Encore Z Score

WIRE Stock

USD 174.77 4.02 2.25%

Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Check out Encore Wire Piotroski F Score and Encore Wire Valuation analysis. For information on how to trade Encore Stock refer to our How to Trade Encore Stock guide.

Encore Wire Working Capital is projected to increase significantly based on the last few years of reporting. The past year's Working Capital was at 1.26 Billion. Encore Wire Consolidated Income is projected to increase significantly based on the last few years of reporting. The past year's Consolidated Income was at 717.84 Million. The current year Earning Before Interest and Taxes EBIT is expected to grow to about 997.9 M, whereas Operating Expenses is forecasted to decline to about 159.3 M.

Encore Z Score Analysis

Encore Wire's Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..

	2020	2021	2022	2023 (projected)
Consolidated Income	76.07 M	541.42 M	717.84 M	774.51 M
Direct Expenses	1.08 B	1.72 B	1.91 B	2.06 B

Consolidated Income Direct Expenses

Z Score

Sum Of

5 Factors

More About Z Score | All Equity Analysis

Current Encore Wire Z Score

43.9

Most of Encore Wire's fundamental indicators, such as Z Score, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Encore Wire is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

First Factor

1.2 * (

Working Capital

Total Assets )

Second Factor

1.4 * (

Retained Earnings

Total Assets )

Thrid Factor

3.3 * (

EBITAD

Total Assets )

Fouth Factor

0.6 * (

Market Value of Equity

Total Liabilities )

Fifth Factor

0.99 * (

Revenue

Total Assets )

Encore Z Score Driver Correlations

Understanding the fundamental principles of building solid financial models for Encore Wire is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Z Score. Since Encore Wire's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Encore Wire's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Encore Wire's interrelated accounts and indicators.

To calculate Z-Score one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. Z-Score can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.

Competition

Predict Encore Wire

As per the company's disclosures, Encore Wire has a Z Score of 43.9. This is much higher than that of the Electrical Equipment sector and significantly higher than that of the Industrials industry. The z score for all United States stocks is notably lower than that of the firm.

Encore Z Score Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Encore Wire's direct or indirect competition against its Z Score to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Encore Wire could also be used in its relative valuation, which is a method of valuing Encore Wire by comparing valuation metrics of similar companies.

Encore Wire is currently under evaluation in z score category among related companies.

Encore Wire Current Valuation Drivers

We derive many important indicators used in calculating different scores of Encore Wire from analyzing Encore Wire's financial statements. These drivers represent accounts that assess Encore Wire's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Encore Wire's important valuation drivers and their relationship over time.

	2018	2019	2020	2021	2022	2023 (projected)
Net Income Per Employee	61.15 K	42.12 K	58.85 K	375.99 K	429.33 K	463.23 K
Revenue Per Employee	1.01 M	923.91 K	987.94 K	1.8 M	1.8 M	1.95 M
Average Assets	778.67 M	856.14 M	914.59 M	1.31 B	1.83 B	1.45 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA	118.2 M	93.44 M	118.25 M	722.68 M	951.08 M	1.03 B
Earnings Before Interest Taxes and Depreciation Amortization USD	118.2 M	93.44 M	118.25 M	722.68 M	951.08 M	1.03 B
Earnings before Tax	101.68 M	75.73 M	98.8 M	699.4 M	924.85 M	997.86 M
Average Equity	684.98 M	758.76 M	805.17 M	1.12 B	1.63 B	1.76 B
Enterprise Value	913.22 M	999.28 M	1.03 B	2.6 B	1.95 B	1.68 B
Free Cash Flow	55.41 M	53.64 M	(28.62 M)	300.17 M	540.53 M	583.21 M
Invested Capital	566.08 M	576.89 M	689.74 M	937.45 M	1.14 B	957.5 M
Invested Capital Average	576.54 M	586.13 M	623.42 M	895.05 M	1.12 B	936.17 M
Market Capitalization	1.05 B	1.2 B	1.25 B	2.9 B	2.52 B	2.07 B
Tangible Asset Value	818.06 M	883.15 M	966.45 M	1.53 B	2.02 B	2.18 B
Working Capital	445.67 M	473.94 M	461.54 M	880.95 M	1.26 B	1.36 B

Encore Wire Institutional Holders

Institutional Holdings refers to the ownership stake in Encore Wire that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of Encore Wire's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing Encore Wire's value.

	Last Transaction	Type	Shares	Value
Blackrock Inc	2022-12-31	Common Shares	2.9 M	398 M
Vanguard Group Inc	2022-12-31	Common Shares	2.1 M	286.8 M
Dimensional Fund Advisors Lp	2022-12-31	Common Shares	1.6 M	218.8 M
Westfield Capital Management Co Lp	2022-12-31	Common Shares	828.2 K	113.9 M
State Street Corp	2022-12-31	Common Shares	652.5 K	89.8 M
Royce Associates Lp	2022-12-31	Common Shares	409.6 K	56.3 M
Geode Capital Management Llc	2022-12-31	Common Shares	347.9 K	47.9 M
Jacobs Levy Equity Management Inc	2022-12-31	Common Shares	342 K	47.1 M
Morgan Stanley	2022-12-31	Common Shares	335.4 K	46.1 M
Goldman Sachs Group Inc	2022-12-31	Common Shares	335 K	46.1 M
Arrowstreet Capital Limited Partnership	2022-12-31	Common Shares	298.3 K	41 M

