Webco Industries (WEBC) AI Stock Analysis

• Market Cap: $154.48M
• Dividend Yield: N/A
• Average Volume (3M): 22.00
• Price to Earnings (P/E): 20.5
• Beta (1Y): 0.07
• Revenue Growth: -8.45%
• EPS Growth: -60.25%
• Country: US
• Employees: 860
• Sector: Basic Materials
• Sector Strength: 52
• Industry: Steel
• EPS (TTM): 9.38
• Shares Outstanding: 813,000
• 10 Day Avg. Volume: 45
• 30 Day Avg. Volume: 22
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.20
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Webco Industries is facing significant challenges with declining revenue and profitability, and weak cash flow management, which are major concerns. Despite a reasonable debt position, operational inefficiencies and low equity returns weigh heavily on financial performance. Technical analysis shows a neutral to slightly negative trend, and the company's moderate valuation suggests limited immediate upside. Strategic improvements are crucial for enhancing financial stability and growth.

Webco Industries Business Overview & Revenue Model

Company Description

Webco Industries, Inc. (NASDAQ: WEBC) is a leading manufacturer and distributor of high-quality carbon, stainless steel, and other metal tubular products. Founded in 1969 and headquartered in Sand Springs, Oklahoma, Webco serves a diverse range of industries, including automotive, aerospace, energy, and industrial sectors. The company operates several manufacturing facilities across the United States, focusing on providing innovative solutions and superior customer service.

How the Company Makes Money

Webco Industries generates revenue primarily through the manufacturing and sale of tubular products. The company's key revenue streams include the production of carbon and stainless steel tubing, which are used in various applications across multiple industries. Webco's business model relies on its ability to provide customized solutions and maintain strong relationships with its customers. The company leverages its extensive manufacturing capabilities and expertise to meet the specific needs of its clients. Additionally, Webco invests in advanced technologies and maintains a robust supply chain to ensure efficient production and timely delivery of its products. While partnerships or collaborations may enhance its market presence, there are no specific significant partnerships publicly disclosed that contribute to its earnings.

Webco Industries Financial Statement Overview

Summary

Webco Industries shows mixed financial health with declining revenue and profit margins, moderate debt levels, and inconsistent cash flow performance. Improvements in operational efficiency and revenue stabilization are necessary for better financial outcomes.

Income Statement

Webco Industries has experienced fluctuating revenue, with a decline from 2022 to 2023, impacting its revenue growth rate negatively. Gross and net profit margins have decreased over the years, indicating pressure on profitability. EBIT and EBITDA margins have shown volatility, reflecting potential operational challenges.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, indicating manageable leverage. Return on equity has been decreasing, which might concern investors looking for profitability on shareholder funds. The equity ratio remains stable, underscoring a solid base of equity in the company's capital structure.

Cash Flow

Operating cash flow has shown inconsistency, with free cash flow declining significantly in 2023. The operating cash flow to net income ratio indicates efficient cash generation from operations, although recent years show some deterioration. Free cash flow to net income has been positive, supporting financial flexibility despite recent drops.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
608.44M	686.92M	704.05M	466.62M	428.83M
	Gross Profit
71.84M	89.37M	118.14M	61.80M	37.98M
	EBIT
20.94M	38.91M	64.80M	26.02M	6.73M
	EBITDA
36.54M	52.61M	79.38M	39.91M	20.83M
	Net Income Common Stockholders
16.05M	26.64M	48.35M	19.70M	4.24M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
17.07M	22.07M	12.74M	8.40M	4.60M
	Total Assets
489.91M	483.68M	519.89M	385.20M	327.73M
	Total Debt
91.92M	112.89M	149.00M	95.13M	77.18M
	Net Debt
90.75M	106.68M	136.26M	86.72M	72.58M
	Total Liabilities
153.98M	181.20M	247.61M	154.06M	111.22M
	Stockholders Equity
319.11M	302.48M	272.28M	231.15M	216.51M
Cash Flow		Free Cash Flow
22.59M	51.14M	-37.38M	-10.74M	28.00M
	Operating Cash Flow
65.60M	82.88M	-15.73M	5.00M	28.00M
	Investing Cash Flow
-49.19M	-47.27M	-21.50M	-15.21M	0.00
	Financing Cash Flow
-21.45M	-42.13M	41.57M	14.02M	0.00

Webco Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 190.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WEBC, the sentiment is Positive. The current price of 190.26 is below the 20-day moving average (MA) of 190.93, below the 50-day MA of 191.61, and above the 200-day MA of 178.34, indicating a bullish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 48.47 is Neutral, neither overbought nor oversold. The STOCH value of 41.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WEBC.

Webco Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RS	77 Outperform	$14.82B	17.85	11.71%	1.72%	-6.56%	-31.89%
STLD	73 Outperform	$16.64B	11.28	17.27%	1.70%	-6.68%	-32.96%
ATI	70 Outperform	$6.86B	19.05	22.82%	―	4.51%	-2.90%
CMC	66 Neutral	$4.95B	72.75	1.78%	1.84%	-7.93%	-89.29%
WOR	66 Neutral	$2.29B	38.32	6.56%	1.47%	-69.82%	-78.10%
WEBC	61 Neutral	$154.48M	20.47	2.84%	―	-8.45%	-60.25%
Sector *	47 Neutral	$2.43B	-2.83	-21.77%	3.74%	4.16%	-28.83%