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Insteel Industries

Nasdaq:IIIN
Snowflake Description

Flawless balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
IIIN
Nasdaq
$359M
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Insteel Industries, Inc., together with its subsidiaries, manufactures and markets steel wire reinforcing products for concrete construction applications. The last earnings update was 30 days ago. More info.


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IIIN Share Price and Events
7 Day Returns
2%
NasdaqGS:IIIN
-0.5%
US Building
-1%
US Market
1 Year Returns
-54%
NasdaqGS:IIIN
-1.9%
US Building
-0.4%
US Market
IIIN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Insteel Industries (IIIN) 2% -0.3% -6.7% -54% -44.1% -16.8%
US Building -0.5% -1% 4.3% -1.9% 7.2% 22.5%
US Market -1% -3.3% 0.4% -0.4% 30.4% 37.1%
1 Year Return vs Industry and Market
  • IIIN underperformed the Building industry which returned -1.9% over the past year.
  • IIIN underperformed the Market in United States of America which returned -0.4% over the past year.
Price Volatility
IIIN
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Insteel Industries to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Insteel Industries.

NasdaqGS:IIIN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:IIIN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Building Unlevered Beta Simply Wall St/ S&P Global 1.16
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.161 (1 + (1- 21%) (0%))
1.108
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.11
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.108 * 5.96%)
9.33%

Discounted Cash Flow Calculation for NasdaqGS:IIIN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Insteel Industries is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:IIIN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.33%)
2020 24.19 Analyst x1 22.12
2021 23.84 Est @ -1.44% 19.94
2022 23.79 Est @ -0.19% 18.20
2023 23.95 Est @ 0.68% 16.76
2024 24.26 Est @ 1.3% 15.53
2025 24.68 Est @ 1.73% 14.45
2026 25.18 Est @ 2.03% 13.48
2027 25.75 Est @ 2.24% 12.61
2028 26.36 Est @ 2.39% 11.81
2029 27.02 Est @ 2.49% 11.07
Present value of next 10 years cash flows $155.97
NasdaqGS:IIIN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $27.02 × (1 + 2.73%) ÷ (9.33% – 2.73%)
$420.25
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $420.25 ÷ (1 + 9.33%)10
$172.16
NasdaqGS:IIIN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $155.97 + $172.16
$328.13
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $328.13 / 19.25
$17.04
NasdaqGS:IIIN Discount to Share Price
Calculation Result
Value per share (USD) From above. $17.04
Current discount Discount to share price of $18.67
= -1 x ($18.67 - $17.04) / $17.04
-9.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Insteel Industries is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Insteel Industries's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Insteel Industries's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:IIIN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-29) in USD $0.87
NasdaqGS:IIIN Share Price ** NasdaqGS (2019-08-16) in USD $18.67
United States of America Building Industry PE Ratio Median Figure of 30 Publicly-Listed Building Companies 18.5x
United States of America Market PE Ratio Median Figure of 3,095 Publicly-Listed Companies 17.23x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Insteel Industries.

NasdaqGS:IIIN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:IIIN Share Price ÷ EPS (both in USD)

= 18.67 ÷ 0.87

21.39x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does Insteel Industries's expected growth come at a high price?
Raw Data
NasdaqGS:IIIN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.39x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
74.2%per year
United States of America Building Industry PEG Ratio Median Figure of 25 Publicly-Listed Building Companies 1.29x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.4x

*Line of best fit is calculated by linear regression .

NasdaqGS:IIIN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.39x ÷ 74.2%

0.29x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Insteel Industries is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Insteel Industries's assets?
Raw Data
NasdaqGS:IIIN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-29) in USD $12.90
NasdaqGS:IIIN Share Price * NasdaqGS (2019-08-16) in USD $18.67
United States of America Building Industry PB Ratio Median Figure of 37 Publicly-Listed Building Companies 2.02x
United States of America Market PB Ratio Median Figure of 5,265 Publicly-Listed Companies 1.7x
NasdaqGS:IIIN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:IIIN Share Price ÷ Book Value per Share (both in USD)

