INSTEEL INDUSTRIES INC (IIIN) Stock Fundamental Analysis
NYSE:IIIN - New York Stock Exchange, Inc. - US45774W1080 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to IIIN. IIIN was compared to 42 industry peers in the Building Products industry. While IIIN has a great health rating, its profitability is only average at the moment. IIIN has a decent growth rate and is not valued too expensively.
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.
In the past 5 years IIIN has always been profitable.
Each year in the past 5 years IIIN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of IIIN (5.34%) is worse than 61.90% of its industry peers.
IIIN has a Return On Equity of 6.60%. This is in the lower half of the industry: IIIN underperforms 64.29% of its industry peers.
IIIN has a worse Return On Invested Capital (5.80%) than 71.43% 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 12.76%.
The 3 year average ROIC (13.67%) for IIIN is well above the current ROIC(5.80%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.34% | ||
| ROE | 6.6% | ||
| ROIC | 5.8% |
ROA(3y)12.77%
ROA(5y)12.2%
ROE(3y)15.36%
ROE(5y)15.06%
ROIC(3y)13.67%
ROIC(5y)13.79%
1.3 Margins
Looking at the Profit Margin, with a value of 3.95%, IIIN is doing worse than 66.67% of the companies in the same industry.
In the last couple of years the Profit Margin of IIIN has grown nicely.
The Operating Margin of IIIN (4.85%) is worse than 76.19% of its industry peers.
In the last couple of years the Operating Margin of IIIN has grown nicely.
The Gross Margin of IIIN (10.82%) is worse than 95.24% of its industry peers.
In the last couple of years the Gross Margin of IIIN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.85% | ||
| PM (TTM) | 3.95% | ||
| GM | 10.82% |
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%
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 less shares outstanding than it did 1 year ago.
Compared to 5 years ago, IIIN has more shares outstanding
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.
2.2 Solvency
An Altman-Z score of 7.86 indicates that IIIN is not in any danger for bankruptcy at the moment.
The Altman-Z score of IIIN (7.86) is better than 92.86% 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 | 7.86 |
ROIC/WACC0.58
WACC10.07%
2.3 Liquidity
A Current Ratio of 3.87 indicates that IIIN has no problem at all paying its short term obligations.
IIIN has a better Current ratio (3.87) than 85.71% of its industry peers.
A Quick Ratio of 2.11 indicates that IIIN has no problem at all paying its short term obligations.
The Quick ratio of IIIN (2.11) is better than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.87 | ||
| Quick Ratio | 2.11 |
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%.
The Earnings Per Share has been growing by 33.90% on average over the past years. This is a very strong growth
Looking at the last year, IIIN shows a decrease in Revenue. The Revenue has decreased by -0.33% in the last year.
Measured over the past years, IIIN shows a small growth in Revenue. The Revenue has been growing by 3.04% on average per year.
EPS 1Y (TTM)-6.45%
EPS 3Y-34.48%
EPS 5Y33.9%
EPS Q2Q%48.57%
Revenue 1Y (TTM)-0.33%
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 48.84% on average per year.
IIIN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.15% yearly.
EPS Next Y71.55%
EPS Next 2Y75.22%
EPS Next 3Y48.84%
EPS Next 5YN/A
Revenue Next Year17.25%
Revenue Next 2Y11.85%
Revenue Next 3Y10.15%
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
A Price/Earnings ratio of 30.18 indicates a quite expensive valuation of IIIN.
Based on the Price/Earnings ratio, IIIN is valued a bit more expensive than 71.43% of the companies in the same industry.
IIIN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.35.
With a Price/Forward Earnings ratio of 11.52, the valuation of IIIN can be described as very reasonable.
76.19% of the companies in the same industry are more expensive than IIIN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.19. IIIN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.18 | ||
| Fwd PE | 11.52 |
4.2 Price Multiples
IIIN's Enterprise Value to EBITDA is on the same level as the industry average.
73.81% of the companies in the same industry are more expensive than IIIN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.64 | ||
| EV/EBITDA | 14.62 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
IIIN's earnings are expected to grow with 48.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.42
PEG (5Y)0.89
EPS Next 2Y75.22%
EPS Next 3Y48.84%
5. Dividend
5.1 Amount
IIIN has a yearly dividend return of 0.34%, which is pretty low.
