Insteel Industries Inc

Industrials
Steel/Iron Ore
www.insteel.com

Earnings Score
Moat Score

Market Cap $573.83M
PE 30
Debt $NaN
Cash $111.54M
EV $NaN
FCF $39.06M

Earnings

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Sales & Net Margins

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Earnings	$19.31M
EBIT	$25.29M
ROE	6%
ROA	6%
FCF	$39.06M
Equity	$350.86M
Growth Stability	17%
PE	29.72
PEG	0.91
PB	1.64
P/FCF	14.69
P/S	1.08
Price/Cash	0.19
Net Margins	4%
Gross Margins	9%
Op. Margins	5%
Earnings CAGR	7%
Sales Growth YoY	-15%
Sales Growth QoQ	-8%
Sales CAGR	7%
FCF CAGR	3%
Equity CAGR	8%
Earnings Stability	0.05
Earnings Growth YoY	-17%
Earnings Growth QoQ	-29%

Earnings CAGR 5Y	33%
Sales CAGR 5Y	7%
FCF CAGR 5Y	-3%
Equity CAGR 5Y	10%
Earnings CAGR 3Y	-12%
Sales CAGR 3Y	-12%
FCF CAGR 3Y	72%
Equity CAGR 3Y	2%
Market Cap	$573.83M
Revenue	$529.20M
Dividend Yield	9%
Payout Ratio	264%
Assets	$422.55M
Cash	$111.54M
Shares Outstanding	19.45M
Earnings Score	7%
Moat Score	71%
Working Capital	220.26M
Current Ratio	5.68
Gross Profit	$49.63M
Shares Growth 3y	0%
Equity Growth QoQ	1%
Equity Growth YoY	-8%

Assets & ROA

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Stockholders Equity & ROE

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Insteel Industries Inc manufactures steel wire reinforcing products for concrete construction applications. It manufactures and markets PC strand and welded wire reinforcement, including ESM, concrete pipe reinforcement, and standard welded wire reinforcement. The company's products are sold primarily to manufacturers of concrete products that are used in nonresidential construction. Its concrete reinforcing products consist of two product lines: PC strand and WWR. Insteel generates its geographical revenue from the United States.

SEC Filings

Direct access to Insteel Industries Inc (IIIN) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Sep 28
- 10-Q Jun 29
- 10-Q Mar 30
2023
- 10-Q Dec 30
- 10-K Sep 30
- 10-Q Jul 01
- 10-Q Apr 01
2022
- 10-Q Dec 31
- 10-K Oct 01
- 10-Q Jul 02
- 10-Q Apr 02
- 10-Q Jan 01

Sector Comparison

How does Insteel Industries Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Insteel Industries Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 7%

Stability 5%

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Insteel Industries Inc Discounted Cash Flow

Fully customizable DCF calculator online for Insteel Industries Inc.

Years

Calculation mode

= $480M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$39M	$40M	$41M	$43M	$44M	$45M	$47M	$48M	$50M	$51M	$53M	$526M
DCF		$37M	$34M	$32M	$30M	$28M	$26M	$25M	$23M	$22M	$20M	$203M
Value	$480M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	10/2015	09/2016	09/2017	09/2018	09/2019	10/2020	10/2021	09/2022	09/2023	09/2024	TTM
Net Margins	5%	9%	6%	8%	1%	4%	11%	15%	5%	4%	4%
ROA	-	19%	12%	13%	3%	7%	22%	34%	9%	6%	6%
ROE	-	17%	10%	15%	2%	7%	22%	32%	8%	6%	6%

Bad Net Margins (3.65%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	10/2015	09/2016	09/2017	09/2018	09/2019	10/2020	10/2021	09/2022	09/2023	09/2024	TTM
Debt over FCF	-	-	-	-	-	-	-	-	-	-	-
Debt over Equity	-	-	-	-	-	-	-	-	-	-	-
Growth Stability	-	-	-	100%	17%	89%	100%	100%	46%	26%	17%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Bad Graham’s Stability (17%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	10/2015	09/2016	09/2017	09/2018	09/2019	10/2020	10/2021	09/2022	09/2023	09/2024	CAGR 5Y
Revenue YoY growth	-	-6%	-7%	17%	1%	4%	25%	40%	-21%	-18%	7%
Earnings YoY growth	-	72%	-39%	61%	-85%	240%	250%	88%	-74%	-40%	33%
Equity YoY growth	-	12%	-1%	8%	2%	8%	14%	29%	-2%	-8%	10%
FCF YoY growth	-	45%	-101%	-13K%	-111%	-1K%	7%	-120%	-1K%	-65%	-3%