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

• Market Cap: $8.44M
• Dividend Yield: N/A
• Average Volume (3M): 26.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.49
• Revenue Growth: -23.13%
• EPS Growth: -239.66%
• Country: US
• Employees: 90
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial Machinery
• EPS (TTM): -0.07
• Shares Outstanding: 5,082,459
• 10 Day Avg. Volume: 14,327
• 30 Day Avg. Volume: 26,079
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.34
• Price to Cash Flow (P/CF): 1.80
• P/FCF Ratio: 1.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• 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 overall stock score reflects its improved financial performance, particularly in terms of profitability and cash flow. However, revenue inconsistency and a weak valuation detract from its attractiveness. Technical indicators show a neutral to bearish outlook, which, combined with the valuation concerns, suggests a cautious approach for investors.

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

Company Description

Art's-Way Manufacturing Co., Inc. manufactures and distributes farm machinery niche products. It operates through the following segments: Agricultural Products, Modular Buildings and Tools. The Agricultural Products segment manufactures a variety of specialized farm machinery under its own label, including: portable and stationary animal feed processing equipment and related attachments used to mill and mix feed grains into custom animal feed rations; a crop production line that includes grain drill equipment; a line of hay and forage equipment consisting of forage boxes, blowers, running gear, dump boxes and mergers; stalk shredders; a line of portable grain augers; a line of manure spreaders; sugar beet harvesting equipment; a line of land maintenance equipment; moldboard plows, potato harvesters, and reels for combines and swathers. The Modular Buildings segment produces and sells modular buildings, which are custom designed to meet the specific research needs of its customers. It also provides services relating to the design, manufacturing, delivering, installation and renting of the building units that it produces. The Tools segment produces and sells standard single point brazed carbide tipped tools as well as polycrystalline diamond and cubic boron nitride inserts and tools. The company was founded by Arthur Luscombe in 1956 and is headquartered in Armstrong, IA.

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 has demonstrated solid financial improvements, with notable gains in profitability and cash flow generation. The reduction in debt levels and improvement in margins reflect enhanced operational efficiency and financial management. While the company faces challenges with revenue volatility and a need to boost equity further, its overall financial health has strengthened considerably.

Income Statement

Art's-Way Manufacturing Co has shown a positive trajectory in its income statement, with a significant improvement in gross profit margin and net profit margin over the years. The gross profit margin increased from 10.71% in 2020 to 29.84% in 2024. The company has recovered from net losses in 2019 and 2020, achieving a net profit margin of 1.25% in 2024. However, the revenue growth rate has been inconsistent, with a decline in revenue from 2023 to 2024. The EBIT margin and EBITDA margin showed positive trends, indicating improved operational efficiency.

Balance Sheet

Art's-Way Manufacturing Co has maintained a stable equity position, with a slight increase in stockholders' equity from 2023 to 2024. The debt-to-equity ratio improved significantly from 0.70 in 2023 to 0.23 in 2024, reflecting reduced leverage and lower financial risk. However, the equity ratio slightly decreased, indicating a relative increase in liabilities compared to assets. Despite these improvements, the company needs to focus on further strengthening its equity base.

Cash Flow

The cash flow situation for Art's-Way Manufacturing Co has improved notably. The operating cash flow turned positive in 2024, highlighting effective cash generation from operations. The free cash flow grew significantly, with a free cash flow to net income ratio of 7.00 in 2024, indicating strong cash flow relative to net income. The company has effectively managed its capital expenditures and financing activities, contributing to a healthier cash flow position.

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
2.81M	8.15M	7.72M	6.99M	5.19M
	Net Debt
2.81M	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: Negative
• Last Price: 1.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1.66 is below the 20-day moving average (MA) of 1.68, below the 50-day MA of 1.81, and below the 200-day MA of 1.69, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 46.91 is Neutral, neither overbought nor oversold. The STOCH value of 64.79 is Neutral, 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
DE	74 Outperform	$132.66B	22.14	27.91%	1.23%	-20.93%	-34.33%
LNN	70 Outperform	$1.42B	21.20	14.32%	1.09%	-7.17%	-0.53%
Sector *	62 Neutral	$8.16B	12.85	0.64%	3.04%	3.83%	-15.83%
ARTW	61 Neutral	$8.44M	―	-0.80%	―	-23.13%	-239.66%
TITN	58 Neutral	$330.47M	10.75	4.68%	―	12.25%	-71.53%
AGCO	55 Neutral	$7.65B	46.40	-10.11%	1.13%	-19.08%	-136.41%

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.