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

• Market Cap: $9.18M
• Dividend Yield: N/A
• Average Volume (3M): 31.38K
• Price to Earnings (P/E): 277.4
• Beta (1Y): 0.65
• Revenue Growth: -19.47%
• EPS Growth: N/A
• Country: US
• Employees: 89
• Sector: Industrials
• Sector Strength: 79
• Industry: Agricultural - Machinery
• EPS (TTM): <0.01
• Shares Outstanding: 5,088,084
• 10 Day Avg. Volume: 39,559
• 30 Day Avg. Volume: 31,383
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 1.81
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Art's-Way Manufacturing Co's stock score reflects a stable financial base with good balance sheet health and cash flow. However, the stock is hindered by sluggish revenue growth and modest profitability. The technical indicators suggest neutral momentum, while the extremely high P/E ratio raises concerns over valuation. The overall score indicates a need for cautious consideration, with a focus on improving revenue growth and profitability.

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

Company Description

Art's-Way Manufacturing Co., Inc. (ARTW) is a diversified, international company that focuses on the manufacturing and distribution of agricultural machinery and equipment. Headquartered in Armstrong, Iowa, Art's-Way operates through several segments including agricultural products, modular buildings, and tools. The company is recognized for its high-quality products such as grinder mixers, hay and forage equipment, sugar beet harvesters, and land maintenance equipment, catering primarily to the agriculture sector.

How the Company Makes Money

Art's-Way Manufacturing Co. generates revenue through the sale of its agricultural machinery and equipment. The company's primary revenue stream comes from its agricultural products segment, where it designs, manufactures, and markets a range of farming equipment. Revenue is also derived from its modular buildings segment, which offers custom-built modular units for various industries, including agricultural, medical, and government sectors. Additionally, the tools segment contributes to revenue through the sale of precision steel fabrication services. Art's-Way's earnings are supported by its established distribution network and strategic partnerships with dealers and distributors, enabling the company to reach a wide customer base across domestic and international markets.

Art's-Way Manufacturing Co Financial Statement Overview

Summary

Art's-Way Manufacturing Co shows a stable financial position with a strong balance sheet and positive cash flow trends. The company maintains healthy profitability margins, though revenue growth has been sluggish and net income remains modest. A cautious debt approach is evident, supported by a solid equity base.

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
	EBIT
460.70K	1.53M	570.87K	523.41K	-3.91M
	EBITDA
460.70K	2.48M	1.27M	1.14M	-1.84M
	Net Income Common Stockholders
307.38K	266.97K	97.80K	212.63K	-2.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.86K	4.01K	5.05K	2.66K	2.68K
	Total Assets
21.24M	24.40M	23.95M	20.85M	18.80M
	Total Debt
4.78M	8.15M	7.72M	6.99M	5.19M
	Net Debt
4.78M	8.14M	7.72M	6.98M	5.18M
	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: Positive
• Last Price: 1.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARTW, the sentiment is Positive. The current price of 1.8 is above the 20-day moving average (MA) of 1.59, above the 50-day MA of 1.62, and above the 200-day MA of 1.69, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 67.82 is Neutral, neither overbought nor oversold. The STOCH value of 85.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
Sector *	64 Neutral	$4.28B	11.80	5.33%	250.46%	4.10%	-9.26%
ARTW	63 Neutral	$9.18M	277.38	2.35%	―	-19.47%	―
SHYF	61 Neutral	$320.66M	710.08	0.18%	2.18%	-4.08%	―
UGRO	38 Underperform	$5.46M	―	-146.60%	―	12.08%	25.82%
CEAD	37 Underperform	$5.67M	―	-29.32%	―	-59.43%	2.40%
HYFM	35 Underperform	$16.32M	―	-25.94%	―	-16.02%	-1.84%

Art's-Way Manufacturing Co Corporate Events

Art’s-Way Manufacturing Appoints McConnell as New CEO

Art’s-Way Manufacturing Co., Inc. has amicably parted ways with CEO David A. King, with Marc H. McConnell stepping into the role as of October 4, 2024. McConnell, with extensive experience in the industry and leadership roles, also serves as Chairman of the Board and has been a director since 2001. The company, which has faced a challenging market, is implementing cost-cutting measures and aiming for new dealer acquisitions to bolster sales, while also reporting a modest increase in its Modular Buildings segment. This leadership transition comes as Art’s-Way looks to navigate a period of market instability and position itself for future growth.