Encore Wire Market Capitalization vs. Current Ratio

WIRE Stock  USD 253.19  4.14  1.66%   
Based on the measurements of profitability obtained from Encore Wire's financial statements, Encore Wire is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in April. Profitability indicators assess Encore Wire's ability to earn profits and add value for shareholders. The current year's Operating Cash Flow Sales Ratio is expected to grow to 0.19, whereas Price To Sales Ratio is forecasted to decline to 0.99. At present, Encore Wire's Income Before Tax is projected to increase significantly based on the last few years of reporting. The current year's Total Other Income Expense Net is expected to grow to about 34.9 M, whereas Accumulated Other Comprehensive Income is projected to grow to (228 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.130.2554
Way Down
Slightly volatile
Net Profit Margin0.150.145
Sufficiently Up
Slightly volatile
Operating Profit Margin0.180.1758
Fairly Up
Slightly volatile
Pretax Profit Margin0.20.1887
Notably Up
Slightly volatile
Return On Assets0.20.1892
Notably Up
Slightly volatile
Return On Equity0.170.2131
Significantly Down
Very volatile
For Encore Wire profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Encore Wire to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Encore Wire utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Encore Wire's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Encore Wire over time as well as its relative position and ranking within its peers.
  
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For information on how to trade Encore Stock refer to our How to Trade Encore Stock guide.
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
(0.50)
Dividend Share
0.08
Earnings Share
21.62
Revenue Per Share
152.179
Quarterly Revenue Growth
(0.09)
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 if Encore Wire is a good investment 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.

Encore Wire Current Ratio vs. Market Capitalization Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Encore Wire's current stock value. Our valuation model uses many indicators to compare Encore Wire value to that of its competitors to determine the firm's financial worth.
Encore Wire is rated first in market capitalization category among related companies. It is rated second in current ratio category among related companies . The ratio of Market Capitalization to Current Ratio for Encore Wire is about  459,718,895 . At present, Encore Wire's Current Ratio is projected to increase slightly based on the last few years of reporting.. Comparative valuation analysis is a catch-all model that can be used if you cannot value Encore Wire by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Encore Wire's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Encore Wire's earnings, one of the primary drivers of an investment's value.

Encore Market Capitalization vs. Competition

Encore Wire is rated first in market capitalization category among related companies. Market capitalization of Industrials industry is at this time estimated at about 6.88 Billion. Encore Wire totals roughly 3.93 Billion in market capitalization claiming about 57% of equities under Industrials industry.
Capitalization  Total debt  Valuation  Workforce  Revenue

Encore Current Ratio vs. Market Capitalization

Market Capitalization is the total market value of a company's equity. It is one of many ways to value a company and is calculated by multiplying the price of the stock by the number of shares issued. If a firm has one type of stock its market capitalization will be the current market share price multiplied by the number of shares. However, if a company has multiple types of equities then the market cap will be the total of the market caps of the different types of shares.

Encore Wire

Market Cap

 = 

Shares Outstanding

X

Share Price

 = 
3.93 B
In most publications or references market cap is broken down into the mega-cap, large-cap, mid-cap, small-cap, micro-cap, and nano-cap. Market Cap is a measurement of business as total market value of all of the outstanding shares at a given time, and can be used to compare different companies based on their size.
Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.

Encore Wire

Current Ratio

 = 

Current Asset

Current Liabilities

 = 
8.54 X
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).

Encore Current Ratio Comparison

Encore Wire is currently under evaluation in current ratio category among related companies.

Encore Wire Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Encore Wire, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Encore Wire will eventually generate negative long term returns. The profitability progress is the general direction of Encore Wire's change in net profit over the period of time. It can combine multiple indicators of Encore Wire, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2024
Accumulated Other Comprehensive Income-240 M-228 M
Operating Income451.4 M473.9 M
Income Before Tax484.6 M508.9 M
Total Other Income Expense Net33.3 M34.9 M
Net Income372.4 M391 M
Income Tax Expense112.2 M117.9 M
Net Income Applicable To Common Shares825.5 M866.8 M
Net Income From Continuing Ops460.3 M483.3 M
Non Operating Income Net Other11.3 M11.9 M
Interest Income33.3 M34.9 M
Net Interest Income31.8 M33.4 M
Change To Netincome36.8 M38.6 M
Net Income Per E B T 0.77  0.54 

Encore Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Encore Wire. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Encore Wire position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Encore Wire's important profitability drivers and their relationship over time.

Use Encore Wire in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Encore Wire position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Encore Wire will appreciate offsetting losses from the drop in the long position's value.

Encore Wire Pair Trading

Encore Wire Pair Trading Analysis

The ability to find closely correlated positions to Encore Wire could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Encore Wire when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Encore Wire - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Encore Wire to buy it.
The correlation of Encore Wire is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Encore Wire moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Encore Wire moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Encore Wire can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Encore Wire position

In addition to having Encore Wire in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Israel Wall Street
Israel Wall Street Theme
Cross-sector collection of best publicly traded Israel entities that are expected to continue growing. The Israel Wall Street theme has 71 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Israel Wall Street Theme or any other thematic opportunities.
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When determining whether Encore Wire is a strong investment it is important to analyze Encore Wire's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Encore Wire's future performance. For an informed investment choice regarding Encore Stock, refer to the following important reports:
Check out Your Current Watchlist.
For information on how to trade Encore Stock refer to our How to Trade Encore Stock guide.
You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

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When running Encore Wire's 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 the 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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To fully project Encore Wire's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Encore Wire at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Encore Wire's income statement, its balance sheet, and the statement of cash flows.
Potential Encore Wire investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Encore Wire investors may work on each financial statement separately, they are all related. The changes in Encore Wire's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Encore Wire's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.