Webco Industries (WEBC) AI Stock Analysis

• Market Cap: $155.69M
• Dividend Yield: N/A
• Average Volume (3M): 20.00
• Price to Earnings (P/E): 21.4
• Beta (1Y): 0.06
• Revenue Growth: -5.81%
• EPS Growth: -61.26%
• Country: US
• Employees: 860
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Steel
• EPS (TTM): 7.05
• Shares Outstanding: 813,000
• 10 Day Avg. Volume: 23
• 30 Day Avg. Volume: 20
• 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: 1.50
• Enterprise Value/Revenue: 0.40
• Enterprise Value/Gross Profit: 3.83
• Enterprise Value/Ebitda: 8.24
• 1Y Price Target: $190.00
• Price Target Upside: -0.78% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: $190.00 ▼(-0.78% Downside)

The overall stock score reflects significant challenges in financial performance, particularly with declining revenues and weak cash flow. Technical indicators suggest neutral momentum, while valuation metrics indicate moderate attractiveness. The absence of dividends and lack of earnings call insights limit further positive assessment.

Positive Factors

Business Model Strength

Webco's B2B model with direct sales to manufacturers and distributors ensures stable revenue streams and enhances market reach.

Market Position

Webco's leadership in steel tubing for key sectors like energy and automotive positions it well for sustained demand and market presence.

Debt Management

A moderate debt-to-equity ratio indicates prudent financial management, providing flexibility for future growth investments.

Negative Factors

Revenue Decline

The consistent decline in revenue suggests challenges in maintaining market share and could impact long-term growth prospects.

Profitability Pressure

Decreasing margins indicate rising costs or pricing pressures, which could affect profitability and competitiveness over time.

Cash Flow Issues

Weak cash flow raises concerns about liquidity and operational efficiency, potentially limiting the company's ability to invest in growth.

Webco Industries Business Overview & Revenue Model

Company Description

Webco Industries, Inc. manufactures and distributes carbon steel, stainless steel, and other metal tubular products. The company offers cold drawn welded and seamless tubing products for use in air cooler and heater, boiler tube, coiled tubing, steam surface condenser, feed water heater, heat exchanger, instrumentation tubing, mechanical tube, welded pipe, pressure tubing, and specialty stainless tubing, as well as original equipment manufacturer applications. It serves power-gen tubing, oil and gas tubular, process tubing, and automotive/industrial tubular industries. Webco Industries, Inc. was founded in 1969 and is headquartered in Sand Springs, Oklahoma.

How the Company Makes Money

Webco Industries generates revenue primarily through the sale of its steel tubing and pipe products to various industries, including energy, automotive, and industrial sectors. The company operates on a business-to-business (B2B) model, where it sells its products directly to manufacturers and distributors. Key revenue streams include custom manufacturing services, standard product sales, and long-term contracts with major clients in the energy sector. Additionally, strategic partnerships with suppliers and customers enhance its market reach and operational efficiency, contributing to stable earnings. The company's focus on innovation, quality control, and customer satisfaction further strengthens its competitive positioning, driving consistent revenue growth.

Webco Industries Financial Statement Overview

Summary

Webco Industries faces challenges with declining revenue and profitability, and weak cash flow management. While the debt position is reasonable, the company's financial health is pressured by declining equity returns and operational inefficiencies.

Income Statement

Webco Industries shows a declining revenue trend over recent years, with a decrease from $686.9M in 2023 to $575.7M TTM. Gross profit margin is at 10.6% TTM, showing a decrease from 10.9% annually in 2024, indicating pressure on profitability. The net profit margin is relatively low at 1.5% TTM, down from 2.6% in 2024, highlighting challenges in controlling costs. The EBIT and EBITDA margins are also declining, reflecting operational inefficiencies.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio of 0.41 TTM, suggesting moderate leverage. However, the declining equity ratio from 65.1% in 2024 to 61.5% TTM indicates a slight increase in financial risk. Return on equity is low at 2.9% TTM, showing decreased shareholder returns compared to 5.0% in 2024. Despite these challenges, the company maintains a stable equity base.

Cash Flow

Cash flow performance is weak, with zero operating and free cash flow reported TTM, raising concerns about liquidity and operational efficiency. The operating cash flow to net income ratio was strong at 4.1x in 2024 but has since deteriorated. The absence of free cash flow growth highlights potential cash management issues.

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
EBITDA	36.54M	52.61M	79.38M	39.91M	20.83M
Net Income	16.05M	26.64M	48.35M	19.70M	4.24M
Balance Sheet
Total Assets	473.08M	483.68M	519.89M	385.20M	327.73M
Cash, Cash Equivalents and Short-Term Investments	17.07M	22.07M	12.74M	8.40M	4.60M
Total Debt	91.92M	112.89M	149.00M	95.13M	77.18M
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: 191.50
• 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 191.5 is above the 20-day moving average (MA) of 189.14, above the 50-day MA of 187.44, and above the 200-day MA of 186.17, indicating a bullish trend. The MACD of 1.60 indicates Negative momentum. The RSI at 60.82 is Neutral, neither overbought nor oversold. The STOCH value of 54.92 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
WS	75 Outperform	$1.70B	15.20	10.75%	1.92%	-9.83%	-28.70%
ZEUS	71 Outperform	$368.07M	26.83	2.50%	1.92%	-9.21%	-60.42%
FRD	64 Neutral	$149.17M	17.42	6.34%	0.76%	-5.81%	-29.10%
Sector *	61 Neutral	$10.43B	7.39	-0.05%	2.88%	2.86%	-36.73%
WEBC	58 Neutral	$155.69M	21.41	2.35%	―	-5.81%	-61.26%
RDUS	55 Neutral		―		―	4.13%	62.89%
ACNT	49 Neutral	$118.51M	―	-10.88%	―	-20.35%	77.51%