= 18.67 ÷ 12.90

1.45x

* Primary Listing of Insteel Industries.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Insteel Industries is good value based on assets compared to the US Building industry average.
X
Value checks
We assess Insteel Industries's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Building industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Building industry average (and greater than 0)? (1 check)
  5. Insteel Industries has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
74.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Insteel Industries expected to grow at an attractive rate?
  • Insteel Industries's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Insteel Industries's earnings growth is expected to exceed the United States of America market average.
  • Insteel Industries's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:IIIN Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:IIIN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 74.2%
NasdaqGS:IIIN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 6.1%
United States of America Building Industry Earnings Growth Rate Market Cap Weighted Average 15.7%
United States of America Building Industry Revenue Growth Rate Market Cap Weighted Average 4.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:IIIN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:IIIN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-09-30 501 44 33 2
2019-09-30 471 18 13 2
NasdaqGS:IIIN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-29 464 -22 17
2019-03-30 464 -11 27
2018-12-29 460 16 32
2018-09-29 453 54 36
2018-06-30 429 49 31
2018-03-31 399 28 25
2017-12-30 393 32 26
2017-09-30 389 21 23
2017-07-01 395 31 29
2017-04-01 414 48 35
2016-12-31 420 46 35
2016-10-01 419 56 37
2016-07-02 434 65 37

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Insteel Industries's earnings are expected to grow significantly at over 20% yearly.
  • Insteel Industries's revenue is expected to grow by 6.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:IIIN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Insteel Industries Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:IIIN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-09-30 1.72 1.88 1.55 2.00
2019-09-30 0.66 0.66 0.66 1.00
NasdaqGS:IIIN Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-29 0.87
2019-03-30 1.43
2018-12-29 1.69
2018-09-29 1.90
2018-06-30 1.61
2018-03-31 1.30
2017-12-30 1.38
2017-09-30 1.19
2017-07-01 1.51
2017-04-01 1.86
2016-12-31 1.85
2016-10-01 1.99
2016-07-02 1.99

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Insteel Industries will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Insteel Industries's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Insteel Industries has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Insteel Industries performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Insteel Industries's growth in the last year to its industry (Building).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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.
Earnings and Revenue History
Insteel Industries's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Insteel Industries Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:IIIN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-29 463.68 16.77 26.18
2019-03-30 464.12 27.45 28.21
2018-12-29 459.59 32.28 29.11
2018-09-29 453.22 36.27 28.33
2018-06-30 428.73 30.66 26.78
2018-03-31 398.98 24.66 25.45
2017-12-30 392.72 26.20 25.01
2017-09-30 388.87 22.55 25.51
2017-07-01 395.10 28.60 24.78
2017-04-01 413.79 35.27 25.42
2016-12-31 420.04 35.00 26.00
2016-10-01 418.55 37.25 26.07
2016-07-02 433.53 37.02 28.59
2016-04-02 434.91 28.88 28.17
2016-01-02 429.27 24.27 26.56
2015-10-03 447.50 21.71 25.89
2015-06-27 446.51 16.66 24.64
2015-03-28 442.72 17.07 24.50
2014-12-27 432.39 18.04 24.48
2014-09-27 408.98 16.64 23.52
2014-06-28 390.07 14.41 22.23
2014-03-29 373.79 11.89 21.31
2013-12-28 365.23 12.08 20.55
2013-09-28 363.90 11.74 20.68
2013-06-29 363.57 10.22 20.04
2013-03-30 360.22 7.84 19.50
2012-12-29 364.38 4.39 19.16
2012-09-29 363.30 1.81 18.91

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Insteel Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Insteel Industries used its assets less efficiently than the US Building industry average last year based on Return on Assets.
  • Insteel Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Insteel Industries's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Building industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Insteel Industries has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Insteel Industries's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Insteel Industries's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Insteel Industries's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Insteel Industries has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Insteel Industries Company Filings, last reported 1 month ago.

