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olivLaw · US equity research

Art's-Way Manufacturing Co., Inc. ARTW

Farm Machinery & Equipment · SIC 3523 · Vertical: Industrial machinery and computer equipment (SIC 352x)

2.81USD−1.58% · 1 dayClose 04 Nov 2026

Art's-Way Manufacturing makes agricultural equipment and modular research buildings, organized in two segments, agriculture and modular buildings. Consolidated net sales were 22.975 mil USD in fiscal 2025, and nine-month sales in fiscal 2026 rose 12.3%, supported by a record modular buildings backlog.

At the close of 04 Nov 2026, Art's-Way Manufacturing Co., Inc. (ARTW) stock was 2.81 USD (−1.58% on the day), with market capitalisation 14.6 m USD, dividend yield 2.14%, beta 0.62, 52-week range 2.07–3.67 USD. Latest reported quarter (Q3 2026): revenue of 5.6 m USD (−12.7% YoY), net income of -139.7 k USD (−155.0% YoY), diluted EPS -0.03 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
14.6 m USD
shares as of 02 Oct 2026
P/E (TTM)
unavailable
Diluted EPS TTM -0.09 · TTM to 31 Aug 2026
E/P (TTM)
-3.08%
TTM to 31 Aug 2026
Dividend yield
2.14%
DPS 12m 0.06
Beta (2y)
0.62
Volatility (1y) 65%
52-week range
2.073.67

Price history

Loading chart…

Technical reading

RSI (14)
41.3
weak (30–45)
Bollinger (20, 2)
2.58 – 3.65
in the lower half of the band · %B 0.21 · band width 34.4%
SMA 50 / 200
3.09 / 2.65
mixed trend
MACD (12, 26, 9)
-0.09 / -0.05
MACD below signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−15.0%−1.1%−13.9 pp—
3 months+26.9%−0.5%+27.4 pp—
6 months+7.9%+4.4%+3.5 pp—
Year to date+19.4%+12.3%+7.0 pp—
1 year+19.9%+13.5%+6.3 pp+6.4%
3 years+37.5%+76.4%−38.9 pp−0.7%
5 years−25.2%+63.7%−88.9 pp—
Max drawdown (1y)
−30.3%
21 Apr 2026 → 06 Aug 2026
Max drawdown (5y)
−80.7%
24 Mar 2022 → 07 Aug 2024
Compound annual growth (5y)
−5.6%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q3 2026 · 31 Aug 2026

Revenue
5.6 m USD
−12.7% YoY
Net income
-139.7 k USD
−155.0% YoY
Diluted EPS
-0.03
−160.0% YoY
net / operating
-2.5% / -1.2%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
Revenue6.2 m5.1 m6.3 m6.4 m5.1 m6.6 m7.9 m5.6 m
Cost of revenue3.9 m3.6 m4.3 m4.7 m4.1 m4.7 m5.8 m4.0 m
Gross profit2.2 m1.5 m2.1 m1.8 m944.3 k1.9 m2.0 m1.7 m
Operating income518.3 k2.5 k510.7 k344.7 k-568.4 k330.0 k286.6 k-70.0 k
Depreciation & amortisation204.2 k208.1 k189.9 k ≈196.0 k ≈198.2 k204.6 k205.1 k ≈215.3 k ≈
Interest expense127.6 k75.7 k99.7 k83.7 k107.7 k110.8 k113.0 k113.7 k
Pre-tax income407.3 k-70.4 k1.9 m321.3 k-689.7 k255.4 k225.9 k-180.0 k
Income tax75.1 k-14.7 k393.8 k67.1 k-44.1 k59.0 k52.4 k-40.3 k
Net income831.9 k-55.8 k1.5 m254.1 k-645.5 k196.4 k173.5 k-139.7 k
Diluted EPS0.16 ≈-0.010.290.05-0.13 ≈0.040.03-0.03
Operating cash flow1.2 m-101.8 k1.4 m ≈-1.3 m ≈-889.2 k148.4 k362.0 k ≈1.3 m ≈
Capex110.3 k82.7 k130.7 k ≈261.3 k ≈152.8 k176.4 k340.6 k ≈1.3 m ≈
Share repurchases01.5 k0 ≈0 ≈001.7 k ≈0 ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue19.7 m22.9 m22.4 m25.0 m25.6 m30.3 m24.5 m23.0 m
Revenue YoY−4.8%+16.0%−2.1%+11.4%+2.7%+18.1%−19.1%−6.2%
Net income-3.4 m-1.4 m-2.1 m212.6 k97.8 k267.0 k307.4 k1.0 m
Net income YoYunavailableunavailableunavailableunavailable−54.0%+173.0%+15.1%+236.7%
Diluted EPS-0.81-0.33-0.480.050.020.050.060.20
Diluted EPS YoYunavailableunavailableunavailableunavailable−60.0%+150.0%+20.0%+233.3%
net %-17.2%-6.2%-9.4%0.9%0.4%0.9%1.3%4.5%
Free cash flow-1.6 m360.7 k-1.5 m-1.6 m-717.8 k-897.0 k1.9 m-1.5 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 30 Nov 2025

