📊 ARTW Key Takeaways
Is Arts Way Manufacturing Co Inc. (ARTW) a Good Investment?
Arts Way Manufacturing shows impressive profitability improvement with 236.7% net income growth, but faces critical liquidity and cash generation risks that undermine financial stability. The company's cash position of only $6K combined with negative free cash flow despite positive operating results indicates the business model is not sustainably funding operations and capital investments.
Profitability has improved sharply, with net income and diluted EPS rising more than 230%, but absolute returns and margins remain modest. Low leverage and adequate current liquidity support financial stability, while negligible cash, weak quick liquidity, and essentially zero free cash flow limit the quality and durability of the improvement.
Arts Way Manufacturing Co Inc. Key Strengths (ARTW)
- Strong net income growth of 236.7% YoY demonstrates operational turnaround
- Low leverage ratio of 0.17x provides financial flexibility and safety
- Positive operating cash flow of $510.4K shows core business can generate cash
- Healthy current ratio of 2.17x indicates near-term liquidity buffer beyond cash position
- Net income increased 236.7% year over year, indicating a meaningful earnings recovery
- Low leverage, with long-term debt of $2.41 million and debt-to-equity of 0.17x
- Current ratio of 2.17x provides reasonable coverage of short-term obligations
ARTW Stock Risks: Arts Way Manufacturing Co Inc. Investment Risks
- Critically depleted cash position of $6K creates severe liquidity vulnerability and operational risk
- Negative free cash flow of -$6.6K despite profitable operations signals unsustainable capital deployment
- Very low profitability margins (2.6% net margin) and capital efficiency (2.7% ROE, 1.6% ROA) limit earning power
- Quick ratio of 0.61x indicates current liabilities exceed liquid assets; heavily dependent on inventory conversion
- Limited scale at $14.5M revenue with thin 27.2% gross margins constrains growth potential
- CapEx nearly equals operating cash flow, raising questions about capital allocation returns
- Net margin of 2.6%, ROE of 2.7%, and ROA of 1.6% indicate weak underlying profitability
- Cash of only $5.97 thousand and a 0.61x quick ratio signal dependence on inventory and working-capital conversion
- Capital expenditures consumed nearly all operating cash flow, leaving free cash flow slightly negative
Key Metrics to Watch
- Cash position and liquidity trajectory—immediate solvency concern requiring resolution
- Free cash flow sustainability—must turn positive to validate business model viability
- Gross margin stability—thin 27.2% margin leaves little room for revenue declines
- Operating cash flow consistency—verify if $510.4K is repeatable or driven by working capital timing
- Return on invested capital—ROE of 2.7% must improve to justify ongoing capital investment
- Revenue growth rate and market demand—top-line expansion critical to achieve economies of scale
- Operating margin and interest coverage
- Operating cash flow and free cash flow conversion
Arts Way Manufacturing Co Inc. (ARTW) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.17x current ratio provides a solid financial cushion.
ARTW Profit Margin, ROE & Profitability Analysis
ARTW vs Industrial Sector: How Arts Way Manufacturing Co Inc. Compares
How Arts Way Manufacturing Co Inc. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Arts Way Manufacturing Co Inc. Stock Overvalued? ARTW Valuation Analysis 2026
Based on fundamental analysis, Arts Way Manufacturing Co Inc. has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Arts Way Manufacturing Co Inc. Balance Sheet: ARTW Debt, Cash & Liquidity
ARTW Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Arts Way Manufacturing Co Inc.'s revenue has grown significantly by 32% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.06 reflects profitable operations.
ARTW Revenue Growth, EPS Growth & YoY Performance
ARTW Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $6.3M | $173.5K | N/A |
| Q1 2026 | $5.1M | -$55.8K | $-0.01 |
| Q3 2025 | $5.9M | -$26.2K | $-0.01 |
| Q2 2025 | $6.3M | -$33.3K | $-0.01 |
| Q1 2025 | $5.1M | -$55.8K | $-0.01 |
| Q3 2024 | $5.9M | -$26.2K | $-0.01 |
| Q2 2024 | $6.7M | -$33.3K | $-0.01 |
| Q1 2024 | $5.7M | $342.2K | $0.07 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Arts Way Manufacturing Co Inc. Dividends, Buybacks & Capital Allocation
ARTW SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Arts Way Manufacturing Co Inc. (CIK: 0000007623)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ARTW
What is the AI rating for ARTW?
Arts Way Manufacturing Co Inc. (ARTW) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 79% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ARTW's key strengths?
Claude: Strong net income growth of 236.7% YoY demonstrates operational turnaround. Low leverage ratio of 0.17x provides financial flexibility and safety. ChatGPT: Net income increased 236.7% year over year, indicating a meaningful earnings recovery. Low leverage, with long-term debt of $2.41 million and debt-to-equity of 0.17x.
What are the risks of investing in ARTW?
Claude: Critically depleted cash position of $6K creates severe liquidity vulnerability and operational risk. Negative free cash flow of -$6.6K despite profitable operations signals unsustainable capital deployment. ChatGPT: Net margin of 2.6%, ROE of 2.7%, and ROA of 1.6% indicate weak underlying profitability. Cash of only $5.97 thousand and a 0.61x quick ratio signal dependence on inventory and working-capital conversion.
What is ARTW's revenue and growth?
Arts Way Manufacturing Co Inc. reported revenue of $14.5M.
Does ARTW pay dividends?
Arts Way Manufacturing Co Inc. pays dividends, with $0.2M distributed to shareholders in the trailing twelve months.
Where can I find ARTW SEC filings?
Official SEC filings for Arts Way Manufacturing Co Inc. (CIK: 0000007623) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ARTW's EPS?
Arts Way Manufacturing Co Inc. has a diluted EPS of $0.04.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ARTW's fundamental grade?
Based on our AI fundamental analysis in August 2026, Arts Way Manufacturing Co Inc. has a C grade with 79% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is ARTW stock overvalued or undervalued?
Valuation metrics for ARTW: ROE of 2.7% (sector avg: 15%), net margin of 2.6% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is ARTW's AI grade for 2026?
Our dual AI analysis gives Arts Way Manufacturing Co Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ARTW's free cash flow?
Arts Way Manufacturing Co Inc.'s operating cash flow is $510.4K, with capital expenditures of $517.1K. FCF margin is 0.0%.
How does ARTW compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 2.6% (avg: 10%), ROE 2.7% (avg: 15%), current ratio 2.17 (avg: 1.8).