INSTEEL INDUSTRIES INC (IIIN) Stock Fundamental Analysis
NYSE:IIIN - New York Stock Exchange, Inc. - US45774W1080 - Common Stock - Currency: USD
Overall IIIN gets a fundamental rating of 6 out of 10. We evaluated IIIN against 41 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 has a correct valuation and a medium growth rate.
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.
In the past 5 years IIIN has always been profitable.
IIIN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.34%, IIIN is doing worse than 60.98% of the companies in the same industry.
IIIN has a Return On Equity of 6.60%. This is in the lower half of the industry: IIIN underperforms 65.85% of its industry peers.
With a Return On Invested Capital value of 5.80%, IIIN is not doing good in the industry: 73.17% of the companies in the same industry are doing better.
IIIN had an Average Return On Invested Capital over the past 3 years of 13.67%. This is in line with the industry average of 12.62%.
The last Return On Invested Capital (5.80%) for IIIN is well below the 3 year average (13.67%), which needs to be investigated, but indicates that IIIN had better years and this may not be a problem.
| Industry Rank | Sector 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%
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 worse Operating Margin (4.85%) than 78.05% of its industry peers.
In the last couple of years the Operating Margin of IIIN has grown nicely.
IIIN has a worse Gross Margin (10.82%) than 97.56% of its industry peers.
IIIN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
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.
2.2 Solvency
IIIN has an Altman-Z score of 8.47. 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 8.47, IIIN belongs to the top of the industry, outperforming 92.68% 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 | 8.47 |
ROIC/WACC0.57
WACC10.2%
2.3 Liquidity
IIIN has a Current Ratio of 3.87. This indicates that IIIN is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of IIIN (3.87) is better than 87.80% of its industry peers.
A Quick Ratio of 2.11 indicates that IIIN has no problem at all paying its short term obligations.
The Quick ratio of IIIN (2.11) is better than 87.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.87 | ||
| Quick Ratio | 2.11 |
3. Growth
3.1 Past
IIIN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.45%.
Measured over the past years, IIIN shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.90% on average per year.
Looking at the last year, IIIN shows a decrease in Revenue. The Revenue has decreased by -0.33% in the last year.
The Revenue has been growing slightly by 3.04% on average over the past years.
EPS 1Y (TTM)-6.45%
EPS 3Y-34.48%
EPS 5Y33.9%
EPS Q2Q%48.57%
Revenue 1Y (TTM)-0.33%
Revenue growth 3Y-3.59%
Revenue growth 5Y3.04%
Sales Q2Q%26.11%
3.2 Future
IIIN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 48.84% yearly.
IIIN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.15% yearly.
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
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
Based on the Price/Earnings ratio of 33.82, the valuation of IIIN can be described as expensive.
Based on the Price/Earnings ratio, IIIN is valued a bit more expensive than the industry average as 73.17% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 27.45. IIIN is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 12.91, IIIN is valued correctly.
IIIN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. IIIN is cheaper than 75.61% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. IIIN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.82 | ||
| Fwd PE | 12.91 |
4.2 Price Multiples
IIIN's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, IIIN is valued a bit cheaper than the industry average as 73.17% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.64 | ||
| EV/EBITDA | 16.46 |
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.
A more expensive valuation may be justified as IIIN's earnings are expected to grow with 48.84% in the coming years.
PEG (NY)0.47
PEG (5Y)1
EPS Next 2Y75.22%
EPS Next 3Y48.84%
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 1.19, IIIN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, IIIN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.31% |
5.2 History
The dividend of IIIN is nicely growing with an annual growth rate of 85.37%!
IIIN has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)85.37%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
96.53% of the earnings are spent on dividend by IIIN. This is not a sustainable payout ratio.
The dividend of IIIN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP96.53%
EPS Next 2Y75.22%
EPS Next 3Y48.84%
39.23
+0.2 (+0.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners87.04%
Inst Owner Change1.03%
Ins Owners4.73%
Ins Owner Change1.99%
Market Cap761.45M
Analysts43.33
Price Target39.78 (1.4%)
Short Float %2.6%
Short Ratio3.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.31% |
Yearly Dividend2.62
Dividend Growth(5Y)85.37%
DP96.53%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.82 | ||
| Fwd PE | 12.91 | ||
| P/S | 1.33 | ||
| P/FCF | 18.64 | ||
| P/OCF | 15.03 | ||
| P/B | 2.23 | ||
| P/tB | 2.66 | ||
| EV/EBITDA | 16.46 |
EPS(TTM)1.16
EY2.96%
EPS(NY)3.04
Fwd EY7.75%
FCF(TTM)2.1
FCFY5.36%
OCF(TTM)2.61
OCFY6.65%
SpS29.39
BVpS17.59
TBVpS14.74
PEG (NY)0.47
PEG (5Y)1
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 8.47 |
F-Score6
WACC10.2%
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)-6.45%
EPS 3Y-34.48%
EPS 5Y33.9%
EPS Q2Q%48.57%
EPS Next Y71.55%
EPS Next 2Y75.22%
EPS Next 3Y48.84%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.33%
Revenue growth 3Y-3.59%
Revenue growth 5Y3.04%
Sales Q2Q%26.11%
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%