Cash
4.8 k USD
Financial debt
2.5 m USD
Net debt
2.5 m USD
Equity
13.3 m USD
Total assets
22.5 m USD
Debt / equity
0.19x
Current ratio
2.30x
ROE
8.1%
ROA
4.7%
FCF margin
-6.7%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
30.3 m
2024
24.5 m
2025
23.0 m

SEC (XBRL)· 12 Feb 2026verified

Cost of revenue
2023
21.7 m
2024
17.2 m
2025
16.7 m

SEC (XBRL)· 12 Feb 2026verified

Gross profit
2023
8.6 m
2024
7.3 m
2025
6.3 m

SEC (XBRL)· 12 Feb 2026verified

Research & development
2023
204.0 k
2024
216.0 k
2025
228.0 k

SEC (XBRL)· 12 Feb 2026verified

Operating income
2023
1.5 m
2024
460.7 k
2025
289.5 k

SEC (XBRL)· 12 Feb 2026verified

Depreciation & amortisation
2023
774.4 k
2024
868.0 k
2025
792.1 k

SEC (XBRL)· 12 Feb 2026verified

EBITDA
2023
2.3 m ≈
2024
1.3 m ≈
2025
1.1 m ≈

SEC (XBRL)· 12 Feb 2026derived

Interest expense
2023
590.0 k
2024
599.4 k
2025
366.7 k

SEC (XBRL)· 12 Feb 2026verified

Pre-tax income
2023
1.1 m
2024
-135.5 k
2025
1.4 m

SEC (XBRL)· 12 Feb 2026verified

Income tax
2023
326.0 k
2024
-41.0 k
2025
402.2 k

SEC (XBRL)· 12 Feb 2026verified

Net income
2023
267.0 k
2024
307.4 k
2025
1.0 m

SEC (XBRL)· 12 Feb 2026verified

Diluted EPS
2023
0.05
2024
0.06
2025
0.20

SEC (XBRL)· 12 Feb 2026verified

Weighted average diluted shares
2023
5.0 m
2024
5.1 m
2025
5.1 m

SEC (XBRL)· 12 Feb 2026verified

Balance sheet · USD

Cash
2023
4.0 k
2024
1.9 k
2025
4.8 k

SEC (XBRL)· 12 Feb 2026verified

Receivables
2023
3.4 m
2024
2.4 m
2025
2.2 m

SEC (XBRL)· 12 Feb 2026verified

Inventories
2023
11.0 m
2024
10.3 m
2025
11.7 m

SEC (XBRL)· 12 Feb 2026verified

Current assets
2023
15.1 m
2024
13.1 m
2025
14.8 m

SEC (XBRL)· 12 Feb 2026verified

Property, plant & equipment, net
2023
5.1 m
2024
5.2 m
2025
5.1 m

SEC (XBRL)· 12 Feb 2026verified

Total assets
2023
24.4 m
2024
21.2 m
2025
22.5 m

SEC (XBRL)· 12 Feb 2026verified

Accounts payable
2023
2.3 m
2024
944.4 k
2025
902.3 k

SEC (XBRL)· 12 Feb 2026verified

Short-term debt
2023
109.2 k
2024
119.7 k
2025
165.3 k

SEC (XBRL)· 12 Feb 2026verified

Long-term debt
2023
2.6 m
2024
2.0 m
2025
2.3 m

SEC (XBRL)· 12 Feb 2026verified

Current liabilities
2023
9.4 m
2024
6.6 m
2025
6.4 m

SEC (XBRL)· 12 Feb 2026verified

Total liabilities
2023
12.8 m
2024
9.1 m
2025
9.2 m

SEC (XBRL)· 12 Feb 2026verified

Equity
2023
11.6 m †
2024
12.1 m †
2025
13.3 m †

SEC (XBRL)· 12 Feb 2026verified

Cash flow · USD

Operating cash flow
2023
-55.2 k
2024
2.6 m
2025
-904.1 k

SEC (XBRL)· 12 Feb 2026verified

Capex
2023
841.8 k
2024
724.7 k
2025
627.6 k

SEC (XBRL)· 12 Feb 2026verified

Free cash flow
2023
-897.0 k ≈
2024
1.9 m ≈
2025
-1.5 m ≈

SEC (XBRL)· 12 Feb 2026derived

Investing cash flow
2023
-453.5 k
2024
961.1 k
2025
-580.5 k

SEC (XBRL)· 12 Feb 2026verified

