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

• Market Cap: $9.77M
• Dividend Yield: N/A
• Average Volume (3M): 17.78K
• Price to Earnings (P/E): 298.5
• Beta (1Y): 0.55
• Revenue Growth: -19.47%
• EPS Growth: N/A
• Country: US
• Employees: 89
• Sector: Industrials
• Sector Strength: 87
• Industry: Agricultural - Machinery
• EPS (TTM): <0.01
• Shares Outstanding: 5,088,084
• 10 Day Avg. Volume: 21,501
• 30 Day Avg. Volume: 17,782
• PEG Ratio: -1.67
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -11.48
• Enterprise Value/Market Cap: 1.72
• Enterprise Value/Revenue: 0.17
• Enterprise Value/Gross Profit: 2.33
• Enterprise Value/Ebitda: 3.44
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: $2.00 ▲(5.26%Upside)

Art's-Way Manufacturing's overall stock score is moderately positive, driven by a strong financial base and positive technical indicators. However, the extremely high P/E ratio raises concerns about overvaluation, which significantly impacts the overall score.

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

Company Description

Art's-Way Manufacturing Co. (ARTW) is a diversified, international company primarily engaged in the manufacturing of agricultural machinery. The company operates in various sectors including agricultural products, modular buildings, and tools. Art's-Way's core products encompass a range of farm equipment such as grinder mixers, hay and forage equipment, portable grain augers, and land management tools. The company aims to provide innovative and reliable solutions to enhance the productivity and efficiency of farming operations.

How the Company Makes Money

Art's-Way Manufacturing Co. generates revenue through the sale of its wide array of agricultural machinery and equipment. The company's primary revenue streams stem from direct sales to farmers, agricultural retailers, and distributors. Additionally, Art's-Way benefits from its modular building segment, which provides custom-engineered solutions for various industries. The company also engages in strategic partnerships and collaborations to expand its market reach and enhance product offerings. Art's-Way's earnings are influenced by factors such as agricultural commodity prices, farming industry trends, and technological advancements in machinery.

Art's-Way Manufacturing Co Financial Statement Overview

Summary

Art's-Way Manufacturing Co shows a stable financial position with a solid balance sheet and positive cash flow trends. The balance sheet is strong with a conservative debt-to-equity ratio, and the company demonstrates robust cash-generating capabilities. However, revenue growth has been sluggish, and net income remains modest.

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
4.97M	4.78M	8.15M	7.72M	6.99M	5.19M
	Net Debt
4.97M	4.78M	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: Positive
• Last Price: 1.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 1.9 is above the 20-day moving average (MA) of 1.83, above the 50-day MA of 1.71, and above the 200-day MA of 1.73, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 61.50 is Neutral, neither overbought nor oversold. The STOCH value of 74.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
SHYF	66 Neutral	$431.67M	955.81	0.18%	1.64%	-4.08%	―
Sector *	66 Neutral	$4.51B	12.22	5.40%	3.63%	4.14%	-12.01%
ARTW	62 Neutral	$9.77M	298.46	2.35%	―	-19.47%	―
HYFM	41 Neutral	$15.91M	―	-28.07%	―	-19.18%	-12.03%
UGRO	38 Underperform	$4.63M	―	-146.60%	―	12.08%	25.82%
CEAD	37 Underperform	$6.18M	―	-33.60%	―	-59.43%	2.40%

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.