Insteel Industries (IIIN)
NYSE:IIIN
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Insteel Industries
(NYSE:IIIN)
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Rating:72Outperform
Price Target:
$41.00
▲(29.50% Upside)
Action:UpgradedDate:04/16/26
The score is driven primarily by strong financial stability (near-zero debt) and improved profitability, supported by generally positive technical momentum. It is held back by weak recent cash conversion/working-capital pressure and only middling valuation appeal given a ~20.8 P/E, despite a ~2.9% dividend yield.
Positive Factors
Balance Sheet Strength
Insteel carries essentially no debt with sizable equity (~$358.8M) and ~11.7% TTM ROE. This low leverage profile materially reduces solvency risk, preserves financial flexibility to fund capex or dividends through downturns, and supports resilient operations over the medium term.
Negative Factors
Deteriorating Cash Conversion
A sharp drop in operating cash flow and near-zero free cash flow reflect elevated inventory builds and working-capital strain. Persistent cash conversion weakness reduces liquidity headroom, weakens quality of earnings, and can constrain reinvestment, dividends, or buybacks over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Insteel carries essentially no debt with sizable equity (~$358.8M) and ~11.7% TTM ROE. This low leverage profile materially reduces solvency risk, preserves financial flexibility to fund capex or dividends through downturns, and supports resilient operations over the medium term.
Read all positive factors
Insteel Industries (IIIN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$709.91M
Dividend Yield3.49%
Average Volume (3M)147.78K
Price to Earnings (P/E)20.8
Beta (1Y)1.08
Revenue Growth22.39%
EPS Growth112.75%
CountryUS
Employees929
SectorIndustrials
Sector Strength72
IndustryManufacturing - Metal Fabrication
Share Statistics
EPS (TTM)0.27
Shares Outstanding19,396,380
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/Revenue1.01
Enterprise Value/Gross Profit7.43
Enterprise Value/Ebitda10.06
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:Jan 15, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 16, 2026
Earnings Call Sentiment Positive
The call presents a favorable operating performance year-over-year with substantial earnings, margin and price improvements, successful integration of recent acquisitions, continued shareholder returns, and positive demand signals (notably data centers and IIJA-related projects). Offsetting these positives are near-term liquidity and working-capital pressures from elevated inventories due to offshore raw material purchases, a sequential margin pull from higher-cost inventory consumption, a large year-over-year swing in operating cash flow, and ongoing supply and tariff uncertainties that could pressure costs and volumes. Management articulated confidence in 2026 while acknowledging these risks and a planned $20 million CapEx program to support growth and efficiency.Positive Updates
Substantial YoY Earnings Improvement
Net earnings rose to $7.276 million ($0.39 per share) versus $1.1 million ($0.06 per share) in the prior-year quarter — EPS up approximately 550% year-over-year. Management noted last year's quarter included $1.0 million of restructuring and acquisition-related charges that reduced EPS by ~$0.04.
Negative Updates
Inventory Build and Working Capital Consumption
Net working capital used $16.6 million of cash in Q1, driven by a $34.5 million increase in inventories (partially offset by a $14.1 million reduction in receivables). Management noted net working capital has risen by over $50 million in the last twelve months due to offshore purchases of raw material.
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Q1-2026 Updates
Positive
Negative
Substantial YoY Earnings Improvement
Net earnings rose to $7.276 million ($0.39 per share) versus $1.1 million ($0.06 per share) in the prior-year quarter — EPS up approximately 550% year-over-year. Management noted last year's quarter included $1.0 million of restructuring and acquisition-related charges that reduced EPS by ~$0.04.
Read all positive updates
Company Guidance
Management said they expect 2026 to be a strong year and provided specific near‑term guidance: price increases implemented in January should boost Q2 spreads and margins as FIFO inventory turns; they expect inventory levels to moderate in Q2 after Q1 inventories rose to about 3.9 months of forward shipments (3.5 months at 4Q), with Q1 net working capital using $16.6 million driven by a $34.5 million inventory build and a $14.1 million reduction in receivables; cash from operations used $0.7 million in Q1 (vs. $19 million provided a year ago), ending the quarter with $15.6 million of cash and no borrowings on a $100 million revolver; first‑quarter capex was $1.5 million with a full‑year capex target of $20 million; the company expects an effective tax rate of roughly 23% for the rest of the year (Q1 rate 21% vs. 26.1% prior year); management will continue importing wire rod until domestic supply improves (noting domestic wire rod production ~3.5M tons vs. apparent consumption ~5M tons and permanent curtailments of ~1.2M tons), expects working‑capital release as conditions normalize but cannot quantify it, and reiterated capital returns (Q1 $19.4M special dividend and $745k buybacks ~24k shares); macro indicators cited include ABI 45.3 (13th month <50), DMI +7% in December and >50% YoY (commercial +45%), while US construction spending was down ~1.6% YTD and US cement shipments were down 4.3% in August.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 | 69.37M | 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 | 0.00 | 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 | 6.42M | 18.95M | 39.06M | 111.50M | -10.23M | 52.38M |
| Operating Cash Flow | 15.63M | 27.16M | 58.21M | 142.20M | 5.67M | 69.88M |
| Investing Cash Flow | -5.43M | -75.67M | -19.64M | -20.90M | -6.04M | -17.80M |
| Financing Cash Flow | -23.54M | -24.40M | -52.70M | -43.95M | -41.20M | -30.88M |
Insteel Industries Technical Analysis
Positive
31.66
Price Trends
35.01
Positive
33.60
Positive
34.29
Positive
Market Momentum
0.77
Negative
61.77
Neutral
89.34
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IIIN, the sentiment is Positive. The current price of 31.66 is below the 20-day moving average (MA) of 34.03, below the 50-day MA of 35.01, and below the 200-day MA of 34.29, indicating a bullish trend. The MACD of 0.77 indicates Negative momentum. The RSI at 61.77 is Neutral, neither overbought nor oversold. The STOCH value of 89.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $4.00B | 19.10 | 26.34% | 0.67% | 1.55% | 701.41% | |
74 Outperform | $802.70M | 16.91 | 9.20% | ― | 7.61% | 25.35% | |
72 Outperform | $709.91M | 20.81 | 13.31% | 3.49% | 22.39% | 112.75% | |
70 Outperform | $2.65B | 15.14 | 11.58% | 1.27% | 7.43% | 148.83% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $412.46M | -47.25 | -3.30% | ― | -12.38% | -0.71% |
* Industrials Sector Average
IIIN
Insteel Industries
36.60
10.82
41.95%
AZZ
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52.62
64.65%
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MEC
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20.30
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63.71%
Insteel Industries Corporate Events
Executive/Board ChangesShareholder Meetings
Insteel Industries Shareholders Back Board, Pay and Auditor
Positive
Feb 11, 2026
Insteel Industries Inc. held its 2026 Annual Meeting of Shareholders on February 10, 2026, at which investors elected three directors, including Abney S. Boxley II and Anne H. Lloyd to three-year terms ending in 2029 and Eric J. Zernikow to a one-...
Dividends
Insteel Industries Declares Quarterly Cash Dividend to Shareholders
Positive
Feb 10, 2026
On February 10, 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 is scheduled to be paid on March 27, 2026, to shareholders of record as...
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.