INSTEEL INDUSTRIES INC (IIIN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IIIN - US45774W1080 - Common Stock
32.085 USD
-0.24 (-0.76%)
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 is growing strongly while it also seems undervalued. This is an interesting combination These ratings would make IIIN suitable for value and growth investing!
1. Profitability
1.1 Basic Checks
- In the past year IIIN was profitable.
- IIIN had a positive operating cash flow in the past year.
- 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
- Looking at the Return On Assets, with a value of 10.42%, IIIN is in the better half of the industry, outperforming 69.05% of the companies in the same industry.
- With a Return On Equity value of 13.25%, IIIN perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
- IIIN has a better Return On Invested Capital (12.34%) than 66.67% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for IIIN 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
- IIIN has a Profit Margin (7.01%) which is in line with its industry peers.
- In the last couple of years the Profit Margin of IIIN has grown nicely.
- With a Operating Margin value of 9.16%, IIIN perfoms like the industry average, outperforming 40.48% of the companies in the same industry.
- In the last couple of years the Operating Margin of IIIN has grown nicely.
- IIIN has a Gross Margin of 15.04%. This is amonst the worse of the industry: IIIN underperforms 90.48% of its industry peers.
- IIIN's Gross Margin has improved in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so IIIN is still creating some value.
- Compared to 1 year ago, IIIN has about the same amount of shares outstanding.
- 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 7.06. 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 7.06, IIIN belongs to the top of the industry, outperforming 80.95% 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 | 7.06 |
ROIC/WACC1.35
WACC9.15%
2.3 Liquidity
- A Current Ratio of 3.58 indicates that IIIN has no problem at all paying 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.
- Looking at the Quick ratio, with a value of 1.19, IIIN is in line with its industry, outperforming 52.38% of the companies in the same 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.
- The Earnings Per Share has been growing by 14.65% on average over the past years. This is quite good.
- 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
- 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 9.07% yearly.
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
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- IIIN is valuated correctly with a Price/Earnings ratio of 13.20.
- IIIN's Price/Earnings ratio is a bit cheaper when compared to the industry. IIIN is cheaper than 76.19% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.82. IIIN is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 9.83 indicates a reasonable valuation of IIIN.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of IIIN indicates a rather cheap valuation: IIIN is cheaper than 97.62% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of IIIN to the average of the S&P500 Index (25.95), we can say IIIN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.2 | ||
| Fwd PE | 9.83 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IIIN indicates a rather cheap valuation: IIIN is cheaper than 88.10% of the companies listed in the same industry.
- IIIN's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. IIIN is more expensive than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1419.34 | ||
| EV/EBITDA | 7.6 |
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)0.41
PEG (5Y)0.9
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.
- IIIN's earnings are growing slower than its dividend. 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 13.2 and the Price/Book (PB) ratio is 1.74.
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%.