Compared to an average industry Dividend Yield of 1.23, IIIN has a dividend in line with its industry peers.
With a Dividend Yield of 0.34, IIIN pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.34% |
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.
Dividend Growth(5Y)85.37%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
96.53% of the earnings are spent on dividend by IIIN. This is not a sustainable payout ratio.
IIIN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP96.53%
EPS Next 2Y75.22%
EPS Next 3Y48.84%
35.01
+0.15 (+0.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners87.04%
Inst Owner Change1.03%
Ins Owners4.73%
Ins Owner Change1.99%
Market Cap679.54M
Analysts43.33
Price Target39.78 (13.62%)
Short Float %2.3%
Short Ratio2.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.34% |
Yearly Dividend2.62
Dividend Growth(5Y)85.37%
DP96.53%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)47.88%
Min EPS beat(2)6.95%
Max EPS beat(2)88.82%
EPS beat(4)2
Avg EPS beat(4)12.3%
Min EPS beat(4)-24.1%
Max EPS beat(4)88.82%
EPS beat(8)4
Avg EPS beat(8)0.73%
EPS beat(12)4
Avg EPS beat(12)-9.49%
EPS beat(16)8
Avg EPS beat(16)1.77%
Revenue beat(2)2
Avg Revenue beat(2)6.69%
Min Revenue beat(2)5.11%
Max Revenue beat(2)8.28%
Revenue beat(4)2
Avg Revenue beat(4)-0.64%
Min Revenue beat(4)-9.32%
Max Revenue beat(4)8.28%
Revenue beat(8)2
Avg Revenue beat(8)-5.22%
Revenue beat(12)2
Avg Revenue beat(12)-6.45%
Revenue beat(16)5
Avg Revenue beat(16)-3.34%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)20%
EPS NY rev (1m)0%
EPS NY rev (3m)23.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.18 | ||
| Fwd PE | 11.52 | ||
| P/S | 1.19 | ||
| P/FCF | 16.64 | ||
| P/OCF | 13.41 | ||
| P/B | 1.99 | ||
| P/tB | 2.37 | ||
| EV/EBITDA | 14.62 |
EPS(TTM)1.16
EY3.31%
EPS(NY)3.04
Fwd EY8.68%
FCF(TTM)2.1
FCFY6.01%
OCF(TTM)2.61
OCFY7.46%
SpS29.39
BVpS17.59
TBVpS14.74
PEG (NY)0.42
PEG (5Y)0.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.34% | ||
| ROE | 6.6% | ||
| ROCE | 7.53% | ||
| ROIC | 5.8% | ||
| ROICexc | 6.29% | ||
| ROICexgc | 7.51% | ||
| OM | 4.85% | ||
| PM (TTM) | 3.95% | ||
| GM | 10.82% | ||
| FCFM | 7.16% |
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 Turnover1.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 58.19% | ||
| Cap/Sales | 1.72% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 113.75% | ||
| Profit Quality | 181.17% | ||
| Current Ratio | 3.87 | ||
| Quick Ratio | 2.11 | ||
| Altman-Z | 7.86 |
F-Score6
WACC10.07%
ROIC/WACC0.58
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 Y71.55%
EPS Next 2Y75.22%
EPS Next 3Y48.84%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.33%
Revenue growth 3Y-3.59%
Revenue growth 5Y3.04%
Sales Q2Q%26.11%
Revenue Next Year17.25%
Revenue Next 2Y11.85%
Revenue Next 3Y10.15%
Revenue Next 5YN/A
EBIT growth 1Y7.9%
EBIT growth 3Y-39.21%
EBIT growth 5Y29.05%
EBIT Next Year143.5%
EBIT Next 3Y56.2%
EBIT Next 5YN/A
FCF growth 1Y-3.9%
FCF growth 3Y-9.33%
FCF growth 5YN/A
OCF growth 1Y-22.3%
OCF growth 3Y-5.92%
OCF growth 5Y54.56%