INSTEEL INDUSTRIES INC (IIIN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IIIN - US45774W1080 - Common Stock
33.06 USD
-1 (-2.94%)
33.06 USD
0 (0%)
Overall IIIN gets a fundamental rating of 7 out of 10. We evaluated IIIN against 42 industry peers in the Building Products industry. While IIIN has a great health rating, its profitability is only average at the moment. IIIN has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! This makes IIIN very considerable for value and 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
- The Return On Assets of IIIN (10.42%) is better than 69.05% of its industry peers.
- Looking at the Return On Equity, with a value of 13.25%, IIIN is in line with its industry, outperforming 57.14% of the companies in the same industry.
- IIIN's Return On Invested Capital of 12.34% is fine compared to the rest of the industry. IIIN outperforms 66.67% 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 12.68%.
- The 3 year average ROIC (7.02%) for IIIN is below the current ROIC(12.34%), indicating increased profibility in the last year.
| 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
- Looking at the Profit Margin, with a value of 7.01%, IIIN is in line with its industry, outperforming 54.76% of the companies in the same industry.
- In the last couple of years the Profit Margin of IIIN has grown nicely.
- The Operating Margin of IIIN (9.16%) is comparable to the rest of the industry.
- IIIN's Operating Margin has improved in the last couple of years.
- 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
- IIIN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for IIIN remains at a similar level compared to 1 year ago.
- IIIN has more shares outstanding than it did 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
- An Altman-Z score of 7.27 indicates that IIIN is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 7.27, IIIN belongs to the best 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 | 7.27 |
ROIC/WACC1.35
WACC9.16%
2.3 Liquidity
- IIIN has a Current Ratio of 3.58. This indicates that IIIN is financially healthy and has no problem in meeting its short term obligations.
- IIIN's Current ratio of 3.58 is amongst the best of the industry. IIIN outperforms 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.
- The Quick ratio of IIIN (1.19) 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.
- IIIN shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.19%.
- The Revenue has been growing slightly by 6.51% on average over the past years.
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
- 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.
- Based on estimates for the next years, IIIN will show a quite strong growth in Revenue. The Revenue will grow by 9.52% on average per year.
EPS Next Y32.11%
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
- Based on the Price/Earnings ratio of 13.60, the valuation of IIIN can be described as correct.
- Based on the Price/Earnings ratio, IIIN is valued a bit cheaper than 76.19% of the companies in the same industry.
- IIIN is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 10.13, which indicates a very decent valuation of IIIN.
- Based on the Price/Forward Earnings ratio, IIIN is valued cheaper than 95.24% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of IIIN to the average of the S&P500 Index (24.26), we can say IIIN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.6 | ||
| Fwd PE | 10.13 |
4.2 Price Multiples
- IIIN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. IIIN is cheaper than 83.33% 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 | 1462.47 | ||
| EV/EBITDA | 8.01 |
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.
- 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)0.42
PEG (5Y)0.93
EPS Next 2Y24.67%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- IIIN has a yearly dividend return of 0.36%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.67, IIIN has a dividend in line with its industry peers.
- 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 | 0.36% |
5.2 History
- On average, the dividend of IIIN grows each year by 56.52%, which is quite nice.
- 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
- IIIN pays out 45.71% of its income as dividend. 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 13.6 and the Price/Book (PB) ratio is 1.79.
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%.