NasdaqGS:IIIN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-29 248.32 0.00 7.45
2019-03-30 246.53 5.37 0.49
2018-12-29 245.38 0.00 15.50
2018-09-29 241.67 0.00 43.94
2018-06-30 230.69 0.00 45.23
2018-03-31 218.05 0.00 23.46
2017-12-30 212.11 0.00 37.34
2017-09-30 223.38 0.00 32.11
2017-07-01 219.17 0.00 37.85
2017-04-01 212.66 0.00 40.19
2016-12-31 204.98 0.00 57.02
2016-10-01 224.57 0.00 58.87
2016-07-02 213.09 0.00 53.84
2016-04-02 199.08 0.00 36.40
2016-01-02 189.41 0.00 45.62
2015-10-03 200.22 0.00 33.26
2015-06-27 190.91 0.00 11.43
2015-03-28 185.82 10.00 6.17
2014-12-27 182.92 10.00 0.01
2014-09-27 178.88 0.00 3.05
2014-06-28 173.34 0.00 31.45
2014-03-29 167.32 0.00 19.18
2013-12-28 163.49 0.00 18.99
2013-09-28 161.06 0.00 15.44
2013-06-29 157.85 0.00 12.08
2013-03-30 153.52 0.00 7.90
2012-12-29 147.35 0.00 4.82
2012-09-29 149.50 11.48 0.01
  • 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.
X
Financial health checks
We assess Insteel Industries's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Insteel Industries has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.64%
Current annual income from Insteel Industries dividends. Estimated to be 2.43% next year.
If you bought $2,000 of Insteel Industries shares you are expected to receive $13 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Insteel Industries's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).
  • Insteel Industries's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).
Upcoming dividend payment

Purchase Insteel Industries before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:IIIN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United States of America Building Industry Average Dividend Yield Market Cap Weighted Average of 16 Stocks 1.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:IIIN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-09-30 1.12 1.00
2019-09-30 0.12 2.00
NasdaqGS:IIIN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-08-13 0.120 0.661
2019-05-14 0.120 0.612
2019-02-12 0.120 0.570
2018-11-14 0.120 0.499
2018-08-14 1.120 3.372
2018-05-15 1.120 3.190
2018-02-13 1.120 3.850
2017-11-07 1.120 3.941
2017-10-27 1.120 4.305
2017-10-19 1.120 4.060
2017-08-15 1.370 5.398
2017-05-09 1.370 4.495
2017-02-07 1.370 3.844
2016-11-15 1.370 3.748
2016-08-16 0.120 0.371
2016-05-17 0.120 0.401
2016-02-11 0.120 0.432
2015-11-11 0.120 0.533
2015-08-18 0.120 0.669
2015-05-12 0.120 0.647
2015-02-17 0.120 0.567
2014-11-11 0.120 0.542
2014-08-19 0.120 0.543
2014-05-06 0.120 0.603
2014-02-12 0.120 0.603
2013-11-05 0.120 0.625
2013-08-20 0.120 0.729
2013-05-02 0.120 0.679
2013-02-12 0.120 0.751
2012-11-13 0.120 0.951
2012-08-28 0.120 1.061
2012-05-15 0.120 1.179
2012-02-21 0.120 1.010
2011-11-08 0.120 1.068
2011-08-09 0.120 1.173
2011-05-17 0.120 0.991
2011-02-08 0.120 0.910
2010-11-16 0.120 1.048
2010-08-17 0.120 1.398
2010-05-18 0.120 1.097
2010-02-09 0.120 1.092
2009-11-17 0.120 1.043
2009-08-25 0.120 1.025
2009-04-21 0.120 1.357
2009-02-10 0.120 1.848
2009-01-20 0.120 1.518
2009-01-13 0.120 1.196

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Insteel Industries's earnings are paid to the shareholders as a dividend.
  • 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.
X
Income/ dividend checks
We assess Insteel Industries's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Insteel Industries afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Insteel Industries has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Howard Woltz
COMPENSATION $2,311,859
AGE 63
TENURE AS CEO 28.6 years
CEO Bio

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 Insteel Wire Products Company. He served as the Chief Operating Officer of Insteel Industries since 1989. He has been employed by Insteel Industries and its subsidiaries in various capacities since 1978. Mr. Woltz served as President of Florida Wire and Cable, Inc., until 2002. He served as Vice President of Insteel Industries since 1988 to 1989 and President of Rappahannock Wire Company, formerly a subsidiary of Insteel Industries since 1981 until 1989. He has been an Officer of Insteel Industries, Inc. for over 30 years and President for over 25 years. Mr. Woltz has been a Director of Insteel Industries, Inc. since 1986.

