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Fundamental analysis: Arts-Way Manufacturing Co., Inc. (ARTW)

Awarener score: 4.7

Conclusion

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 7.5

• Business has been growing at a low pace. It's been encouraging in relation to peer companies.
• Arts-Way Manufacturing Co., Inc. business trend stability is excellent. The higher the stability, the lower the risk. It looks better than most rivals.

Margins score: 4.0

• ARTW profit margins -on goods and services sold- are usually meagre. They stand slightly worse than rival companies.
• Business profit on sales tends to be meagre. It's weak when measured against competitors.
• Profits on sales made -available to repay debt and purchase properties- are usually meagre. They remain in a very weak position compared to peers.
• Earnings -before income taxes and interests on loans taken- tend to be meagre in relation to total revenues. They're still worse than most similar companies.
• Profits -before income taxes- are usually meagre considering total sales, and remain substantially worse when measured against rivals.
• Total net profit tends to be meagre when confronted to sales. Company stands substantially worse when measured against comparable firms.

Growth score: 2.0

• Arts-Way Manufacturing Co., Inc. profit -on goods and services sold- has been growing at a very good pace. It's been impressive in relation to competitors.
• In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
• In past years, the company couldn't always turn a profit -available to repay debt and purchase properties-, which compares last-in-rank when measured against peer enterprises.
• In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
• In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
• In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
• The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 6.3

• ARTW had still to pay income taxes, even though in recent past years mostly lost money. It's been bottom tier against peers.
• Research and development expenses consume a very little portion of revenues. It's almost average when measured against competitors.
• The company shows very good business growth in relation to research and development efforts. It stands rather normal in relation to rival companies.

Profitability score: 4.0

• Arts-Way Manufacturing Co., Inc. usually gets low returns on the resources it controls. It proves substantially worse when measured against peer firms.
• The company normally gets low proceeds -on the resources directly invested in the business-. They remain in a very weak position compared to similar companies.
• Profitability -in relation to owned resources- is usually lacking. It ranks weak when measured against competitors.
• In the past, got low returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's substantially worse when measured against comparable enterprises.

Usage of Funds score: 2.8

• ARTW on average doesn't generate genuine funds, so to buy or replace property, plants and equipment must either burn existing cash or increase debt. It stands substantially worse when measured against rival firms.
• The company is usually replacing some proportion of the property, plant, and equipment that gets old, saving part of the funds for something else, which is substantially worse when measured against industry peers.
• In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
• The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
• As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
• The company somewhat enlarges a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains in a weak position compared to peer enterprises.
• Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands in a very weak position compared to rivals.
• We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 4.3

• Arts-Way Manufacturing Co., Inc. has no intangible assets (like brands and goodwill) according to accounting books, which is safest. It happens to be top tier when measured against peer companies.
• The company has more short-term resources than short-term obligations. Liquidity concerns shouldn't be an issue. It turns to be in a weak position compared to similar firms.
• Roughly a third of resources controlled were provided for with financial debt. Creditors have claims on the company. It remains mediocre against rival firms.
• Most controlled resources can be made into cash reasonably quick, which is good for liquidity and risk. It looks almost average when measured against rivals.
• For every dollar of short-term obligations, the company has few cents of cash and short-term receivables. It's a disappointment compared to peer firms.
• For every dollar of short-term obligations, the company has extremely few cents of cash and equivalents, which is bottom tier against similar enterprises.
• Usually, sales are on a month credit. It still ranks more than average in relation to peers.
• Normally has approximately six months of sales worth in inventory. It comes up as in a very weak position compared to competitors.
• On average, it takes a lot of months from the purchase to charging customers. It happens to be mediocre against peers.
• On average pays suppliers two months after the purchase. It ranks below average when measured against industry peers.
• The company pays its suppliers six months or more before charging its customers, so there's abundant money invested in working capital. It's in a weak position compared to similar companies.
• Has usually been losing money on the business, so net interest expenses must be paid by increasing borrowings, which is unsustainable in the long run. The situation is very risky for both creditors and shareholders, profitability must increase. It stands bottom tier against rival firms.
• Business has usually been operated at a loss. Unless prospects improve, the company is no position to decrease loans taken levels but by additional shareholders' funding. Profitability must improve. It ranks last-in-rank when measured against comparable enterprises.
• Revenues are reasonable in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks in a very weak position compared to similar firms.
• Resource exploitation is excellent when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still slightly worse than peer companies.

Valuation score: 5.1

• Arts-Way Manufacturing Co., Inc. profits are really small compared to market valuation, market valuation doesn't rely on current earnings. It happens to be substantially worse when measured against competitors.
• Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains excellent in relation to peers.
• In the past twelve months, the company generated some good free funds in relation to the stock price, which stands well ranked against similar companies.
• In the past years the company hardly generated enough genuine funds to cover up for its business needs. Business prospects should improve enough to be in a better position to reward investors. It's still weak when measured against industry firms.
• In the past twelve months, the company has enlarged the pool of investors by issuing new shares. Future profits need to be high enough to justify the measure, as the pie of earnings will now be split among somewhat more stockholders. It came up in a weak position compared to peer ventures.
• The company is largely indebted. It should focus on loan repayment before rewarding stockholders. It looks bottom tier against similar enterprises.
• Considering the past twelve months, traditional Price-to-Earnings relation is huge, as profits were extremely low in relative terms. It ranks weak when measured against peer companies.
• Comparing the current stock price with the past twelve-months revenues gives a low relationship. One common cause includes profitability being poor. It looks in good shape compared to rival firms.
• The relation between the stock price and accounting book value might be more than reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains better than most peer firms.
• In the past twelve months, the operating business earned little money when compared to the current stock price and financial position. It happens to be below average when measured against industry peers.
• In an alternate metric of bang for the buck, the company has usually shown a low earnings power ability when measured against the current stock price and financial position. It's still in a very weak position compared to peer companies.

Total score: 4.5

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Awarener score: 4.7

Conclusion

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