INSTEEL INDUSTRIES INC (IIIN) Stock Fundamental Analysis
USA - NYSE:IIIN - US45774W1080 - Common Stock
31.2 USD
-0.04 (-0.13%)
31.2 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. While IIIN has a great health rating, its profitability is only average at the moment. IIIN is evaluated to be cheap and growing strongly. This does not happen too often! This makes IIIN very considerable 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.
Looking at the Return On Equity, with a value of 11.04%, IIIN is in line with its industry, outperforming 51.22% of the companies in the same industry.
The Return On Invested Capital of IIIN (10.47%) is better than 63.41% of its industry peers.
IIIN had an Average Return On Invested Capital over the past 3 years of 7.02%. This is significantly below the industry average of 12.59%.
The last Return On Invested Capital (10.47%) for IIIN is above the 3 year average (7.02%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 6.33%, IIIN is in line with its industry, outperforming 53.66% 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 (8.40%) is worse than 63.41% of its industry peers.
IIIN's Operating Margin has improved in the last couple of years.
IIIN has a Gross Margin of 14.43%. This is amonst the worse of the industry: IIIN underperforms 92.68% of its industry peers.
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.
The number of shares outstanding for IIIN has been reduced compared to 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
IIIN has an Altman-Z score of 7.08. This indicates that IIIN is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 7.08, IIIN belongs to the best of the industry, outperforming 82.93% of the companies in the same industry.
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 | 7.08 |
ROIC/WACC1.13
WACC9.25%
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.
IIIN's Current ratio of 3.97 is amongst the best of the industry. IIIN outperforms 92.68% of its industry peers.
A Quick Ratio of 1.88 indicates that IIIN should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.88, IIIN belongs to the best 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
IIIN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 112.12%, which is quite impressive.
IIIN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.65% yearly.
IIIN shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.39%.
IIIN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.51% yearly.
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.
The Revenue is expected to grow by 9.52% on average over the next years. This is quite good.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 14.86, IIIN is valued correctly.
73.17% of the companies in the same industry are more expensive than IIIN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.51. IIIN is valued slightly cheaper when compared to this.
IIIN is valuated reasonably with a Price/Forward Earnings ratio of 11.43.
85.37% of the companies in the same industry are more expensive than IIIN, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of IIIN to the average of the S&P500 Index (22.53), we can say IIIN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.86 | ||
| Fwd PE | 11.43 |
4.2 Price Multiples
87.80% 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 | 31.96 | ||
| EV/EBITDA | 7.79 |
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 has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as IIIN's earnings are expected to grow with 24.67% in the coming years.
PEG (NY)0.5
PEG (5Y)1.01
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 1.27.
Compared to an average S&P500 Dividend Yield of 2.38, IIIN's dividend is way lower than the S&P500 average.
| 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.
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
31.2
-0.04 (-0.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners85.49%
Inst Owner Change0.25%
Ins Owners4.73%
Ins Owner Change0.53%
Market Cap605.59M
Revenue(TTM)647.71M
Net Income(TTM)41.02M
Analysts43.33
Price Target39.78 (27.5%)
Short Float %1.55%
Short Ratio2.52
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)29.03%
EPS NQ rev (3m)8.11%
EPS NY rev (1m)-3.25%
EPS NY rev (3m)-10.23%
Revenue NQ rev (1m)9.91%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)5.52%
Revenue NY rev (3m)1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.86 | ||
| Fwd PE | 11.43 | ||
| P/S | 0.93 | ||
| P/FCF | 31.96 | ||
| P/OCF | 22.29 | ||
| P/B | 1.63 | ||
| P/tB | 1.91 | ||
| EV/EBITDA | 7.79 |
EPS(TTM)2.1
EY6.73%
EPS(NY)2.73
Fwd EY8.75%
FCF(TTM)0.98
FCFY3.13%
OCF(TTM)1.4
OCFY4.49%
SpS33.37
BVpS19.14
TBVpS16.34
PEG (NY)0.5
PEG (5Y)1.01
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 | 7.08 |
F-Score7
WACC9.25%
ROIC/WACC1.13
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 14.86 and the Price/Book (PB) ratio is 1.63.
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%.