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INSTEEL INDUSTRIES INC (IIIN) Stock Fundamental Analysis

NYSE:IIIN - New York Stock Exchange, Inc. - US45774W1080 - Common Stock - Currency: USD

36.22  +0.14 (+0.39%)

After market: 36.22 0 (0%)

Fundamental Rating

6

Taking everything into account, IIIN scores 6 out of 10 in our fundamental rating. 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 growing strongly while it is still valued neutral. This is a good combination!


Dividend Valuation Growth Profitability Health

4

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.
IIIN had positive earnings in each of the past 5 years.
Each year in the past 5 years IIIN had a positive operating cash flow.
IIIN Yearly Net Income VS EBIT VS OCF VS FCFIIIN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M 150M

1.2 Ratios

The Return On Assets of IIIN (5.34%) is worse than 60.98% of its industry peers.
IIIN has a worse Return On Equity (6.60%) than 65.85% of its industry peers.
IIIN has a worse Return On Invested Capital (5.80%) than 70.73% 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 12.81%.
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 RankSector 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%
IIIN Yearly ROA, ROE, ROICIIIN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

IIIN has a worse Profit Margin (3.95%) than 65.85% of its industry peers.
IIIN's Profit Margin has improved in the last couple of years.
IIIN has a Operating Margin of 4.85%. This is in the lower half of the industry: IIIN underperforms 75.61% of its industry peers.
IIIN's Operating Margin has improved in the last couple of years.
IIIN has a Gross Margin of 10.82%. This is amonst the worse of the industry: IIIN underperforms 95.12% of its industry peers.
IIIN's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
IIIN Yearly Profit, Operating, Gross MarginsIIIN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

9

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.
IIIN has more shares outstanding than it did 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.
IIIN Yearly Shares OutstandingIIIN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M
IIIN Yearly Total Debt VS Total AssetsIIIN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

2.2 Solvency

An Altman-Z score of 8.02 indicates that IIIN is not in any danger for bankruptcy at the moment.
IIIN's Altman-Z score of 8.02 is amongst the best of the industry. IIIN outperforms 90.24% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 8.02
ROIC/WACC0.57
WACC10.26%
IIIN Yearly LT Debt VS Equity VS FCFIIIN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M

2.3 Liquidity

A Current Ratio of 3.87 indicates that IIIN has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.87, IIIN belongs to the best of the industry, outperforming 85.37% of the companies in the same industry.
IIIN has a Quick Ratio of 2.11. This indicates that IIIN is financially healthy and has no problem in meeting its short term obligations.
IIIN has a Quick ratio of 2.11. This is amongst the best in the industry. IIIN outperforms 85.37% of its industry peers.
Industry RankSector Rank
Current Ratio 3.87
Quick Ratio 2.11
IIIN Yearly Current Assets VS Current LiabilitesIIIN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

7

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 53.85% over the past year.
The Earnings Per Share has been growing by 33.90% on average over the past years. This is a very strong growth
The Revenue for IIIN has decreased by -18.48% in the past year. This is quite bad
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)53.85%
EPS 3Y-34.48%
EPS 5Y33.9%
EPS Q2Q%129.41%
Revenue 1Y (TTM)-18.48%
Revenue growth 3Y-3.59%
Revenue growth 5Y3.04%
Sales Q2Q%23.4%

3.2 Future

The Earnings Per Share is expected to grow by 48.84% on average over the next years. This is a very strong growth
Based on estimates for the next years, IIIN will show a quite strong growth in Revenue. The Revenue will grow by 10.15% on average per year.
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.
IIIN Yearly Revenue VS EstimatesIIIN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M 800M
IIIN Yearly EPS VS EstimatesIIIN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6

6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 22.64, which indicates a rather expensive current valuation of IIIN.
IIIN's Price/Earnings ratio is in line with the industry average.
IIIN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.50.
IIIN is valuated reasonably with a Price/Forward Earnings ratio of 11.92.
Based on the Price/Forward Earnings ratio, IIIN is valued cheaper than 80.49% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, IIIN is valued rather cheaply.
Industry RankSector Rank
PE 22.64
Fwd PE 11.92
IIIN Price Earnings VS Forward Price EarningsIIIN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IIIN is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IIIN indicates a somewhat cheap valuation: IIIN is cheaper than 73.17% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 17.21
EV/EBITDA 15.09
IIIN Per share dataIIIN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

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's earnings are expected to grow with 48.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.32
PEG (5Y)0.67
EPS Next 2Y75.22%
EPS Next 3Y48.84%

3

5. Dividend

5.1 Amount

IIIN has a yearly dividend return of 0.31%, which is pretty low.
Compared to an average industry Dividend Yield of 1.12, IIIN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, IIIN's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.31%

5.2 History

On average, the dividend of IIIN grows each year by 85.37%, which is quite nice.
IIIN has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)85.37%
Div Incr Years0
Div Non Decr Years0
IIIN Yearly Dividends per shareIIIN Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

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%
IIIN Yearly Income VS Free CF VS DividendIIIN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M 40M 60M 80M 100M
IIIN Dividend Payout.IIIN Dividend Payout, showing the Payout Ratio.IIIN Dividend Payout.PayoutRetained Earnings

INSTEEL INDUSTRIES INC

NYSE:IIIN (7/18/2025, 8:04:00 PM)

After market: 36.22 0 (0%)

36.22

+0.14 (+0.39%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)07-17 2025-07-17/bmo
Earnings (Next)10-15 2025-10-15/bmo
Inst Owners87.04%
Inst Owner Change0%
Ins Owners4.73%
Ins Owner Change1.99%
Market Cap703.03M
Analysts43.33
Price Target39.78 (9.83%)
Short Float %2.28%
Short Ratio3.19
Dividend
Industry RankSector Rank
Dividend Yield 0.31%
Yearly Dividend2.62
Dividend Growth(5Y)85.37%
DP96.53%
Div Incr Years0
Div Non Decr Years0
Ex-Date06-13 2025-06-13 (0.03)
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 RankSector Rank
PE 22.64
Fwd PE 11.92
P/S 1.23
P/FCF 17.21
P/OCF 13.88
P/B 2.06
P/tB 2.46
EV/EBITDA 15.09
EPS(TTM)1.6
EY4.42%
EPS(NY)3.04
Fwd EY8.39%
FCF(TTM)2.1
FCFY5.81%
OCF(TTM)2.61
OCFY7.21%
SpS29.39
BVpS17.59
TBVpS14.74
PEG (NY)0.32
PEG (5Y)0.67
Profitability
Industry RankSector 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 RankSector 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 8.02
F-Score6
WACC10.26%
ROIC/WACC0.57
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)53.85%
EPS 3Y-34.48%
EPS 5Y33.9%
EPS Q2Q%129.41%
EPS Next Y71.55%
EPS Next 2Y75.22%
EPS Next 3Y48.84%
EPS Next 5YN/A
Revenue 1Y (TTM)-18.48%
Revenue growth 3Y-3.59%
Revenue growth 5Y3.04%
Sales Q2Q%23.4%
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%