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 Analysis

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

Stable Share Price: IIIN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.8%

IIIN

6.0%

US Building

5.3%

US Market


1 Year Return

-36.9%

IIIN

-16.4%

US Building

-10.7%

US Market

Return vs Industry: IIIN underperformed the US Building industry which returned -16% over the past year.

Return vs Market: IIIN underperformed the US Market which returned -10.4% over the past year.


Shareholder returns

IIINIndustryMarket
7 Day-0.8%6.0%5.3%
30 Day-33.4%-25.2%-13.6%
90 Day-38.3%-29.6%-19.8%
1 Year-36.6%-36.9%-15.1%-16.4%-8.9%-10.7%
3 Year-61.2%-63.1%-14.5%-18.5%15.5%8.0%
5 Year-27.5%-36.7%1.7%-11.5%35.2%20.4%

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?

125.9x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IIIN ($13.26) is trading above our estimate of fair value ($9.57)

Significantly Below Fair Value: 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 (125.9x) compared to the Building industry average (17.3x).

PE vs Market: IIIN is poor value based on its PE Ratio (125.9x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: IIIN is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: IIIN is good value based on its PB Ratio (1x) compared to the US Building industry average (1.2x).


Next Steps

Future Growth

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

94.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IIIN's forecast earnings growth (94.1% per year) is above the savings rate (1.7%).

Earnings vs Market: IIIN's earnings (94.1% per year) are forecast to grow faster than the US market (12.2% 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 (-1.3% per year).

High Growth Revenue: IIIN's revenue is forecast to decline over the next 3 years (-1.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if IIIN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Insteel Industries performed over the past 5 years?

-4.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IIIN has a large one-off gain of $1.4M impacting its December 28 2019 financial results.

Growing Profit Margin: IIIN's current net profit margins (0.5%) are lower than last year (7%).


Past Earnings Growth Analysis

Earnings Trend: IIIN's earnings have declined by -4.8% 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 (-93.7%) over the past year, making it difficult to compare to the Building industry average (-15.9%).


Return on Equity

High ROE: IIIN's Return on Equity (0.8%) is considered low.


Next Steps

Financial Health

How is Insteel Industries's financial position?


Financial Position Analysis

Short Term Liabilities: IIIN's short term assets ($174.2M) exceed its short term liabilities ($40.3M).

Long Term Liabilities: IIIN's short term assets ($174.2M) exceed its long term liabilities ($20.0M).


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 5.5%.

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?

0.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IIIN's dividend (0.91%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: IIIN's dividend (0.91%) is low compared to the top 25% of dividend payers in the US market (5.4%).


Stability and Growth of Payments

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

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

22.2yrs

Average management tenure


CEO

Howard Woltz (63yo)

29.17s

Tenure

US$1,769,460

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 ($USD1.77M) is about average for companies of similar size in the US market ($USD1.49M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Howard Woltz
President29.17yrsUS$1.77m3.55% $9.1m
Michael Gazmarian
VP, CFO & Treasurer26.17yrsUS$925.33k0.17% $428.7k
James Petelle
VP of Administration & Secretary13.17yrsUS$481.80k0.081% $207.1k
Richard Wagner
Vice President22.17yrsUS$913.45k0.16% $418.5k
Scot Jafroodi
Chief Accounting Officer & Corporate Controller14.67yrsno data0.14% $352.9k

22.2yrs

Average Tenure

61.5yo

Average Age

Experienced Management: IIIN's management team is seasoned and experienced (22.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Howard Woltz
President29.17yrsUS$1.77m3.55% $9.1m
G. Thompson
Independent Director2.42yrsUS$127.81k0.11% $271.2k
Joseph Rutkowski
Independent Director4.42yrsUS$126.56k0.057% $144.5k
W. Rogers
Lead Directorno dataUS$132.81k0.43% $1.1m
Abney Boxley
Independent Director1.83yrsUS$115.26k0.040% $103.1k
Jon Ruth
Independent Director3.83yrsUS$126.56k0.057% $144.6k
Anne Lloyd
Independent Director0.83yrUS$27.50k0.014% $36.0k

3.1yrs

Average Tenure

63yo

Average Age

Experienced Board: IIIN's board of directors are considered experienced (3.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: IIIN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$255.205m
  • Shares outstanding: 19.26m
  • 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 (PC strand) and welded wire reinforcement (WWR) products. Its PC strand is a seven-wire strand that is used to impart compression forces into precast concrete elements and structures providing reinforcement for bridges, parking decks, buildings, and other concrete structures. The company’s WWR engineered reinforcing product is used in nonresidential and residential construction. It produces a range of WWR products, such as engineered structural mesh, an engineered made-to-order product that is used as the primary reinforcement for concrete elements or structures serving as a reinforcing solution for hot-rolled rebar; concrete pipe reinforcement, an engineered made-to-order product, which is used as the primary reinforcement in concrete pipe, box culverts, and precast manholes for drainage and sewage systems, water treatment facilities, and other related applications; and standard welded wire reinforcement, a secondary reinforcing product for crack control applications in residential and light nonresidential construction, including driveways, sidewalks, and various slab-on-grade applications. The company sells its products through sales representatives to the manufacturers of concrete products, distributors, rebar fabricators, and contractors primarily in the United States, as well as in Canada, Mexico, and Central and South America. Insteel Industries, Inc. was founded in 1953 and is headquartered in Mount Airy, North Carolina. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 23:52
End of Day Share Price2020/03/31 00:00
Earnings2019/12/28
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.