Insteel Industries, Inc. Fundamental Analysis (NYSE: IIIN)
Insteel Industries, Inc. Fundamental Analysis (NYSE: IIIN)
Insteel Industries, Inc. (NYSE: IIIN) shows moderate financial fundamentals with a PE ratio of 17.39, profit margin of 5.14%, and ROE of 9.92%. The company generates $0.7B in annual revenue with strong year-over-year growth of 22.39%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze IIIN's fundamental strength across five key dimensions:
Efficiency Score
WeakIIIN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentIIIN trades at attractive valuation levels.
Growth Score
ModerateIIIN shows steady but slowing expansion.
Financial Health Score
ExcellentIIIN maintains a strong and stable balance sheet.
Profitability Score
WeakIIIN struggles to sustain strong margins.
Key Financial Metrics
Is IIIN Expensive or Cheap?
P/E Ratio
IIIN trades at 17.39 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, IIIN's PEG of 1.08 indicates fair valuation.
Price to Book
The market values Insteel Industries, Inc. at 1.70 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.64 times EBITDA. This signals the market has high growth expectations.
How Well Does IIIN Make Money?
Net Profit Margin
For every $100 in sales, Insteel Industries, Inc. keeps $5.14 as profit after all expenses.
Operating Margin
Core operations generate 6.56 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.92 in profit for every $100 of shareholder equity.
ROA
Insteel Industries, Inc. generates $7.68 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Insteel Industries, Inc. generates limited operating cash flow of $-1.11M, signaling weaker underlying cash strength.
Free Cash Flow
Insteel Industries, Inc. generates weak or negative free cash flow of $-11.84M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.61 in free cash annually.
FCF Yield
IIIN converts -1.88% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.39
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.70
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.89
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.007
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.57
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How IIIN Stacks Against Its Sector Peers
| Metric | IIIN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.39 | 30.77 | Better (Cheaper) |
| ROE | 9.92% | 1146.00% | Weak |
| Net Margin | 5.14% | -20835.00% (disorted) | Weak |
| Debt/Equity | 0.01 | 0.38 | Strong (Low Leverage) |
| Current Ratio | 3.57 | 24.28 | Strong Liquidity |
| ROA | 7.68% | -1313619.00% (disorted) | Weak |
IIIN outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Insteel Industries, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
35.60%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
113.51%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-52.20%
Industry Style: Cyclical, Value, Infrastructure
Declining