INSTEEL INDUSTRIES INC (IIIN) Stock Fundamental Analysis
USA - NYSE:IIIN - US45774W1080 - Common Stock
31.93 USD
-0.35 (-1.08%)
31.93 USD
0 (0%)
Taking everything into account, IIIN scores 7 out of 10 in our fundamental rating. IIIN was compared to 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 is growing strongly while it is still valued neutral. This is a good combination! These ratings could make IIIN a good candidate for growth investing.
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.
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
IIIN has a Return On Assets of 8.87%. This is in the better half of the industry: IIIN outperforms 65.85% of its industry peers.
IIIN has a Return On Equity of 11.04%. This is comparable to the rest of the industry: IIIN outperforms 51.22% of its industry peers.
IIIN has a Return On Invested Capital of 10.47%. This is in the better half of the industry: IIIN outperforms 63.41% 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 12.54%.
The 3 year average ROIC (7.02%) for IIIN is below the current ROIC(10.47%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 6.33%, IIIN is in line with its industry, outperforming 53.66% of the companies in the same industry.
In the last couple of years the Profit Margin of IIIN has grown nicely.
IIIN's Operating Margin of 8.40% is in line compared to the rest of the industry. IIIN outperforms 41.46% of its industry peers.
IIIN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 14.43%, IIIN is doing worse than 92.68% of the companies in the same industry.
IIIN's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for IIIN remains at a similar level compared to 1 year ago.
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
An Altman-Z score of 7.22 indicates that IIIN is not in any danger for bankruptcy at the moment.
IIIN's Altman-Z score of 7.22 is amongst the best of the industry. IIIN outperforms 85.37% 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 | 7.22 |
ROIC/WACC1.08
WACC9.71%
2.3 Liquidity
IIIN has a Current Ratio of 3.97. This indicates that IIIN is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.97, IIIN belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
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.
With an excellent Quick ratio value of 1.88, IIIN belongs to the best of the industry, outperforming 80.49% of the companies in the same industry.
| 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.
Looking at the last year, IIIN shows a very strong growth in Revenue. The Revenue has grown by 22.39%.
IIIN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.51% yearly.
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
The Earnings Per Share is expected to grow by 24.67% on average over the next years. This is a very strong growth
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 Y29.93%
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.
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
The Price/Earnings ratio is 15.20, which indicates a correct valuation of IIIN.
Based on the Price/Earnings ratio, IIIN is valued a bit cheaper than the industry average as 63.41% of the companies are valued more expensively.
IIIN is valuated rather cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.70, the valuation of IIIN can be described as reasonable.
Based on the Price/Forward Earnings ratio, IIIN is valued a bit cheaper than 73.17% of the companies in the same industry.
IIIN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.2 | ||
| Fwd PE | 11.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IIIN is valued a bit cheaper than the industry average as 75.61% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IIIN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.71 | ||
| EV/EBITDA | 8.07 |
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.
A more expensive valuation may be justified as IIIN's earnings are expected to grow with 24.67% in the coming years.
PEG (NY)0.51
PEG (5Y)1.04
EPS Next 2Y24.67%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.37%, IIIN is not a good candidate for dividend investing.
IIIN's Dividend Yield is comparable with the industry average which is at 1.33.
Compared to an average S&P500 Dividend Yield of 2.36, IIIN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
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
53.05% 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.
DP53.05%
EPS Next 2Y24.67%
EPS Next 3YN/A
31.93
-0.35 (-1.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners85.49%
Inst Owner Change1.58%
Ins Owners4.73%
Ins Owner Change0.53%
Market Cap619.76M
Revenue(TTM)647.71M
Net Income(TTM)41.02M
Analysts43.33
Price Target39.78 (24.59%)
Short Float %1.55%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
Yearly Dividend1.12
Dividend Growth(5Y)56.52%
DP53.05%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)29.03%
EPS NQ rev (3m)8.11%
EPS NY rev (1m)-3.25%
EPS NY rev (3m)-10.23%
Revenue NQ rev (1m)9.91%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)5.52%
Revenue NY rev (3m)1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.2 | ||
| Fwd PE | 11.7 | ||
| P/S | 0.96 | ||
| P/FCF | 32.71 | ||
| P/OCF | 22.82 | ||
| P/B | 1.67 | ||
| P/tB | 1.95 | ||
| EV/EBITDA | 8.07 |
EPS(TTM)2.1
EY6.58%
EPS(NY)2.73
Fwd EY8.55%
FCF(TTM)0.98
FCFY3.06%
OCF(TTM)1.4
OCFY4.38%
SpS33.37
BVpS19.14
TBVpS16.34
PEG (NY)0.51
PEG (5Y)1.04
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 | 7.22 |
F-Score7
WACC9.71%
ROIC/WACC1.08
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 Y29.93%
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 Year64.96%
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 of INSTEEL INDUSTRIES INC (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.
What are the PE and PB ratios of INSTEEL INDUSTRIES INC (IIIN) stock?
The Price/Earnings (PE) ratio for INSTEEL INDUSTRIES INC (IIIN) is 15.2 and the Price/Book (PB) ratio is 1.67.
Can you provide the dividend sustainability for IIIN stock?
The dividend rating of INSTEEL INDUSTRIES INC (IIIN) is 3 / 10 and the dividend payout ratio is 53.05%.