared against its long-term earnings performance and its industry WIRE's trailing twelve-month earnings (from 31 March 2019) of US$80m has jumped 24% compared to the previous year. … Encore Wire's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. … I suggest you continue to research Encore Wire to get a more holistic view of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for WIRE’s future growth?

Simply Wall St -

Should Encore Wire (NASDAQ:WIRE) Be Disappointed With Their 31% Profit?

For example, the Encore Wire Corporation (NASDAQ:WIRE) share price return of 31% over three years lags the market return in the same period. … Encore Wire was able to grow its EPS at 21% per year over three years, sending the share price higher. … A Different Perspective We're pleased to report that Encore Wire shareholders have received a total shareholder return of 14% over one year.

Simply Wall St -

How Encore Wire Corporation (NASDAQ:WIRE) Could Add Value To Your Portfolio

By this I mean, I look at stocks holistically, from their financial health to their future outlook. … NasdaqGS:WIRE Income Statement, July 8th 2019 Next Steps: For Encore Wire, there are three relevant aspects you should look at: Future Outlook: What are well-informed industry analysts predicting for WIRE’s future growth? … Take a look at our free research report of analyst consensus for WIRE’s outlook.

Simply Wall St -

Is Now An Opportune Moment To Examine Encore Wire Corporation (NASDAQ:WIRE)?

Encore Wire Corporation (NASDAQ:WIRE), which is in the electrical business, and is based in United States, saw a decent share price growth in the teens level on the NASDAQGS over the last few months. … This means that the opportunity to buy Encore Wire at a good price has disappeared! … Though in the case of Encore Wire, it is expected to deliver a negative earnings growth of -5.7%, which doesn’t help build up its investment thesis.

Simply Wall St -

Is Encore Wire Corporation's (NASDAQ:WIRE) P/E Ratio Really That Good?

The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Encore Wire: P/E of 15.23 = $58.58 ÷ $3.85 (Based on the year to March 2019.) Is A High Price-to-Earnings Ratio Good? … The Bottom Line On Encore Wire's P/E Ratio Encore Wire's P/E is 15.2 which is below average (18.1) in the US market. … The below average P/E ratio suggests that market participants don't believe the strong growth will continue.

Simply Wall St -

A Look At The Fair Value Of Encore Wire Corporation (NASDAQ:WIRE)

Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $41.10 $50.60 $58.34 $65.06 $70.84 $75.83 $80.19 $84.07 $87.61 $90.90 Growth Rate Estimate Source Analyst x1 Analyst x1 Est @ 15.29% Est @ 11.52% Est @ 8.89% Est @ 7.04% Est @ 5.75% Est @ 4.84% Est @ 4.21% Est @ 3.76% Present Value ($, Millions) Discounted @ 9.31% $37.60 $42.35 $44.67 $45.57 $45.39 $44.45 $43.00 $41.24 $39.32 $37.32 Present Value of 10-year Cash Flow (PVCF)= $420.92m "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$91m × (1 + 2.7%) ÷ (9.3% – 2.7%) = US$1.4b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$1.4b ÷ ( 1 + 9.3%)10 = $582.77m The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is $1.00b. … NasdaqGS:WIRE Intrinsic value, June 11th 2019 The assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Does Encore Wire Corporation's (NASDAQ:WIRE) CEO Salary Compare Well With Others?

Daniel Jones became the CEO of Encore Wire Corporation (NASDAQ:WIRE) in 1970. … View our latest analysis for Encore Wire How Does Daniel Jones's Compensation Compare With Similar Sized Companies? … At the time of writing our data says that Encore Wire Corporation has a market cap of US$1.0b, and is paying total annual CEO compensation of US$2.6m.

Simply Wall St -

WIRE Company Info

Description

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, metal-clad, and armored cables for use primarily as wiring in commercial and industrial buildings; UF-B cables; XHHW-2 cables; RHH/RHW-2 cables; and other types of wire products. The company sells its products to wholesale electrical distributors primarily through independent manufacturers’ representatives. Encore Wire Corporation was founded in 1989 and is headquartered in McKinney, Texas.

Details
Name: Encore Wire Corporation
WIRE
Exchange: NasdaqGS
Founded: 1989
$1,193,992,558
20,961,948
Website: http://www.encorewire.com
Address: Encore Wire Corporation
1329 Millwood Road,
McKinney,
Texas, 75069,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS WIRE Common Stock Nasdaq Global Select US USD 16. Jul 1992
DB EW3 Common Stock Deutsche Boerse AG DE EUR 16. Jul 1992
Number of employees
Current staff
Staff numbers
1,278
Encore Wire employees.
Industry
Electrical Components and Equipment
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/18 23:35
End of day share price update: 2019/11/18 00:00
Last estimates confirmation: 2019/10/30
Last earnings filing: 2019/10/30
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.