Insteel Industries, Inc. (IIIN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Why is Insteel Industries, Inc. ?

High Management Efficiency with a high ROE of 16.37%

Company has a low Debt to Equity ratio (avg) at times

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 16.37%

INVENTORY TURNOVER RATIO(HY) Highest at 5.06 times
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
RAW MATERIAL COST(Y) Fallen by -68.51% (YoY)

With ROE of 6.98%, it has a expensive valuation with a 2.04 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 12.80%, its profits have fallen by -1.7%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Insteel Industries, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Insteel Industries, Inc.

-17.89%

0.22

40.07%

S&P 500

20.78%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.51%

EBIT Growth (5y)

11.99%

EBIT to Interest (avg)

70.17

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.15

Sales to Capital Employed (avg)

1.69

Tax Ratio

23.34%

Dividend Payout Ratio

5.72%

Pledged Shares

Institutional Holding

97.37%

ROCE (avg)

26.41%

ROE (avg)

16.37%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.78

EV to EBIT

10.08

EV to EBITDA

7.77

EV to Capital Employed

1.81

EV to Sales

0.92

PEG Ratio

0.09

Dividend Yield

3.38%

ROCE (Latest)

18.00%

ROE (Latest)

13.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

NET PROFIT(9M)

At USD 27.48 MM has Grown at 59.1%

ROCE(HY)

Highest at 12.05%

-24What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 15.86 MM

INTEREST(HY)

At USD 0.04 MM has Grown at 38.46%

INTEREST COVERAGE RATIO(Q)

Lowest at 48,643.48

RAW MATERIAL COST(Y)

Grown by 40.08% (YoY

CASH AND EQV(HY)

Lowest at USD 30.68 MM

DEBT-EQUITY RATIO (HY)

Highest at -3.3 %

OPERATING PROFIT(Q)

Lowest at USD 11.19 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.48 %

PRE-TAX PROFIT(Q)

Lowest at USD 6.8 MM

NET PROFIT(Q)

Lowest at USD 5.22 MM

EPS(Q)

Lowest at USD 0.27

Here's what is not working for Insteel Industries, Inc.

Pre-Tax Profit

At USD 6.8 MM has Fallen at -57.28%

over average net sales of the previous four periods of USD 15.92 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 5.22 MM has Fallen at -57.28%

over average net sales of the previous four periods of USD 12.21 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 15.86 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest Coverage Ratio

Lowest at 48,643.48

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At USD 0.04 MM has Grown at 38.46%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit

Lowest at USD 11.19 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 6.48 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 6.8 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 5.22 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.27

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Cash and Eqv

Lowest at USD 30.68 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -3.3 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 40.08% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales