Art's-Way Manufacturing Co (ARTW) AI Stock Analysis

• Market Cap: $8.29M
• Dividend Yield: N/A
• Average Volume (3M): 19.90K
• Price to Earnings (P/E): 246.9
• Beta (1Y): 0.62
• Revenue Growth: -19.47%
• EPS Growth: N/A
• Country: US
• Employees: 89
• Sector: Industrials
• Sector Strength: 70
• Industry: Agricultural - Machinery
• EPS (TTM): <0.01
• Shares Outstanding: 5,088,084
• 10 Day Avg. Volume: 35,063
• 30 Day Avg. Volume: 19,904
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.35
• Price to Cash Flow (P/CF): 1.80
• P/FCF Ratio: 1.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Art's-Way Manufacturing Co has a stable financial position with a strong balance sheet and healthy cash flow. However, the company faces challenges with revenue growth and modest net income. The technical analysis indicates a bearish trend, and the high P/E ratio suggests the stock is overvalued. These factors combined lead to a moderate overall stock score, reflecting both the strengths and challenges facing the company.

Art's-Way Manufacturing Co Business Overview & Revenue Model

Company Description

Art's-Way Manufacturing Co., Inc. manufactures and sells agricultural equipment, specialized modular science buildings, and steel cutting tools in the United States and internationally. The company operates through three segments: Agricultural Products, Modular Buildings, and Tools. The Agricultural Products segment offers various specialized farm machinery, including portable and stationary animal feed processing equipment and related attachments; hay and forage equipment, such as forage boxes, bale processors, running gears, and dump boxes; manure spreaders; sugar beet harvesting equipment; dirt work equipment; and after-market service parts. The Modular Buildings segment produces, sells, and leases swine buildings, complex containment research laboratories, and research facilities for academic research institutions, government research and diagnostic centers, public health institutions, and private research and pharmaceutical companies. This segment also designs, manufactures, delivers, installs, and rents building units. The Tools segment offers standard single point brazed carbide tipped tools, polycrystalline diamond and cubic boron nitride inserts and tools, and original equipment manufacturer (OEM) specialty tools to the automotive, aerospace, oil and gas piping, and appliances industries. The company markets and sells its products through independent farm equipment dealers, manufacturers' representatives, direct sales, and OEM sales channels. Art's-Way Manufacturing Co., Inc. was founded in 1956 and is based in Armstrong, Iowa.

How the Company Makes Money

Art's-Way Manufacturing Co. generates revenue through the sale of its agricultural machinery and equipment. The company's primary revenue stream comes from its agricultural products segment, where it designs, manufactures, and markets a range of farming equipment. Revenue is also derived from its modular buildings segment, which offers custom-built modular units for various industries, including agricultural, medical, and government sectors. Additionally, the tools segment contributes to revenue through the sale of precision steel fabrication services. Art's-Way's earnings are supported by its established distribution network and strategic partnerships with dealers and distributors, enabling the company to reach a wide customer base across domestic and international markets.

Art's-Way Manufacturing Co Financial Statement Overview

Summary

Art's-Way Manufacturing Co shows a stable financial position with a strong balance sheet and positive cash flow trends. While the company maintains healthy profitability margins, revenue growth has been sluggish, and net income remains modest. The financials depict a cautious approach to debt, with a solid equity base.

Income Statement

Art's-Way Manufacturing has shown a mixed performance on the income statement. The gross profit margin is healthy at 30.2% for the TTM period, which indicates effective cost control relative to revenue. However, the net profit margin is modest at 3.0%, suggesting limited profitability after accounting for all expenses. Revenue has declined by 2.4% from the previous annual report, indicating a potential challenge in maintaining sales momentum. EBIT and EBITDA margins are positive, showing operational profitability, albeit not very strong.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio is 0.25, indicating a conservative use of debt financing relative to equity. The return on equity (ROE) stands at 5.9% for the TTM, showing a reasonable return on shareholders' investments. The equity ratio is strong at 57.5%, suggesting a solid equity base relative to total assets. Overall, the company maintains a healthy balance between debt and equity, with a good equity cushion.

Cash Flow

Cash flow analysis reveals a positive outlook with strong operating cash flow relative to net income, showing a robust cash-generating capability from core operations. The free cash flow growth rate is 10.3% from the previous annual report, indicating improving liquidity and cash availability for investments or debt reduction. However, cash reserves remain low, which could pose potential liquidity risks if not managed carefully.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
23.92M	24.50M	30.28M	28.40M	24.97M	22.41M
	Gross Profit
7.23M	7.31M	8.58M	7.31M	6.60M	2.40M
	EBIT
843.26K	460.70K	1.53M	570.87K	523.41K	-3.91M
	EBITDA
1.54M	460.70K	2.48M	1.27M	1.14M	-1.84M
	Net Income Common Stockholders
716.63K	307.38K	266.97K	97.80K	212.63K	-2.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.13K	1.86K	4.01K	5.05K	2.66K	2.68K
	Total Assets
21.00M	21.24M	24.40M	23.95M	20.85M	18.80M
	Total Debt
3.02M	2.81M	8.15M	7.72M	6.99M	5.19M
	Net Debt
3.02M	2.81M	8.14M	7.72M	6.98M	5.18M
	Total Liabilities
8.92M	9.15M	12.76M	12.80M	10.50M	8.90M
	Stockholders Equity
12.08M	12.09M	11.64M	11.15M	10.35M	9.91M
Cash Flow		Free Cash Flow
2.10M	1.90M	-896.98K	-795.63K	-1.61M	-1.55M
	Operating Cash Flow
2.62M	2.63M	-55.19K	951.72K	-985.85K	-856.31K
	Investing Cash Flow
1.16M	961.07K	-453.51K	-1.34M	-599.48K	-501.65K
	Financing Cash Flow
-3.78M	-3.59M	507.67K	394.52K	1.59M	1.36M

Art's-Way Manufacturing Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARTW, the sentiment is Neutral. The current price of 1.6 is above the 20-day moving average (MA) of 1.59, below the 50-day MA of 1.65, and below the 200-day MA of 1.69, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 50.83 is Neutral, neither overbought nor oversold. The STOCH value of 76.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ARTW.

Art's-Way Manufacturing Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DE	74 Outperform	$126.93B	20.73	27.91%	1.34%	-20.93%	-34.33%
LNN	74 Outperform	$1.38B	18.14	15.38%	1.11%	0.46%	12.22%
Sector *	63 Neutral	$4.29B	11.05	5.73%	232.30%	4.75%	-5.69%
ARTW	54 Neutral	$8.29M	246.92	2.35%	―	-19.47%	―
AGCO	52 Neutral	$6.29B	46.40	-10.11%	1.38%	-19.08%	-136.41%
TITN	47 Neutral	$372.52M	11.08	-5.81%	―	-2.04%	-133.17%

Art's-Way Manufacturing Co Corporate Events

Art’s-Way Manufacturing Appoints McConnell as New CEO

Art’s-Way Manufacturing Co., Inc. has amicably parted ways with CEO David A. King, with Marc H. McConnell stepping into the role as of October 4, 2024. McConnell, with extensive experience in the industry and leadership roles, also serves as Chairman of the Board and has been a director since 2001. The company, which has faced a challenging market, is implementing cost-cutting measures and aiming for new dealer acquisitions to bolster sales, while also reporting a modest increase in its Modular Buildings segment. This leadership transition comes as Art’s-Way looks to navigate a period of market instability and position itself for future growth.