Houston Story

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HWCC -- USA Stock  

USD 5.24  0.01  0.19%

As many millenniums are trying to avoid industrials space, it makes sense to go over Houston Wire Cable a little further and try to understand its current market patterns. We are going to cover the possibilities of making Houston Wire into your portfolio. Is the firm operations in 2021 sustainable? Here we are going to cover Houston Wire Cable perspective on valuation to give you a better outlook on taking a position in this stock.
Published over two weeks ago
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Will Houston Wire (NASDAQ:HWCC) price increase in April 2021?
Houston Wire Cable currently holds 77.04 M in liabilities with Debt to Equity (D/E) ratio of 0.76, which is about average as compared to similar companies.
We provide advice to complement the regular expert consensus on Houston Wire. Our dynamic recommendation engine utilizes a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
We determine the current worth of Houston Wire Cable using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Houston Wire Cable based exclusively on its fundamental and basic technical indicators. By analyzing Houston Wire's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Houston Wire's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Houston Wire. We calculate exposure to Houston Wire's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Houston Wire's related companies.

Houston Wire Cable Investment Alerts

Houston investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Houston Wire Cable performance across your portfolios.Please check all investment alerts for Houston

Houston Wire Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Houston value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Houston Wire competition to find correlations between indicators driving the intrinsic value of Houston.

How Houston utilizes its cash?

To perform a cash flow analysis of Houston Wire, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Houston Wire is receiving and how much cash it distributes out in a given period. The Houston Wire cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Houston Wire Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 36.88 Million

Disposition of 10577 shares by James Pokluda of Houston Wire subject to Rule 16b-3

Legal trades by Houston Wire insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Houston insider trading alert for disposition of performance share units by James Pokluda, PRESIDENT & CEO, on 6th of April 2021. This event was filed by Houston Wire Cable Co with SEC on 2021-04-06. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Is Houston Wire valued fairly by the market?

The entity reported the previous year's revenue of 302.84 M. Net Loss for the year was (3.01 M) with profit before overhead, payroll, taxes, and interest of 79.92 M.
 2018 2019 2020 2021 (projected)
Interest Expense2.91 M3.06 M3.52 M3.79 M
Gross Profit85.21 M79.92 M71.93 M70.1 M

Margins Breakdown

Houston profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Houston Wire itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Houston Wire profit margins.
Operating Margin3.46
EBITDA Margin0.0416
Gross Margin0.27
Profit Margin0.007389

Houston Wire Revenue Per Employee is decreasing over the last 8 years. The current value of Houston Wire Revenue Per Employee is 973,342. Also, Houston Wire Earnings Before Interest Taxes and Depreciation Amortization USD is decreasing over the last 8 years. The current value of Houston Wire Earnings Before Interest Taxes and Depreciation Amortization USD is 14,707,484.

Can Houston Wire build up on the current rise?

Current expected short fall is at -2.82. Houston Wire Cable shows above-average downside volatility for the selected time horizon. We advise investors to inspect Houston Wire Cable further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Houston Wire future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Houston Wire's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Houston Wire's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Conclusion on Houston Wire

Whereas few other entities within the industrial distribution industry are still a little expensive, even after the recent corrections, Houston Wire may offer a potential longer-term growth to investors. To summarize, as of the 25th of March 2021, our analysis shows that Houston Wire almost neglects market trends. The company is overvalued and projects below average probability of bankruptcy for the next 2 years. Our overall 30 days advice on the company is Strong Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Houston Wire Cable. Please refer to our Terms of Use for any information regarding our disclosure principles.

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