Art's-Way Manufacturing Valuation

Q: What is the Fair Price of ARTW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ARTW ($1.71) is trading below our estimate of [[fair value]] ($13.8)

Is ARTW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ARTW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ARTW ($1.71) is trading below our estimate of fair value ($13.8)

Significantly Below Fair Value: ARTW is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ARTW?

Key metric: As ARTW is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for ARTW. This is calculated by dividing ARTW's market cap by their current revenue.
What is ARTW's PS Ratio?
PS Ratio	0.3x
Sales	US$25.18m
Market Cap	US$8.42m

ARTW key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.6x
Enterprise Value/EBITDA	17.6x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does ARTW's PS Ratio compare to its peers?

The above table shows the PS ratio for ARTW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	0.5x
UGRO urban-gro	0.3x	22.4%	US$20.2m
UAVS AgEagle Aerial Systems	1.1x	n/a	US$14.0m
NMHI Nature's Miracle Holding	0.4x	40.8%	US$4.2m
HYFM Hydrofarm Holdings Group	0.2x	4.1%	US$29.5m
ARTW Art's-Way Manufacturing	0.3x	n/a	US$8.4m

Price-To-Sales vs Peers: ARTW is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (0.5x).

Price to Sales Ratio vs Industry

How does ARTW's PS Ratio compare vs other companies in the US Machinery Industry?

17 Companies	Price / Sales	Estimated Growth	Market Cap
HY Hyster-Yale	0.2x	-0.6%	US$969.23m
TWI Titan International	0.2x	2.2%	US$447.66m
PKOH Park-Ohio Holdings	0.3x	3.9%	US$431.31m
MTW Manitowoc Company	0.2x	2.4%	US$371.29m

17 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: ARTW is good value based on its Price-To-Sales Ratio (0.3x) compared to the US Machinery industry average (1.6x).

Price to Sales Ratio vs Fair Ratio

What is ARTW's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ARTW PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.3x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate ARTW's Price-To-Sales Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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