INSTEEL INDUSTRIES INC (IIIN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IIIN - US45774W1080 - Common Stock
31.67 USD
+0.26 (+0.83%)
31.67 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to IIIN. IIIN was compared to 41 industry peers in the Building Products industry. IIIN has an excellent financial health rating, but there are some minor concerns on its profitability. An interesting combination arises when we look at growth and value: IIIN is growing strongly while it also seems undervalued. These ratings would make IIIN suitable for value and growth investing!
1. Profitability
1.1 Basic Checks
IIIN had positive earnings in the past year.
IIIN had a positive operating cash flow in the past year.
Each year in the past 5 years IIIN has been profitable.
IIIN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of IIIN (8.87%) is better than 65.85% of its industry peers.
The Return On Equity of IIIN (11.04%) is comparable to the rest of the industry.
IIIN has a better Return On Invested Capital (10.47%) than 63.41% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IIIN is significantly below the industry average of 12.44%.
The 3 year average ROIC (7.02%) for IIIN is below the current ROIC(10.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.87% | ||
| ROE | 11.04% | ||
| ROIC | 10.47% |
ROA(3y)6.89%
ROA(5y)12.84%
ROE(3y)8.35%
ROE(5y)15.83%
ROIC(3y)7.02%
ROIC(5y)14.44%
1.3 Margins
With a Profit Margin value of 6.33%, IIIN perfoms like the industry average, outperforming 53.66% of the companies in the same industry.
In the last couple of years the Profit Margin of IIIN has grown nicely.
IIIN has a Operating Margin (8.40%) which is in line with its industry peers.
In the last couple of years the Operating Margin of IIIN has grown nicely.
With a Gross Margin value of 14.43%, IIIN is not doing good in the industry: 92.68% of the companies in the same industry are doing better.
IIIN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.4% | ||
| PM (TTM) | 6.33% | ||
| GM | 14.43% |
OM growth 3Y-24.41%
OM growth 5Y10.24%
PM growth 3Y-25.18%
PM growth 5Y9.51%
GM growth 3Y-15.44%
GM growth 5Y4.09%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so IIIN is still creating some value.
IIIN has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, IIIN has more shares outstanding
IIIN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 7.11 indicates that IIIN is not in any danger for bankruptcy at the moment.
IIIN has a Altman-Z score of 7.11. This is amongst the best in the industry. IIIN outperforms 82.93% of its industry peers.
There is no outstanding debt for IIIN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 7.11 |
ROIC/WACC1.1
WACC9.55%
2.3 Liquidity
IIIN has a Current Ratio of 3.97. This indicates that IIIN is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.97, IIIN belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
A Quick Ratio of 1.88 indicates that IIIN should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.88, IIIN belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.97 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 112.12% over the past year.
Measured over the past years, IIIN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.65% on average per year.
The Revenue has grown by 22.39% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 6.51% on average over the past years.
EPS 1Y (TTM)112.12%
EPS 3Y-30.85%
EPS 5Y14.65%
EPS Q2Q%208.33%
Revenue 1Y (TTM)22.39%
Revenue growth 3Y-7.82%
Revenue growth 5Y6.51%
Sales Q2Q%32.12%
3.2 Future
IIIN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.67% yearly.
IIIN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.52% yearly.
EPS Next Y29.93%
EPS Next 2Y24.67%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.1%
Revenue Next 2Y9.52%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.08, IIIN is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of IIIN indicates a somewhat cheap valuation: IIIN is cheaper than 65.85% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.46. IIIN is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 11.61 indicates a reasonable valuation of IIIN.
IIIN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. IIIN is cheaper than 78.05% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of IIIN to the average of the S&P500 Index (36.10), we can say IIIN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.08 | ||
| Fwd PE | 11.61 |
4.2 Price Multiples
80.49% of the companies in the same industry are more expensive than IIIN, based on the Enterprise Value to EBITDA ratio.
IIIN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.46 | ||
| EV/EBITDA | 7.85 |
4.3 Compensation for Growth
IIIN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
IIIN has a very decent profitability rating, which may justify a higher PE ratio.
IIIN's earnings are expected to grow with 24.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.5
PEG (5Y)1.03
EPS Next 2Y24.67%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.38%, IIIN is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.32, IIIN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, IIIN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
5.2 History
On average, the dividend of IIIN grows each year by 56.52%, which is quite nice.
IIIN has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)56.52%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
53.05% of the earnings are spent on dividend by IIIN. This is a bit on the high side, but may be sustainable.
