INSTEEL INDUSTRIES INC (IIIN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IIIN - US45774W1080 - Common Stock
31.41 USD
-0.01 (-0.03%)
31.41 USD
0 (0%)
IIIN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 41 industry peers in the Building Products industry. IIIN is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. IIIN is growing strongly while it also seems undervalued. This is an interesting combination 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.
In the past year IIIN had a positive cash flow from operations.
IIIN had positive earnings in each of the past 5 years.
In the past 5 years IIIN always reported a positive cash flow from operatings.
1.2 Ratios
IIIN's Return On Assets of 8.87% is fine compared to the rest of the industry. IIIN outperforms 65.85% of its industry peers.
The Return On Equity of IIIN (11.04%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 10.47%, IIIN is in the better half of the industry, outperforming 63.41% of the companies in the same industry.
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
The Profit Margin of IIIN (6.33%) is comparable to the rest of the industry.
IIIN's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 8.40%, IIIN perfoms like the industry average, outperforming 41.46% of the companies in the same industry.
IIIN's Operating Margin has improved in the last couple of years.
IIIN has a worse Gross Margin (14.43%) than 92.68% of its industry peers.
In the last couple of years the Gross Margin of IIIN has grown nicely.
| 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.
Compared to 1 year ago, IIIN has about the same amount of shares outstanding.
The number of shares outstanding for IIIN has been increased compared to 5 years ago.
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.
With an excellent Altman-Z score value of 7.11, IIIN belongs to the best of the industry, outperforming 82.93% of the companies in the same industry.
IIIN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 7.11 |
ROIC/WACC1.11
WACC9.47%
2.3 Liquidity
A Current Ratio of 3.97 indicates that IIIN has no problem at all paying its short term obligations.
IIIN's Current ratio of 3.97 is amongst the best of the industry. IIIN outperforms 92.68% of its industry peers.
IIIN has a Quick Ratio of 1.88. This is a normal value and indicates that IIIN is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of IIIN (1.88) is better than 80.49% of its industry peers.
| 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.
IIIN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.65% yearly.
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
Based on estimates for the next years, IIIN will show a very strong growth in Earnings Per Share. The EPS will grow by 24.67% on average per year.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.96, which indicates a correct valuation of IIIN.
IIIN's Price/Earnings ratio is a bit cheaper when compared to the industry. IIIN is cheaper than 65.85% of the companies in the same industry.
IIIN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.41.
The Price/Forward Earnings ratio is 11.51, which indicates a very decent valuation of IIIN.
Based on the Price/Forward Earnings ratio, IIIN is valued a bit cheaper than 78.05% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.40. IIIN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.96 | ||
| Fwd PE | 11.51 |
4.2 Price Multiples
IIIN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. IIIN is cheaper than 80.49% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IIIN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.19 | ||
| 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)1.02
EPS Next 2Y24.67%
EPS Next 3YN/A
5. Dividend
5.1 Amount
IIIN has a yearly dividend return of 0.38%, which is pretty low.
IIIN's Dividend Yield is comparable with the industry average which is at 1.31.
With a Dividend Yield of 0.38, IIIN pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
5.2 History
The dividend of IIIN is nicely growing with an annual growth rate of 56.52%!
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
IIIN pays out 53.05% of its income as dividend. This is a bit on the high side, but may be sustainable.
IIIN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP53.05%
EPS Next 2Y24.67%
EPS Next 3YN/A
31.41
-0.01 (-0.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners85.49%
Inst Owner Change-1.01%
Ins Owners4.73%
Ins Owner Change0.37%
Market Cap609.98M
Revenue(TTM)647.71M
Net Income(TTM)41.02M
Analysts43.33
Price Target39.78 (26.65%)
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 | 14.96 | ||
| Fwd PE | 11.51 | ||
| P/S | 0.94 | ||
| P/FCF | 32.19 | ||
| P/OCF | 22.46 | ||
| P/B | 1.64 | ||
| P/tB | 1.92 | ||
| EV/EBITDA | 7.85 |
EPS(TTM)2.1
EY6.69%
EPS(NY)2.73
Fwd EY8.69%
FCF(TTM)0.98
FCFY3.11%
OCF(TTM)1.4
OCFY4.45%
SpS33.35
BVpS19.13
TBVpS16.33
PEG (NY)0.5
PEG (5Y)1.02
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
WACC9.47%
ROIC/WACC1.11
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 14.96 and the Price/Book (PB) ratio is 1.64.
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%.