Insteel Industries (IIIN) AI Stock Analysis

• Market Cap: $743.01M
• Dividend Yield: 2.9%
• Average Volume (3M): 92.83K
• Price to Earnings (P/E): 24.2
• Beta (1Y): 1.42
• Revenue Growth: 9.44%
• EPS Growth: 53.83%
• Country: US
• Employees: 929
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.78
• Shares Outstanding: 19,409,842
• 10 Day Avg. Volume: 78,926
• 30 Day Avg. Volume: 92,835
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 1.14
• Enterprise Value/Gross Profit: 8.93
• Enterprise Value/Ebitda: 13.79
• 1Y Price Target: $41.00
• Price Target Upside: 4.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: $41.00 ▲(4.22% 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 Business Overview & Revenue Model

Company Description

Insteel Industries (IIIN) is a leading manufacturer of steel wire products and concrete reinforcing solutions, primarily serving the construction and infrastructure sectors. The company specializes in producing a range of products, including wire strand, welded wire reinforcement, and other steel products, which are essential for various construction applications. With a focus on quality and innovation, Insteel operates multiple manufacturing facilities across the United States, catering to a diverse customer base that includes contractors, distributors, and manufacturers.

How the Company Makes Money

Insteel 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 Financial Statement Overview

Summary

Insteel Industries shows a solid financial position with a robust balance sheet and effective cash flow management. However, volatility in revenue growth and profitability margins suggests areas for improvement. The low leverage and high equity ratio highlight financial stability, positioning the company well for future growth opportunities.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	604.57M	529.20M	649.19M	826.83M	590.60M	472.62M
Gross Profit	77.09M	49.63M	65.40M	197.31M	121.55M	55.79M
EBITDA	49.91M	40.79M	55.15M	176.30M	100.72M	38.53M
Net Income	31.14M	19.30M	32.41M	125.01M	66.61M	19.01M
Balance Sheet
Total Assets	471.89M	422.55M	447.51M	471.75M	390.71M	337.90M
Cash, Cash Equivalents and Short-Term Investments	53.66M	111.54M	125.67M	48.32M	89.88M	68.69M
Total Debt	0.00	1.69M	1.94M	1.57M	1.73M	2.53M
Total Liabilities	115.68M	71.70M	66.01M	82.00M	88.67M	73.10M
Stockholders Equity	356.21M	350.86M	381.50M	389.74M	302.04M	264.80M
Cash Flow
Free Cash Flow	52.22M	39.06M	111.50M	-10.23M	52.38M	49.11M
Operating Cash Flow	60.40M	58.21M	142.20M	5.67M	69.88M	56.22M
Investing Cash Flow	-80.57M	-19.64M	-20.90M	-6.04M	-17.80M	-23.17M
Financing Cash Flow	-23.91M	-52.70M	-43.95M	-41.20M	-30.88M	-2.54M

Insteel Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 39.34
• 50DMA: Positive
• 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 Positive. The current price of 39.34 is above the 20-day moving average (MA) of 38.49, above the 50-day MA of 37.53, and above the 200-day MA of 32.36, indicating a bullish trend. The MACD of 0.42 indicates Positive momentum. The RSI at 59.45 is Neutral, neither overbought nor oversold. The STOCH value of 40.97 is Neutral, 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
MLI	81 Outperform	10.93B	15.68	0.00%	0.95%	19.42%	30.15%
IIIN	75 Outperform	$743.01M	24.16	8.87%	2.90%	9.44%	53.83%
NWPX	72 Outperform	500.26M	16.12	8.80%	―	5.83%	33.50%
MEC	65 Neutral	287.70M	17.36	7.24%	―	-16.95%	66.04%
WOR	63 Neutral	3.04B	31.87	10.25%	1.12%	-60.43%	-14.19%
RYI	63 Neutral	732.85M	-51.19	-1.80%	3.23%	-7.98%	-124.63%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Insteel Industries Corporate Events

Insteel Industries Declares Quarterly Dividend Announcement

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.