Webco Industries (WEBC) AI Stock Analysis

• Market Cap: $146.34M
• Dividend Yield: N/A
• Average Volume (3M): 30.00
• Price to Earnings (P/E): 19.2
• Beta (1Y): 0.06
• Revenue Growth: -8.45%
• EPS Growth: -60.25%
• Country: US
• Employees: 860
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Steel
• EPS (TTM): 9.38
• Shares Outstanding: 813,000
• 10 Day Avg. Volume: 28
• 30 Day Avg. Volume: 30
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.66
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.38
• 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 currently facing significant financial challenges with declining revenue and weak cash flow management, which heavily impact its overall stock score. The bearish technical indicators further dampen investor sentiment, with the stock trading below key moving averages and displaying negative momentum. The moderate P/E ratio does little to offset these concerns, resulting in a below-average stock score. Strategic improvements are necessary to enhance financial performance and investor confidence.

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 faces challenges with declining revenue and profitability, coupled with weak cash flow management. Despite a reasonable debt position, the company's financial health is pressured by declining equity returns and operational inefficiencies. Strategic improvements in cost control and cash flow generation are needed to enhance financial stability and growth prospects.

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
	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
473.08M	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: Neutral
• Last Price: 180.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WEBC, the sentiment is Neutral. The current price of 180 is above the 20-day moving average (MA) of 175.95, below the 50-day MA of 184.99, and above the 200-day MA of 179.29, indicating a neutral trend. The MACD of -1.84 indicates Negative momentum. The RSI at 50.90 is Neutral, neither overbought nor oversold. The STOCH value of 87.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WEBC.

Webco Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRD	73 Outperform	$110.13M	19.53	4.51%	0.99%	-12.19%	-67.95%
WS	64 Neutral	$1.33B	11.95	11.10%	2.46%	-6.82%	-36.02%
ZEUS	58 Neutral	$357.09M	22.92	2.95%	1.96%	-9.65%	-61.57%
WEBC	54 Neutral	$146.34M	19.19	2.84%	―	-8.45%	-60.25%
RDUS	53 Neutral	$829.14M	―	-41.03%	2.56%	-2.75%	-339.59%
ACNT	50 Neutral	$133.24M	―	-11.17%	―	-14.57%	48.61%
Sector *	49 Neutral	$1.96B	-1.17	-21.28%	3.71%	1.14%	-30.35%