Insteel IndustriesIIIN +3.40%68 Gross Margin % is 9.55% as of Mar. 2026, which is 36% below its 10-year median of 14.90. GuruFocus rates IIIN with a GF Score™ of 68/100 and a GF Value™ of $37.81 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 3,003 Industrial Products companies, Insteel Industries ranks worse than 83.02% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Insteel Industries had a gross margin of 9.55% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Insteel Industries Gross Margin % Related Terms
Insteel Industries Gross Margin % Historical Data
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The historical data trend for Insteel Industries's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Metal Fabrication subindustry, Insteel Industries's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Insteel Industries Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Insteel Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Insteel Industries's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Insteel Industries (IIIN) has a Gross Margin % of 9.55% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Insteel Industries and its competitors. This is 36% below median its historical median of 14.90. Over the past decade, Insteel Industries' Gross Margin % has ranged from 6.60 to 23.86. According to the industry distribution chart, Insteel Industries ranks #2493 out of 3003 companies in the Industrial Products industry, placing it in the top 83%.
Is Insteel Industries' Gross Margin % too high?
Insteel Industries' current Gross Margin % of 9.55% is 36% below median its 10-year median of 14.90. Over the past 10 years, this metric has ranged from a low of 6.60 to a high of 23.86. The Industrial Products industry median Gross Margin % is 26.79. Insteel Industries' value of 9.55% is 64.4% below this industry median. Based on the distribution chart, Insteel Industries ranks #2493 out of 3003 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Insteel Industries has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Insteel Industries' Gross Margin % compare to MEC and TG?
According to the Industrial Products industry distribution chart, Insteel Industries ranks #2493 out of 3003 companies for Gross Margin %. This places Insteel Industries in the lower half of its industry. The industry median Gross Margin % is 26.79. Insteel Industries' value of 9.55% is 64.4% below this benchmark. Historically, Insteel Industries' own Gross Margin % has ranged from 6.60 to 23.86 over the past decade. While the company's 10-year median is 14.90 vs. the industry median of 26.79, Insteel Industries has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.79, based on 3,003 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Insteel Industries's current Gross Margin % of 9.55% is 64.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Insteel Industries and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Insteel Industries's current Gross Margin % is 9.55%, which is 36% below median its own 10-year median of 14.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Insteel Industries stock overvalued right now?
Based on GuruFocus' analysis, Insteel Industries (IIIN) is currently considered Modestly Undervalued. The stock's GF Value™ is $37.81, compared to a current price of $31.00 — trading 18% below its estimated fair value. The current Gross Margin % is 9.55%, which is 36% below median its 10-year median of 14.90 and 64.4% below the Industrial Products industry median of 26.79. Insteel Industries' overall GF Score™ is 68/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Insteel Industries (IIIN), the current Gross Margin % is 9.55% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Insteel Industries (IIIN) Overvalued in 2026?
Based on GuruFocus' analysis, Insteel Industries stock appears to be undervalued.
The current stock price of $31.00 is trading 18% below its estimated GF Value™ of $37.81.
GuruFocus considers Insteel Industries to be Modestly Undervalued.
Key valuation signals for IIIN:
Gross Margin %: 9.55% (36% below median its 10-year median of 14.90)
GF Value™: $37.81 vs. price of $31.00 (18% below fair value)
Industry Position: 64.4% below the Industrial Products median (#2493 of 3003)
No single metric tells the full story. See the IIIN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Insteel Industries Inc produces and sells prestressed concrete strand (PC strand) and welded wire reinforcement (WWR). PC strand, a high-strength seven-wire cable, is used to strengthen precast concrete in structures like bridges, parking decks, and buildings, enabling longer spans and slimmer designs. WWR includes engineered structural mesh for primary reinforcement, concrete pipe reinforcement for drainage and sewage systems, and standard WWR for crack control in residential and light commercial construction. The company serves markets in the United States and internationally, with the majority of revenue generated in the United States.
68GF Score
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