NasdaqCM:ARTW

Stock Analysis Report

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Executive Summary

Art's-Way Manufacturing Co., Inc. manufactures and sells agricultural equipment, specialized modular science buildings, and steel cutting tools in the United States and internationally. More Details


Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

How has Art's-Way Manufacturing's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ARTW is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: ARTW's weekly volatility has decreased from 17% to 11% over the past year.


Market Performance


7 Day Return

-6.4%

ARTW

-0.5%

US Machinery

1.5%

US Market


1 Year Return

35.5%

ARTW

19.4%

US Machinery

22.3%

US Market

Return vs Industry: ARTW exceeded the US Machinery industry which returned 18.2% over the past year.

Return vs Market: ARTW exceeded the US Market which returned 22.1% over the past year.


Shareholder returns

ARTWIndustryMarket
7 Day-6.4%-0.5%1.5%
30 Day7.8%12.2%8.8%
90 Day-9.5%15.7%10.8%
1 Year35.5%35.5%22.5%19.4%25.1%22.3%
3 Year-17.8%-17.8%31.7%22.2%49.5%39.6%
5 Year-13.7%-13.7%138.5%111.9%105.8%83.3%

Long-Term Price Volatility Vs. Market

How volatile is Art's-Way Manufacturing's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Art's-Way Manufacturing undervalued compared to its fair value and its price relative to the market?

1.04x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate ARTW's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate ARTW's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: ARTW is unprofitable, so we can't compare its PE Ratio to the US Machinery industry average.

PE vs Market: ARTW is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ARTW's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ARTW is good value based on its PB Ratio (1x) compared to the US Machinery industry average (2.7x).


Next Steps

Future Growth

How is Art's-Way Manufacturing forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

24.0%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Art's-Way Manufacturing has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Art's-Way Manufacturing performed over the past 5 years?

-32.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARTW is currently unprofitable.

Growing Profit Margin: ARTW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ARTW is unprofitable, and losses have increased over the past 5 years at a rate of 32.8% per year.

Accelerating Growth: Unable to compare ARTW's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ARTW is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (-15.4%).


Return on Equity

High ROE: ARTW has a negative Return on Equity (-17.78%), as it is currently unprofitable.


Next Steps

Financial Health

How is Art's-Way Manufacturing's financial position?


Financial Position Analysis

Short Term Liabilities: ARTW's short term assets ($11.1M) exceed its short term liabilities ($5.0M).

Long Term Liabilities: ARTW's short term assets ($11.1M) exceed its long term liabilities ($4.0M).


Debt to Equity History and Analysis

Debt Level: ARTW's debt to equity ratio (56.7%) is considered high.

Reducing Debt: ARTW's debt to equity ratio has increased from 55% to 56.7% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ARTW has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: ARTW has less than a year of cash runway if free cash flow continues to reduce at historical rates of 33.2% each year


Next Steps

Dividend

What is Art's-Way Manufacturing current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ARTW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ARTW's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ARTW's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ARTW's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ARTW is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ARTW's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average management tenure


CEO

David King

0.42

Tenure

Mr. David Alan King serves as Chief Executive Officer at Art's-Way Manufacturing Co., Inc. since July 21, 2020 and served as its Executive Vice President since March 2020 until July 21, 2020. Mr. King serv...


Leadership Team

NamePositionTenureCompensationOwnership
Carrie Gunnerson
President & Corporate Secretary13.17yrsUS$202.53k0.89%
$ 95.5k
David King
Chief Executive Officer0.42yrno data1.81%
$ 194.0k
Michael Woods
CFO & Principal Accounting Officer0.83yrno data0.22%
$ 24.2k
Glen Parrett
Director of Sales & Marketingno datano datano data

0.8yrs

Average Tenure

Experienced Management: ARTW's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
David Castle
Independent Director20.92yrsUS$38.99k0.63%
$ 67.9k
Marc McConnell
Chairman of the Board5.67yrsUS$309.74k2.33%
$ 250.6k
J. McConnell
Vice Chairman of the Board5.67yrsUS$99.44k48.47%
$ 5.2m
Thomas Buffamante
Independent Director17.92yrsUS$38.99k0.70%
$ 75.2k
David White
Independent Director4yrsUS$34.19k0.41%
$ 43.7k

5.7yrs

Average Tenure

67yo

Average Age

Experienced Board: ARTW's board of directors are considered experienced (5.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.1%.


Top Shareholders

Company Information

Art's-Way Manufacturing Co., Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Art's-Way Manufacturing Co., Inc.
  • Ticker: ARTW
  • Exchange: NasdaqCM
  • Founded: 1956
  • Industry: Agricultural and Farm Machinery
  • Sector: Capital Goods
  • Market Cap: US$10.747m
  • Shares outstanding: 4.43m
  • Website: https://www.artsway-mfg.com

Number of Employees


Location

  • Art's-Way Manufacturing Co., Inc.
  • 5556 Highway 9
  • PO Box 288
  • Armstrong
  • Iowa
  • 50514
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARTWNasdaqCM (Nasdaq Capital Market)YesCommon SharesUSUSDDec 1972

Biography

Art's-Way Manufacturing Co., Inc. manufactures and sells agricultural equipment, specialized modular science buildings, and steel cutting tools in the United States and internationally. The company operate...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/05 00:15
End of Day Share Price2020/12/04 00:00
Earnings2020/08/31
Annual Earnings2019/11/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.