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Insteel Industries (IIIN)
NYSE:IIIN
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Insteel Industries (IIIN) AI Stock Analysis

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IIIN

Insteel Industries

(NYSE:IIIN)

Rating:75Outperform
Price Target:
$41.00
▲(5.64% Upside)
Insteel Industries demonstrates strong financial stability and growth potential, driven by a robust balance sheet and effective cash flow management. The recent earnings call underscores significant earnings growth and operational efficiency. While technical indicators suggest a stable trend, the valuation is fair with a decent dividend yield. The company's strategic positioning and optimistic outlook for future demand further enhance its investment appeal.

Insteel Industries (IIIN) vs. SPDR S&P 500 ETF (SPY)

Insteel Industries Business Overview & Revenue Model

Company DescriptionInsteel 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 MoneyInsteel Industries generates revenue through the production and sale of its steel wire products and concrete reinforcement solutions. The company's primary revenue streams include the sale of wire strand used in prestressed concrete applications and welded wire reinforcement for concrete construction. Insteel's revenue model is driven by the volume of products sold and the pricing of raw materials, which can fluctuate based on market conditions. Additionally, the company benefits from strategic partnerships with construction firms and distributors that enhance its market reach. Factors contributing to Insteel's earnings include demand from the construction industry, infrastructure spending, and the overall economic conditions affecting building activities.

Insteel Industries Earnings Call Summary

Earnings Call Date:Jul 17, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Oct 16, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong financial performance, growth in revenue and shipments, and effective acquisition integration. However, challenges such as wire rod supply constraints, increased SG&A expenses, and tariff-related uncertainties were also noted. Despite these challenges, the company remains optimistic about future demand and is well-positioned for continued growth.
Q3-2025 Updates
Positive Updates
Strong Financial Performance
Net earnings for the quarter increased to $15.2 million or $0.78 per share compared to $6.6 million, or $0.34 per share in the prior year. Adjusted earnings were $0.81 per share.
Revenue and Shipment Growth
Average selling prices rose 11.7% year-over-year and 8.2% sequentially. Shipments for the quarter increased 10.5% year-over-year and 3.5% sequentially.
Gross Profit and Margin Expansion
Gross profit for the quarter increased $15.4 million from a year ago to $30.8 million, while gross margin expanded by 650 basis points to 17.1%.
Strong Cash Flow and Liquidity
Operating activities generated $28.2 million in cash during the quarter. Ended the quarter with $53.7 million of cash on hand and debt-free.
Positive Acquisition Integration
Successful integration of Engineered Wire Products and O'Brien Wire Products, contributing to the growth and improved performance.
Negative Updates
Wire Rod Supply Constraints
Limited availability of wire rod created production challenges at several facilities, affecting the ability to maintain typical lead times.
Increased SG&A Expenses
SG&A expense for the quarter rose to $10.6 million or 5.9% of net sales compared to $7.9 million or 5.4% of net sales in the prior year period.
Tariffs and Import Challenges
Section 232 tariff was doubled to 50%, affecting imports of primary raw materials and spare parts, leading to higher costs and longer lead times.
Macroeconomic Uncertainty
Mixed and uncertain outlook in nonresidential construction markets and broader macroeconomic environment, with potential implications for future demand.
Company Guidance
During the third quarter of fiscal year 2025, Insteel Industries reported robust financial results driven by increased shipment volumes and a recovery in spreads between selling prices and raw material costs. Net earnings rose significantly to $15.2 million or $0.78 per share, with adjusted earnings at $0.81 per share, excluding nonrecurring restructuring charges. The company experienced an 11.7% year-over-year increase in average selling prices, alongside a 10.5% increase in shipment volumes. Gross profit surged by $15.4 million to $30.8 million, with gross margin expanding by 650 basis points to 17.1%. Operating activities generated $28.2 million in cash, and the company ended the quarter with $53.7 million in cash and no debt. Insteel highlighted ongoing challenges due to limited availability of domestic wire rod, which they supplemented with offshore volumes, and noted that their strategic pricing actions helped manage rising raw material costs. Despite uncertainties in the construction market and macroeconomic environment, Insteel expressed optimism about future demand, supported by recent acquisition synergies and favorable market conditions.

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
75
Positive
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
82
Very Positive
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
68
Positive
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.
BreakdownSep 2024Sep 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue529.20M649.19M826.83M590.60M472.62M
Gross Profit49.63M65.40M197.31M121.55M55.79M
EBITDA40.79M55.15M176.30M100.72M38.53M
Net Income19.30M32.41M125.01M66.61M19.01M
Balance Sheet
Total Assets422.55M447.51M471.75M390.71M337.90M
Cash, Cash Equivalents and Short-Term Investments111.54M125.67M48.32M89.88M68.69M
Total Debt1.69M1.94M1.57M1.73M2.53M
Total Liabilities71.70M66.01M82.00M88.67M73.10M
Stockholders Equity350.86M381.50M389.74M302.04M264.80M
Cash Flow
Free Cash Flow39.06M111.50M-10.23M52.38M49.11M
Operating Cash Flow58.21M142.20M5.67M69.88M56.22M
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
Positive
Last Price38.81
Price Trends
50DMA
37.13
Positive
100DMA
35.22
Positive
200DMA
31.66
Positive
Market Momentum
MACD
0.45
Negative
RSI
62.50
Neutral
STOCH
83.22
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 38.81 is above the 20-day moving average (MA) of 36.89, above the 50-day MA of 37.13, and above the 200-day MA of 31.66, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 62.50 is Neutral, neither overbought nor oversold. The STOCH value of 83.22 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 15 risk factors in its most recent earnings report. Insteel Industries reported the most risks in the "Finance & Corporate" 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$10.62B15.0225.98%0.93%19.42%30.15%
75
Outperform
$750.77M24.148.87%2.89%9.44%53.83%
74
Outperform
$3.33B34.8310.52%1.02%-60.43%-14.19%
72
Outperform
$510.21M15.919.14%5.83%33.50%
64
Neutral
$10.95B16.378.81%1.96%2.68%-15.33%
62
Neutral
$739.29M37.86-1.73%3.27%-7.98%-124.63%
61
Neutral
$296.84M17.267.37%-16.95%66.04%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IIIN
Insteel Industries
38.81
5.97
18.18%
MLI
Mueller Industries
96.54
26.03
36.92%
NWPX
Northwest Pipe Company
53.37
9.07
20.47%
WOR
Worthington Industries
67.39
22.51
50.16%
RYI
Ryerson Holdings
22.79
3.53
18.33%
MEC
Mayville Engineering Company
14.58
-4.83
-24.88%

Insteel Industries Corporate Events

Dividends
Insteel Industries Declares Quarterly Dividend Announcement
Neutral
Aug 19, 2025

On August 19, 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 September 26, 2025, to shareholders of record as of September 12, 2025. This decision reflects the company’s ongoing commitment to providing shareholder value and may impact its financial strategy and stakeholder relations.

Dividends
Insteel Industries Declares Quarterly Cash Dividend
Positive
May 22, 2025

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.

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.Date of analysis: Aug 20, 2025