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INSTEEL INDUSTRIES INC (IIIN) Stock Fundamental Analysis

NYSE:IIIN - New York Stock Exchange, Inc. - US45774W1080 - Common Stock - Currency: USD

29.95  -0.46 (-1.51%)

Fundamental Rating

6

IIIN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 41 industry peers in the Building Products industry. IIIN has an excellent financial health rating, but there are some minor concerns on its profitability. IIIN is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

In the past year IIIN was profitable.
In the past year IIIN had a positive cash flow from operations.
Each year in the past 5 years IIIN has been profitable.
In the past 5 years IIIN always reported a positive cash flow from operatings.
IIIN Yearly Net Income VS EBIT VS OCF VS FCFIIIN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M 150M

1.2 Ratios

IIIN has a Return On Assets of 4.76%. This is in the lower half of the industry: IIIN underperforms 60.98% of its industry peers.
IIIN has a worse Return On Equity (5.81%) than 68.29% of its industry peers.
IIIN has a Return On Invested Capital of 4.69%. This is in the lower half of the industry: IIIN underperforms 73.17% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IIIN is in line with the industry average of 12.93%.
The last Return On Invested Capital (4.69%) for IIIN is well below the 3 year average (13.67%), which needs to be investigated, but indicates that IIIN had better years and this may not be a problem.
Industry RankSector Rank
ROA 4.76%
ROE 5.81%
ROIC 4.69%
ROA(3y)12.77%
ROA(5y)12.2%
ROE(3y)15.36%
ROE(5y)15.06%
ROIC(3y)13.67%
ROIC(5y)13.79%
IIIN Yearly ROA, ROE, ROICIIIN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

The Profit Margin of IIIN (3.58%) is worse than 70.73% of its industry peers.
IIIN's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 4.05%, IIIN is not doing good in the industry: 75.61% of the companies in the same industry are doing better.
IIIN's Operating Margin has improved in the last couple of years.
IIIN has a worse Gross Margin (9.85%) than 92.68% of its industry peers.
In the last couple of years the Gross Margin of IIIN has grown nicely.
Industry RankSector Rank
OM 4.05%
PM (TTM) 3.58%
GM 9.85%
OM growth 3Y-36.94%
OM growth 5Y25.24%
PM growth 3Y-31.35%
PM growth 5Y24.31%
GM growth 3Y-23.04%
GM growth 5Y7.26%
IIIN Yearly Profit, Operating, Gross MarginsIIIN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

8

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.
The number of shares outstanding for IIIN has been reduced compared to 1 year ago.
IIIN has more shares outstanding than it did 5 years ago.
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.
IIIN Yearly Shares OutstandingIIIN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M
IIIN Yearly Total Debt VS Total AssetsIIIN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

2.2 Solvency

IIIN has an Altman-Z score of 7.57. This indicates that IIIN is financially healthy and has little risk of bankruptcy at the moment.
IIIN has a better Altman-Z score (7.57) than 85.37% of its industry peers.
IIIN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 7.57
ROIC/WACC0.45
WACC10.35%
IIIN Yearly LT Debt VS Equity VS FCFIIIN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M

2.3 Liquidity

IIIN has a Current Ratio of 4.09. This indicates that IIIN is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of IIIN (4.09) is better than 85.37% of its industry peers.
IIIN has a Quick Ratio of 1.99. This is a normal value and indicates that IIIN is financially healthy and should not expect problems in meeting its short term obligations.
IIIN has a better Quick ratio (1.99) than 78.05% of its industry peers.
Industry RankSector Rank
Current Ratio 4.09
Quick Ratio 1.99
IIIN Yearly Current Assets VS Current LiabilitesIIIN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

6

3. Growth

3.1 Past

IIIN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.45%.
Measured over the past years, IIIN shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.90% on average per year.
The Revenue for IIIN has decreased by -18.48% in the past year. This is quite bad
IIIN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.04% yearly.
EPS 1Y (TTM)-6.45%
EPS 3Y-34.48%
EPS 5Y33.9%
EPS Q2Q%48.57%
Revenue 1Y (TTM)-18.48%
Revenue growth 3Y-3.59%
Revenue growth 5Y3.04%
Sales Q2Q%26.11%

3.2 Future

Based on estimates for the next years, IIIN will show a very strong growth in Earnings Per Share. The EPS will grow by 75.22% on average per year.
IIIN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.85% yearly.
EPS Next Y39.09%
EPS Next 2Y75.22%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year14.66%
Revenue Next 2Y11.85%
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.
IIIN Yearly Revenue VS EstimatesIIIN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M
IIIN Yearly EPS VS EstimatesIIIN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6

6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 25.82, the valuation of IIIN can be described as expensive.
IIIN's Price/Earnings ratio is a bit more expensive when compared to the industry. IIIN is more expensive than 68.29% of the companies in the same industry.
IIIN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.85, the valuation of IIIN can be described as very reasonable.
Based on the Price/Forward Earnings ratio, IIIN is valued cheaper than 87.80% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, IIIN is valued rather cheaply.
Industry RankSector Rank
PE 25.82
Fwd PE 9.85
IIIN Price Earnings VS Forward Price EarningsIIIN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

IIIN's Enterprise Value to EBITDA ratio is in line with the industry average.
75.61% of the companies in the same industry are more expensive than IIIN, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 12.7
EV/EBITDA 14.64
IIIN Per share dataIIIN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

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.
A more expensive valuation may be justified as IIIN's earnings are expected to grow with 75.22% in the coming years.
PEG (NY)0.66
PEG (5Y)0.76
EPS Next 2Y75.22%
EPS Next 3YN/A

