Insteel Industries
Market Cap
US$427.8m
Last Updated
2020/02/16 23:39 UTC
Data Sources
Company Financials +
Executive Summary
Insteel Industries, Inc., together with its subsidiaries, manufactures and markets steel wire reinforcing products for concrete construction applications.
Rewards
Risk Analysis
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.7%
IIIN
4.0%
US Building
1.8%
US Market
1 Year Return
0.7%
IIIN
24.9%
US Building
20.1%
US Market
Return vs Industry: IIIN underperformed the US Building industry which returned 24.9% over the past year.
Return vs Market: IIIN underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| IIIN | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.7% | 4.0% | 1.8% |
| 30 Day | -14.6% | 2.2% | 1.4% |
| 90 Day | 4.2% | 5.3% | 8.8% |
| 1 Year | 1.3%0.7% | 26.8%24.9% | 22.7%20.1% |
| 3 Year | -37.8%-40.7% | 28.0%22.1% | 50.1%40.4% |
| 5 Year | 18.3%3.3% | 50.6%31.0% | 72.9%53.9% |
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
6 days ago | Simply Wall St
Is Insteel Industries, Inc. (NASDAQ:IIIN) Investing Your Capital Efficiently?2 weeks ago | Simply Wall St
Is Now An Opportune Moment To Examine Insteel Industries, Inc. (NASDAQ:IIIN)?Valuation
Is Insteel Industries undervalued compared to its fair value and its price relative to the market?
210.95x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: IIIN ($22.21) is trading above our estimate of fair value ($21.26)
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 (211x) compared to the Building industry average (22.2x).
PE vs Market: IIIN is poor value based on its PE Ratio (211x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: IIIN is poor value based on its PEG Ratio (1.9x)
Price to Book Ratio
PB vs Industry: IIIN is good value based on its PB Ratio (1.7x) compared to the US Building industry average (2.4x).
Next Steps
Future Growth
How is Insteel Industries forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
111.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: IIIN's forecast earnings growth (111.5% per year) is above the savings rate (1.7%).
Earnings vs Market: IIIN's earnings (111.5% per year) are forecast to grow faster than the US market (14.5% 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 (-0.9% per year).
High Growth Revenue: IIIN's revenue is forecast to decline over the next 3 years (-0.9% 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 (-4.2%).
Return on Equity
High ROE: IIIN's Return on Equity (0.8%) is considered low.
Return on Assets
Return on Capital Employed
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?
0.54%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Insteel Industries before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: IIIN's dividend (0.54%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: IIIN's dividend (0.54%) is low compared to the top 25% of dividend payers in the US market (3.69%).
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?
22.1yrs
Average management tenure
CEO
Howard Woltz (63yo)
29.1yrs
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 ($USD1.68M).
Compensation vs Earnings: Howard's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 29.1yrs | US$1.77m | 3.55% $15.2m | |
| VP, CFO & Treasurer | 26.1yrs | US$925.33k | 0.17% $718.6k | |
| VP of Administration & Secretary | 13.1yrs | US$481.80k | 0.081% $347.2k | |
| Vice President | 22.1yrs | US$913.45k | 0.16% $701.4k | |
| Chief Accounting Officer & Corporate Controller | 14.6yrs | no data | 0.14% $591.5k |
22.1yrs
Average Tenure
61.5yo
Average Age
Experienced Management: IIIN's management team is seasoned and experienced (22.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 29.1yrs | US$1.77m | 3.55% $15.2m | |
| Independent Director | 2.4yrs | US$127.81k | 0.11% $454.6k | |
| Independent Director | 4.4yrs | US$126.56k | 0.057% $242.2k | |
| Lead Director | 0yrs | US$132.81k | 0.43% $1.8m | |
| Independent Director | 1.8yrs | US$115.26k | 0.040% $172.8k | |
| Independent Director | 3.8yrs | US$126.56k | 0.057% $242.4k | |
| Independent Director | 0.8yrs | US$27.50k | 0.014% $60.3k |
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$427.781m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| IIIN | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Apr 1985 |
| HZ8 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Apr 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.Â
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 23:39 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/28 |
| Annual Earnings | 2019/09/28 |
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.