Insteel Industries (IIIN) AI Stock Analysis

• Market Cap: $636.47M
• Dividend Yield: 3.42%
• Average Volume (3M): 110.65K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 1.17
• Revenue Growth: 22.39%
• EPS Growth: 112.75%
• Country: US
• Employees: 929
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.74
• Shares Outstanding: 19,416,462
• 10 Day Avg. Volume: 113,228
• 30 Day Avg. Volume: 110,646
• PEG Ratio: 0.16
• Price to Book (P/B): 2.02
• Price to Sales (P/S): 1.16
• P/FCF Ratio: 39.57
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 1.11
• Enterprise Value/Gross Profit: 7.70
• Enterprise Value/Ebitda: 10.59
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.77
• Revenue Forecast (FY): $716.54M

• Rating: 73 Outperform
• Price Target: $35.00 ▲(10.55% Upside)

Insteel Industries demonstrates strong financial performance and resilience, with notable earnings growth and strategic capital management. While technical indicators are neutral, the company's valuation is reasonable, and the earnings call highlights positive future prospects despite some industry challenges.

Positive Factors

Revenue Growth

Robust revenue growth indicates strong demand and market position, supporting long-term business expansion and competitive advantage.

Balance Sheet Health

Low leverage risk and prudent financial management enhance financial stability, providing flexibility for future investments and growth.

Operational Efficiency

Improved margins reflect effective cost management and operational leverage, contributing to sustainable profitability and competitiveness.

Negative Factors

Residential Construction Weakness

Persistent weakness in residential construction could limit growth opportunities and revenue potential in a key market segment.

Increased Inventory Costs

Higher inventory costs may lead to margin compression, impacting profitability and cash flow management in the near term.

High Tariff Impact

Increased raw material costs due to tariffs can pressure margins and affect cost competitiveness, challenging long-term profitability.

Insteel Industries Business Overview & Revenue Model

Company Description

Insteel Industries, Inc. (IIIN) is a leading manufacturer of steel wire products for the construction and industrial sectors, primarily specializing in concrete reinforcing products, such as wire, rebar, and fabricated steel products. The company operates through two main segments: the Concrete Reinforcement segment, which produces various concrete reinforcement products, and the Industrial Wire segment, which supplies wire products for a range of applications including industrial and construction use. With a strategic focus on innovation and high-quality manufacturing, Insteel serves a diverse customer base across the United States.

How the Company Makes Money

Insteel Industries generates revenue primarily through the sale of its concrete reinforcement and industrial wire products. The company's key revenue streams include the sale of welded wire reinforcement, rebar, and other fabricated wire products to contractors, distributors, and manufacturers involved in construction and industrial activities. In addition to direct sales, Insteel benefits from long-term contracts with major customers in the construction sector, which provides a stable revenue base. The company also engages in strategic partnerships with construction firms and distributors to enhance its market reach. Fluctuations in steel prices and demand within the construction industry significantly affect the company's earnings, making it essential for Insteel to effectively manage its production costs and supply chain operations.

Insteel Industries Financial Statement Overview

Summary

Insteel Industries shows strong revenue growth and improved profitability, supported by a solid balance sheet with low leverage. However, the decline in free cash flow growth highlights potential cash flow management challenges.

Income Statement

Insteel Industries has demonstrated strong revenue growth of 37.73% in the latest period, indicating robust demand and market position. The gross profit margin improved to 14.43%, and the net profit margin increased to 6.33%, showcasing enhanced operational efficiency and profitability. The EBIT and EBITDA margins also saw significant improvements, reflecting effective cost management and operational leverage.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.042, indicating prudent financial management and low leverage risk. The return on equity improved to 11.04%, reflecting effective utilization of shareholder funds. The equity ratio remains healthy, underscoring financial stability and a solid asset base.

Cash Flow

While the operating cash flow remains positive, the free cash flow growth rate declined by 49.71%, suggesting potential challenges in cash generation. The operating cash flow to net income ratio of 0.41 indicates moderate cash conversion efficiency. However, the free cash flow to net income ratio of 0.70 suggests reasonable cash flow relative to earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	647.71M	647.71M	529.20M	649.19M	826.83M	590.60M
Gross Profit	93.44M	93.44M	49.63M	65.40M	197.31M	121.55M
EBITDA	67.98M	72.25M	40.79M	55.15M	176.30M	100.72M
Net Income	41.02M	41.02M	19.30M	32.41M	125.01M	66.61M
Balance Sheet
Total Assets	462.65M	462.65M	422.55M	447.51M	471.75M	390.71M
Cash, Cash Equivalents and Short-Term Investments	38.63M	38.63M	111.54M	125.67M	48.32M	89.88M
Total Debt	15.50M	15.50M	1.69M	1.94M	1.57M	1.73M
Total Liabilities	91.12M	91.12M	71.70M	66.01M	82.00M	88.67M
Stockholders Equity	371.53M	371.53M	350.86M	381.50M	389.74M	302.04M
Cash Flow
Free Cash Flow	18.95M	18.95M	39.06M	111.50M	-10.23M	52.38M
Operating Cash Flow	27.16M	27.16M	58.21M	142.20M	5.67M	69.88M
Investing Cash Flow	-75.67M	-75.67M	-19.64M	-20.90M	-6.04M	-17.80M
Financing Cash Flow	-24.40M	-24.40M	-52.70M	-43.95M	-41.20M	-30.88M

Insteel Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.66
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 above the 20-day moving average (MA) of 30.86, above the 50-day MA of 31.64, and below the 200-day MA of 32.86, indicating a neutral trend. The MACD of 0.36 indicates Negative momentum. The RSI at 62.85 is Neutral, neither overbought nor oversold. The STOCH value of 85.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IIIN.

Insteel Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AZZ	79 Outperform	$3.22B	10.31	27.28%	0.69%	1.55%	701.41%
IIIN	73 Outperform	$636.47M	15.63	11.36%	3.42%	22.39%	112.75%
NWPX	71 Outperform	$610.50M	17.27	9.78%	―	7.61%	25.35%
WOR	71 Outperform	$2.90B	27.31	11.50%	1.23%	-39.38%	175.22%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MEC	63 Neutral	$378.33M	32.41	5.06%	―	-12.38%	-0.71%
RYI	49 Neutral	$732.76M	―	-2.81%	2.98%	-4.89%	-214.50%

Insteel Industries Corporate Events

Insteel Industries Announces Board of Directors Changes

On November 10, 2025, Insteel Industries announced changes to its Board of Directors. W. Allen Rogers II will not seek re-election at the 2026 Annual Meeting, and Joseph A. Rutkowski will resign immediately prior to the meeting. These decisions are not due to any disagreements with the company. Consequently, the Board will reduce its size from nine to eight directors following Rutkowski’s resignation and to seven directors after Rogers’ term ends.

Insteel Industries Declares Special Cash Dividend

On November 11, 2025, Insteel Industries announced that its Board of Directors declared a regular quarterly cash dividend of $0.03 per share and a special cash dividend of $1.00 per share, both payable on December 12, 2025, to shareholders of record as of November 28, 2025. This decision reflects Insteel’s strong financial performance and disciplined capital management, allowing it to return capital to shareholders while continuing to invest in its business and maintain strategic flexibility.