Webco Industries (WEBC) AI Stock Analysis

• Market Cap: $164.63M
• Dividend Yield: N/A
• Average Volume (3M): 44.00
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.05
• Revenue Growth: -3.91%
• EPS Growth: -28.91%
• Country: US
• Employees: 860
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 9.18
• Shares Outstanding: 813,000
• 10 Day Avg. Volume: 8
• 30 Day Avg. Volume: 44
• PEG Ratio: -0.20
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.22
• P/FCF Ratio: 5.82
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 0.39
• Enterprise Value/Gross Profit: 3.59
• Enterprise Value/Ebitda: 7.36
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $190.00 ▼(-5.71% 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.

Webco Industries Business Overview & Revenue Model

Company Description

Webco Industries (WEBC) is a leading manufacturer of steel tubing and pipe products, primarily serving the energy, automotive, and industrial sectors. The company specializes in producing high-quality, precision-engineered products, including welded and seamless steel tubes, which are critical for various applications such as oil and gas exploration, construction, and automotive manufacturing. With a strong emphasis on innovation and customer service, Webco aims to provide tailored solutions that meet the specific needs of its diverse client base.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	577.86M	608.44M	686.92M	704.05M	466.62M	428.83M
Gross Profit	62.39M	71.84M	89.37M	118.14M	61.80M	37.98M
EBITDA	30.40M	36.54M	52.61M	79.38M	39.91M	20.83M
Net Income	7.12M	16.05M	26.64M	48.35M	19.70M	4.24M
Balance Sheet
Total Assets	481.14M	473.08M	483.68M	519.89M	385.20M	327.73M
Cash, Cash Equivalents and Short-Term Investments	14.99M	17.07M	22.07M	12.74M	8.40M	4.60M
Total Debt	121.81M	91.92M	112.89M	149.00M	95.13M	77.18M
Total Liabilities	189.39M	153.98M	181.20M	247.61M	154.06M	111.22M
Stockholders Equity	291.75M	319.11M	302.48M	272.28M	231.15M	216.51M
Cash Flow
Free Cash Flow	0.00	22.59M	51.14M	-37.38M	-10.74M	28.00M
Operating Cash Flow	0.00	65.60M	82.88M	-15.73M	5.00M	28.00M
Investing Cash Flow	0.00	-49.19M	-47.27M	-21.50M	-15.21M	0.00
Financing Cash Flow	0.00	-21.45M	-42.13M	41.57M	14.02M	0.00

Webco Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 201.50
• 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 WEBC, the sentiment is Positive. The current price of 201.5 is above the 20-day moving average (MA) of 201.25, above the 50-day MA of 196.62, and above the 200-day MA of 188.76, indicating a bullish trend. The MACD of 1.51 indicates Positive momentum. The RSI at 56.67 is Neutral, neither overbought nor oversold. The STOCH value of 65.00 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
ZEUS	65 Neutral	$389.12M	29.59	2.40%	1.71%	-5.64%	-48.34%
FRD	65 Neutral	$148.46M	17.34	6.34%	0.76%	-5.81%	-29.10%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
WEBC	58 Neutral	$164.63M	15.36	3.02%	―	-3.91%	-28.91%
ACNT	54 Neutral	$116.31M	136.75	-3.84%	―	-29.03%	―
HUDI	53 Neutral	$18.68M	-35.84	-0.69%	―	-20.24%	-119.83%