Our analysis is based on comparing Insteel Industries, Inc. with the following peers – Commercial Metals Company, Northwest Pipe Company, Nucor Corporation, Universal Stainless & Alloy Products, Inc., Aspen Aerogels Inc, Usha Martin Limited Unsponsored GDR 144A, Valmont Industries, Inc. and Omega Flex, Inc. (CMC-US, NWPX-US, NUE-US, USAP-US, ASPN-US, UHBTY-US, VMI-US and OFLX-US).
Insteel Industries, Inc.’s dividend yield is 4.01 percent and its dividend payout is 10.26 percent. This compares to a peer median dividend yield of 2.35 percent and a payout level of 28.95 percent. This relatively higher dividend yield and lower payout ratio makes the company a good candidate for dividend investors looking for good current dividend income within this peer group. On the contrary, the company’s average dividend quality score of 42 out of a possible score of 100, lessens its attractiveness for dividend investors.
Dividend Quality Overview
- Over the last twelve months (prior to September 30, 2017), IIIN-US paid a low quality dividend, which represents a yield of 0.43% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 3 were high quality and 2 were low quality.
- The ending cash balance, with a dividend coverage of 1.23x, provides a moderate cushion in case of a significant reduction of cash flows in the future.
Quadrant label definitions. Hover to know more
Over the last twelve months (prior to September 30, 2017), IIIN-US paid a low quality dividend.
The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 0.78x), investing cash flow (coverage of -0.80x), issuance cash flow (coverage of -0.01x) and twelve-month prior cash (coverage of 2.26x), for a total dividend coverage of 2.23x.
These coverage ratio factors imply that the firm had to dip into the beginning cash balance to pay the dividend, which suggests a low dividend quality.
|Dividend Yield (%)||2.27||0.57||0.74||3.03||5.23||4.01|
|Dividend Payout (%)||18.75||13.48||10.43||6.15||10.26||10.26|
A complete list of metrics and analysis is available on the company page.
Insteel Industries, Inc. manufactures and markets steel wire reinforcing products for concrete construction applications. It also manufactures and markets prestressed concrete strand and welded wire reinforcement, including concrete pipe reinforcement and engineered structural mesh. The company’s products are sold to manufacturers of concrete products that are used in nonresidential construction. Insteel Industries was founded by Howard Osler Woltz, Jr. in 1953 and is headquartered in Mount Airy, NC.
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