The dividend of IIIN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP53.05%
EPS Next 2Y24.67%
EPS Next 3YN/A
31.67
+0.26 (+0.83%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners84.09%
Inst Owner Change-1.01%
Ins Owners4.13%
Ins Owner Change0.37%
Market Cap615.03M
Revenue(TTM)647.71M
Net Income(TTM)41.02M
Analysts43.33
Price Target39.78 (25.61%)
Short Float %1.72%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
Yearly Dividend1.12
Dividend Growth(5Y)56.52%
DP53.05%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.82%
Min EPS beat(2)7.48%
Max EPS beat(2)34.16%
EPS beat(4)4
Avg EPS beat(4)34.35%
Min EPS beat(4)6.95%
Max EPS beat(4)88.82%
EPS beat(8)6
Avg EPS beat(8)15.6%
EPS beat(12)6
Avg EPS beat(12)-2.61%
EPS beat(16)8
Avg EPS beat(16)0.47%
Revenue beat(2)1
Avg Revenue beat(2)-1.31%
Min Revenue beat(2)-3.87%
Max Revenue beat(2)1.24%
Revenue beat(4)3
Avg Revenue beat(4)2.69%
Min Revenue beat(4)-3.87%
Max Revenue beat(4)8.28%
Revenue beat(8)3
Avg Revenue beat(8)-2.57%
Revenue beat(12)3
Avg Revenue beat(12)-5.07%
Revenue beat(16)5
Avg Revenue beat(16)-3.51%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-6.25%
EPS NQ rev (3m)20.97%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9.91%
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.08 | ||
| Fwd PE | 11.61 | ||
| P/S | 0.95 | ||
| P/FCF | 32.46 | ||
| P/OCF | 22.64 | ||
| P/B | 1.66 | ||
| P/tB | 1.94 | ||
| EV/EBITDA | 7.85 |
EPS(TTM)2.1
EY6.63%
EPS(NY)2.73
Fwd EY8.62%
FCF(TTM)0.98
FCFY3.08%
OCF(TTM)1.4
OCFY4.42%
SpS33.35
BVpS19.13
TBVpS16.33
PEG (NY)0.5
PEG (5Y)1.03
Graham Number30.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.87% | ||
| ROE | 11.04% | ||
| ROCE | 13.72% | ||
| ROIC | 10.47% | ||
| ROICexc | 11.6% | ||
| ROICexgc | 13.67% | ||
| OM | 8.4% | ||
| PM (TTM) | 6.33% | ||
| GM | 14.43% | ||
| FCFM | 2.93% |
ROA(3y)6.89%
ROA(5y)12.84%
ROE(3y)8.35%
ROE(5y)15.83%
ROIC(3y)7.02%
ROIC(5y)14.44%
ROICexc(3y)8.96%
ROICexc(5y)18.05%
ROICexgc(3y)9.96%
ROICexgc(5y)19.45%
ROCE(3y)9.2%
ROCE(5y)18.93%
ROICexgc growth 3Y-27.34%
ROICexgc growth 5Y7.69%
ROICexc growth 3Y-30.14%
ROICexc growth 5Y6.07%
OM growth 3Y-24.41%
OM growth 5Y10.24%
PM growth 3Y-25.18%
PM growth 5Y9.51%
GM growth 3Y-15.44%
GM growth 5Y4.09%
F-Score7
Asset Turnover1.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 44.66% | ||
| Cap/Sales | 1.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 37.3% | ||
| Profit Quality | 46.2% | ||
| Current Ratio | 3.97 | ||
| Quick Ratio | 1.88 | ||
| Altman-Z | 7.11 |
F-Score7
WACC9.55%
ROIC/WACC1.1
Cap/Depr(3y)133.24%
Cap/Depr(5y)126.01%
Cap/Sales(3y)3.21%
Cap/Sales(5y)2.9%
Profit Quality(3y)197.55%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)112.12%
EPS 3Y-30.85%
EPS 5Y14.65%
EPS Q2Q%208.33%
EPS Next Y29.93%
EPS Next 2Y24.67%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)22.39%
Revenue growth 3Y-7.82%
Revenue growth 5Y6.51%
Sales Q2Q%32.12%
Revenue Next Year12.1%
Revenue Next 2Y9.52%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y171.62%
EBIT growth 3Y-30.32%
EBIT growth 5Y17.41%
EBIT Next Year64.96%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-51.48%
FCF growth 3YN/A
FCF growth 5Y-17.34%
OCF growth 1Y-53.33%
OCF growth 3Y68.28%
OCF growth 5Y-13.53%
INSTEEL INDUSTRIES INC / IIIN FAQ
Can you provide the ChartMill fundamental rating for INSTEEL INDUSTRIES INC?
ChartMill assigns a fundamental rating of 7 / 10 to IIIN.
What is the valuation status of INSTEEL INDUSTRIES INC (IIIN) stock?
ChartMill assigns a valuation rating of 7 / 10 to INSTEEL INDUSTRIES INC (IIIN). This can be considered as Undervalued.
What is the profitability of IIIN stock?
INSTEEL INDUSTRIES INC (IIIN) has a profitability rating of 6 / 10.
What are the PE and PB ratios of INSTEEL INDUSTRIES INC (IIIN) stock?
The Price/Earnings (PE) ratio for INSTEEL INDUSTRIES INC (IIIN) is 15.08 and the Price/Book (PB) ratio is 1.66.
Can you provide the dividend sustainability for IIIN stock?
The dividend rating of INSTEEL INDUSTRIES INC (IIIN) is 3 / 10 and the dividend payout ratio is 53.05%.