Insteel Industries (IIIN)
NYSE:IIIN
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Insteel Industries
(NYSE:IIIN)
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Rating:63Neutral
Price Target:
$29.00
▼(-8.40% Downside)
Action:Downgraded
Date:05/13/26
Score is driven primarily by strong financial resilience (minimal debt, solid profitability) tempered by weak recent cash conversion and cyclical earnings quality. Technicals are a notable headwind with price below key moving averages and negative MACD. Valuation is mixed—attractive yield but a high P/E—while earnings call guidance was cautiously constructive on demand and margin recovery.
Positive Factors
Strong balance sheet
Reportedly zero reported TTM debt and substantial equity provide durable financial flexibility, lowering default and refinancing risk through construction cycles. A strong capital base supports opportunistic investment, dividend continuity, and the ability to absorb cyclical downturns without immediate external financing.
Negative Factors
Weak cash conversion
Operating and free cash flow have lagged reported earnings, reducing internally available funds for dividends, buybacks, or strategic investment. Poor cash conversion increases sensitivity to working capital swings and raises execution risk if cyclically lower earnings reappear.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet
Reportedly zero reported TTM debt and substantial equity provide durable financial flexibility, lowering default and refinancing risk through construction cycles. A strong capital base supports opportunistic investment, dividend continuity, and the ability to absorb cyclical downturns without immediate external financing.
Read all positive factors
Insteel Industries (IIIN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$499.24M
Dividend Yield3.49%
Average Volume (3M)147.78K
Price to Earnings (P/E)30.8
Beta (1Y)0.83
Revenue Growth20.94%
EPS Growth88.74%
CountryUS
Employees929
SectorIndustrials
Sector Strength72
IndustryManufacturing - Metal Fabrication
Share Statistics
EPS (TTM)2.19
Shares Outstanding19,433,247
10 Day Avg. Volume195,936
30 Day Avg. Volume147,783
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)2.02
Price to Sales (P/S)1.16
P/FCF Ratio39.57
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue0.71
Enterprise Value/Gross Profit5.19
Enterprise Value/Ebitda7.02
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.72
Revenue Forecast (FY)$725.19M
Insteel Industries Business Overview & Revenue Model
Company Description
Insteel Industries, Inc., together with its subsidiaries, manufactures and markets steel wire reinforcing products for concrete construction applications. The company offers prestressed concrete strand (PC strand) and welded wire reinforcement (WW...
How the Company Makes Money
Insteel makes money by manufacturing and selling steel wire reinforcing products, with revenue primarily driven by the volume shipped and the realized selling prices of its products. Its key revenue streams are (1) prestressed concrete strand (PC ...
Insteel Industries Earnings Call Summary
Earnings Call Date:Apr 16, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 16, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: material near-term weakness in Q2 driven by severe weather, project delays, rising raw material and freight costs, and margin compression produced a sizable drop in earnings and pressured working capital. Offsetting this, management has implemented meaningful price increases (ASP +14.2% YoY), reported sequential shipment recovery and improving order trends in April, generated positive operating cash flow, reduced SG&A as a percent of sales, maintained strong liquidity with no revolver borrowings, and pointed to favorable inventory carrying values and improving leading indicators (ABI, Dodge Index) that support a gradual margin recovery. Given the significant but potentially transient operational headwinds alongside tangible corrective actions and liquidity, the overall tone is measured and cautiously optimistic.Positive Updates
Average Selling Price Increase
Average selling prices (ASP) rose 14.2% year-over-year and 1.0% sequentially, driven by pricing actions implemented across fiscal 2025 and early fiscal 2026, with an additional price increase implemented in April expected to further benefit realized pricing.
Negative Updates
Net Earnings and EPS Decline
Net earnings fell to $5.2 million, or $0.27 per diluted share, from $10.2 million, or $0.52 per diluted share year-over-year—an approximate 49% decline in net earnings and EPS.
Read all updates
Q2-2026 Updates
Positive
Negative
Average Selling Price Increase
Average selling prices (ASP) rose 14.2% year-over-year and 1.0% sequentially, driven by pricing actions implemented across fiscal 2025 and early fiscal 2026, with an additional price increase implemented in April expected to further benefit realized pricing.
