INSTEEL INDUSTRIES INC (IIIN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IIIN - US45774W1080 - Common Stock
33.15 USD
+0.26 (+0.79%)
33.15 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to IIIN. IIIN was compared to 42 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 not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, IIIN could be worth investigating further for 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.
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.
1.2 Ratios
IIIN's Return On Assets of 8.87% is fine compared to the rest of the industry. IIIN outperforms 66.67% of its industry peers.
IIIN has a Return On Equity of 11.04%. This is comparable to the rest of the industry: IIIN outperforms 50.00% of its industry peers.
The Return On Invested Capital of IIIN (10.47%) is better than 61.90% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IIIN is significantly below the industry average of 12.61%.
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
IIIN has a Profit Margin of 6.33%. This is comparable to the rest of the industry: IIIN outperforms 52.38% of its industry peers.
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 40.48% of the companies in the same industry.
IIIN's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 14.43%, IIIN is not doing good in the industry: 90.48% of the companies in the same industry are doing better.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), IIIN is 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
IIIN has an Altman-Z score of 7.33. This indicates that IIIN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.33, IIIN belongs to the top of the industry, outperforming 83.33% 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 | 7.33 |
ROIC/WACC1.04
WACC10.1%
2.3 Liquidity
A Current Ratio of 3.97 indicates that IIIN has no problem at all paying its short term obligations.
IIIN has a better Current ratio (3.97) than 88.10% 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.
IIIN has a Quick ratio of 1.88. This is in the better half of the industry: IIIN outperforms 78.57% of its industry peers.
| 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.
The Revenue has grown by 22.39% in the past year. This is a very strong growth!
Measured over the past years, IIIN shows a small growth in Revenue. The Revenue has been growing by 6.51% on average per year.
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 Y28.71%
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.
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 15.79, which indicates a correct valuation of IIIN.
Based on the Price/Earnings ratio, IIIN is valued a bit cheaper than 66.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.19. IIIN is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 12.26, the valuation of IIIN can be described as correct.
85.71% of the companies in the same industry are more expensive than IIIN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.92, IIIN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.79 | ||
| Fwd PE | 12.26 |
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 80.95% of the companies listed in the same industry.
IIIN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.97 | ||
| EV/EBITDA | 8.31 |
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.
IIIN's earnings are expected to grow with 24.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.55
PEG (5Y)1.08
EPS Next 2Y24.67%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.36%, IIIN is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.71, IIIN has a dividend in line with its industry peers.
With a Dividend Yield of 0.36, IIIN pays less dividend than the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.36% |
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
53.05% 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.
DP53.05%
EPS Next 2Y24.67%
EPS Next 3YN/A
33.15
+0.26 (+0.79%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners83.92%
Inst Owner Change-0.01%
Ins Owners4.11%
Ins Owner Change-0.06%
Market Cap643.77M
Revenue(TTM)647.71M
Net Income(TTM)41.02M
Analysts43.33
Price Target39.78 (20%)
Short Float %2.23%
Short Ratio3.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.36% |
Yearly Dividend1.12
Dividend Growth(5Y)56.52%
DP53.05%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)0%
EPS NQ rev (3m)20.97%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.16%
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 | 15.79 | ||
| Fwd PE | 12.26 | ||
| P/S | 0.99 | ||
| P/FCF | 33.97 | ||
| P/OCF | 23.7 | ||
| P/B | 1.73 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | 8.31 |
EPS(TTM)2.1
EY6.33%
EPS(NY)2.7
Fwd EY8.15%
FCF(TTM)0.98
FCFY2.94%
OCF(TTM)1.4
OCFY4.22%
SpS33.35
BVpS19.13
TBVpS16.33
PEG (NY)0.55
PEG (5Y)1.08
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 | 7.33 |
F-Score7
WACC10.1%
ROIC/WACC1.04
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 Y28.71%
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 Year60.66%
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 for IIIN stock?
ChartMill assigns a valuation rating of 6 / 10 to INSTEEL INDUSTRIES INC (IIIN). This can be considered as Fairly Valued.
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 15.79 and the Price/Book (PB) ratio is 1.73.
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 53.05%.