NasdaqCM:ARTW

Stock Analysis Report

Executive Summary

Art's-Way Manufacturing Co., Inc. manufactures and sells agricultural equipment, specialized modular science buildings, and steel cutting tools worldwide.

Risk Analysis

Earnings have declined by -65.21% per year over past 5 years

Has less than 1 year of cash runway

Does not have a meaningful market cap ($8M)

Currently unprofitable and not forecast to become profitable over the next 3 years



Snowflake Analysis

Mediocre 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.6%

ARTW

-1.7%

US Machinery

-0.09%

US Market


1 Year Return

-9.0%

ARTW

20.1%

US Machinery

23.9%

US Market

Return vs Industry: ARTW underperformed the US Machinery industry which returned 22.4% over the past year.

Return vs Market: ARTW underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

ARTWIndustryMarket
7 Day-5.6%-1.7%-0.09%
30 Day1.6%-0.9%3.1%
90 Day-7.1%5.0%10.4%
1 Year-9.0%-9.0%22.4%20.1%26.6%23.9%
3 Year-43.4%-43.4%39.3%30.3%50.9%41.2%
5 Year-61.6%-62.0%77.6%56.2%78.1%58.5%

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?

0.66x

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 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 (0.7x) compared to the US Machinery industry average (2.5x).


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?

9.8%

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?

-65.2%

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 -65.2% 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 (9.6%).


Return on Equity

High ROE: ARTW has a negative Return on Equity (-22.12%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: ARTW's short term assets ($12.7M) exceed its short term liabilities ($6.6M).

Long Term Liabilities: ARTW's short term assets ($12.7M) exceed its long term liabilities ($2.4M).


Debt to Equity History and Analysis

Debt Level: ARTW's debt to equity ratio (45%) is considered high.

Reducing Debt: ARTW's debt to equity ratio has reduced from 65.5% to 45% over the past 5 years.


Balance Sheet

Inventory Level: ARTW has a high level of physical assets or inventory.

Debt Coverage by Assets: ARTW's debt is covered by short term assets (assets are 2.4x debt).


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 -101.7% each year


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

What is the CEO of Art's-Way Manufacturing's salary, the management and board of directors tenure and is there insider trading?

9.7yrs

Average management tenure


CEO

Carrie Gunnerson (43yo)

12.3yrs

Tenure

US$199,192

Compensation

Ms. Carrie L. Gunnerson serves as Chief Executive Officer, President of Art's-Way Manufacturing Co., Inc. since October 18, 2007 and serves as its Corporate Secretary. Ms. Gunnerson has been Interim Chief  ...


CEO Compensation Analysis

Compensation vs Market: Carrie's total compensation ($USD199.19K) is below average for companies of similar size in the US market ($USD519.76K).

Compensation vs Earnings: Carrie's compensation has been consistent with company performance over the past year.


Management Age and Tenure

9.7yrs

Average Tenure

Experienced Management: ARTW's management team is seasoned and experienced (9.7 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

66yo

Average Age

Experienced Board: ARTW's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

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 not been meaningfully diluted in the past year.


Management Team

  • Dan Palmer

    President of Art’s-Way Scientific Inc

    • Tenure: 9.7yrs
  • Glen Parrett

    Director of Sales & Marketing

    • Carrie Gunnerson (43yo)

      CEO, President

      • Tenure: 12.3yrs
      • Compensation: US$199.19k
    • Michael Woods (32yo)

      Principal Accounting Officer

      • Tenure: 1.7yrs

    Board Members

    • David Castle (69yo)

      Independent Director

      • Tenure: 20yrs
      • Compensation: US$41.24k
    • Marc McConnell (40yo)

      Chairman of the Board

      • Tenure: 4.8yrs
      • Compensation: US$310.27k
    • J. McConnell (87yo)

      Vice Chairman of the Board

      • Tenure: 4.8yrs
      • Compensation: US$102.49k
    • Tom Buffamante (66yo)

      Independent Director

      • Tenure: 17yrs
      • Compensation: US$41.24k
    • David White (66yo)

      Independent Director

      • Tenure: 3.1yrs
      • Compensation: US$37.24k

    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$9.362m
    • Shares outstanding: 4.30m
    • 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 worldwide. The company operates through three segments: Agricultural Products, Modular Buildings, and Tools. The Agricultural Products segment offers specialized farm machineries, including portable and stationary animal feed processing equipment and related attachments; hay and forage equipment consisting of forage boxes, blowers, running gear, and dump boxes; portable grain augers; manure spreaders; sugar beet harvesting equipment; land maintenance equipment; moldboard plows; potato harvesters; grinder mixers; reels for combines and swathers; silage blowers and reels; and after-market service parts under the Art’s-Way, Miller Pro, Roda, M&W, Badger, and UHC by Art’s-Way brands. The Modular Buildings segment produces and sells swine buildings and complex containment research laboratories, as well as research facilities for academic research institutions, government research and diagnostic centers, public health institutions, and private research and pharmaceutical companies; and leases temporary facilities. The Tools segment offers standard single point brazed carbide tipped tools, and polycrystalline diamond and cubic boron nitride inserts and tools to aerospace, oil and gas piping, and appliances industries. The company markets and sells its products through independent farm equipment dealers, manufacturers’ representatives, direct sales, and original equipment manufacturer sales channels. Art's-Way Manufacturing Co., Inc. was founded in 1956 and is based in Armstrong, Iowa. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/24 23:37
    End of Day Share Price2020/01/24 00:00
    Earnings2019/08/31
    Annual Earnings2018/11/30


    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.