Webco Industries (WEBC) AI Stock Analysis

• Market Cap: $189.43M
• Dividend Yield: N/A
• Average Volume (3M): 21.00
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.08
• Revenue Growth: 1.86%
• EPS Growth: 60.22%
• Country: US
• Employees: 860
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 6.79
• Shares Outstanding: 813,000
• 10 Day Avg. Volume: 41
• 30 Day Avg. Volume: 21
• PEG Ratio: -0.41
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 0.39
• Enterprise Value/Gross Profit: 3.43
• Enterprise Value/Ebitda: 6.43
• 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 ▼(-18.45% 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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	584.68M	584.68M	608.44M	686.92M	704.05M	466.62M
Gross Profit	66.78M	66.78M	71.84M	89.37M	118.14M	61.80M
EBITDA	35.68M	35.68M	36.54M	52.61M	79.38M	39.91M
Net Income	9.32M	9.32M	16.05M	26.64M	48.35M	19.70M
Balance Sheet
Total Assets	489.25M	489.25M	473.08M	483.68M	519.89M	385.20M
Cash, Cash Equivalents and Short-Term Investments	15.13M	15.13M	17.07M	22.07M	12.74M	8.40M
Total Debt	107.60M	107.60M	91.92M	112.89M	149.00M	95.13M
Total Liabilities	190.72M	190.72M	153.98M	181.20M	247.61M	154.06M
Stockholders Equity	298.53M	298.53M	319.11M	302.48M	272.28M	231.15M
Cash Flow
Free Cash Flow	0.00	0.00	22.59M	51.14M	-37.38M	-10.74M
Operating Cash Flow	0.00	0.00	65.60M	82.88M	-15.73M	5.00M
Investing Cash Flow	0.00	0.00	-49.19M	-47.27M	-21.50M	-15.21M
Financing Cash Flow	0.00	0.00	-21.45M	-42.13M	41.57M	14.02M

Webco Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 233.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 233 is above the 20-day moving average (MA) of 215.79, above the 50-day MA of 208.24, and above the 200-day MA of 192.35, indicating a bullish trend. The MACD of 6.44 indicates Negative momentum. The RSI at 81.74 is Negative, neither overbought nor oversold. The STOCH value of 92.49 is Negative, 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
FRD	69 Neutral	$138.76M	12.10	8.47%	0.75%	8.72%	43.14%
ACNT	64 Neutral	$153.58M	176.72	-3.84%	―	-29.03%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ZEUS	61 Neutral	$523.94M	40.95	2.40%	1.42%	-5.64%	-48.34%
WEBC	58 Neutral	$189.43M	11.59	4.56%	―	1.86%	60.22%
HUDI	53 Neutral	$17.56M	-33.70	-0.69%	―	-20.24%	-119.83%