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

• Market Cap: $11.55M
• Dividend Yield: N/A
• Average Volume (3M): 27.31K
• Price to Earnings (P/E): 349.2
• Beta (1Y): 0.64
• Revenue Growth: -19.47%
• EPS Growth: N/A
• Country: US
• Employees: 89
• Sector: Industrials
• Sector Strength: 86
• Industry: Agricultural - Machinery
• EPS (TTM): <0.01
• Shares Outstanding: 5,088,084
• 10 Day Avg. Volume: 50,938
• 30 Day Avg. Volume: 27,306
• 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: 1.46
• 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: 65 Neutral
• Price Target: $2.50 ▲(10.13%Upside)

Art's-Way Manufacturing's overall stock score is driven by its stable financial foundation and strong technical momentum. However, the high P/E ratio suggests overvaluation, and declining revenue growth remains a concern. The absence of earnings call insights and corporate events leaves some uncertainty.

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 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
EBITDA	1.54M	460.70K	2.48M	1.27M	1.14M	-1.84M
Net Income	716.63K	307.38K	266.97K	97.80K	212.63K	-2.10M
Balance Sheet
Total Assets	21.00M	21.24M	24.40M	23.95M	20.85M	18.80M
Cash, Cash Equivalents and Short-Term Investments	4.13K	1.86K	4.01K	5.05K	2.66K	2.68K
Total Debt	4.97M	4.78M	8.15M	7.72M	6.99M	5.19M
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: 2.27
• 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 2.27 is above the 20-day moving average (MA) of 1.96, above the 50-day MA of 1.85, and above the 200-day MA of 1.74, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 67.29 is Neutral, neither overbought nor oversold. The STOCH value of 67.75 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
ARTW	65 Neutral	$11.55M	349.23	2.35%	―	-19.47%	―
Sector *	65 Neutral	$10.77B	15.80	5.51%	1.90%	3.03%	-26.66%
GENC		$221.48M	15.21		―	―	―
SHYF	68 Neutral	$439.02M	972.09	0.18%	1.59%	-4.08%	―
HYFM	44 Neutral	$16.85M	―	-28.07%	―	-19.18%	-12.03%
UGRO	38 Underperform	$3.98M	―	-146.60%	―	12.08%	25.82%
VAPE	37 Underperform	$8.48M	―	-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.