INSTEEL INDUSTRIES INC (IIIN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IIIN - US45774W1080 - Common Stock
32.88 USD
+0.8 (+2.49%)
32.88 USD
0 (0%)
IIIN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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 evaluated to be cheap and growing strongly. This does not happen too often! 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.
- In the past year IIIN had a positive cash flow from operations.
- Each year in the past 5 years IIIN has been profitable.
- Each year in the past 5 years IIIN had a positive operating cash flow.
1.2 Ratios
- IIIN's Return On Assets of 10.42% is fine compared to the rest of the industry. IIIN outperforms 69.05% of its industry peers.
- The Return On Equity of IIIN (13.25%) is comparable to the rest of the industry.
- IIIN has a Return On Invested Capital of 12.34%. This is in the better half of the industry: IIIN outperforms 66.67% 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 12.68%.
- The last Return On Invested Capital (12.34%) for IIIN is above the 3 year average (7.02%), which is a sign of increasing profitability.
| 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
- With a Profit Margin value of 7.01%, IIIN perfoms like the industry average, 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 in line with its industry peers.
- In the last couple of years the Operating Margin of IIIN has grown nicely.
- IIIN has a worse Gross Margin (15.04%) than 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), IIIN is creating some value.
- IIIN has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for IIIN has been increased compared to 5 years ago.
- 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 7.03. This indicates that IIIN is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of IIIN (7.03) is better than 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/WACC1.34
WACC9.18%
2.3 Liquidity
- A Current Ratio of 3.58 indicates that IIIN has no problem at all paying its short term obligations.
- The Current ratio of IIIN (3.58) is better 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 has a Quick ratio (1.19) which is comparable to the rest of the industry.
| 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.
- Measured over the past years, IIIN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.65% on average per year.
- Looking at the last year, IIIN shows a very strong growth in Revenue. The Revenue has grown by 26.19%.
- 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
- The Earnings Per Share is expected to grow by 24.67% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 9.07% on average over the next years. This is quite good.
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
- 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
- IIIN is valuated correctly with a Price/Earnings ratio of 13.53.
- Based on the Price/Earnings ratio, IIIN is valued a bit cheaper than 76.19% of the companies in the same industry.
- When comparing the Price/Earnings ratio of IIIN to the average of the S&P500 Index (28.39), we can say IIIN is valued rather cheaply.
- IIIN is valuated reasonably with a Price/Forward Earnings ratio of 10.07.
- Based on the Price/Forward Earnings ratio, IIIN is valued cheaply inside the industry as 97.62% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of IIIN to the average of the S&P500 Index (25.72), we can say IIIN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.53 | ||
| Fwd PE | 10.07 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, IIIN is valued cheaper than 88.10% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of IIIN indicates a slightly more expensive valuation: IIIN is more expensive than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1454.51 | ||
| 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.
- IIIN has a very decent profitability rating, which 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)0.42
PEG (5Y)0.92
EPS Next 2Y24.67%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a yearly dividend of 0.35%, IIIN is not a good candidate for dividend investing.
- IIIN's Dividend Yield is comparable with the industry average which is at 0.66.
- Compared to an average S&P500 Dividend Yield of 1.82, IIIN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
5.2 History
- On average, the dividend of IIIN grows each year by 56.52%, 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)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.
- The dividend of IIIN is growing, but the earnings are growing slower. 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 13.53 and the Price/Book (PB) ratio is 1.78.
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%.