INSTEEL INDUSTRIES INC (IIIN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IIIN - US45774W1080 - Common Stock
32.08 USD
-0.25 (-0.77%)
32.08 USD
0 (0%)
Overall IIIN gets a fundamental rating of 7 out of 10. We evaluated IIIN against 42 industry peers in the Building Products industry. While IIIN has a great health rating, its profitability is only average at the moment. An interesting combination arises when we look at growth and value: IIIN is growing strongly while it also seems undervalued. These ratings could make IIIN a good candidate 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.
- 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
- Looking at the Return On Assets, with a value of 10.42%, IIIN is in the better half of the industry, outperforming 69.05% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 13.25%, IIIN is in line with its industry, outperforming 57.14% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 12.34%, IIIN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- IIIN had an Average Return On Invested Capital over the past 3 years of 7.02%. This is significantly below the industry average of 12.68%.
- The 3 year average ROIC (7.02%) for IIIN is below the current ROIC(12.34%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.42% | ||
| ROE | 13.25% | ||
| ROIC | 12.34% |
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 7.01%, IIIN is in line with its industry, outperforming 54.76% of the companies in the same industry.
- IIIN's Profit Margin has improved in the last couple of years.
- IIIN has a Operating Margin (9.16%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of IIIN has grown nicely.
- IIIN's Gross Margin of 15.04% is on the low side compared to the rest of the industry. IIIN is outperformed by 90.48% of its industry peers.
- In the last couple of years the Gross Margin of IIIN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.16% | ||
| PM (TTM) | 7.01% | ||
| GM | 15.04% |
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
- 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 7.03 indicates that IIIN is not in any danger for bankruptcy at the moment.
- IIIN has a Altman-Z score of 7.03. This is amongst the best in the industry. IIIN outperforms 80.95% 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 | 7.03 |
ROIC/WACC1.35
WACC9.16%
2.3 Liquidity
- A Current Ratio of 3.58 indicates that IIIN has no problem at all paying its short term obligations.
- IIIN has a better Current ratio (3.58) than 88.10% of its industry peers.
- IIIN has a Quick Ratio of 1.19. This is a normal value and indicates that IIIN is financially healthy and should not expect problems in meeting its short term obligations.
- IIIN's Quick ratio of 1.19 is in line compared to the rest of the industry. IIIN outperforms 52.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.58 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
- IIIN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 145.45%, which is quite impressive.
- The Earnings Per Share has been growing by 14.65% on average over the past years. This is quite good.
- The Revenue has grown by 26.19% in the past year. This is a very strong growth!
- IIIN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.51% yearly.
EPS 1Y (TTM)145.45%
EPS 3Y-30.85%
EPS 5Y14.65%
EPS Q2Q%550%
Revenue 1Y (TTM)26.19%
Revenue growth 3Y-7.82%
Revenue growth 5Y6.51%
Sales Q2Q%23.28%
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 9.07% yearly.
EPS Next Y32.11%
EPS Next 2Y24.67%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.36%
Revenue Next 2Y9.07%
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
- A Price/Earnings ratio of 13.20 indicates a correct valuation of IIIN.
- Based on the Price/Earnings ratio, IIIN is valued a bit cheaper than 76.19% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, IIIN is valued rather cheaply.
- A Price/Forward Earnings ratio of 9.83 indicates a reasonable valuation of IIIN.
- 97.62% 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 (25.83), we can say IIIN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.2 | ||
| Fwd PE | 9.83 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IIIN indicates a rather cheap valuation: IIIN is cheaper than 88.10% of the companies listed in the same industry.
- 71.43% of the companies in the same industry are cheaper than IIIN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1419.12 | ||
| EV/EBITDA | 7.54 |
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.
- The decent profitability rating of IIIN 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)0.41
PEG (5Y)0.9
EPS Next 2Y24.67%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- IIIN has a yearly dividend return of 0.35%, which is pretty low.
- IIIN's Dividend Yield is comparable with the industry average which is at 0.66.
- With a Dividend Yield of 0.35, IIIN pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
5.2 History
- The dividend of IIIN is nicely growing with an annual growth rate of 56.52%!
- IIIN has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)56.52%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 45.71% of the earnings are spent on dividend by IIIN. 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.
DP45.71%
EPS Next 2Y24.67%
EPS Next 3YN/A
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 for 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.
Can you provide the PE and PB ratios for IIIN stock?
The Price/Earnings (PE) ratio for INSTEEL INDUSTRIES INC (IIIN) is 13.2 and the Price/Book (PB) ratio is 1.74.
Is the dividend of INSTEEL INDUSTRIES INC sustainable?
The dividend rating of INSTEEL INDUSTRIES INC (IIIN) is 3 / 10 and the dividend payout ratio is 45.71%.