Insteel Industries (IIIN) AI Stock Analysis

• Market Cap: $685.36M
• Dividend Yield: 3.17%
• Average Volume (3M): 143.64K
• Price to Earnings (P/E): 22.2
• Beta (1Y): 1.46
• Revenue Growth: 9.44%
• EPS Growth: 53.83%
• Country: US
• Employees: 929
• Sector: Industrials
• Sector Strength: 87
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.78
• Shares Outstanding: 19,409,842
• 10 Day Avg. Volume: 144,965
• 30 Day Avg. Volume: 143,636
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 1.14
• Enterprise Value/Gross Profit: 8.93
• Enterprise Value/Ebitda: 13.79
• 1Y Price Target: $39.00
• Price Target Upside: 8.85% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: $40.00 ▲(11.64% Upside)

Insteel Industries scores a 71.55, reflecting a strong financial foundation with stable cash flow and minimal debt. Positive earnings call results and a solid dividend strategy support this score. However, valuation concerns and mixed technical signals slightly temper the outlook.

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 (WWR) products. Its PC strand is a seven-wire strand that is used to impart compression forces into precast concrete elements and structures providing reinforcement for bridges, parking decks, buildings, and other concrete structures. The company's WWR engineered reinforcing product is used in nonresidential and residential construction. It produces a range of WWR products, such as engineered structural mesh, an engineered made-to-order product that is used as the primary reinforcement for concrete elements or structures serving as a reinforcing solution for hot-rolled rebar; concrete pipe reinforcement, an engineered made-to-order product, which is used as the primary reinforcement in concrete pipe, box culverts, and precast manholes for drainage and sewage systems, water treatment facilities, and other related applications; and standard welded wire reinforcement, a secondary reinforcing product for crack control applications in residential and light nonresidential construction, including driveways, sidewalks, and various slab-on-grade applications. The company sells its products through sales representatives to the manufacturers of concrete products, rebar fabricators, distributors, and contractors primarily in the United States, Canada, Mexico, and Central and South America. Insteel Industries, Inc. was founded in 1953 and is headquartered in Mount Airy, North Carolina.

How the Company Makes Money

Insteel Industries generates revenue primarily through the manufacturing and sale of its steel wire reinforcing products. The company's key revenue streams include sales of prestressed concrete strand and welded wire reinforcement, both of which are critical materials used in reinforcing concrete structures. Insteel's financial performance is closely tied to the construction industry's demand, as its products are used in a wide range of applications such as highways, bridges, buildings, and other infrastructure projects. The company may also benefit from strategic partnerships with construction firms and distributors, enabling it to expand its market reach and optimize its supply chain.

Insteel Industries Financial Statement Overview

Summary

Insteel Industries shows a strong balance sheet with minimal leverage and robust equity. However, revenue growth and profitability margins show some volatility, indicating areas for strategic improvement.

Income Statement

Insteel Industries has demonstrated a moderate performance in its income statement metrics. The TTM gross profit margin stands at 10.82%, showing a slight improvement from previous years. The net profit margin for the TTM is 3.95%, aligning with industry expectations but indicating room for improvement. Revenue growth has been volatile, with a significant decline of 11.66% in 2023, followed by a more stable period. EBIT and EBITDA margins are 4.85% and 6.67%, respectively, suggesting stable operational efficiency. Overall, the company shows satisfactory operational performance with potential for further profitability improvements.

Balance Sheet

The balance sheet reflects strong financial health with a low debt-to-equity ratio of 0.01, indicating minimal leverage and financial risk. Return on Equity (ROE) is relatively low at 6.6% for the TTM, suggesting moderate profitability. The equity ratio of 80.92% shows a solid capital structure with a high proportion of assets funded by equity. The company's strong equity position and low debt levels provide significant financial stability.

Cash Flow

Cash flow analysis reveals mixed results. The free cash flow growth rate was positive at 4.56% in the TTM, showing resilience in generating cash. However, the operating cash flow to net income ratio of 2.25 indicates strong cash generation relative to accounting profits. The free cash flow to net income ratio of 1.81 further underlines robust cash flow management. Despite these strengths, fluctuations in cash flow from operations suggest potential volatility.

Breakdown	Sep 2024	Sep 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	529.20M	649.19M	826.83M	590.60M	472.62M
Gross Profit	49.63M	65.40M	197.31M	121.55M	55.79M
EBITDA	40.79M	55.15M	176.30M	100.72M	38.53M
Net Income	19.30M	32.41M	125.01M	66.61M	19.01M
Balance Sheet
Total Assets	422.55M	447.51M	471.75M	390.71M	337.90M
Cash, Cash Equivalents and Short-Term Investments	111.54M	125.67M	48.32M	89.88M	68.69M
Total Debt	1.69M	1.94M	1.57M	1.73M	2.53M
Total Liabilities	71.70M	66.01M	82.00M	88.67M	73.10M
Stockholders Equity	350.86M	381.50M	389.74M	302.04M	264.80M
Cash Flow
Free Cash Flow	39.06M	111.50M	-10.23M	52.38M	49.11M
Operating Cash Flow	58.21M	142.20M	5.67M	69.88M	56.22M
Investing Cash Flow	-19.64M	-20.90M	-6.04M	-17.80M	-23.17M
Financing Cash Flow	-52.70M	-43.95M	-41.20M	-30.88M	-2.54M

Insteel Industries Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.83
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 35.83 is below the 20-day moving average (MA) of 37.28, below the 50-day MA of 36.59, and above the 200-day MA of 30.80, indicating a neutral trend. The MACD of -0.32 indicates Positive momentum. The RSI at 43.86 is Neutral, neither overbought nor oversold. The STOCH value of 24.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IIIN.

Insteel Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MLI	81 Outperform	$9.23B	13.23	25.98%	1.08%	19.42%	30.15%
WOR	74 Outperform	$3.06B	32.10	10.52%	1.11%	-60.43%	-14.19%
NWPX	73 Outperform	$400.46M	12.38	9.13%	―	8.06%	38.46%
IIIN	72 Outperform	$685.36M	22.16	8.87%	3.17%	9.44%	53.83%
Sector *	66 Neutral	$2.59B	11.48	10.94%	3.89%	-1.27%	39.22%
MEC	65 Neutral	$335.56M	15.19	9.40%	―	-8.42%	164.82%
RYI	53 Neutral	$664.59M	37.86	-1.73%	3.63%	-7.98%	-124.63%

Insteel Industries Corporate Events

Insteel Industries Declares Quarterly Cash Dividend

On May 22, 2025, Insteel Industries Inc. announced that its Board of Directors declared a regular quarterly cash dividend of $0.03 per share of common stock. This dividend is payable on June 27, 2025, to shareholders recorded by June 13, 2025. The announcement reflects Insteel’s ongoing commitment to providing shareholder value and could impact investor sentiment positively, reinforcing its stable financial positioning within the industry.

The most recent analyst rating on (IIIN) stock is a Hold with a $34.00 price target. To see the full list of analyst forecasts on Insteel Industries stock, see the IIIN Stock Forecast page.