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.


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

-3.3%

IIIN

1.6%

US Building

0.4%

US Market


1 Year Return

-27.4%

IIIN

20.7%

US Building

6.9%

US Market

Return vs Industry: IIIN underperformed the US Building industry which returned 20.7% over the past year.

Return vs Market: IIIN underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

IIINIndustryMarket
7 Day-3.3%1.6%0.4%
30 Day-9.4%1.1%-1.1%
90 Day2.6%6.0%-0.5%
1 Year-27.0%-27.4%22.6%20.7%9.3%6.9%
3 Year-23.8%-29.7%30.9%19.9%45.8%36.4%
5 Year6.0%-7.5%59.2%39.7%62.9%45.1%

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 compared to its fair value and its price relative to the market?

67.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: IIIN ($19.5) is trading above our estimate of fair value ($19.37)

Significantly Undervalued: IIIN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: IIIN is poor value based on its PE Ratio (67x) compared to the Building industry average (20.5x).

PE vs Market: IIIN is poor value based on its PE Ratio (67x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: IIIN is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: IIIN is good value based on its PB Ratio (1.5x) compared to the US Building industry average (2.2x).


Next Steps

Future Growth

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

75.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IIIN's forecast earnings growth (75.1% per year) is above the savings rate (2.7%).

Earnings vs Market: IIIN's earnings (75.1% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: IIIN's revenue is expected to decline over the next 3 years (-3.5% per year).

High Growth Revenue: IIIN's revenue is forecast to decline over the next 3 years (-3.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: IIIN's Return on Equity is forecast to be low in 3 years time (9.3%).


Next Steps

Past Performance

How has Insteel Industries performed over the past 5 years?

2.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: IIIN's earnings have grown by 2.2% per year over the past 5 years.

Accelerating Growth: IIIN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IIIN had negative earnings growth (-84.5%) over the past year, making it difficult to compare to the Building industry average (7.7%).


Return on Equity

High ROE: IIIN's Return on Equity (2.3%) is considered low.


Return on Assets

ROA vs Industry: IIIN's Return on Assets is below or equal to the Building industry average last year.


Return on Capital Employed

ROCE Improving: IIIN's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Insteel Industries's financial position?


Financial Position Analysis

Short Term Liabilities: IIIN's short term assets ($160.6M) exceeds its short term liabilities ($28.4M)

Long Term Liabilities: IIIN's short term assets (160.6M) exceeds its long term liabilities (18.6M)


Debt to Equity History and Analysis

Debt Level: IIIN is debt free.

Reducing Debt: IIIN has no debt compared to 5 years ago when its debt to equity ratio was 0.1%.

Debt Coverage: IIIN has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: IIIN has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if IIIN's debt is covered by short term assets.


Next Steps

Dividend

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

0.62%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%1.4%markettop25%3.7%industryaverage1.7%forecastin3Years1.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: IIIN's dividend (0.62%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: IIIN's dividend (0.62%) is low compared to the top 25% of dividend payers in the US market (3.73%).

Stable Dividend: IIIN is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: IIIN is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IIIN'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 Insteel Industries's salary, the management and board of directors tenure and is there insider trading?

21.8yrs

Average management tenure


CEO

Howard Woltz (63yo)

28.8yrs

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

Compensation vs. Market: Howard 's total compensation ($USD2.31M) is about average for companies of similar size in the US market ($USD1.79M).

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


Management Age and Tenure

21.8yrs

Average Tenure

61.5yo

Average Age

Experienced Management: IIIN's management team is seasoned and experienced (21.8 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

63yo

Average Age

Experienced Board: IIIN's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

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


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
Independent Director
Shares5,000
Max PriceUS$17.86
BuyUS$19,92122 Apr 19
Jon Ruth
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,100
Max PriceUS$18.11
BuyUS$104,16010 Dec 18
Jon Ruth
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$26.04

Ownership Breakdown


Management Team

  • Howard Woltz (63yo)

    Chairman

    • Tenure: 28.8yrs
    • Compensation: US$2.31m
  • Michael Gazmarian (60yo)

    VP, CFO & Treasurer

    • Tenure: 25.8yrs
    • Compensation: US$1.13m
  • Jim Petelle (69yo)

    VP of Administration & Secretary

    • Tenure: 12.8yrs
    • Compensation: US$693.78k
  • Scot Jafroodi

    Chief Accounting Officer & Corporate Controller

    • Tenure: 14.3yrs
  • Richard Wagner (60yo)

    Vice President

    • Tenure: 21.8yrs
    • Compensation: US$1.08m

Board Members

  • Ken Thompson (69yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: US$101.40k
  • Joseph Rutkowski (64yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$102.79k
  • Howard Woltz (63yo)

    Chairman

    • Tenure: 28.8yrs
    • Compensation: US$2.31m
  • Allen Rogers (72yo)

    Lead Director

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

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$26.25k
  • Jon Ruth (63yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$112.79k
  • Anne Lloyd (58yo)

    Independent Director

    • Tenure: 0.8yrs

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$375.406m
  • 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 Analysis2019/10/19 23:38
End of Day Share Price2019/10/18 00:00
Earnings2019/09/28
Annual Earnings2019/09/28


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.