Read all positive updates
Company Guidance
Management guided that postponed demand should be realized during the balance of fiscal 2026 and expects a gradual recovery in gross margin in Q3 as seasonally stronger demand, recent price increases taking hold, favorable current inventory carrying values, and higher operating rates improve fixed‑cost absorption; they reiterated an effective tax rate of ~23% for the remainder of the year and a full‑year CapEx target of $20.0 million (Q2 CapEx $4.4M, $5.9M YTD). Liquidity at quarter end was $15.1M cash with $0 drawn on a $100M revolver. Key Q2 metrics referenced: net earnings $5.2M ($0.27/diluted share) vs $10.2M ($0.52) LY; shipments -5.9% YoY, +6.9% sequentially; average selling price +14.2% YoY, +1% sequentially; wire‑rod up $90/ton in the quarter; gross profit $16.5M (gross margin 9.6%, down $8.0M YoY and -170 bps sequentially); SG&A $9.7M (5.6% of sales); operating cash flow provided $4.8M vs using $3.3M LY; working capital used $1.4M in Q2 (receivables +$6.8M, inventory -$13.3M), inventories ~3.4 months of forward shipments (from 3.9); and net working capital up ≈$45M over 12 months. April shipments are trending above forecasted levels.Insteel Industries Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
90
Very Positive
Cash Flow
48
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 689.91M | 647.71M | 529.20M | 649.19M | 826.83M | 590.60M |
| Gross Profit | 93.93M | 93.44M | 49.63M | 65.40M | 197.31M | 121.55M |
| EBITDA | 69.41M | 72.25M | 40.79M | 55.15M | 176.30M | 100.72M |
| Net Income | 42.52M | 41.02M | 19.30M | 32.41M | 125.01M | 66.61M |
Balance Sheet | ||||||
| Total Assets | 460.49M | 462.65M | 422.55M | 447.51M | 471.75M | 390.71M |
| Cash, Cash Equivalents and Short-Term Investments | 15.09M | 38.63M | 111.54M | 125.67M | 48.32M | 89.88M |
| Total Debt | 3.04M | 3.90M | 1.69M | 1.94M | 1.57M | 1.73M |
| Total Liabilities | 95.97M | 91.12M | 71.70M | 66.01M | 82.00M | 88.67M |
| Stockholders Equity | 364.52M | 371.53M | 350.86M | 381.50M | 389.74M | 302.04M |
Cash Flow | ||||||
| Free Cash Flow | 6.65M | 18.95M | 39.06M | 111.50M | -10.23M | 52.38M |
| Operating Cash Flow | 15.87M | 27.16M | 58.21M | 142.20M | 5.67M | 69.88M |
| Investing Cash Flow | -5.66M | -75.67M | -19.64M | -20.90M | -6.04M | -17.80M |
| Financing Cash Flow | -21.82M | -24.40M | -52.70M | -43.95M | -41.20M | -30.88M |
Insteel Industries Technical Analysis
Negative
31.66
Price Trends
34.69
Negative
33.56
Negative
34.20
Negative
Market Momentum
-0.51
Positive
26.84
Positive
25.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IIIN, the sentiment is Negative. The current price of 31.66 is below the 20-day moving average (MA) of 33.62, below the 50-day MA of 34.69, and below the 200-day MA of 34.20, indicating a bearish trend. The MACD of -0.51 indicates Positive momentum. The RSI at 26.84 is Positive, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IIIN.
Insteel Industries Risk Analysis
Insteel Industries disclosed 17 risk factors in its most recent earnings report. Insteel Industries reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Insteel Industries Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $4.22B | 12.84 | 24.53% | 0.67% | 4.58% | 556.92% | |
77 Outperform | $1.07B | 17.70 | 10.73% | ― | 10.67% | 30.61% | |
70 Outperform | $2.63B | 15.14 | 11.58% | 1.27% | 14.99% | 86.18% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $499.24M | 30.80 | 11.72% | 3.49% | 20.94% | 88.74% | |
59 Neutral | $518.29M | -11.22 | -6.76% | ― | -0.04% | -172.38% |
* Industrials Sector Average
IIIN
Insteel Industries
25.69
-10.34
-28.70%
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Insteel Industries Corporate Events
Dividends
Insteel Industries Declares Regular Quarterly Cash Dividend
Positive
May 12, 2026
On May 12, 2026, Insteel Industries Inc. announced that its board of directors declared a regular quarterly cash dividend of $0.03 per share of common stock. The dividend will be paid on June 26, 2026, to shareholders of record as of June 12, 2026...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.