Financing cash flow
2023
507.7 k
2024
-3.6 m
2025
1.5 m

SEC (XBRL)· 12 Feb 2026verified

Share repurchases
2023
68.5 k
2024
37.7 k
2025
1.5 k

SEC (XBRL)· 12 Feb 2026verified

Computed indicators

Growth

Revenue growth (YoY)
-6.2%
computed by olivLawFY 2025
Revenue CAGR 3Y
-3.6%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
0.5%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
-37.2%
computed by olivLawFY 2025
Net income growth (YoY)
236.7%
computed by olivLawFY 2025
Net income CAGR 3Y
119.5%
computed by olivLawFY 2022 → FY 2025
Net income CAGR 5Y
unavailable
the base of the ratio is not positive
EPS growth (YoY)
233.3%
computed by olivLawFY 2025
EPS CAGR 3Y
115.4%
computed by olivLawFY 2022 → FY 2025
EPS CAGR 5Y
unavailable
the base of the ratio is not positive
FCF growth (YoY)
-180.5%
computed by olivLawFY 2025

Profitability

Gross margin
26.0%
computed by olivLawTTM to 31 Aug 2026
EBITDA margin
3.2%
computed by olivLawTTM to 31 Aug 2026
EBIT margin
-0.1%
computed by olivLawTTM to 31 Aug 2026
Net margin
-1.6%
computed by olivLawTTM to 31 Aug 2026
FCF margin
-4.1%
computed by olivLawTTM to 31 Aug 2026

Returns

ROE
-3.0%
computed by olivLawTTM to 31 Aug 2026 · balance sheet at 31 Aug 2026
ROA
-1.7%
computed by olivLawTTM to 31 Aug 2026 · balance sheet at 31 Aug 2026
ROIC
-0.1%
computed by olivLawTTM to 31 Aug 2026 · balance sheet at 31 Aug 2026
ROCE
-0.1%
computed by olivLawTTM to 31 Aug 2026 · balance sheet at 31 Aug 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
2.4 m USD
computed by olivLawbalance sheet at 31 Aug 2026
Net debt / EBITDA
2.9x
computed by olivLawTTM to 31 Aug 2026 · balance sheet at 31 Aug 2026
Debt / equity
0.2x
computed by olivLawbalance sheet at 31 Aug 2026
Interest coverage
-0.0x
computed by olivLawTTM to 31 Aug 2026

Liquidity

Current ratio
1.7x
computed by olivLawbalance sheet at 31 Aug 2026
Quick ratio
0.6x
computed by olivLawbalance sheet at 31 Aug 2026
Cash ratio
0.0x
computed by olivLawbalance sheet at 31 Aug 2026

Cash

Operating cash flow
959.1 k USD
computed by olivLawTTM to 31 Aug 2026
Capital expenditure
2.0 m USD
computed by olivLawTTM to 31 Aug 2026
Free cash flow
-1.0 m USD
computed by olivLawTTM to 31 Aug 2026
FCF conversion
unavailable
insufficient data
Cash conversion
119.7%
computed by olivLawTTM to 31 Aug 2026

Efficiency

Days sales outstanding
51 days
computed by olivLawTTM to 31 Aug 2026 · balance sheet at 31 Aug 2026
Days inventory outstanding
223 days
computed by olivLawTTM to 31 Aug 2026 · balance sheet at 31 Aug 2026
Days payables outstanding
23 days
computed by olivLawTTM to 31 Aug 2026 · balance sheet at 31 Aug 2026
Cash conversion cycle
251 days
computed by olivLawTTM to 31 Aug 2026 · balance sheet at 31 Aug 2026

