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

• Market Cap: $12.05M
• Dividend Yield: N/A
• Average Volume (3M): 31.78K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 0.76
• 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: 1.78
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $2.50 ▲(6.38% Upside)

The score is driven mainly by improved profitability and a strengthened balance sheet, partially offset by a sharp decline in free cash flow. Valuation is supportive due to the low P/E, while technical indicators are neutral-to-slightly weak. A positive corporate event (solar installation) provides incremental support but is secondary to cash-flow and core operating trends.

Positive Factors

Improved Profitability

Improved profitability indicates better cost management and pricing strategy, enhancing long-term financial health and competitiveness.

Strong Balance Sheet

A strong balance sheet with reduced leverage provides financial stability and flexibility to invest in growth opportunities.

Solar System Agreement

The solar system investment reduces operational costs and enhances sustainability, providing long-term cost savings and environmental benefits.

Negative Factors

Decline in Free Cash Flow

A significant decline in free cash flow may limit the company's ability to fund operations and investments, impacting long-term growth.

Revenue Growth Challenges

Negative revenue growth suggests difficulty in market expansion or competitive pressures, potentially affecting future profitability.

Moderate Cash Generation

Moderate cash generation relative to net income indicates potential liquidity issues, affecting the company's ability to reinvest in its business.

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

Company Description

Art's-Way Manufacturing Co (ARTW) is a diversified manufacturer that primarily operates within the agricultural sector, specializing in the production of equipment for farming and livestock management. The company offers a range of products including feed mixers, forage boxes, and equipment for tillage and soil preparation. In addition to its agricultural machinery, Art's-Way also provides products for industrial applications, showcasing its versatility in manufacturing. The company is committed to innovation and quality, serving farmers and agricultural enterprises to enhance productivity and efficiency.

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: Positive
• Last Price: 2.35
• 50DMA: Positive
• 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 Positive. The current price of 2.35 is above the 20-day moving average (MA) of 2.30, above the 50-day MA of 2.32, and below the 200-day MA of 2.40, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.65 is Neutral, neither overbought nor oversold. The STOCH value of 43.67 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
GENC	69 Neutral	$201.10M	12.79	7.68%	―	―	―
ARTW	66 Neutral	$12.05M	6.57	15.99%	―	-4.37%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
XOS	55 Neutral	$25.50M	-0.52	-84.37%	―	-16.89%	35.45%
HYFM	45 Neutral	$8.63M	-0.13	-30.93%	―	-26.84%	-0.16%
RYM	41 Neutral	$45.26M	-1.19	-378.51%	―	-15.48%	-155.83%
UGRO	38 Underperform	$4.09M	-0.16	―	―	―	―

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.