NasdaqGS:IIIN

Stock Analysis Report

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Executive Summary

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


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

5.2%

IIIN

-2.4%

US Building

-0.8%

US Market


1 Year Return

-11.9%

IIIN

6.6%

US Building

13.8%

US Market

Return vs Industry: IIIN underperformed the US Building industry which returned 6.6% over the past year.

Return vs Market: IIIN underperformed the US Market which returned 13.8% over the past year.


Shareholder returns

IIINIndustryMarket
7 Day5.2%-2.4%-0.8%
30 Day-3.3%-3.1%-5.7%
90 Day-5.2%20.1%8.6%
1 Year-11.4%-11.9%14.3%6.6%16.4%13.8%
3 Year-26.0%-29.6%28.0%16.7%36.9%27.8%
5 Year24.8%8.9%85.4%57.2%85.0%64.2%

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?

35.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IIIN ($18.08) is trading above our estimate of fair value ($7.48)

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 (35.5x) compared to the US Building industry average (25.5x).

PE vs Market: IIIN is poor value based on its PE Ratio (35.5x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: IIIN is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: IIIN is good value based on its PB Ratio (1.4x) compared to the US Building industry average (2.5x).


Next Steps

Future Growth

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

47.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IIIN's forecast earnings growth (47.1% per year) is above the savings rate (2.2%).

Earnings vs Market: IIIN's earnings (47.1% per year) are forecast to grow faster than the US market (22.9% 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 (-3.4% per year).

High Growth Revenue: IIIN's revenue is forecast to decline over the next 3 years (-3.4% 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?

-15.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IIIN has high quality earnings.

Growing Profit Margin: IIIN's current net profit margins (2.2%) are lower than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: IIIN's earnings have declined by 15.8% 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 (-41.9%) over the past year, making it difficult to compare to the Building industry average (-12.5%).


Return on Equity

High ROE: IIIN's Return on Equity (3.8%) 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 ($196.8M) exceed its short term liabilities ($59.7M).

Long Term Liabilities: IIIN's short term assets ($196.8M) exceed its long term liabilities ($19.9M).


Debt to Equity History and Analysis

Debt Level: IIIN is debt free.

Reducing Debt: IIIN had no debt 5 years ago.

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


Next Steps

Dividend

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

0.66%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IIIN's dividend (0.66%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.72%).

High Dividend: IIIN's dividend (0.66%) is low compared to the top 25% of dividend payers in the US market (4.94%).


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?

15.2yrs

Average management tenure


CEO

Howard Woltz (64 yo)

29.67yrs

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 ($USD1.77M) is about average for companies of similar size in the US market ($USD2.02M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Howard Woltz
President29.67yrsUS$1.77m3.56%
$ 12.4m
James Petelle
VP of Administration & Secretary13.67yrsUS$481.80k0.080%
$ 278.1k
Richard Wagner
Vice President22.67yrsUS$913.45k0.17%
$ 604.8k
Mark Carano
VP, CFO & Treasurer0.33yrno data0.016%
$ 56.9k
Scot Jafroodi
Chief Accounting Officer & Corporate Controller15.17yrsno data0.14%
$ 494.8k

15.2yrs

Average Tenure

62.5yo

Average Age

Experienced Management: IIIN's management team is seasoned and experienced (15.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Howard Woltz
President29.67yrsUS$1.77m3.56%
$ 12.4m
G. Thompson
Independent Director3yrsUS$127.81k0.11%
$ 370.0k
Joseph Rutkowski
Independent Director5yrsUS$126.56k0.057%
$ 197.1k
W. Rogers
Independent Lead Directorno dataUS$132.81k0.43%
$ 1.5m
Abney Boxley
Independent Director2.42yrsUS$115.26k0.040%
$ 140.7k
Jon Ruth
Independent Director4.42yrsUS$126.56k0.057%
$ 197.3k
Anne Lloyd
Independent Director1.42yrsUS$27.50k0.014%
$ 49.1k

3.7yrs

Average Tenure

64yo

Average Age

Experienced Board: IIIN's board of directors are considered experienced (3.7 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$348.637m
  • Shares outstanding: 19.28m
  • 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 Analysis2020/09/28 05:12
End of Day Share Price2020/09/25 00:00
Earnings2020/06/27
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.