Market and valuation

Market capitalisation
14.6 m USD
computed by olivLawbalance sheet at 31 Aug 2026
Enterprise value
17.0 m USD
computed by olivLawbalance sheet at 31 Aug 2026
Market cap / net income TTM
unavailable
insufficient data
P/E (TTM)
unavailable
insufficient data
Earnings yield
-3.1%
computed by olivLawTTM to 31 Aug 2026
P/B
1.1x
computed by olivLawbalance sheet at 31 Aug 2026
P/S
0.6x
computed by olivLawTTM to 31 Aug 2026 · balance sheet at 31 Aug 2026
EV/EBITDA
21.2x
computed by olivLawTTM to 31 Aug 2026 · balance sheet at 31 Aug 2026
EV/EBIT
unavailable
insufficient data
EV/Sales
0.7x
computed by olivLawTTM to 31 Aug 2026 · balance sheet at 31 Aug 2026
P/FCF
unavailable
the base of the ratio is not positive
FCF yield
-7.1%
computed by olivLawTTM to 31 Aug 2026 · balance sheet at 31 Aug 2026
Dividend yield
2.1%
computed by olivLawTTM to 31 Aug 2026
Shareholder yield (distributions)
0.0%
computed by olivLawTTM to 31 Aug 2026 · balance sheet at 31 Aug 2026

Risk

Altman Z
2.44
computed by olivLawbalance sheet at 31 Aug 2026

Valuation

olivLaw classification

Unattractive profile

Score: 18 / 100

A scoring methodology on indicators and valuation, not investment advice.

score < 40

Closing price

2.81 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 14.6 m USD

Key indicators

Market capitalisation
14.6 m USD
computed by olivLawbalance sheet at 31 Aug 2026
P/E (TTM)
unavailable
insufficient data
P/B
1.1x
computed by olivLawbalance sheet at 31 Aug 2026
EV/EBITDA
21.2x
computed by olivLawTTM to 31 Aug 2026 · balance sheet at 31 Aug 2026
ROE
-3.0%
computed by olivLawTTM to 31 Aug 2026 · balance sheet at 31 Aug 2026
Net margin
-1.6%
computed by olivLawTTM to 31 Aug 2026
Revenue growth (YoY)
-6.2%
computed by olivLawFY 2025
Dividend yield
2.1%
computed by olivLawTTM to 31 Aug 2026

Coverage and freshness

31/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 31 Aug 2026
Latest balance sheet date: 31 Aug 2026
Share count (cover of the latest filing), as of: 02 Oct 2026
Source: SEC (XBRL)published 13 Oct 2026
verified 2381derived 216

Score by group

  • Balance sheet30
  • Valuation0
  • Quality0
  • Growth50
  • Returns0

Estimated value range

Low
0.79
USD per share
Mid
0.90
USD per share
High
1.06
USD per share
Price: 2.81 USD
The price is above the range
Potential to the central value: -67.8% (value / price − 1)
Margin of safety: -210.1% (1 − price / value)
Agreement between methods: single method · 1 methods used · 1 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 0.79 – 1.06 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)unavailable · the base of the ratio is not positive
  • Peers: EV/EBITDAunavailable · not enough peers
  • Peers: P/Eunavailable · the base of the ratio is not positive
  • Dividend discount (DDM)0.79 – 1.06 (Mid 0.90)
Multiple comparisons use the SIC vertical: Industrial machinery and computer equipment (SIC 352x)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Unattractive profile · Score 18/100

FactorValueScoreWeight used
ROIC · Quality-0.1%0 (on a fixed band)13%
Net margin · Quality-1.6%0 (vs peers)8%
FCF conversion · Qualityunavailableunavailable—
Revenue CAGR 3Y · Growth-3.6%0 (on a fixed band)11%
EPS CAGR 3Y · Growth115.4%100 (on a fixed band)11%
Net debt / EBITDA · Balance sheet2.9x30 (on a fixed band)13%
Interest coverage · Balance sheet-0.0x0 (on a fixed band)8%
Current ratio · Balance sheet1.7x76 (on a fixed band)5%
P/E (TTM) · Valuationunavailableunavailable—
EV/EBITDA · Valuation21.2x0 (on a fixed band)13%
FCF yield · Valuation-7.1%0 (on a fixed band)11%
Shareholder yield (distributions) · Returns0.0%0 (on a fixed band)8%
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet30/100 · 3/3 factors with a value
  • Growth50/100 · 2/2 factors with a value
  • Quality0/100 · 2/3 factors with a value
  • Returns· partial0/100 · 1/2 factors with a value
  • Valuation0/100 · 2/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

ARTS WAY MANUFACTURING CO INC (ARTW). Latest full fiscal year: 2025; data up to 2026-08-31.

