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 buy?

Overall Portfolio exposure to Insteel Industries, Inc. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Insteel Industries, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Insteel Industries, Inc.

19.77%

0.22

40.07%

S&P 500

13.68%

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

94.37%

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

1.72

EV to EBIT

9.74

EV to EBITDA

7.51

EV to Capital Employed

1.75

EV to Sales

0.89

PEG Ratio

0.09

Dividend Yield

3.50%

ROCE (Latest)

18.00%

ROE (Latest)

13.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly Bullish

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

15What is working for the Company

NET PROFIT(HY)

At USD 22.26 MM has Grown at 241.85%

NET SALES(HY)

At USD 337.37 MM has Grown at 27.78%

ROCE(HY)

Highest at 13.77%

RAW MATERIAL COST(Y)

Fallen by -62.05% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 11.7 times

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 7.47 MM

PRE-TAX PROFIT(Q)

At USD 9.67 MM has Fallen at -31.47%

CASH AND EQV(HY)

Lowest at USD 54.22 MM

DEBT-EQUITY RATIO (HY)

Highest at -3.35 %

NET PROFIT(Q)

At USD 7.63 MM has Fallen at -29.01%

Here's what is working for Insteel Industries, Inc.

Net Sales

At USD 337.37 MM has Grown at 27.78%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Debtors Turnover Ratio

Highest at 11.7 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -62.05% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

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

Operating Cash Flow

Lowest at USD 7.47 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)

Pre-Tax Profit

At USD 9.67 MM has Fallen at -31.47%

over average net sales of the previous four periods of USD 14.11 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 7.63 MM has Fallen at -29.01%

over average net sales of the previous four periods of USD 10.75 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Cash and Eqv

Lowest at USD 54.22 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -3.35 %

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