NasdaqGS:IIIN

Stock Analysis Report

Executive Summary

Insteel Industries, Inc., together with its subsidiaries, manufactures and markets steel wire reinforcing products for concrete construction applications.

Snowflake

Fundamentals

Flawless balance sheet with moderate growth potential.

Risks

  • Insteel Industries is covered by less than 3 analysts.

Similar Companies

Share Price & News

How has Insteel Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

16.8%

NasdaqGS:IIIN

2.4%

US Building

1.1%

US Market


1 Year Return

-39.6%

NasdaqGS:IIIN

3.2%

US Building

2.1%

US Market

IIIN underperformed the Building industry which returned 3.2% over the past year.

IIIN underperformed the Market in United States of America which returned 2% over the past year.


Share holder returns

IIINIndustryMarket
7 Day16.8%2.4%1.1%
30 Day20.1%5.4%3.7%
90 Day17.6%7.0%2.3%
1 Year-39.3%-39.6%5.0%3.2%4.4%2.1%
3 Year-30.0%-35.4%27.7%17.0%47.0%37.4%
5 Year12.3%-2.0%54.4%35.2%61.6%43.8%

Price Volatility Vs. Market

How volatile is Insteel Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Insteel Industries undervalued based on future cash flows and its price relative to the stock market?

25.7x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Insteel Industries's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Insteel Industries's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Insteel Industries is overvalued based on earnings compared to the US Building industry average.

Insteel Industries is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Insteel Industries is good value based on expected growth next year.


Price Based on Value of Assets

Insteel Industries is good value based on assets compared to the US Building industry average.


Next Steps

Future Growth

How is Insteel Industries expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

74.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Insteel Industries's revenue is expected to grow by 6.1% yearly, however this is not considered high growth (20% yearly).

Insteel Industries's earnings are expected to grow significantly at over 20% yearly.

Insteel Industries's revenue growth is positive but not above the United States of America market average.

Insteel Industries's earnings growth is expected to exceed the United States of America market average.

Insteel Industries's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Insteel Industries will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Insteel Industries performed over the past 5 years?

8.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Insteel Industries's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Insteel Industries's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Insteel Industries's 1-year earnings growth is negative, it can't be compared to the US Building industry average.


Return on Equity

Insteel Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Insteel Industries used its assets less efficiently than the US Building industry average last year based on Return on Assets.


Return on Capital Employed

Insteel Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Insteel Industries's financial position?


Financial Position Analysis

Insteel Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Insteel Industries's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Insteel Industries has no debt.

Insteel Industries currently has no debt however we can't compare to 5 years ago as we have no data for that period.

Insteel Industries has no debt, it does not need to be covered by operating cash flow.

Insteel Industries has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Insteel Industries has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

What is Insteel Industries's current dividend yield, its reliability and sustainability?

2.02%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Insteel Industries's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Insteel Industries's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Insteel Industries is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.

Insteel Industries is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Insteel Industries's dividends as it is not paying a notable one for United States of America.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Insteel Industries's salary, the management and board of directors tenure and is there insider trading?

21.7yrs

Average management tenure


CEO

Howard Woltz (63yo)

28.7yrs

Tenure

US$2,311,859

Compensation

Mr. Howard Osler Woltz, III has been the Chief Executive Officer of Insteel Industries, Inc. since 1991, President since 1989 and Chairman since February 10, 2009. Mr. Woltz serves as the President of Inst ...


CEO Compensation Analysis

Howard 's remuneration is about average for companies of similar size in United States of America.

Howard 's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

21.7yrs

Average Tenure

61.5yo

Average Age

The average tenure for the Insteel Industries management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

2.7yrs

Average Tenure

63yo

Average Age

The average tenure for the Insteel Industries board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$55,33223 Apr 19
Joseph Rutkowski
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$18.44
BuyUS$89,30022 Apr 19
G. Thompson
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,000
Max PriceUS$17.86
BuyUS$19,92122 Apr 19
Jon Ruth
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,100
Max PriceUS$18.11
BuyUS$104,16010 Dec 18
Jon Ruth
EntityIndividual
Role
Member of the Board of Directors
Director
Shares4,000
Max PriceUS$26.04

Ownership Breakdown


Management Team

  • Howard Woltz (63yo)

    Chairman

    • Tenure: 28.7yrs
    • Compensation: US$2.31m
  • Michael Gazmarian (60yo)

    VP, CFO & Treasurer

    • Tenure: 25.7yrs
    • Compensation: US$1.13m
  • Jim Petelle (69yo)

    VP of Administration & Secretary

    • Tenure: 12.7yrs
    • Compensation: US$693.78k
  • Scot Jafroodi

    Chief Accounting Officer & Corporate Controller

    • Tenure: 14.2yrs
  • Richard Wagner (60yo)

    Vice President

    • Tenure: 21.7yrs
    • Compensation: US$1.08m

Board Members

  • Ken Thompson (69yo)

    Director

    • Tenure: 2yrs
    • Compensation: US$101.40k
  • Joseph Rutkowski (64yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$102.79k
  • Howard Woltz (63yo)

    Chairman

    • Tenure: 28.7yrs
    • Compensation: US$2.31m
  • Allen Rogers (72yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$127.79k
  • Ab Boxley (61yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$26.25k
  • Jon Ruth (63yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: US$112.79k
  • Anne Lloyd (58yo)

    Independent Director

    • Tenure: 0.7yrs

Company Information

Insteel Industries, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Insteel Industries, Inc.
  • Ticker: IIIN
  • Exchange: NasdaqGS
  • Founded: 1953
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: US$431.814m
  • Shares outstanding: 19.25m
  • Website: https://www.insteel.com

Number of Employees


Location

  • Insteel Industries, Inc.
  • 1373 Boggs Drive
  • Mount Airy
  • North Carolina
  • 27030
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IIINNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 1985
HZ8DB (Deutsche Boerse AG)YesCommon StockDEEURApr 1985

Biography

Insteel Industries, Inc., together with its subsidiaries, manufactures and markets steel wire reinforcing products for concrete construction applications. The company offers pre-stressed concrete strand (P ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/16 23:36
End of Day Share Price2019/09/16 00:00
Earnings2019/06/29
Annual Earnings2018/09/29


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.