Encore Fundamentals

	Return On Equity	0.45 %
	Return On Asset	0.32 %
	Profit Margin	0.24 %
	Operating Margin	0.30 %
	Current Valuation	2.05 B
	Shares Outstanding	17.96 M
	Shares Owned by Insiders	4.88 %
	Shares Owned by Institutions	95.12 %
	Number of Shares Shorted	2.1 M
	Price to Earning	31.30 X
	Price to Book	1.56 X
	Price to Sales	0.85 X
	Revenue	3.02 B
	Gross Profit	1.11 B
	EBITDA	27.16 B
	Net Income	717.84 M
	Cash and Equivalents	573.58 M
	Cash per Share	31.34 X
	Debt to Equity	0.17 %
	Current Ratio	8.54 X
	Book Value Per Share	100.26 X
	Cash Flow from Operations	688.88 M
	Short Ratio	8.69 X
	Earnings Per Share	37.08 X
	Price to Earnings To Growth	2.09 X
	Target Price	252.5
	Number of Employees	1.67 K
	Beta	1.33
	Market Capitalization	3.14 B
	Total Asset	2.02 B
	Retained Earnings	590.97 M
	Working Capital	314.13 M
	Current Asset	366.38 M
	Current Liabilities	52.25 M
	Z Score	43.9
	Annual Yield	0.0004 %
	Five Year Return	0.13 %
	Net Asset	2.02 B
	Last Dividend Paid	0.08

About Encore Wire Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Encore Wire's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Encore Wire using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Encore Wire based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.

Please read more on our fundamental analysis page.

Encore Wire Corporation manufactures and sells electrical building wires and cables for interior electrical wiring in the United States. Encore Wire Corporation was incorporated in 1989 and is headquartered in McKinney, Texas. Encore Wire operates under Electrical Equipment Parts classification in the United States and is traded on NASDAQ Exchange. It employs 1440 people.

Encore Wire Investors Sentiment

The influence of Encore Wire's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Encore. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Investor biases related to Encore Wire's public news can be used to forecast risks associated with investment in Encore. The trend in average sentiment can be used to explain how an investor holding Encore can time the market purely based on public headlines and social activities around Encore Wire. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.

Encore Wire's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Encore Wire's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Encore Wire's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Encore Wire.

Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Encore Wire in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Encore Wire's short interest history, or implied volatility extrapolated from Encore Wire options trading.

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Check out Encore Wire Piotroski F Score and Encore Wire Valuation analysis. For information on how to trade Encore Stock refer to our How to Trade Encore Stock guide. You can also try Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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When running Encore Wire price analysis, check to measure Encore Wire's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Encore Wire is operating at the current time. Most of Encore Wire's value examination focuses on studying past and present price action to predict the probability of Encore Wire's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Encore Wire's price. Additionally, you may evaluate how the addition of Encore Wire to your portfolios can decrease your overall portfolio volatility.

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Is Encore Wire's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Encore Wire. If investors know Encore will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Encore Wire listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

Quarterly Earnings Growth

0.198

Dividend Share

0.08

Earnings Share

37.08

Revenue Per Share

157.501

Quarterly Revenue Growth

0.009

The market value of Encore Wire is measured differently than its book value, which is the value of Encore that is recorded on the company's balance sheet. Investors also form their own opinion of Encore Wire's value that differs from its market value or its book value, called intrinsic value, which is Encore Wire's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Encore Wire's market value can be influenced by many factors that don't directly affect Encore Wire's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.

Please note, there is a significant difference between Encore Wire's value and its price as these two are different measures arrived at by different means. Investors typically determine Encore Wire value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Encore Wire's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

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	Accounts Payable	Total Assets	Current Assets	Cash and Equivalents	Shareholders Equity	Total Liabilities	Current Liabilities	Tax Assets	Tax Liabilities
Accounts Payable		0.87	0.86	0.84	0.87	0.93	0.95	0.32	0.69
Total Assets	0.87		1.0	1.0	1.0	0.94	0.91	0.65	0.86
Current Assets	0.86	1.0		1.0	1.0	0.93	0.9	0.68	0.84
Cash and Equivalents	0.84	1.0	1.0		1.0	0.91	0.88	0.7	0.85
Shareholders Equity	0.87	1.0	1.0	1.0		0.93	0.91	0.66	0.86
Total Liabilities	0.93	0.94	0.93	0.91	0.93		0.99	0.43	0.85
Current Liabilities	0.95	0.91	0.9	0.88	0.91	0.99		0.36	0.76
Tax Assets	0.32	0.65	0.68	0.7	0.66	0.43	0.36		0.59
Tax Liabilities	0.69	0.86	0.84	0.85	0.86	0.85	0.76	0.59

Encore Z Score

Encore Z Score Analysis

Current Encore Wire Z Score

Encore Z Score Driver Correlations

Encore Z Score Peer Comparison

Encore Wire Current Valuation Drivers

Encore Wire Institutional Holders

Encore Fundamentals

About Encore Wire Fundamental Analysis

Encore Wire Investors Sentiment

Also Currently Popular

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