# Insteel Industries (IIIN.US)

Canonical: https://gigainvestors.com/s/IIIN

Analysis as of: 2026-10-16T07:29:18.562Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $29.67 per share; close as of 2026-10-15.

Estimated value: low $32.04 per share, central $36.39 per share, high $42.19 per share. Buy at or below the central value $36.39 per share. Valuation as of 2026-10-16T07:29:18.562Z; scenarios are not confidence intervals.

Expected annual return: 11.7% at the stated quote. About 11.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 0

- Operating margin variation: 0.58×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.14×

- FY2017: 0.09×

- FY2018: 0.09×

- FY2019: 0.02×

- FY2020: 0.05×

- FY2021: 0.15×

- FY2022: 0.20×

- FY2023: 0.05×

- FY2024: 0.04×

- FY2025: 0.08×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 4.8pp below the typical margin (limit 4pp)

- ROIC, median of available years: 13.1%

- ROIC, second-lowest year: 6.6%

- Typical minus recent gross margin: 4.8 pp

- Typical gross margin (annual median): 14.9%

- Recent gross margin (lower of latest and 3-year median): 10.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.0%

- ROIC including acquisitions, ten-year median: 13.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 23.6%

- FY2017: 12.3%

- FY2018: 19.1%

- FY2019: 2.9%

- FY2020: 10.2%

- FY2021: 33.8%

- FY2022: 37.4%

- FY2023: 10.9%

- FY2024: 6.6%

- FY2025: 13.9%

### economics: pass

- Owner earnings / net income, 5-yr: 0.96×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $273M

- Net income, five-year total: $284M

- Return on incremental invested capital: 18.5%

- Working capital / revenue, annual change: 0.5 pp

- Working capital / revenue, change between three-year averages: 2.5 pp

- Working capital / revenue, final three-year average: 22.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 0.46×

- FY2024: 0.81×

- FY2025: 1.25×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 19.1% vs 10.9%

- Per-share earnings: 1.17 to 1.66 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.4%

- Ordinary dilution, 5-year annual growth: 0.2%

- Market cap gain: $247M

- Cumulative retained earnings: $127M

- Diluted shares, 10-year annual growth: 0.4%

- Diluted shares, 5-year annual growth: 0.2%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 4.4%

- Per-share value change: $0.48

- Per-share value, starting three-year median: $1.17

- Per-share value, ending three-year median: $1.66

- Buybacks concentrated in cheaper years (correlation): 0.15

- Average buyback yield: 0.2%

- Buyback history: 9 years

- Debt-funded buybacks: No

- Acquisition spending: $44M

- Cumulative net income, 10 years: $405M

- ROIC, first three-year median: 19.1%

- ROIC, last three-year median: 10.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.95

- FY2017: $1.17

- FY2018: $1.88

- FY2019: $0.29

- FY2020: $0.98

- FY2021: $3.41

- FY2022: $6.37

- FY2023: $1.66

- FY2024: $0.99

- FY2025: $2.10

### accounting: pass

- Sloan accruals: 3.0%

- Receivables to sales index (DSRI): 1.08×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 12.8%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.66×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.15×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.9%

- FY2017: 0.8%

- FY2018: -5.4%

- FY2019: -0.3%

- FY2020: -11.0%

- FY2021: -0.8%

- FY2022: 25.3%

- FY2023: -24.5%

- FY2024: -9.2%

- FY2025: 3.0%

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 30% since Apr 2022 · "Insteel targets $11M capex and maintains margin outlook amid tariff-driven supply challenges" (seekingalpha.com, Jul 2025) · sales +22.4%

Story as of 2026-10-16T09:58:56.652Z; price observation 2026-10-15.

Price needs cash profits to shrink 1.7% a year for ten years

- 2025-07-17: Insteel targets $11M capex and maintains margin outlook amid tariff-driven supply challenges ([seekingalpha.com](https://seekingalpha.com/news/4468536-insteel-targets-11m-capex-and-maintains-margin-outlook-amid-tariff-driven-supply-challenges?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-01-15: Insteel signals robust 2026 demand outlook with $20M capex plan and data center growth ([seekingalpha.com](https://seekingalpha.com/news/4539617-insteel-signals-robust-2026-demand-outlook-with-20m-capex-plan-and-data-center-growth?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2024–2025

sales +22.4%; source https://www.sec.gov/Archives/edgar/data/764401/000143774925031597/iiin20250927_10k.htm; observed 2025-10-23.

- FY2016: $419M 

- FY2017: $389M 

- FY2018: $453M 

- FY2019: $456M 

- FY2020: $473M 

- FY2021: $591M 

- FY2022: $827M 

- FY2023: $649M 

- FY2024: $529M 

- FY2025: $648M 

### Gross margin · FY2025

gross margin 14.4%; source https://www.sec.gov/Archives/edgar/data/764401/000143774925031597/iiin20250927_10k.htm; observed 2025-10-23.

