An absurdly undervalued company for us morons! DD $WIRE

Encore Wire ($WIRE) is a relatively straightforward business to understand. They make wire. Why they are special: 1) They have specialized and they know what they're good at and they stick with it. 2) They are organized on 1 site where raw materials come in and finished products go out making Manufacturing much more efficient. 3) They continue to invest in their production capacity and expand as necessary. 4) They have no debt, allowing them to return capital to shareholders when they see fit. This comes in the form of a dividend and regular buybacks. I do wish their dividend was growing and actually meaningful but it still sends a signal. Payout ratios currently 0.39%, with a $0.02/ share quarterly dividend. 5) Nearly $15 a cash per share on their books. 6) Diluted earnings per share is about $20.50 TTM. 7) Five years the PE Ratio has been on average 16.18 however it is currently a 5.76 signaling that the market has missed this opportunity, or the Tailwind this company has in the form of infrastructure investment and home construction in the coming decade. 8) Should the multiple expand back to the 5 year average, the price per share would be around $331.69, or an upside of about 200%... Currently at about $110.00 I do have a small position in $WIRE

back

An absurdly undervalued company for us morons! DD $WIRE

bullish

Encore Wire ($WIRE) is a relatively straightforward business to understand. They make wire.

Why they are special:

1) They have specialized and they know what they're good at and they stick with it.

2) They are organized on 1 site where raw materials come in and finished products go out making Manufacturing much more efficient.

3) They continue to invest in their production capacity and expand as necessary.

4) They have no debt, allowing them to return capital to shareholders when they see fit. This comes in the form of a dividend and regular buybacks. I do wish their dividend was growing and actually meaningful but it still sends a signal. Payout ratios currently 0.39%, with a $0.02/ share quarterly dividend.

5) Nearly $15 a cash per share on their books.

6) Diluted earnings per share is about $20.50 TTM.

7) Five years the PE Ratio has been on average 16.18 however it is currently a 5.76 signaling that the market has missed this opportunity, or the Tailwind this company has in the form of infrastructure investment and home construction in the coming decade.

8) Should the multiple expand back to the 5 year average, the price per share would be around $331.69, or an upside of about 200%... Currently at about $110.00

I do have a small position in $WIRE

read-time
1 min
140.00
Target Price
6/ 10
Confidence
6-12 Months
Timeframe
catalyst icon
Earnings Release
catalyst icon
News
catalyst icon
SEC
Filing
catalyst icon
Sentiment
catalyst icon
Other Catalyst

Access the latest tools and discussion channels with an account

reddit-sentiment

Reddit Sentiment
Analysis

portfolio-balancer

Portfolio Balancer
with brokerages

sec-dashboard

SEC Dashboard
with NLP

*/}aiodd-ad
next