Industrials
A key Dec-Qtr standout was record volumes sold, a function of WIRE’s capital reinvestment and quick-turn model. Copper spreads continue to inch closer to “normal”. This is a precursor to the stock narrative shifting to WIRE’s secular tailwinds, the looming supply shortage of its raw material (a positive) and its best-in-class service model. WIRE continues to deploy cash toward capex and share repurchases ($1.3bn since 2020) yet remains debt-free ($561m cash). Sidoti’s TP increases to $302 (from $241) based on 15x estimated 2025 EPS of $20.11. 40% upside.
Edition: 180
- 23 February, 2024
Industrials
The street has been overly focused on spread normalisation and glossed over WIRE’s roughly half-billion dollars in capital reinvestment made to widen its service “moat” vs. competitors. With copper spreads close to “normal” levels, Sidoti sees the stock’s narrative shifting to WIRE’s multiple secular tailwinds, the looming supply shortage of its raw material (a positive for the company) and its best-in-class service model. WIRE trades at 9.7x Sidoti’s 2025 EPS estimate and the balance sheet remains pristine (debt free; $582m in cash - expected to increase to $994m by the close of 2025).
Edition: 176
- 22 December, 2023