- FY2016: 20.4% 

- FY2017: 15.4% 

- FY2018: 15.6% 

- FY2019: 6.6% 

- FY2020: 11.8% 

- FY2021: 20.6% 

- FY2022: 23.9% 

- FY2023: 10.1% 

- FY2024: 9.4% 

- FY2025: 14.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in metal fabrication; annual sales are USD 647.7 million.

- Source: https://www.sec.gov/Archives/edgar/data/764401/000143774925031597/iiin20250927_10k.htm (filed 2025-10-23); FY2025: revenue 647706000; grossProfit 93438000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); IIIN.US: Insteel Industries Inc., together with its subsidiaries, manufactures and markets steel wire reinforcing products for concrete construction applications. The company offers prestressed concrete strand (PC strand) and welded wire reinforcement (WWR) products. Its PC strand, a seven-wire strand that is used to impart compression forces into precast concrete elements and structures providing reinforcement for bridges, parking decks, buildings, and other concrete structures. The company's WWR engineered reinforcing product is used in nonresidential and residential construction. It produces a range of WWR products, such as engineered structural mesh, an engineered made-to-order product that is used as the primary reinforcement for concrete elements or structures serving as a reinforcing solution for hot-rolled rebar; concrete pipe reinforcement, an engineered made-to-order product, which is used as the primary reinforcement in concrete pipe, box culverts, and precast manholes for drainage and sewage systems, water treatment facilities, and other related applications; and standard welded wire reinforcement, a secondary reinforcing product for crack control applications in residential and light nonresidential construction, including driveways, sidewalks, and various slab-on-grade applications. It sells its products through sales representatives to the manufacturers of concrete products, rebar fabricators, distributors, and contractors. Insteel Industries Inc. was founded in 1953 and is headquartered in Mount Airy, North Carolina.

### Why customers stay

Margins ranged from 9.4% to 14.4% during 2023–25; it earns 13.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-23); FY2023: grossProfit / revenue = 10.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-23); FY2024: grossProfit / revenue = 9.4%.

- Source: https://www.sec.gov/Archives/edgar/data/764401/000143774925031597/iiin20250927_10k.htm (filed 2025-10-23); FY2025: grossProfit / revenue = 14.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-23); 10-year return on capital observations [[2016,0.2358555656033596],[2017,0.12271597858785753],[2018,0.1908766734946136],[2019,0.02868630877894016],[2020,0.10174992405348299],[2021,0.3378904089199702],[2022,0.37404596646826216],[2023,0.10865112511219185],[2024,0.06615937047537306],[2025,0.13877633663246194]]; median 0.13074615761015973. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 2.3 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-23); FY2016: growth capex 0; upkeep 12977000; owner earnings 35812000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-23); FY2017: growth capex 0; upkeep 20575000; owner earnings 13622000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-23); FY2018: growth capex 5631000; upkeep 12818000; owner earnings 36266000. Growth capex / owner earnings = 0.1552693983345282.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-23); FY2019: growth capex 0; upkeep 10512000; owner earnings 8639000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-23); FY2020: growth capex 0; upkeep 7114000; owner earnings 26150000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-23); FY2021: growth capex 2979000; upkeep 14521000; owner earnings 66610000. Growth capex / owner earnings = 0.044723014562378025.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-23); FY2022: growth capex 1414000; upkeep 14486000; owner earnings 125011000. Growth capex / owner earnings = 0.01131100463159242.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-23); FY2023: growth capex 0; upkeep 30702000; owner earnings 15017000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-23); FY2024: growth capex 0; upkeep 19149000; owner earnings 15569000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/764401/000143774925031597/iiin20250927_10k.htm (filed 2025-10-23); FY2025: growth capex 0; upkeep 8213000; owner earnings 51197000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-23); Dividend observations: [[2016,20859000],[2017,26011000],[2018,21333000],[2019,2310000],[2020,2313000],[2021,31294000],[2022,41162000],[2023,41252000],[2024,50942000],[2025,21761000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/764401/000143774925031597/iiin20250927_10k.htm (filed 2025-10-23); FY2025: cash repurchases 2273000 USD.

### Are managers owners

Insiders own 5.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); IIIN.US SharesStats.PercentInsiders = 5.063 percentage points; cache date 2026-10-05.

### What the price says

The price assumes cash profits shrink 1.7% yearly over ten years; actual growth was 7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-23); Ten-year compound average after fade. Initial solved rate -0.03674898659388198. Price 29.67; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.3312237408924108 → FY2025 2.617701196441354. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $26.90 per share

