ENCORE WIRE CORPORATION ● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● The company presents an interesting fundamental situation from a short-term investment perspective.
Strengths
● The prospective high growth for the next fiscal years is among the main assets of the company
● The company is in a robust financial situation considering its net cash and margin position.
● Its low valuation, with P/E ratio at 5.44 and 10.76 for the ongoing fiscal year and 2022 respectively, makes the stock pretty attractive with regard to earnings multiples.
● The company shows low valuation levels, with an enterprise value at 0.61 times its sales.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● For the past twelve months, EPS forecast has been revised upwards.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● The average price target of analysts who are interested in the stock has been strongly revised upwards over the last four months.
● Analysts' price targets are all relatively close, reflecting good visibility on the company's valuation.
● Historically, the company has been releasing figures that are above expectations.
Weaknesses
● As a percentage of sales and without taking into account depreciation and amortization, the company has relatively low margins.
● The company is not the most generous with respect to shareholders' compensation.
● Over the past twelve months, analysts' opinions have been revised negatively.