4

5. Dividend

5.1 Amount

IIIN has a yearly dividend return of 0.39%, which is pretty low.
Compared to an average industry Dividend Yield of 1.28, IIIN has a dividend in line with its industry peers.
With a Dividend Yield of 0.39, IIIN pays less dividend than the S&P500 average, which is at 2.51.
Industry RankSector Rank
Dividend Yield 0.39%

5.2 History

On average, the dividend of IIIN grows each year by 85.37%, which is quite nice.
IIIN has paid a dividend for at least 10 years, which is a reliable track record.
IIIN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)85.37%
Div Incr Years1
Div Non Decr Years18
IIIN Yearly Dividends per shareIIIN Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

5.3 Sustainability

113.04% of the earnings are spent on dividend by IIIN. This is not a sustainable payout ratio.
The dividend of IIIN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP113.04%
EPS Next 2Y75.22%
EPS Next 3YN/A
IIIN Yearly Income VS Free CF VS DividendIIIN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M 40M 60M 80M 100M
IIIN Dividend Payout.IIIN Dividend Payout, showing the Payout Ratio.IIIN Dividend Payout.PayoutRetained Earnings

INSTEEL INDUSTRIES INC

NYSE:IIIN (4/21/2025, 1:32:02 PM)

29.95

-0.46 (-1.51%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)04-17 2025-04-17/bmo
Earnings (Next)07-16 2025-07-16/bmo
Inst Owners85.69%
Inst Owner Change0.1%
Ins Owners4.69%
Ins Owner Change1.17%
Market Cap581.93M
Analysts43.33
Price Target39.78 (32.82%)
Short Float %4.16%
Short Ratio4.53
Dividend
Industry RankSector Rank
Dividend Yield 0.39%
Yearly Dividend2.62
Dividend Growth(5Y)85.37%
DP113.04%
Div Incr Years1
Div Non Decr Years18
Ex-Date03-14 2025-03-14 (0.03)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-8.57%
Min EPS beat(2)-24.1%
Max EPS beat(2)6.95%
EPS beat(4)2
Avg EPS beat(4)-5.83%
Min EPS beat(4)-24.1%
Max EPS beat(4)16.32%
EPS beat(8)3
Avg EPS beat(8)-15.95%
EPS beat(12)4
Avg EPS beat(12)-12.45%
EPS beat(16)8
Avg EPS beat(16)0.06%
Revenue beat(2)1
Avg Revenue beat(2)-0.52%
Min Revenue beat(2)-9.32%
Max Revenue beat(2)8.28%
Revenue beat(4)1
Avg Revenue beat(4)-3.76%
Min Revenue beat(4)-9.32%
Max Revenue beat(4)8.28%
Revenue beat(8)1
Avg Revenue beat(8)-6.94%
Revenue beat(12)2
Avg Revenue beat(12)-6.03%
Revenue beat(16)5
Avg Revenue beat(16)-3.19%
PT rev (1m)0%
PT rev (3m)14.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)12.5%
EPS NY rev (1m)0%
EPS NY rev (3m)7.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)8.91%
Valuation
Industry RankSector Rank
PE 25.82
Fwd PE 9.85
P/S 1.08
P/FCF 12.7
P/OCF 10.51
P/B 1.75
P/tB 2.09
EV/EBITDA 14.64
EPS(TTM)1.16
EY3.87%
EPS(NY)3.04
Fwd EY10.15%
FCF(TTM)2.36
FCFY7.87%
OCF(TTM)2.85
OCFY9.51%
SpS27.65
BVpS17.07
TBVpS14.31
PEG (NY)0.66
PEG (5Y)0.76
Profitability
Industry RankSector Rank
ROA 4.76%
ROE 5.81%
ROCE 6.09%
ROIC 4.69%
ROICexc 5.22%
ROICexgc 6.26%
OM 4.05%
PM (TTM) 3.58%
GM 9.85%
FCFM 8.53%
ROA(3y)12.77%
ROA(5y)12.2%
ROE(3y)15.36%
ROE(5y)15.06%
ROIC(3y)13.67%
ROIC(5y)13.79%
ROICexc(3y)16.6%
ROICexc(5y)17.63%
ROICexgc(3y)17.46%
ROICexgc(5y)18.79%
ROCE(3y)17.74%
ROCE(5y)17.9%
ROICexcg growth 3Y-42.14%
ROICexcg growth 5Y24.68%
ROICexc growth 3Y-41.77%
ROICexc growth 5Y25.14%
OM growth 3Y-36.94%
OM growth 5Y25.24%
PM growth 3Y-31.35%
PM growth 5Y24.31%
GM growth 3Y-23.04%
GM growth 5Y7.26%
F-Score6
Asset Turnover1.33
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 59.18%
Cap/Sales 1.78%
Interest Coverage 250
Cash Conversion 146.01%
Profit Quality 237.91%
Current Ratio 4.09
Quick Ratio 1.99
Altman-Z 7.57
F-Score6
WACC10.35%
ROIC/WACC0.45
Cap/Depr(3y)154.91%
Cap/Depr(5y)127.01%
Cap/Sales(3y)3.42%
Cap/Sales(5y)2.95%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.45%
EPS 3Y-34.48%
EPS 5Y33.9%
EPS Q2Q%48.57%
EPS Next Y39.09%
EPS Next 2Y75.22%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-18.48%
Revenue growth 3Y-3.59%
Revenue growth 5Y3.04%
Sales Q2Q%26.11%
Revenue Next Year14.66%
Revenue Next 2Y11.85%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-7.72%
EBIT growth 3Y-39.21%
EBIT growth 5Y29.05%
EBIT Next Year109.99%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y2444.89%
FCF growth 3Y-9.33%
FCF growth 5YN/A
OCF growth 1Y120.54%
OCF growth 3Y-5.92%
OCF growth 5Y54.56%