INSTEEL INDUSTRIES INC (IIIN) Stock Fundamental Analysis
USA - NYSE:IIIN - US45774W1080 - Common Stock
38.62 USD
+0.02 (+0.05%)
IIIN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 41 industry peers in the Building Products industry. While IIIN has a great health rating, its profitability is only average at the moment. IIIN is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make IIIN suitable for 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
IIIN has a Return On Assets of 6.60%. This is comparable to the rest of the industry: IIIN outperforms 56.10% of its industry peers.
With a Return On Equity value of 8.74%, IIIN perfoms like the industry average, outperforming 41.46% of the companies in the same industry.
IIIN has a Return On Invested Capital of 8.13%. This is comparable to the rest of the industry: IIIN outperforms 43.90% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IIIN is in line with the industry average of 12.76%.
The last Return On Invested Capital (8.13%) 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 | 6.6% | ||
| ROE | 8.74% | ||
| ROIC | 8.13% |
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 Profit Margin of 5.15%. This is comparable to the rest of the industry: IIIN outperforms 41.46% of its industry peers.
In the last couple of years the Profit Margin of IIIN has grown nicely.
Looking at the Operating Margin, with a value of 6.67%, IIIN is doing worse than 70.73% of the companies in the same industry.
IIIN's Operating Margin has improved in the last couple of years.
The Gross Margin of IIIN (12.75%) is worse than 95.12% of its industry peers.
In the last couple of years the Gross Margin of IIIN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.67% | ||
| PM (TTM) | 5.15% | ||
| GM | 12.75% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), IIIN is creating some value.
IIIN has less shares outstanding than it did 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
IIIN has an Altman-Z score of 6.63. 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 6.63, IIIN is in the better half of the industry, outperforming 78.05% 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 | 6.63 |
ROIC/WACC0.79
WACC10.32%
2.3 Liquidity
IIIN has a Current Ratio of 2.94. This indicates that IIIN is financially healthy and has no problem in meeting its short term obligations.
IIIN's Current ratio of 2.94 is amongst the best of the industry. IIIN outperforms 80.49% of its industry peers.
A Quick Ratio of 1.61 indicates that IIIN should not have too much problems paying its short term obligations.
IIIN's Quick ratio of 1.61 is fine compared to the rest of the industry. IIIN outperforms 70.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.94 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
IIIN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 53.85%, which is quite impressive.
The Earnings Per Share has been growing by 33.90% on average over the past years. This is a very strong growth
Looking at the last year, IIIN shows a quite strong growth in Revenue. The Revenue has grown by 9.44% in the last year.
Measured over the past years, IIIN shows a small growth in Revenue. The Revenue has been growing by 3.04% on average per year.
EPS 1Y (TTM)53.85%
EPS 3Y-34.48%
EPS 5Y33.9%
EPS Q2Q%129.41%
Revenue 1Y (TTM)9.44%
Revenue growth 3Y-3.59%
Revenue growth 5Y3.04%
Sales Q2Q%23.4%
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.
The Revenue is expected to grow by 10.15% on average over the next years. This is quite good.
EPS Next Y124.61%
EPS Next 2Y68.78%
EPS Next 3Y48.84%
EPS Next 5YN/A
Revenue Next Year19.71%
Revenue Next 2Y13.18%
Revenue Next 3Y10.15%
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.
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 24.14, the valuation of IIIN can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of IIIN is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.30, IIIN is valued at the same level.
The Price/Forward Earnings ratio is 13.69, which indicates a correct valuation of IIIN.
Based on the Price/Forward Earnings ratio, IIIN is valued a bit cheaper than the industry average as 78.05% of the companies are valued more expensively.
IIIN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.14 | ||
| Fwd PE | 13.69 |
4.2 Price Multiples
63.41% of the companies in the same industry are more expensive than IIIN, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IIIN indicates a rather cheap valuation: IIIN is cheaper than 82.93% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.35 | ||
| EV/EBITDA | 11.98 |
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.
A more expensive valuation may be justified as IIIN's earnings are expected to grow with 48.84% in the coming years.
PEG (NY)0.19
PEG (5Y)0.71
EPS Next 2Y68.78%
EPS Next 3Y48.84%
5. Dividend
5.1 Amount
With a yearly dividend of 0.30%, IIIN is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.13, IIIN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, IIIN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
5.2 History
The dividend of IIIN is nicely growing with an annual growth rate of 85.37%!
