Profitable, but burning cash. Reports a profit, but free cash flow is negative.
Insteel Industries reports a profit but its free cash flow is negative: it spent more on investment and running the business than it brought in. That's common for companies building capacity, but it means the profit isn't yet turning into cash.
Stock pay outran buybacks. Stock-based pay expense $9M vs $6M spent repurchasing shares over the 3 fiscal years to FY Sep 2025. Shares outstanding changed −0.6% from October 2022 to July 2026.
Over three fiscal years Insteel Industries recorded $9M of stock-based pay expense and spent $6M repurchasing shares (repurchases can include shares withheld to cover employees' taxes). Repurchases were smaller than the stock pay, so they did little to offset new employee shares.Over three fiscal years Insteel Industries recorded $9M of stock-based pay expense and spent $6M repurchasing shares. Repurchases were smaller than the stock pay, so they did little to offset new employee shares.
Valuation signals disagree.Cheaper than 77% of peers on operating cash profit (EBITDA), but only 0% on free cash flow.Cheaper than 77% of peers on operating cash profit, but only 0% on free cash flow.
Relative to its operating cash profit (EBITDA), Insteel Industries looks cheaper than 77% of peers; relative to its free cash flow, cheaper than only 0%. The valuation score blends the two, so look at which measure fits this business best.Relative to its operating cash profit, Insteel Industries looks cheaper than 77% of peers; relative to its free cash flow, cheaper than only 0%. The valuation score blends the two, so look at which measure fits this business best.
Since last quarter: No major changeValuation also moves with the share price every day.
Why it changed since the Oct 27, 2026 close: Score 67 → 66
Peer companies moved-1
Each step re-scores the company against its peers as they were on Oct 28, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.
Sector-normalized EBITDA, earnings, and free cash flow yields.
Earnings yield6.6%
SEC filings · 12 months to Jun 2026Reported value30% base weight · Z-score 0.95Sector median: 0.0377 · MAD: 0.0294
EBITDA yield12.1%
Yahoo Finance fallback · SEC enterprise value unavailable (debt or EBITDA not reported in standard form) · trailing 12 monthsReported value50% base weight · Z-score 1.22Sector median: 0.0695 · MAD: 0.0425
Free cash flow yield-1.8%
SEC filings · 12 months to Jun 2026 · operating cash flow − capital spendingNegative (a loss or cash outflow), so it counts as zero whatever the share price20% base weight · Z-score -1.00Sector median: 0.0370 · MAD: 0.0370
Why it changed since the Oct 27, 2026 close: Score 62 → 63
Peer companies moved+1
Each step re-scores the company against its peers as they were on Oct 28, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.
Yahoo Finance fallback · no standard SEC debt tagReported value33% base weight · Z-score 1.17Sector median: 0.4019 · MAD: 0.3378
Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.
Questions investors ask about Insteel Industries
Is Insteel Industries getting weaker?
Its latest SEC filing (Jul 16, 2026) got weaker in some ways: free cash flow turned negative over the last 12 months. Its overall score is unchanged at 72/100 since Oct 28, 2026.
How is Insteel Industries valued vs its peers?
Priced lower than most peers relative to what it earns. Valuation scores 66/100 against 2,459 industrials peers.EBITDA yield 12.1% vs a peer median of 6.9% (stronger than 77% of peers).EBITDA yield 12.1% vs peers 6.9% (stronger than 77% of peers).Free cash flow yield -1.8% vs a peer median of 3.7% (weaker than 100% of peers).Free cash flow yield -1.8% vs peers 3.7% (weaker than 100% of peers).
Is Insteel Industries growing?
Yes, faster than most of its peers. Growth scores 63/100 against 2,459 industrials peers.Revenue growth 17.1% vs a peer median of 4.4% (stronger than 83% of peers).Revenue growth 17.1% vs peers 4.4% (stronger than 83% of peers).3-year revenue growth 0.4% vs a peer median of 4.2% (weaker than 67% of peers).3-year revenue growth 0.4% vs peers 4.2% (weaker than 67% of peers).
How profitable is Insteel Industries?
More profitable than most of its peers. Profitability scores 67/100 against 2,459 industrials peers.Return on assets 7.7% vs a peer median of 3.1% (stronger than 86% of peers).Return on assets 7.7% vs peers 3.1% (stronger than 86% of peers).
How risky is Insteel Industries?
Lower risk relative to 2,459 industrials peers, judged on debt, liquidity and share-price swings.Debt / equity 0.01× vs a peer median of 0.40× (stronger than 95% of peers).Debt / equity 0.01× vs peers 0.40× (stronger than 95% of peers). A relative measure, not a bankruptcy probability.
Latest filing: what changed
Quarter ended Jun 27, 2026 · filed Jul 16, 2026 · compared with the quarter ended Mar 28, 2026
Got weaker
Free cash flow turned negative over the last 12 months
Previous quarter
Latest quarter
Change
Revenue (12 months)
689.9M USD
707.7M USD
+2.6%
Net income (12 months)
42.5M USD
36.4M USD
−14.4%
Operating margin
8.0%
6.7%
−1.3 pts
Free cash flow (12 months)
6.7M USD
−9.8M USD
turned negative
Cash
15.1M USD
22.9M USD
+52.1%
Shares outstanding
19.4M
19.4M
−0.4%
From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.
Industry valuation context
Sector: Industrials · 318 companies
Valuations in Industrials are near the top of their range since 2016.
85% of months since 2016 were valued lower than now.
41% of companies are in the most expensive fifth of their own price-to-sales history.
Over 24 months, company values +20% and earnings +14% (medians): prices and earnings moved broadly together.
Median price-to-sales is −24% vs the whole market, against a usual −31%.
2016Shaded: most expensive fifth of its range2026
Insteel Industries looks cheaper than most of its peers on our valuation measures, while the Industrials sector as a whole is valued high by its own standards since 2016. Both can be true at once.
Shown for Industrials: too few Metal Fabrication companies have a long enough history of their own.
Describes valuations since 2016; it does not predict prices. US companies worth $1B+, from SEC filings and month-end prices, as of Aug 2026. Today's companies and industry labels are used throughout. Measured on earnings, EBITDA, sales and free cash flow yields. How this works
Financials
Fiscal years from SEC annual filings · change vs the prior year
Key ratios
FY Sep 2021
FY Sep 2022
FY Sep 2023
FY Sep 2024
FY Sep 2025
Change
Gross margin
20.6%
23.9%
10.1%
9.4%
14.4%
▲ 5.0 pts
Operating margin
14.6%
19.6%
5.9%
4.8%
8.3%
▲ 3.5 pts
Net margin
11.3%
15.1%
5.0%
3.6%
6.3%
▲ 2.7 pts
Return on assets (ROA)
17.0%
26.5%
7.2%
4.6%
8.9%
▲ 4.3 pts
Return on equity (ROE)
22.1%
32.1%
8.5%
5.5%
11.0%
▲ 5.5 pts
Free cash flow margin
8.9%
-1.2%
17.2%
7.4%
2.9%
▼ 4.5 pts
Current ratio
3.59×
5.36×
6.47×
5.68×
3.97×
▼ 30%
Quick ratio
2.44×
2.20×
4.24×
3.79×
1.88×
▼ 50%
Interest coverage
898.09×
1778.19×
440.60×
284.54×
1035.04×
▲ 264%
IIIN price history
Price history is added with the daily price update and will appear after the next one.