Art's-Way Manufacturing Co (ARTW) AI Stock Analysis

• Market Cap: $13.79M
• Dividend Yield: N/A
• Average Volume (3M): 52.89K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.60
• Revenue Growth: -14.22%
• EPS Growth: N/A
• Country: US
• Employees: 89
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 0.29
• Shares Outstanding: 5,108,084
• 10 Day Avg. Volume: 33,014
• 30 Day Avg. Volume: 52,889
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 0.54
• Enterprise Value/Gross Profit: 1.79
• Enterprise Value/Ebitda: 8.43
• 1Y Price Target: $3.00
• Price Target Upside: 13.21% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: $3.00 ▲(13.21% Upside)

Art's-Way Manufacturing Co's overall stock score is driven by a stable financial performance and attractive valuation. The company's strong balance sheet and positive cash flow trends provide a solid foundation, although revenue growth remains a challenge. Technical indicators suggest a bearish short-term trend, but the stock's low P/E ratio indicates potential undervaluation.

Art's-Way Manufacturing Co Business Overview & Revenue Model

Company Description

Art's-Way Manufacturing Co., Inc. manufactures and sells agricultural equipment, specialized modular science buildings, and steel cutting tools in the United States and internationally. The company operates through three segments: Agricultural Products, Modular Buildings, and Tools. The Agricultural Products segment offers various specialized farm machinery, including portable and stationary animal feed processing equipment and related attachments; hay and forage equipment, such as forage boxes, bale processors, running gears, and dump boxes; manure spreaders; sugar beet harvesting equipment; dirt work equipment; and after-market service parts. The Modular Buildings segment produces, sells, and leases swine buildings, complex containment research laboratories, and research facilities for academic research institutions, government research and diagnostic centers, public health institutions, and private research and pharmaceutical companies. This segment also designs, manufactures, delivers, installs, and rents building units. The Tools segment offers standard single point brazed carbide tipped tools, polycrystalline diamond and cubic boron nitride inserts and tools, and original equipment manufacturer (OEM) specialty tools to the automotive, aerospace, oil and gas piping, and appliances industries. The company markets and sells its products through independent farm equipment dealers, manufacturers' representatives, direct sales, and OEM sales channels. Art's-Way Manufacturing Co., Inc. was founded in 1956 and is based in Armstrong, Iowa.

How the Company Makes Money

Art's-Way Manufacturing generates revenue primarily through the sale of its agricultural machinery and equipment, which constitutes a significant portion of its income. The company earns money by selling feed mixers, grinders, and other agricultural machinery directly to farmers and agricultural businesses. Additionally, it generates revenue from its meat processing equipment segment, providing specialized machinery to meat processors. Custom manufacturing services also contribute to its earnings, as the company partners with clients to create tailored solutions. Key partnerships with agricultural cooperatives and distributors further enhance its market reach, driving sales and increasing revenue. Overall, Art's-Way's revenue model is centered on the sales of its diversified product offerings and services, supported by strategic partnerships within the agricultural and industrial sectors.

Art's-Way Manufacturing Co Financial Statement Overview

Summary

Art's-Way Manufacturing demonstrates a stable financial position with a strong balance sheet and positive cash flow trends. The company has a good equity base and conservative debt levels. However, revenue growth is declining, and net income remains modest.

Income Statement

Art's-Way Manufacturing has shown a mixed performance on the income statement. The gross profit margin is healthy at 30.2% for the TTM period, which indicates effective cost control relative to revenue. However, the net profit margin is modest at 3.0%, suggesting limited profitability after accounting for all expenses. Revenue has declined by 2.4% from the previous annual report, indicating a potential challenge in maintaining sales momentum. EBIT and EBITDA margins are positive, showing operational profitability, albeit not very strong.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio is 0.25, indicating a conservative use of debt financing relative to equity. The return on equity (ROE) stands at 5.9% for the TTM, showing a reasonable return on shareholders' investments. The equity ratio is strong at 57.5%, suggesting a solid equity base relative to total assets. Overall, the company maintains a healthy balance between debt and equity, with a good equity cushion.

Cash Flow

Cash flow analysis reveals a positive outlook with strong operating cash flow relative to net income, showing a robust cash-generating capability from core operations. The free cash flow growth rate is 10.3% from the previous annual report, indicating improving liquidity and cash availability for investments or debt reduction. However, cash reserves remain low, which could pose potential liquidity risks if not managed carefully.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.50M	30.28M	28.40M	24.97M	22.41M
Gross Profit	7.31M	8.58M	7.31M	6.60M	2.40M
EBITDA	460.70K	2.48M	1.27M	1.14M	-1.84M
Net Income	307.38K	266.97K	97.80K	212.63K	-2.10M
Balance Sheet
Total Assets	21.24M	24.40M	23.95M	20.85M	18.80M
Cash, Cash Equivalents and Short-Term Investments	1.86K	4.01K	5.05K	2.66K	2.68K
Total Debt	4.78M	8.15M	7.72M	6.99M	5.19M
Total Liabilities	9.15M	12.76M	12.80M	10.50M	8.90M
Stockholders Equity	12.09M	11.64M	11.15M	10.35M	9.91M
Cash Flow
Free Cash Flow	1.90M	-896.98K	-795.63K	-1.61M	-1.55M
Operating Cash Flow	2.63M	-55.19K	951.72K	-985.85K	-856.31K
Investing Cash Flow	961.07K	-453.51K	-1.34M	-599.48K	-501.65K
Financing Cash Flow	-3.59M	507.67K	394.52K	1.59M	1.36M

Art's-Way Manufacturing Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.65
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARTW, the sentiment is Negative. The current price of 2.65 is below the 20-day moving average (MA) of 3.00, below the 50-day MA of 3.22, and above the 200-day MA of 2.14, indicating a neutral trend. The MACD of -0.16 indicates Positive momentum. The RSI at 40.41 is Neutral, neither overbought nor oversold. The STOCH value of 7.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARTW.

Art's-Way Manufacturing Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARTW	66 Neutral	$13.79M	8.72	14.17%	―	-14.22%	―
HYFM	48 Neutral	14.30M	-0.22	-31.74%	―	-23.40%	13.78%
UGRO	38 Underperform	6.29M	-0.30	―	―	-20.80%	3.49%
BNC	37 Underperform	340.79M	-0.80	―	―	9.69%	-101.94%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%