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

Headquartered in Armstrong, Iowa, Art's-Way Manufacturing Co., Inc. designs, manufactures, and distributes agricultural equipment, modular science buildings, and steel cutting tools. The company operates through three segments: Agricultural Products, Modular Buildings, and Tools. Its Agricultural Products segment delivers specialized farm equipment including animal feed processing machinery, hay and forage tools, manure spreaders, sugar beet harvesters, and aftermarket parts. The Modular Buildings segment creates custom containment research laboratories, swine facilities, and academic research units, offering installation and rental services. The Tools segment manufactures carbide-tipped tools, polycrystalline diamond inserts, and OEM precision cutting tools.

Over a five-year period from FY2020 to FY2025, revenue grew at a CAGR of 0.5%. Annual revenue reached $30.3M in FY2023 before decreasing to $24.5M in FY2024 and $23.0M in FY2025, when revenue fell 6.2%. FY2025 gross margin was 25.8% and operating margin was 1.3%, though net income rose to $1.0M, or $0.20 per share. For the trailing twelve months ended August 31, 2026, revenue stood at $25.2M with a net profit margin of -1.7% and EPS of -$0.09. In the latest quarter ended August 31, 2026, revenue declined 12.7% year-over-year while quarterly earnings fell 88.5%.

As of August 31, 2026, Art's-Way held $2,855 in cash and short-term investments alongside total debt of $6.5M, resulting in net debt of $6.5M. Total assets stood at $26.2M against shareholders' equity of $13.7M, yielding a debt-to-equity ratio of 0.48 and a current ratio of 1.71. Operating cash flow in FY2025 was -$904,143, and free cash flow was -$1.5M. For FY2025, cash usage included $627,615 in capital expenditures and $1,542 in share buybacks, while share count increased 14.8% over five years.

At a share price of $3.17 and a market capitalization of $16.5M, Art's-Way trades at a forward P/E of 6.4x, which sits below the 17.2x median of its US-listed Industrials peers. Its price-to-sales multiple is 0.7x compared to the peer median of 1.5x, while EV/EBITDA stands at 16.5x versus the peer median of 13.9x. The stock has delivered a 1-year return of 20.3%, outperforming the S&P 500 (SPY) return of 16.8%, but its 5-year return of -6.9% trails the S&P 500 return of 83.0%.

Analysts have established a mean price target of $7.00 for Art's-Way, which represents an upside of 121.2% above its last close of $3.17 on October 16, 2026. Forward valuation estimates place the forward P/E multiple at 6.4x with a PEG ratio of 2.77.

This page is an AI-written research summary of Art's-Way Manufacturing Co., Inc. (ARTW). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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