Definitive Analysis
Definitive Analysis

Financial Statements

Analysis Mode

Ticker

Industry

Sector

Encore Wire Corporation (WIRE)

Company Dividend Discount ModelIndustry: Electrical Equipment & PartsSector: Industrials

Valuation Snapshot

Stable Growth$376.23 - $836.57$543.06
Multi-Stage$264.02 - $288.76$276.17
Blended Fair Value$409.61
Current Price$267.40
Upside53.18%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2023202220212020201920182017201620152014
DPS-3.78%-1.82%0.080.090.100.100.100.100.100.100.100.10
YoY Growth---11.11%-5.21%-1.03%-1.37%0.30%0.42%0.30%-0.06%0.00%0.18%
Dividend Yield--0.03%0.05%0.09%0.15%0.24%0.17%0.18%0.22%0.26%0.26%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)316.19
(-) Cash Dividends Paid (M)1.32
(=) Cash Retained (M)314.87
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)63.2439.5223.71
Cash Retained (M)314.87314.87314.87
(-) Cash Required (M)-63.24-39.52-23.71
(=) Excess Retained (M)251.63275.34291.15
(/) Shares Outstanding (M)16.6716.6716.67
(=) Excess Retained per Share15.0916.5117.46
LTM Dividend per Share0.080.080.08
(+) Excess Retained per Share15.0916.5117.46
(=) Adjusted Dividend15.1716.5917.54
WACC / Discount Rate9.75%9.75%9.75%
Growth Rate5.50%6.50%7.50%
Fair Value$376.23$543.06$836.57
Upside / Downside40.70%103.09%212.85%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)316.19336.75358.63381.95406.77433.21446.21
Payout Ratio0.42%18.33%36.25%54.17%72.08%90.00%92.50%
Projected Dividends (M)1.3261.74130.01206.89293.22389.89412.74

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.75%9.75%9.75%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)55.7356.2656.78
Year 2 PV (M)105.91107.93109.96
Year 3 PV (M)152.12156.49160.94
Year 4 PV (M)194.59202.07209.77
Year 5 PV (M)233.54244.82256.53
PV of Terminal Value (M)3,660.363,837.164,020.72
Equity Value (M)4,402.244,604.724,814.70
Shares Outstanding (M)16.6716.6716.67
Fair Value$264.02$276.17$288.76
Upside / Downside-1.26%3.28%7.99%

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