HWCC Has Near-Term Downsides
In recent times, Houston Wire & Cable Company (HWCC) faced supply chain disruptions issues and significant pricing pressure in some of its most notable product categories. The metal price deflation can erode its operating margin in the near term. I also think lower sales will keep its EBITDA margin under pressure in the medium term.
To improve operating margins, the company closed one of its largest facilities and implement IT-enabled process improvements. While the company has touted the low-smoke, zero-halogen cable products to become its next growth drivers, I think its