IIIN has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)85.37%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
IIIN pays out 69.88% of its income as dividend. 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.
DP69.88%
EPS Next 2Y68.78%
EPS Next 3Y48.84%
NYSE:IIIN (9/15/2025, 3:53:54 PM)
38.62
+0.02 (+0.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners87.5%
Inst Owner Change-2.9%
Ins Owners4.74%
Ins Owner Change0.53%
Market Cap749.61M
Analysts43.33
Price Target39.78 (3%)
Short Float %1.85%
Short Ratio2.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
Yearly Dividend2.62
Dividend Growth(5Y)85.37%
DP69.88%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)61.49%
Min EPS beat(2)34.16%
Max EPS beat(2)88.82%
EPS beat(4)3
Avg EPS beat(4)26.46%
Min EPS beat(4)-24.1%
Max EPS beat(4)88.82%
EPS beat(8)5
Avg EPS beat(8)7.55%
EPS beat(12)5
Avg EPS beat(12)-5.99%
EPS beat(16)8
Avg EPS beat(16)2.09%
Revenue beat(2)2
Avg Revenue beat(2)3.17%
Min Revenue beat(2)1.24%
Max Revenue beat(2)5.11%
Revenue beat(4)3
Avg Revenue beat(4)1.33%
Min Revenue beat(4)-9.32%
Max Revenue beat(4)8.28%
Revenue beat(8)3
Avg Revenue beat(8)-3.46%
Revenue beat(12)3
Avg Revenue beat(12)-5.74%
Revenue beat(16)5
Avg Revenue beat(16)-3.37%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-13.46%
EPS NQ rev (3m)7.14%
EPS NY rev (1m)30.93%
EPS NY rev (3m)30.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.12%
Revenue NY rev (1m)-0.72%
Revenue NY rev (3m)2.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.14 | ||
| Fwd PE | 13.69 | ||
| P/S | 1.24 | ||
| P/FCF | 14.35 | ||
| P/OCF | 12.41 | ||
| P/B | 2.1 | ||
| P/tB | 2.49 | ||
| EV/EBITDA | 11.98 |
EPS(TTM)1.6
EY4.14%
EPS(NY)2.82
Fwd EY7.3%
FCF(TTM)2.69
FCFY6.97%
OCF(TTM)3.11
OCFY8.06%
SpS31.15
BVpS18.35
TBVpS15.53
PEG (NY)0.19
PEG (5Y)0.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.6% | ||
| ROE | 8.74% | ||
| ROCE | 10.55% | ||
| ROIC | 8.13% | ||
| ROICexc | 9.46% | ||
| ROICexgc | 11.35% | ||
| OM | 6.67% | ||
| PM (TTM) | 5.15% | ||
| GM | 12.75% | ||
| FCFM | 8.64% |
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-Score7
Asset Turnover1.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 46.14% | ||
| Cap/Sales | 1.35% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 104.04% | ||
| Profit Quality | 167.7% | ||
| Current Ratio | 2.94 | ||
| Quick Ratio | 1.61 | ||
| Altman-Z | 6.63 |
F-Score7
WACC10.32%
ROIC/WACC0.79
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)53.85%
EPS 3Y-34.48%
EPS 5Y33.9%
EPS Q2Q%129.41%
EPS Next Y124.61%
EPS Next 2Y68.78%
EPS Next 3Y48.84%
EPS Next 5YN/A
Revenue 1Y (TTM)9.44%
Revenue growth 3Y-3.59%
Revenue growth 5Y3.04%
Sales Q2Q%23.4%
Revenue Next Year19.71%
Revenue Next 2Y13.18%
Revenue Next 3Y10.15%
Revenue Next 5YN/A
EBIT growth 1Y94.32%
EBIT growth 3Y-39.21%
EBIT growth 5Y29.05%
EBIT Next Year191.98%
EBIT Next 3Y56.45%
EBIT Next 5YN/A
FCF growth 1Y-18.02%
FCF growth 3Y-9.33%
FCF growth 5YN/A
OCF growth 1Y-35.68%
OCF growth 3Y-5.92%
OCF growth 5Y54.56%