Insteel Industries, Inc. (NASDAQ:IIIN) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of IIIN, it is a financially-sound , dividend-paying company with a a strong track record of performance. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Insteel Industries here.
Flawless balance sheet with solid track record and pays a dividend
Over the past year, IIIN has grown its earnings by 60%, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, IIIN also outperformed its industry, which delivered a growth of 28%. This is what investors like to see! IIIN’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that IIIN manages its cash and cost levels well, which is a key determinant of the company’s health. IIIN currently has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.
Income investors would also be happy to know that IIIN is one of the highest dividend payers in the market, with current dividend yield standing at 4.5%. IIIN has also been regularly increasing its dividend payments to shareholders over the past decade.
For Insteel Industries, I’ve compiled three important factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for IIIN’s future growth? Take a look at our free research report of analyst consensus for IIIN’s outlook.
- Valuation: What is IIIN worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether IIIN is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of IIIN? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.