Is IIIN a high-quality business?

AlphaMadera's AlphaQuality grade scores Insteel Industries, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how IIIN compares to a Buffett-style quality bar.

What is Insteel Industries, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to IIIN based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes IIIN a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

IIIN - Insteel Industries, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Platform & Compounding FCF

AlphaQuality — archetype-weighted quantitative grade

C+ 59.1 / 100 composite

Composite Grade

Composite of six pillars weighted for platform & compounding fcf businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 25%

C 56.0

5yr Avg ROIC 15.0% 80/100
Operating Margin Trend -2.91 pp/yr 0/100

Capital Efficiency

Weight: 15%

B+ 75.0

5yr Avg ROE 15.3% 81/100
5yr Share-Count CAGR 0.0% 64/100

Growth Quality

Weight: 25%

D- 29.8

5yr Revenue CAGR 2.3% 39/100
5yr EPS CAGR -11.4% 0/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 20%

B 74.5

5yr FCF Margin 7.0% 58/100
5yr FCF/NI Conversion 1.33x 94/100

Balance Sheet

Weight: 10%

A+ 98.8

Net Debt / EBITDA -0.48x 97/100
Interest Coverage (EBIT/Int) 1035.71x 100/100
Altman Z-Score 6.40 100/100

Stability

Weight: 5%

D- 31.3

EPS Volatility (σ/μ) 0.83 7/100
Piotroski F-Score 4 44/100
Negative-Revenue Years (5) 2/5 60/100

3 of 3 gurus held; 2 added; 1 trimmed.

Holders: 3 +1
Avg Δ position: +40.2%
New buys: 0
Full exits: 0

Laffont increased +96%
Wood decreased -15%
Cooperman increased

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (25%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (25%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (20%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (10%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (5%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.