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

• Market Cap: $11.34M
• Dividend Yield: N/A
• Average Volume (3M): 31.78K
• Price to Earnings (P/E): 6.1
• Beta (1Y): 0.73
• Revenue Growth: -4.37%
• EPS Growth: N/A
• Country: US
• Employees: 89
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 0.05
• Shares Outstanding: 5,106,834
• 10 Day Avg. Volume: 40,384
• 30 Day Avg. Volume: 31,776
• PEG Ratio: 2.02
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 4.52
• Enterprise Value/Market Cap: 1.89
• Enterprise Value/Revenue: 0.89
• Enterprise Value/Gross Profit: 2.84
• Enterprise Value/Ebitda: 6.01
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: $2.50 ▲(14.16% Upside)

Art's-Way Manufacturing Co's stock score is primarily driven by its strong valuation, indicating it may be undervalued. However, the technical analysis suggests bearish momentum, which could pose short-term risks. The financial performance is solid, but liquidity concerns due to declining free cash flow need attention. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Improved Profitability

Improved profitability indicates effective cost management and operational efficiency, which can enhance long-term financial stability and shareholder value.

Stronger Balance Sheet

A stronger balance sheet with reduced leverage enhances financial flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Operational Progress

Operational progress and improved profitability reflect the company's ability to adapt and thrive despite challenging market conditions, indicating resilience and potential for future growth.

Negative Factors

Decline in Free Cash Flow

A significant decline in free cash flow can strain liquidity, limiting the company's ability to invest in growth initiatives and meet financial obligations, potentially impacting long-term sustainability.

Decreased Demand

Prolonged decreased demand due to challenging market conditions can hinder revenue growth and profitability, affecting the company's competitive position and long-term prospects.

Rising Input Costs

Rising input costs, such as steel prices, can compress margins and reduce profitability, challenging the company's ability to maintain competitive pricing and financial performance.

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

Art's-Way Manufacturing Co demonstrates a solid financial performance with improved profitability and a stronger balance sheet. The income statement reflects positive growth and profitability trends, while the balance sheet shows reduced leverage and strong equity utilization. However, the significant decline in free cash flow highlights potential liquidity challenges that need to be addressed to sustain long-term growth.

Income Statement

Art's-Way Manufacturing Co has shown a positive revenue growth rate of 2.37% in the TTM, indicating a recovery from previous declines. The gross profit margin is healthy at 24.03%, and the net profit margin has improved significantly to 10.43%, reflecting enhanced profitability. However, the EBIT and EBITDA margins, while improved, suggest room for further operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.28, indicating a stronger balance sheet with reduced leverage. Return on equity is robust at 20.48%, showcasing effective utilization of equity. The equity ratio stands at 63.77%, reflecting a solid equity base. Overall, the balance sheet shows stability and reduced financial risk.

Cash Flow

The free cash flow has decreased significantly by 74.13% in the TTM, posing a concern for liquidity. The operating cash flow to net income ratio is 0.56, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is strong at 84.42%, suggesting effective conversion of profits into cash, despite the decline in free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.08M	24.50M	30.28M	25.65M	24.97M	22.41M
Gross Profit	7.55M	7.31M	8.58M	6.94M	6.60M	2.40M
EBITDA	3.57M	460.70K	2.48M	1.51M	1.19M	-1.84M
Net Income	2.51M	307.38K	266.97K	97.80K	212.63K	-2.10M
Balance Sheet
Total Assets	21.82M	21.24M	24.40M	23.95M	20.85M	18.80M
Cash, Cash Equivalents and Short-Term Investments	5.96K	1.86K	4.01K	5.05K	2.66K	2.68K
Total Debt	5.36M	4.78M	8.15M	7.40M	7.04M	5.19M
Total Liabilities	7.90M	9.15M	12.76M	12.80M	10.50M	8.90M
Stockholders Equity	13.91M	12.09M	11.64M	11.15M	10.35M	9.91M
Cash Flow
Free Cash Flow	596.64K	1.90M	-896.98K	-717.76K	-1.61M	-1.55M
Operating Cash Flow	1.18M	2.63M	-55.19K	951.72K	-985.85K	-856.31K
Investing Cash Flow	1.11M	961.07K	-453.51K	-1.34M	-599.48K	-501.65K
Financing Cash Flow	-2.29M	-3.59M	507.67K	394.52K	1.59M	1.36M

Art's-Way Manufacturing Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 2.19 is below the 20-day moving average (MA) of 2.32, below the 50-day MA of 2.41, and below the 200-day MA of 2.36, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 42.78 is Neutral, neither overbought nor oversold. The STOCH value of 9.91 is Positive, 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
ARTW	65 Neutral	$11.34M	6.10	15.99%	―	-4.37%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
XOS	49 Neutral	$23.46M	-0.49	-84.37%	―	-16.89%	35.45%
HYFM	44 Neutral	$8.40M	-0.12	-30.93%	―	-26.84%	-0.16%
RYM	39 Underperform	$61.36M	-1.44	-378.51%	―	-15.48%	-155.83%
UGRO	38 Underperform	$4.57M	-0.22	―	―	―	―