PWEI Stock Analysis

PW Eagle, Inc. (PWEI) is a US company which headquarter is located in Eugene - Oregon. The company was founded in 1984 and it was formerly known as Eagle Plastics, Inc.; its name changed to Eagle Pacific Industries, Inc. in 1995.

PWEI manufactures and distributes polyvinyl chloride (PVC) pipe and fittings that are used for potable water and sewage transmission, for turf and agricultural irrigation, for water wells, fibber optic lines, electronic and telephone lines and for commercial and industrial plumbing. The Company distributes its products all over the United States, and provides also a minimal amount of shipments to a couple of selected foreign countries.

PWEI owned subsidiary, USPoly Company LLC (USPOLY), manufactures and distributes polyethylene (PE) pipe products and other accessories.

PWEI had a very successful 2005 on various fronts. Throughout 2005 and 2004, their operating performance has continued to improve; both volumes and margins increased in 2004 and 2005 compared to 2003, and their resulting cash flow from operations in 2005 was much higher than the year before.

The company’s net sales increased by $219 million last year, compared to 2004. Of this increase, over $166 million was due to higher volume and pricing in PVC products, and rounded $47 million was due to the UAC acquisition late in 2004.

PWEI, a company with over 1000 employees, generated a profit margin of 10.25% last year, while its Operating Margin achieved almost 17.49%.

Shares were trading at the Nasdaq (NasdaqGM:PWEI) at $33.85, near its 52 week high a bit over the $35 level.