As part of our ongoing series here at The Acquirer’s Multiple, we provide this feature article titled ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.
One of the cheapest stocks in our Stock Screeners is:
Encore Wire Corp (WIRE)
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. The company’s principal customers are wholesale electrical distributors, who sell building wire and a variety of other products to electrical contractors. Encore offers an electrical building wire product line that consists primarily of NM-B cable, UF-B cable, THHN/THWN-2, XHHW-2, RHH/RHW-2, and other types of wire products, including tray cable, metal-clad, and armored cable.
A quick look at the share price history (below) over the past twelve months shows that the price is up 71%. Here’s why the company is undervalued.
Key Stats
Market Cap: $3.489 Billion
Enterprise Value: $2.758 Billion
Operating Earnings
Operating Earnings: $915 Million
Acquirer’s Multiple
Acquirer’s Multiple: 3.00
Free Cash Flow (TTM)
Free Cash Flow: $540 Million
FCF/EV Yield %:
FCF/EV Yield: 15.49
Shareholder Yield %:
Shareholder Yield: 7.10
Other Indicators
Piotroski F-Score: 5.00
Altman Z-Score: 12.70
ROA (5 Year Avge%): 45
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