📊 ARTW Key Takeaways
Is Arts Way Manufacturing Co Inc. (ARTW) a Good Investment?
Arts Way Manufacturing faces significant operational challenges with deteriorating cash generation, negative free cash flow of -1.5M, and weak operating margins of just 1.3% despite a 27.3% gross margin. While net income improved substantially YoY, this is overshadowed by negative operating cash flow, low liquidity (0.48x quick ratio), and minimal cash reserves of only 4.8K, creating potential solvency concerns in an economic downturn.
Art's Way Manufacturing shows modest reported profitability improvement, but the quality of that earnings rebound is weak because revenue declined, operating margin remains very thin, and free cash flow was solidly negative. The balance sheet is not heavily levered, yet extremely low cash, weak quick liquidity, and limited interest coverage make the company fundamentally fragile unless operating cash flow improves materially.
Arts Way Manufacturing Co Inc. Key Strengths (ARTW)
- Solid gross margin of 27.3% demonstrates adequate pricing power and production efficiency
- Net income improved 236.7% YoY showing recent profitability improvement from prior losses
- Reasonable debt-to-equity ratio of 0.19x indicates conservative capital structure
- Current ratio of 2.30x suggests adequate short-term liquidity on paper
- Low balance-sheet leverage with debt-to-equity of 0.19x
- Positive net income and improved ROE/ROA versus the prior year
- Current ratio of 2.30x suggests acceptable headline working-capital coverage
ARTW Stock Risks: Arts Way Manufacturing Co Inc. Investment Risks
- Negative free cash flow of -1.5M and operating cash flow of -904.1K indicate the company is burning cash despite reported profitability
- Critically low cash reserves of 4.8K create severe liquidity risk and limit financial flexibility
- Poor quick ratio of 0.48x suggests heavy reliance on inventory liquidation for near-term obligations
- Revenue declining 6.2% YoY in a cyclical industry with extremely thin operating margin of 1.3%
- Weak interest coverage of 1.7x provides minimal cushion for debt servicing
- Capital expenditures of 627.6K cannot be sustained with negative free cash flow
- Revenue declined 6.2% year over year, indicating weak top-line momentum
- Operating cash flow was negative and free cash flow was -$1.53M, reducing earnings quality
- Cash balance is extremely low and interest coverage of 1.7x leaves limited cushion
Key Metrics to Watch
- Operating cash flow trend - critical to confirm if -904.1K represents cyclical weakness or structural deterioration
- Cash balance and burn rate - 4.8K reserve is dangerously low and requires immediate attention
- Revenue trend reversal - need to see evidence that -6.2% YoY decline is stabilizing
- Working capital management - inventory and receivables efficiency given weak quick ratio
- Capital expenditure sustainability - current spending cannot be justified by FCF generation
- Operating cash flow and free cash flow trend
- Operating margin and interest coverage
Arts Way Manufacturing Co Inc. (ARTW) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.30x 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 |
|---|---|---|---|
| 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 |
| Q3 2023 | $7.5M | $6.4K | $0.00 |
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 (C) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ARTW's key strengths?
Claude: Solid gross margin of 27.3% demonstrates adequate pricing power and production efficiency. Net income improved 236.7% YoY showing recent profitability improvement from prior losses. ChatGPT: Low balance-sheet leverage with debt-to-equity of 0.19x. Positive net income and improved ROE/ROA versus the prior year.
What are the risks of investing in ARTW?
Claude: Negative free cash flow of -1.5M and operating cash flow of -904.1K indicate the company is burning cash despite reported profitability. Critically low cash reserves of 4.8K create severe liquidity risk and limit financial flexibility. ChatGPT: Revenue declined 6.2% year over year, indicating weak top-line momentum. Operating cash flow was negative and free cash flow was -$1.53M, reducing earnings quality.
What is ARTW's revenue and growth?
Arts Way Manufacturing Co Inc. reported revenue of $23.0M.
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 $0.20.
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 June 2026, Arts Way Manufacturing Co Inc. has a C grade with 78% 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 7.8% (sector avg: 15%), net margin of 4.5% (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 $-904.1K, with capital expenditures of $627.6K. FCF margin is -6.7%.
How does ARTW compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 4.5% (avg: 10%), ROE 7.8% (avg: 15%), current ratio 2.30 (avg: 1.8).