Insteel Industries Inc.
Find Ratings ReportsINSTEEL INDUSTRIES's gross profit margin for the first quarter of its fiscal year 2024 has significantly decreased when compared to the same period a year ago. Sales and net income fell significantly, underperforming compared to the average company in its subsector. INSTEEL INDUSTRIES is extremely liquid. Currently, the Quick Ratio is 3.94 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has decreased by 7.50% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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Income Statement | Q1 FY24 | Q1 FY23 |
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Net Sales ($mil) | 121.73 | 166.9 |
EBITDA ($mil) | 3.61 | 14.01 |
EBIT ($mil) | -0.1 | 10.66 |
Net Income ($mil) | 1.13 | 11.12 |
Balance Sheet | Q1 FY24 | Q1 FY23 |
---|---|---|
Cash & Equiv. ($mil) | 85.62 | 42.64 |
Total Assets ($mil) | 390.57 | 423.76 |
Total Debt ($mil) | 2.15 | 1.43 |
Equity ($mil) | 333.6 | 360.67 |
Profitability | Q1 FY24 | Q1 FY23 |
---|---|---|
Gross Profit Margin | 8.2 | 12.66 |
EBITDA Margin | 2.96 | 8.39 |
Operating Margin | -0.08 | 6.39 |
Sales Turnover | 1.55 | 1.92 |
Return on Assets | 5.74 | 26.66 |
Return on Equity | 6.72 | 31.33 |
Debt | Q1 FY24 | Q1 FY23 |
---|---|---|
Current Ratio | 6.93 | 6.42 |
Debt/Capital | 0.01 | 0.0 |
Interest Expense | 0.03 | 0.02 |
Interest Coverage | -3.34 | 444.17 |
Share Data | Q1 FY24 | Q1 FY23 |
---|---|---|
Shares outstanding (mil) | 19.45 | 19.45 |
Div / share | 2.53 | 2.03 |
EPS | 0.06 | 0.57 |
Book value / share | 17.15 | 18.54 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 105173.0 | 106977.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 43.07 for the Fabricated Metal Product Manufacturing subsector and a value on par with the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 1.98 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 5.58. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, INSTEEL INDUSTRIES proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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IIIN 29.50 | Peers 43.07 | IIIN 5.04 | Peers 25.53 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. IIIN is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. IIIN is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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IIIN 9.96 | Peers 21.13 | IIIN NM | Peers 2.46 | |||||||||||||||||||||
Average. An average price-to-projected earnings ratio can signify an subsector neutral stock price and average future growth expectations. IIIN is trading at a valuation on par with its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. IIIN's negative PEG ratio makes this valuation measure meaningless. |
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Price/Book |
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Earnings Growth |
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IIIN 1.98 | Peers 5.58 | IIIN -80.04 | Peers 31.55 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. IIIN is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, IIIN is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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IIIN 1.09 | Peers 3.60 | IIIN -25.92 | Peers 9.90 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. IIIN is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. IIIN significantly trails its peers on the basis of sales growth. |
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