CEO Compensation
  • Howard 's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Howard 's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Insteel Industries management team in years:

21.6
Average Tenure
61.5
Average Age
  • The average tenure for the Insteel Industries management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Howard Woltz

TITLE
Chairman
COMPENSATION
$2M
AGE
63
TENURE
28.6 yrs

Michael Gazmarian

TITLE
VP, CFO & Treasurer
COMPENSATION
$1M
AGE
60
TENURE
25.6 yrs

Jim Petelle

TITLE
VP of Administration & Secretary
COMPENSATION
$694K
AGE
69
TENURE
12.6 yrs

Richard Wagner

TITLE
Vice President
COMPENSATION
$1M
AGE
60
TENURE
21.6 yrs

Scot Jafroodi

TITLE
Chief Accounting Officer & Corporate Controller
TENURE
14.1 yrs
Board of Directors Tenure

Average tenure and age of the Insteel Industries board of directors in years:

2.6
Average Tenure
63
Average Age
  • The average tenure for the Insteel Industries board of directors is less than 3 years, this suggests a new board.
Board of Directors

Joseph Rutkowski

TITLE
Independent Director
COMPENSATION
$103K
AGE
64
TENURE
3.9 yrs

Howard Woltz

TITLE
Chairman
COMPENSATION
$2M
AGE
63
TENURE
10.5 yrs

Jon Ruth

TITLE
Director
COMPENSATION
$113K
AGE
63
TENURE
3.3 yrs

Ken Thompson

TITLE
Director
COMPENSATION
$101K
AGE
69
TENURE
1.9 yrs

Allen Rogers

TITLE
Lead Director
COMPENSATION
$128K
AGE
72

Ab Boxley

TITLE
Director
COMPENSATION
$26K
AGE
61
TENURE
1.3 yrs

Anne Lloyd

TITLE
Independent Director
AGE
58
TENURE
0.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
23. Apr 19 Buy Joseph Rutkowski Individual 22. Apr 19 22. Apr 19 3,000 $18.44 $55,332
22. Apr 19 Buy G. Thompson Individual 22. Apr 19 22. Apr 19 5,000 $17.86 $89,300
22. Apr 19 Buy Jon Ruth Individual 22. Apr 19 22. Apr 19 1,100 $18.11 $19,921
10. Dec 18 Buy Jon Ruth Individual 07. Dec 18 07. Dec 18 4,000 $26.04 $104,160
23. Aug 18 Sell Richard Wagner Individual 23. Aug 18 23. Aug 18 -13,379 $39.42 $-527,407
23. Aug 18 Sell Michael Gazmarian Individual 21. Aug 18 22. Aug 18 -35,900 $40.24 $-1,442,212
21. Aug 18 Sell Michael Gazmarian Individual 20. Aug 18 20. Aug 18 -3,451 $40.25 $-138,896
21. Aug 18 Sell James Petelle Individual 20. Aug 18 20. Aug 18 -1,505 $39.65 $-59,676
X
Management checks
We assess Insteel Industries's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Insteel Industries has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Insteel Industries, Inc. (NASDAQ:IIIN) Investing Your Capital Efficiently?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Insteel Industries: 0.071 = US$19m ÷ (US$305m - US$38m) (Based on the trailing twelve months to June 2019.) Therefore, Insteel Industries has an ROCE of 7.1%. … How Insteel Industries's Current Liabilities Impact Its ROCE Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Calculating The Fair Value Of Insteel Industries, Inc. (NASDAQ:IIIN)

Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF ($, Millions) $24.2m $23.8m $23.8m $24.0m $24.3m $24.7m $25.2m $25.7m $26.4m $27.0m Growth Rate Estimate Source Analyst x1 Est @ -1.44% Est @ -0.19% Est @ 0.68% Est @ 1.3% Est @ 1.73% Est @ 2.03% Est @ 2.24% Est @ 2.39% Est @ 2.49% Present Value ($, Millions) Discounted @ 9.24% $22.1 $20.0 $18.3 $16.8 $15.6 $14.5 $13.6 $12.7 $11.9 $11.2 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= $156.7m After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$27m × (1 + 2.7%) ÷ (9.2% – 2.7%) = US$427m Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$427m ÷ ( 1 + 9.2%)10 = $176.35m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $333.01m. … NasdaqGS:IIIN Intrinsic value, July 31st 2019 Important assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

What Does Insteel Industries, Inc.'s (NASDAQ:IIIN) Share Price Indicate?

