Insteel Industries Inc. Common Stock (IIIN)

FairStock Score: 58/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham-style investor, I start with the business: Insteel makes steel wire reinforcing products for concrete construction. That is a cyclical industrial niche, and I do not see evidence of a wide moat. The latest filed evidence is mixed: in fiscal Q3 2026, the quarter ended 2026-06-27, revenue was $197.7M and net income $9.0M, or diluted EPS $0.46; in fiscal Q3 2025, revenue was $179.9M, net income $15.2M, and diluted EPS $0.78. Sales rose, but profit fell sharply and the net margin was only 4.56%. Full-year fiscal 2025 had revenue $647.7M, net income $41.0M, and diluted EPS $2.10, so the business can earn decent money in good conditions. The balance sheet is a real strength: D/E 0.01, Altman Z 4.92, and Piotroski 8/9. Returns are only moderate, with ROE 10.00% and ROCE 6.15%. Free cash flow is a blemish: trailing FCF is -$9.8M and FCF yield -1.8%. At the 2026-10-26 close of $28.04, FairStock's P/E is 14.99, P/B 1.46, and EV/EBITDA 7.91. The Graham Number is $28.42, leaving a margin of safety of just 2.29%. FairStock classifies it as a STALWART—steady five-year profit growth of 16.6% and revenue growth of 6.5%—but the recent profit drop matters. I would call the price fair, not compelling, and the business financially safe but cyclically vulnerable.

In plain English: Insteel makes steel wire products used to strengthen concrete in bridges, parking decks and buildings. Its latest reported quarter had higher sales but lower profit than a year earlier, and the business generated negative cash flow, though the balance sheet is very strong. At the 2026-10-26 close of $28.04, the stock looks roughly fairly priced against reported profits and asset value, not obviously cheap or expensive.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-06-27) · fiscal Q2 2026 10-Q (period ended 2026-03-28) · fiscal Q1 2026 10-Q (period ended 2025-12-27) · fiscal Q3 2025 10-Q (period ended 2025-06-28) · FY2025 10-K (period ended 2025-09-27) · FY2024 10-K (period ended 2024-09-28) · FY2023 10-K (period ended 2023-09-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer