Encore Wire Net Income vs. Operating Margin
| WIRE Stock | USD 283.09 1.31 0.46% |
Net Income | First Reported 1991-03-31 | Previous Quarter 82.1 M | Current Value 66.1 M | Quarterly Volatility 41 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.13 | 0.2554 |
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| Net Profit Margin | 0.15 | 0.145 |
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| Operating Profit Margin | 0.18 | 0.1758 |
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| Pretax Profit Margin | 0.2 | 0.1887 |
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| Return On Assets | 0.2 | 0.1892 |
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| Return On Equity | 0.17 | 0.2131 |
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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.
Encore |
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 21.61 | 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 Operating Margin vs. Net Income 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 net income category among related companies. It is rated first in operating margin category among related companies . The ratio of Net Income to Operating Margin for Encore Wire is about 2,967,322,709 . At present, Encore Wire's Net Income is projected to increase significantly 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 Operating Margin vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Encore Wire |
| = | 372.4 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Encore Wire |
| = | 0.13 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Encore Operating Margin Comparison
Encore Wire is currently under evaluation in operating margin 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -240 M | -228 M | |
| Operating Income | 451.4 M | 473.9 M | |
| Income Before Tax | 484.6 M | 508.9 M | |
| Total Other Income Expense Net | 33.3 M | 34.9 M | |
| Net Income | 372.4 M | 391 M | |
| Income Tax Expense | 112.2 M | 117.9 M | |
| Net Income Applicable To Common Shares | 825.5 M | 866.8 M | |
| Net Income From Continuing Ops | 460.3 M | 483.3 M | |
| Non Operating Income Net Other | 11.3 M | 11.9 M | |
| Interest Income | 33.3 M | 34.9 M | |
| Net Interest Income | 31.8 M | 33.4 M | |
| Change To Netincome | 36.8 M | 38.6 M | |
| Net Income Per Share | 22.07 | 23.17 | |
| Income Quality | 1.22 | 0.95 | |
| 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.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.Did You Try This Idea?
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Complementary Tools for Encore Stock analysis
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.