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

• Market Cap: $12.06M
• Dividend Yield: N/A
• Average Volume (3M): 31.78K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.81
• Revenue Growth: -4.37%
• EPS Growth: N/A
• Country: US
• Employees: 89
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): -0.13
• Shares Outstanding: 5,177,084
• 10 Day Avg. Volume: 40,384
• 30 Day Avg. Volume: 31,776
• PEG Ratio: 0.05
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.49
• P/FCF Ratio: -7.38
• Enterprise Value/Market Cap: 1.54
• Enterprise Value/Revenue: 0.81
• Enterprise Value/Gross Profit: 3.00
• Enterprise Value/Ebitda: 7.62
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $2.00 ▼(-14.89% Downside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is held back primarily by weak and volatile cash flow (including negative 2025 operating/free cash flow) and bearish technical momentum (below key moving averages, negative MACD). These are partially offset by an improved balance sheet with lower leverage, a relatively modest P/E valuation, and a positive corporate initiative aimed at reducing operating costs.

Positive Factors

Improved balance sheet / lower leverage

Lower leverage materially strengthens financial flexibility and reduces refinancing and interest-rate risk. A leaner capital structure supports funding for operations, targeted capex, and weathering cyclical agricultural demand, making the company more durable over the coming months.

Diversified manufacturing footprint

Product and end-market diversification across agricultural and industrial equipment reduces single-market dependency. Recurring parts, service revenue and dealer partnerships support steadier cash inflows and customer retention, improving resilience versus pure-play cyclical peers.

Solar project to cut recurring energy costs

A long-life solar asset and tax credits structurally lower operating costs and reduce exposure to utility inflation. Over time this improves gross margins and predictable operating cash flow, aiding free cash flow recovery and reducing operating cost volatility.

Negative Factors

Weak cash generation

Persistent negative operating and free cash flow constrains the company's ability to fund capex, inventory and working capital from internal resources. Reliance on external financing raises execution risk and limits capacity to invest in product development or dealer support over the medium term.

Declining revenue and thin operating margins

Choppy top-line trends and very narrow EBIT margins leave profitability highly sensitive to volume or cost swings common in agricultural cycles. This structural sensitivity makes earnings and cash flows vulnerable and reduces the firm's ability to build consistent reserves.

Modest and volatile returns on capital

Low and inconsistent ROE signals limited capital efficiency and unpredictable earnings conversion. For a small industrial manufacturer, this undermines long-term shareholder value creation and limits the company’s ability to self-fund growth initiatives sustainably.

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 generates revenue primarily through the sale of its agricultural and industrial equipment. The company operates several revenue streams including direct sales of machinery, parts, and accessories, as well as service and maintenance contracts. A significant portion of its income is derived from the agricultural sector, particularly from farmers seeking advanced machinery to improve their operational efficiency. Additionally, Art's-Way benefits from strategic partnerships with agricultural distributors and dealers, which expand its market reach and enhance sales opportunities. The company's focus on quality and customer service also contributes to repeat business and brand loyalty, further bolstering its revenue.

Art's-Way Manufacturing Co Financial Statement Overview

Summary

Earnings have improved versus earlier years and leverage is meaningfully lower, but recent revenue is declining and cash generation is a major concern with negative operating and free cash flow in 2025 and an inconsistent multi-year pattern.

Income Statement

Profitability has improved materially from the 2020 loss to positive net income in each of the last five annual periods, with 2025 net margin rising to ~4.5% versus ~1.3% in 2024. However, the top line has been choppy and recently weak: revenue declined in 2024 and again in 2025 (down ~4.6% in 2025), and operating profitability remains thin in 2025 (EBIT margin ~1.3%), leaving results sensitive to volume and cost swings.

Balance Sheet

Leverage has improved meaningfully, with debt-to-equity down to ~0.31 in 2025 from ~0.70 in 2023, indicating a stronger capital structure and greater financial flexibility. Equity has also grown over time, supporting the asset base. The main drawback is that returns are modest (ROE ~7.8% in 2025) and have been volatile historically, reflecting uneven earnings power.

Cash Flow

Cash generation is the key weakness: operating cash flow turned negative in 2025 (about -$0.9M) and free cash flow was also negative (about -$1.5M), reversing the strong positive cash flow seen in 2024. The multi-year pattern is inconsistent (several years of negative operating and free cash flow), which raises execution and working-capital risk and limits internally funded growth despite reported profitability.

Breakdown	Nov 2025	Nov 2024	Nov 2023	Nov 2022	Nov 2021
Income Statement
Total Revenue	22.98M	24.50M	30.28M	25.65M	24.97M
Gross Profit	5.92M	7.31M	8.58M	6.94M	6.60M
EBITDA	1.08M	460.70K	2.48M	1.51M	1.19M
Net Income	1.03M	307.38K	266.97K	97.80K	212.63K
Balance Sheet
Total Assets	22.48M	21.24M	24.40M	23.95M	20.85M
Cash, Cash Equivalents and Short-Term Investments	4.85K	1.86K	4.01K	5.05K	2.66K
Total Debt	6.41M	4.78M	8.15M	7.40M	7.04M
Total Liabilities	9.17M	9.15M	12.76M	12.80M	10.50M
Stockholders Equity	13.31M	12.09M	11.64M	11.15M	10.35M
Cash Flow
Free Cash Flow	-1.53M	1.90M	-896.98K	-717.76K	-1.61M
Operating Cash Flow	-904.14K	2.63M	-55.19K	951.72K	-985.85K
Investing Cash Flow	-580.48K	961.07K	-453.51K	-1.34M	-599.48K
Financing Cash Flow	1.49M	-3.59M	507.67K	394.52K	1.59M

Art's-Way Manufacturing Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARTW, the sentiment is Negative. The current price of 2.35 is below the 20-day moving average (MA) of 2.40, below the 50-day MA of 2.38, and below the 200-day MA of 2.53, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 45.81 is Neutral, neither overbought nor oversold. The STOCH value of 41.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
GENC	73 Outperform	$236.72M	15.49	7.68%	―	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
XOS	55 Neutral	$24.26M	-0.50	-84.37%	―	-16.89%	35.45%
ARTW	51 Neutral	$12.06M	11.46	15.99%	―	-4.37%	―
HYFM	44 Neutral	$6.44M	-0.10	-30.93%	―	-26.84%	-0.16%
RYM	42 Neutral	$37.20M	-0.96	-378.51%	―	-15.48%	-155.83%
UGRO	40 Underperform	$1.88M	-0.06	―	―	―	―

Art's-Way Manufacturing Co Corporate Events

Art’s-Way Manufacturing Signs Solar System Purchase Agreement

On December 19, 2025, Art’s-Way Manufacturing Co., Inc. entered into a $1.4 million Solar System Purchase Agreement with Midwest Solar Installers for the sale and installation of a solar energy system at its principal executive offices, structured with staged payments and secured by a security interest in the equipment. The company estimates the system, expected to have a 30‑year useful life, will eliminate 100% of its approximately $155,000 in annual electricity costs assuming excess power can be fed back to the grid, and it expects to benefit from a 30% Investment Tax Credit and potentially from a U.S. Department of Agriculture Rural Energy for America Program grant and loan guarantee, while the contract includes mutual indemnification, termination rights tied to price increases and infrastructure changes, and customary liability limitations that collectively shape the project’s financial and operational risk profile for the company and its stakeholders.

The most recent analyst rating on (ARTW) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Art’s-Way Manufacturing Co stock, see the ARTW Stock Forecast page.