Figures computed from the financial statements: revenue 23.0 m USD in 2025; YoY growth -6.2%; net margin -1.6%; ROE -3.0%; net debt/EBITDA 2.9x.

The estimated value range is 0.79–1.06 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 0.90 USD, the price of 2.81 USD leaves a potential of -67.8% (value / price − 1) and a margin of safety of -210.1% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 18/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: returns. Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • EPS CAGR 3Y: 115.4%
  • Current ratio: 1.7x

What contradicts it

  • ROIC: -0.1%
  • Net margin: -1.6%
  • Revenue CAGR 3Y: -3.6%
  • Interest coverage: -0.0x
  • EV/EBITDA: 21.2x
  • FCF yield: -7.1%
  • Shareholder yield (distributions): 0.0%
  • The price is above the estimated value range

Not assessed (insufficient data or a ratio without meaning): FCF conversion, P/E (TTM), Payout ratio (FCF).

Versus the vertical median

Industrial machinery and computer equipment (SIC 352x) · same industry group (3-digit SIC) · compared with 5 companies

Multiples and returns vs the median

P/E
—
vertical median 28.7x
EV/EBITDA
21.2x
vertical median —
P/S
0.6x
vertical median 1.7x
below median (−66.8%)
P/B
1.1x
vertical median 2.2x
below median (−51.6%)
ROE
-3.0%
vertical median 10.7%
below median (−128.1%)
Net margin
-1.6%
vertical median 7.6%
below median (−121.6%)
EBIT margin
-0.1%
vertical median 8.6%
below median (−101.0%)
Revenue YoY
-6.2%
vertical median -6.0%
at median
Net debt/EBITDA
2.9x
vertical median —
Dividend yield
2.1%
vertical median 1.0%
above median (+104.3%)

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
DEDeere & Co182.4 bn37.618.3%10.2%−11.7%+46% / +86%
TTCThe Toro Company10.2 bn28.726.4%7.6%−1.6%+54% / +30%
AGCOAgco Corp7.8 bn29.06.5%2.8%−13.5%+6% / −1%
ALGAlamo Group Inc.1.8 bn22.56.7%4.7%−1.5%−10% / −22%
LNNLindsay Corporation1.1 bn20.510.7%8.8%−6.0%−5% / −8%
ARTWArts Way Manufacturing Co Inc14.6 m—-3.0%-1.6%−6.2%+20% / +38%

1- and 3-year price returns: for ARTW from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
3 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
5 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
What moves the 3-year price the most

    AI analysis

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    In brief

    Art's-Way Manufacturing makes agricultural equipment and modular research buildings, organized in two segments, agriculture and modular buildings. Consolidated net sales were 22.975 mil USD in fiscal 2025, and nine-month sales in fiscal 2026 rose 12.3% 2, supported by a record modular buildings backlog.

    SWOT

    Strengths

    • The company has a dealer network and brand recognition in niche agricultural markets, with a broad range of its own products.
    • The modular buildings segment delivers quickly, in months rather than years, and reported strong profitability in fiscal 2025.
    • The balance sheet has strengthened, with rising working capital and banking relations described by management as positive.

    Weaknesses

    • The agricultural segment lost sales in fiscal 2025 and posted an operating loss, while most corporate overhead sits within it.
    • Gross margins fell in several periods, and material and operating costs weighed on profitability.
    • The company depends on one customer for a significant share of revenue and on imported components for some products.

    Opportunities

    • The modular buildings backlog, the largest in the segment's history, could support revenue growth in the coming period.
    • New clear-view beet heads could attract farmers who cannot replace their entire harvesters at once.
    • Expansion into international markets already served, such as Australia, Japan and the United Kingdom, could diversify revenue.

    Threats

    • Steel and oil costs could keep margins under pressure in both segments if the pressure persists.
    • Tariffs and trade policy could raise the cost of imported components, especially for manure spreader beaters.
    • A weak farm sector with low crop prices and high borrowing costs could again reduce equipment demand.

    Risks

    • Cost pressurehigh

      Rising material and operating costs could erode the remaining margins, especially if oil prices keep climbing 2.

