Home News Stock Valuation: Encore Wire Corporation (NASDAQ: WIRE)

Stock Valuation: Encore Wire Corporation (NASDAQ: WIRE)


Encore Wire Corporation trades as part of the technology sector and computer hardware industry. The company CEO is Daniel L. Jones. Encore Wire Corp is engaged in manufacturing electrical building wire and cable. It supplies building wire for interior electrical wiring in commercial and industrial buildings, homes, apartments, and manufactured housing.

Previous Intraday Trading Performance:

The WIRE stock showed a previous change of 1.14% with an open at 51.05 and a close of 51.38. It reached an intraday high of 52.23 and a low of 50.49.

SeekingAlpha:  Encore Wire Corporation (WIRE) CEO Daniel Jones on Q3 2018 Results – Earnings Call Transcript


The stock has a market cap of $1.1b with 20.9m shares outstanding, of which the float is 20.0m shares. Trading volume reached 72,219 shares compared to its average volume of 74,128 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, Encore Wire Corporation shares returned 5.96% and in the past 30 trading days it returned 2.90%. Over three months, it changed -0.67%. In one year it has changed 16.17% and within that year its 52-week high was 58.70 and its 52-week low was 40.96. WIRE stock is 25.44% above its 52 Week Low.

Our calculations show a 200 day moving average of 50.26 and a 50 day moving average of 47.97. Currently WIRE stock is trading 2.24% above its 200 day moving average and may be a good opportunity to buy.

SeekingAlpha:  Encore Wire Corporation (WIRE) CEO Daniel Jones on Q3 2018 Results – Earnings Call Transcript


The last annual fiscal EPS for the company was reported at 3.2 that ended on 31st of December 2017, which according to the previous close, that is a PE of 16.06. Based on 1 analyst estimate, the estimated EPS for the next quarter is 0.69. The TTM EPS is 3.29, which comes to a TTM PE of 15.62. Historically, the PE high was 51.90 and the PE low was 14.40. If the stock reached its PE low, that would represent a price of 47.37, which is a decrease of -7.81%.

The following are the last four quarter reported earnings per share:
09-30-2018:  1.13
06-30-2018:  0.86
03-31-2018:  0.54
12-31-2017:  0.76

The dividend per share is currently 0.08, which is a dividend yield of 0.16%. Also, the payout ratio is 2.43%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 29.04, which means it may be overvalued by -76.91%

Indicators to Watch:

Based on the latest filings, there is 54.30% of institutional ownership. Short-interest is 0, which is 0.00% of shares outstanding. The short-interest ratio or days-to-cover ratio is 0.00.

The current calculated beta is 1.74

Business Wire:  Employers Holdings, Inc. Reports Third Quarter 2018 Results

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 12.54%, return on assets is 10.88%, profit margin is 6.37%, price-to-sales is 0.84 and price-to-book is 1.53.

Company Scores:

All scores are out of six:
 2  :Valuation Score
 5  :Past Performance Score
 6  :Financial Strength Score
 0  :Future Growth Score
 0  :Dividend Score
 3  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.