NasdaqCM:WSCI

Stock Analysis Report

Executive Summary

WSI Industries, Inc. engages in the precision contract metal machining business in the United States.

Snowflake

Fundamentals

Adequate balance sheet average dividend payer.

Risks

  • WSI Industries has significant price volatility in the past 3 months.
  • WSI Industries is not covered by any analysts.

Share Price & News

How has WSI Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.1%

NasdaqCM:WSCI

-0.3%

US Machinery

0.2%

US Market


1 Year Return

122.6%

NasdaqCM:WSCI

-8.0%

US Machinery

-0.7%

US Market

WSCI outperformed the Machinery industry which returned -2.9% over the past year.

WSCI outperformed the Market in United States of America which returned 11.1% over the past year.


Share holder returns

WSCIIndustryMarket
7 Day0.1%-0.3%0.2%
30 Day0.1%-7.9%-2.7%
90 Day28.5%-2.4%1.6%
1 Year127.6%122.6%-6.1%-8.0%1.6%-0.7%
3 Year66.2%61.1%35.5%26.7%40.0%30.9%
5 Year28.7%18.5%36.8%19.8%53.8%36.8%

Price Volatility Vs. Market

How volatile is WSI Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

24.43x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

WSI Industries's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

WSI Industries's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

WSI Industries is overvalued based on earnings compared to the US Machinery industry average.

WSI Industries is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for WSI Industries, we can't assess if its growth is good value.


Price Based on Value of Assets

WSI Industries is good value based on assets compared to the US Machinery industry average.


Next Steps

Future Growth

How is WSI Industries expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

22.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if WSI Industries is high growth as no revenue estimate data is available.

WSI Industries's earnings are expected to grow significantly at over 20% yearly.

Unable to compare WSI Industries's revenue growth to the United States of America market average as no estimate data is available.

WSI Industries's earnings growth is expected to exceed the United States of America market average.

WSI Industries's earnings growth is expected to exceed the low risk savings rate of 3%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if WSI Industries will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has WSI Industries performed over the past 5 years?

-29.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

WSI Industries's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

WSI Industries has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

WSI Industries has become profitable in the last year making it difficult to compare the US Machinery industry average.


Return on Equity

WSI Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

WSI Industries used its assets less efficiently than the US Machinery industry average last year based on Return on Assets.


Return on Capital Employed

WSI Industries's use of capital has not improved over the past 3 years (Return on Capital Employed).


Next Steps

Financial Health

How is WSI Industries's financial position?


Financial Position Analysis

WSI Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

WSI Industries's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

WSI Industries's level of debt (41.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (99.5% vs 41.3% today).

Debt is not well covered by operating cash flow (17.4%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.2x debt.


Next Steps

Dividend

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

2.29%

Current Dividend Yield


Dividend Yield and Payments Analysis

WSI Industries's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.35%).

WSI Industries's dividend is below the markets top 25% of dividend payers in United States of America (3.51%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.6x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

6.0yrs

Average management tenure


CEO

Michael Pudil (70yo)

1.5yrs

Tenure

US$286,533

Compensation

Mr. Michael J. Pudil has been the Chief Executive Officer and President of WSI Industries Inc. since May 19, 2017. Mr. Pudil served as the Chief Executive Officer of WSI Industries Inc. from 1993 to Januar ...


CEO Compensation Analysis

Michael's remuneration is about average for companies of similar size in United States of America.

Michael's compensation has increased in line with WSI Industries recently becoming profitable.


Management Age and Tenure

6.0yrs

Average Tenure

The average tenure for the WSI Industries management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

7.8yrs

Average Tenure

67yo

Average Age

The tenure for the WSI Industries board of directors is about average.


Insider Trading

No 3 month insider trading information.


Ownership Breakdown


Management Team

  • Michael Pudil (70yo)

    Chairman

    • Tenure: 1.5yrs
    • Compensation: US$286.53k
  • Paul Sheely (59yo)

    CFO, VP of Finance

    • Tenure: 20.2yrs
    • Compensation: US$168.92k
  • Shad Nelson

    Vice President

    • Tenure: 10.4yrs
  • Rob Simkovic

    Director of Business Development

    • Tenure: 1.3yrs

Board Members

  • Michael Pudil (70yo)

    Chairman

    • Tenure: 1.5yrs
    • Compensation: US$286.53k
  • Jim Hartman (72yo)

    Independent Director

    • Tenure: 8.1yrs
    • Compensation: US$16.78k
  • Chip Myers (64yo)

    Lead Director

    • Tenure: 7.8yrs
    • Compensation: US$16.78k
  • Jack Veach (59yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$16.78k

Company Information

WSI Industries, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: WSI Industries, Inc.
  • Ticker: WSCI
  • Exchange: NasdaqCM
  • Founded: 1950
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$20.769m
  • Shares outstanding: 2.97m
  • Website: https://www.wsiindustries.com

Number of Employees


Location

  • WSI Industries, Inc.
  • 213 Chelsea Road
  • Monticello
  • Minnesota
  • 55362
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WSCINasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJan 1980

Biography

WSI Industries, Inc. engages in the precision contract metal machining business in the United States. It manufactures metal components in medium to high volumes in accordance with customer specifications.  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2018/11/08 21:15
End of Day Share Price2018/11/07 00:00
Earnings2018/08/26
Annual Earnings2018/08/26


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.