    • Dependence on the farm sectorhigh

      Demand for farm equipment depends on farmer income, which is cyclical and sensitive to crop prices and interest rates 1.

    • Modular project timingmedium

      Revenue recognition on projects can produce weak quarters even when the backlog is solid 2.

    • Financing and debtmedium

      The company relies on external financing for capital needs, and obtaining reasonable terms could become harder 12.

    • Dominant customerlow

      One customer represents a significant share of consolidated revenue, which could magnify the effect of a lost order 1.

    Investment thesis

    What would need to be true (bull case)

    • If the record modular backlog converts into revenue and livestock equipment demand stays strong, margins could gradually recover.
    • If interest rates ease and farm prices recover, agricultural demand could return toward earlier levels.
    • If new products such as the ClearView beet heads gain share, the company could reduce its reliance on beet demand.

    What would break the thesis

    • If steel and oil prices stay high, margins in both segments could keep falling.
    • If the farm sector stays weak, equipment demand could be hit again, as it was in fiscal 2025.
    • If revenue recognition on modular projects remains uneven, quarterly results could stay volatile.

    What to watch

    • Agricultural segment gross margin relative to steel pricesQ4 2026
    • Conversion of the modular buildings backlog into revenue2027
    • Sugar beet demand and the uptake of the ClearView beet heads2027
    • Next annual report detail on financing and debtnext 10-K

    Products, market & competition

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    The business

    Art's-Way Manufacturing Co., Inc., headquartered in Armstrong, Iowa, has manufactured farm equipment since 1956 and later added modular science buildings 1. The company is organized in two operating segments, Agricultural Products and Modular Buildings, each with its own strategy and technology 1. The agricultural segment accounted for 55.5% of net revenue in fiscal 2025, and modular buildings for 44.5% 1.

    Segments

    Agricultural Products

    The segment sells under its own label feed mills, manure spreaders, forage equipment, sugar beet harvesters and dirt work equipment through independent dealers 1. Segment sales rose in the first nine months of fiscal 2026, but margins are under pressure from higher steel prices 2.

    Modular Buildings

    The segment designs, builds and installs modular research buildings, from animal containment to laboratories, for universities, research centers and pharmaceutical companies 1. Its backlog is the largest in the segment's history and could support performance in coming periods 2.

    Market context

    The farm market remains difficult, with modest row crop prices and rising input costs, and demand depends on meat prices and interest rates 12. Demand for modular buildings is supported by research projects, but contract timing can cause large quarterly swings 2.

    Trends

    • Steel pricesheadwind

      Steel costs rose markedly from fiscal 2025 year end, and oil price moves could ease or, if they rise, weigh on the remaining margins 12.

    • High beef pricestailwind

      Strong beef prices support demand for livestock feeding equipment, and sales of mills and spreaders rose in fiscal 2026 12.

    • Farm cycle and interest ratesmixed

      Agriculture is cyclical, and a possible easing of interest rates and firmer farm prices could support demand in coming years 1.

    • Sugar beet paymentsheadwind

      A lower payment per ton of sugar beet crop reduced demand for beet harvesting equipment, although the new ClearView heads could partly offset this 12.

    Competitive position

    In agricultural equipment Art's-Way competes with larger manufacturers that have broader product lines, and focuses on niche markets at competitive prices 1. In modular buildings it faces conventional design-build firms and new entrants, although barriers to entry are considered high 1.

    • Larger agricultural equipment manufacturers

      Competitors with broader product offerings and greater resources, not named in the source.

    • Conventional design-build construction firms

      Competitors in modular buildings whose project timelines are longer than the company's.

    • Makers of feed processing and sugar beet equipment

      Other companies producing similar feed mills and beet harvesters, not named in the source.

    • New entrants into modular buildings

      Manufacturers with skilled labor and production capacity that could adapt facilities to modular structures.

    News & filings

    In the press

    No news in our archive over the last 180 days.

    SEC filings

    Sources

    1. [1] Form 10-K, fiscal year ended 2025-11-30 · SEC / Art's-Way Manufacturing Co., Inc. · 12 Feb 2026
    2. [2] Form 10-Q, quarter ended 2026-08-31 · SEC / Art's-Way Manufacturing Co., Inc. · 13 Oct 2026
    3. [3] Form 8-K, results release (exhibit 99.1) · SEC / Art's-Way Manufacturing Co., Inc. · 09 Oct 2026

    Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.