- 2016-11: $39.57 per share

- 2016-12: $35.64 per share

- 2017-01: $37.04 per share

- 2017-02: $36.12 per share

- 2017-03: $36.14 per share

- 2017-04: $34.81 per share

- 2017-05: $31.76 per share

- 2017-06: $32.97 per share

- 2017-07: $26.32 per share

- 2017-08: $25.07 per share

- 2017-09: $26.11 per share

- 2017-10: $25.55 per share

- 2017-11: $27.55 per share

- 2017-12: $28.32 per share

- 2018-01: $31.33 per share

- 2018-02: $28.24 per share

- 2018-03: $27.63 per share

- 2018-04: $30.03 per share

- 2018-05: $31.28 per share

- 2018-06: $33.40 per share

- 2018-07: $41.13 per share

- 2018-08: $38.35 per share

- 2018-09: $35.88 per share

- 2018-10: $26.12 per share

- 2018-11: $27.54 per share

- 2018-12: $24.28 per share

- 2019-01: $22.09 per share

- 2019-02: $22.75 per share

- 2019-03: $20.92 per share

- 2019-04: $20.94 per share

- 2019-05: $18.28 per share

- 2019-06: $20.82 per share

- 2019-07: $19.51 per share

- 2019-08: $18.70 per share

- 2019-09: $20.53 per share

- 2019-10: $19.07 per share

- 2019-11: $23.33 per share

- 2019-12: $21.49 per share

- 2020-01: $22.37 per share

- 2020-02: $19.89 per share

- 2020-03: $13.25 per share

- 2020-04: $17.57 per share

- 2020-05: $17.65 per share

- 2020-06: $19.07 per share

- 2020-07: $18.64 per share

- 2020-08: $18.44 per share

- 2020-09: $18.70 per share

- 2020-10: $21.76 per share

- 2020-11: $23.13 per share

- 2020-12: $22.27 per share

- 2021-01: $25.24 per share

- 2021-02: $30.88 per share

- 2021-03: $30.84 per share

- 2021-04: $38.13 per share

- 2021-05: $34.96 per share

- 2021-06: $32.15 per share

- 2021-07: $38.83 per share

- 2021-08: $37.00 per share

- 2021-09: $38.05 per share

- 2021-10: $40.67 per share

- 2021-11: $42.16 per share

- 2021-12: $39.81 per share

- 2022-01: $37.83 per share

- 2022-02: $37.11 per share

- 2022-03: $36.99 per share

- 2022-04: $42.42 per share

- 2022-05: $41.41 per share

- 2022-06: $33.67 per share

- 2022-07: $31.30 per share

- 2022-08: $28.90 per share

- 2022-09: $26.53 per share

- 2022-10: $26.35 per share

- 2022-11: $29.49 per share

- 2022-12: $27.52 per share

- 2023-01: $29.99 per share

- 2023-02: $29.75 per share

- 2023-03: $27.82 per share

- 2023-04: $27.53 per share

- 2023-05: $29.93 per share

- 2023-06: $31.12 per share

- 2023-07: $32.25 per share

- 2023-08: $34.75 per share

- 2023-09: $32.46 per share

- 2023-10: $27.91 per share

- 2023-11: $34.02 per share

- 2023-12: $38.29 per share

- 2024-01: $34.63 per share

- 2024-02: $36.41 per share

- 2024-03: $38.22 per share

- 2024-04: $32.10 per share

- 2024-05: $32.87 per share

- 2024-06: $30.96 per share

- 2024-07: $34.25 per share

- 2024-08: $34.40 per share

- 2024-09: $31.09 per share

- 2024-10: $26.97 per share

- 2024-11: $29.48 per share

- 2024-12: $27.01 per share

- 2025-01: $28.69 per share

- 2025-02: $28.14 per share

- 2025-03: $26.30 per share

- 2025-04: $33.91 per share

- 2025-05: $35.02 per share

- 2025-06: $37.21 per share

- 2025-07: $36.10 per share

- 2025-08: $38.38 per share

- 2025-09: $38.34 per share

- 2025-10: $31.24 per share

- 2025-11: $30.58 per share

- 2025-12: $31.67 per share

- 2026-01: $33.14 per share

- 2026-02: $37.28 per share

- 2026-03: $33.61 per share

- 2026-04: $26.18 per share

- 2026-05: $27.49 per share

- 2026-06: $30.20 per share

- 2026-07: $30.65 per share

- 2026-08: $30.10 per share

- 2026-09: $29.13 per share

- 2026-10: $29.67 per share

## Annual estimated value (USD per share)

- FY2016: low $13.65 per share, central $15.74 per share, high $17.89 per share

- FY2017: low $10.98 per share, central $12.32 per share, high $14.10 per share

- FY2018: low $16.18 per share, central $18.17 per share, high $20.80 per share

- FY2019: low $18.11 per share, central $23.42 per share, high $27.16 per share

- FY2020: low $20.69 per share, central $27.24 per share, high $31.41 per share

- FY2021: low $24.51 per share, central $30.33 per share, high $34.78 per share

- FY2022: low $46.33 per share, central $63.89 per share, high $74.68 per share

- FY2023: low $25.83 per share, central $28.59 per share, high $32.27 per share

- FY2024: low $21.51 per share, central $23.76 per share, high $26.76 per share

- FY2025: low $29.92 per share, central $33.87 per share, high $39.12 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:35:01.590Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/764401/000143774925031597/iiin20250927_10k.htm); period 2025-09-27, filed 2025-10-23.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.