I find that Insteel Industries’s ratio of 13.44x is trading slightly below its industry peers’ ratio of 18.18x, which means if you buy Insteel Industries today, you’d be paying a fair price for it. … Given that Insteel Industries’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. … Currently, IIIN appears to be trading around its fair value, but given the uncertainty from negative returns in the future, this could be the right time to reduce the risk in your portfolio.

Simply Wall St -

Did Insteel Industries, Inc. (NASDAQ:IIIN) Use Debt To Deliver Its ROE Of 11%?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Insteel Industries: 11% = US$27m ÷ US$247m (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does Insteel Industries Have A Good Return On Equity? … Combining Insteel Industries's Debt And Its 11% Return On Equity While Insteel Industries does have a tiny amount of debt, with debt to equity of just 0.022, we think the use of debt is very modest.

Simply Wall St -

Has Insteel Industries, Inc. (NASDAQ:IIIN) Been Employing Capital Shrewdly?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Insteel Industries: 0.12 = US$33m ÷ (US$312m - US$41m) (Based on the trailing twelve months to March 2019.) So, Insteel Industries has an ROCE of 12%. … Insteel Industries's Current Liabilities And Their Impact On Its ROCE Current liabilities are short term bills and invoices that need to be paid in 12 months or less. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Should You Be Holding Insteel Industries, Inc. (NASDAQ:IIIN)?

Today I've chosen to put the spotlight on Insteel Industries, Inc. … is a company that has been able to sustain great financial health, trading at an attractive share price … Below, I've touched on some key aspects you should know on a high level.

Simply Wall St -

Should You Buy Insteel Industries, Inc. (NASDAQ:IIIN) For Its Dividend?

Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful. … In this case, Insteel Industries likely looks attractive to investors, given its 5.1% dividend yield and a payment history of over ten years. … There are a few simple ways to reduce the risks of buying Insteel Industries for its dividend, and we'll go through these below.

Simply Wall St -

Those Who Purchased Insteel Industries (NASDAQ:IIIN) Shares Three Years Ago Have A 27% Loss To Show For It

(NASDAQ:IIIN) shareholders, since the share price is down 27% in the last three years, falling well short of the market return of around 50%. … And over the last year the share price fell 24%, so we doubt many shareholders are delighted. … Although the share price is down over three years, Insteel Industries actually managed to grow EPS by 8.7% per year in that time.

Simply Wall St -

What Kind Of Shareholder Appears On The Insteel Industries, Inc.'s (NASDAQ:IIIN) Shareholder Register?

Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … Companies that used to be publicly owned tend to have lower insider ownership. … With a market capitalization of US$377m, Insteel Industries is a small cap stock, so it might not be well known by many institutional investors.

Simply Wall St -

How Much Did Insteel Industries, Inc.'s (NASDAQ:IIIN) CEO Pocket Last Year?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Howard Woltz's Compensation Compare With Similar Sized Companies. … is worth US$384m, and total annual CEO compensation is US$2.3m.

Simply Wall St -

Company Info

Description

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 that 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.

Details
Name: Insteel Industries, Inc.
IIIN
Exchange: NasdaqGS
Founded: 1953
$359,427,502
19,251,607
Website: http://www.insteel.com
Address: Insteel Industries, Inc.
1373 Boggs Drive,
Mount Airy,
North Carolina, 27030,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS IIIN Common Stock Nasdaq Global Select US USD 25. Apr 1985
DB HZ8 Common Stock Deutsche Boerse AG DE EUR 25. Apr 1985
Number of employees
Current staff
Staff numbers
810
Insteel Industries employees.
Industry
Building Products
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/17 23:41
End of day share price update: 2019/08/16 00:00
Last estimates confirmation: 2019/07/19
Last earnings filing: 2019/07/18
Last earnings reported: 2019/06/29
Last annual earnings reported: 2018/09/29


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.