INSTEEL INDUSTRIES INC (IIIN) Stock Fundamental Analysis
USA - NYSE:IIIN - US45774W1080 - Common Stock
32.28 USD
-0.08 (-0.25%)
32 USD
-0.28 (-0.87%)
We assign a fundamental rating of 7 out of 10 to IIIN. IIIN was compared to 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 growing strongly while it is still valued neutral. This is a good combination! With these ratings, IIIN could be worth investigating further for growth investing!.
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.
Each year in the past 5 years IIIN has been profitable.
In the past 5 years IIIN always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 8.87%, IIIN is doing good in the industry, outperforming 65.85% of the companies in the same industry.
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.
IIIN had an Average Return On Invested Capital over the past 3 years of 7.02%. This is significantly below the industry average of 12.54%.
The last Return On Invested Capital (10.47%) for IIIN is above the 3 year average (7.02%), which is a sign of increasing profitability.
| 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
IIIN has a Profit Margin of 6.33%. This is comparable to the rest of the industry: IIIN outperforms 53.66% 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 8.40%, IIIN is in line with its industry, outperforming 41.46% of the companies in the same industry.
In the last couple of years the Operating Margin of IIIN has grown nicely.
IIIN has a worse Gross Margin (14.43%) than 92.68% of its industry peers.
In the last couple of years the Gross Margin of IIIN has grown nicely.
| 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
IIIN has an Altman-Z score of 7.22. This indicates that IIIN is financially healthy and has little risk of bankruptcy at the moment.
IIIN has a Altman-Z score of 7.22. This is amongst the best in 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/WACC1.09
WACC9.65%
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.
A Quick Ratio of 1.88 indicates that IIIN should not have too much problems paying its short term obligations.
IIIN has a Quick ratio of 1.88. This is amongst the best in the industry. IIIN outperforms 80.49% of its industry peers.
| 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.
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 22.39%.
Measured over the past years, IIIN shows a small growth in Revenue. The Revenue has been growing by 6.51% on average per year.
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
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 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.
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
IIIN is valuated correctly with a Price/Earnings ratio of 15.37.
Based on the Price/Earnings ratio, IIIN is valued a bit cheaper than 63.41% of the companies in the same industry.
When comparing the Price/Earnings ratio of IIIN to the average of the S&P500 Index (25.91), we can say IIIN is valued slightly cheaper.
A Price/Forward Earnings ratio of 11.83 indicates a reasonable valuation of IIIN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IIIN indicates a somewhat cheap valuation: IIIN is cheaper than 73.17% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.57, IIIN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.37 | ||
| Fwd PE | 11.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IIIN is valued a bit cheaper than 75.61% of the companies in the same industry.
IIIN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.06 | ||
| 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.
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)0.51
PEG (5Y)1.05
EPS Next 2Y24.67%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.38%, IIIN is not a good candidate for dividend investing.
IIIN's Dividend Yield is comparable with the industry average which is at 1.33.
With a Dividend Yield of 0.38, IIIN pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
5.2 History
The dividend of IIIN is nicely growing with an annual growth rate of 56.52%!
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
IIIN pays out 53.05% 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.
DP53.05%
EPS Next 2Y24.67%
EPS Next 3YN/A
32.28
-0.08 (-0.25%)
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 Cap626.55M
Revenue(TTM)647.71M
Net Income(TTM)41.02M
Analysts43.33
Price Target39.78 (23.23%)
Short Float %1.55%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
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 | 15.37 | ||
| Fwd PE | 11.83 | ||
| P/S | 0.97 | ||
| P/FCF | 33.06 | ||
| P/OCF | 23.07 | ||
| P/B | 1.69 | ||
| P/tB | 1.98 | ||
| EV/EBITDA | 8.07 |
EPS(TTM)2.1
EY6.51%
EPS(NY)2.73
Fwd EY8.45%
FCF(TTM)0.98
FCFY3.02%
OCF(TTM)1.4
OCFY4.34%
SpS33.37
BVpS19.14
TBVpS16.34
PEG (NY)0.51
PEG (5Y)1.05
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
WACC9.65%
ROIC/WACC1.09
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 15.37 and the Price/Book (PB) ratio is 1.69.
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%.