MeritValue

ARTS WAY MANUFACTURING CO INC

ARTWdata completeness 100%16 fiscal years on file

Data notes: no data for concept 'investmentsAtFairValue'; no data for concept 'netInvestmentIncome'; no data for concept 'gainsOnRealEstateSales'

The thesis, from the filings

ARTS WAY MANUFACTURING CO INC earns about 4% on invested capital, but has diluted owners by 13% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $0.54 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$25M1$28.4M1$30.3M2$24.5M2$23M3
Net income$212,6314$97,7975$266,9696$307,3757$1.03M7
Operating cash flow−$985,8548$951,7219−$55,19410$2.63M11−$904,14311
Capital expenditure$620,28412$1.67M13$841,78414$724,67915$627,61515
Free cash flow (derived)−$1.61M8−$717,7609−$896,97810$1.9M11−$1.53M11
Total debt$5.47M16$5.68M17$5.48M18$4.19M19$4.98M19
Cash & equivalents$2,65820$5,05521$4,01422$1,86023$4,84923
Diluted shares4.5M4.7M5.0M5.1M5.1M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$26.13
your share of equity
Profit it earned you last year
$2.03
Free cash flow it threw off
−$3.01
Debt you’d be carrying
$9.78

10 shares is a claim on $26.13 of net worth that earned you $2.03 and generated −$3.01 of cash last year, against $9.78 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
4% avg · 5y
FY21 3%FY22 4%FY23 7%FY24 -1%FY25 6%

It earned an average 4% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+13% shares · 5y

Share count is up 13% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has held roughly steady.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.5.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
$0.54
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$266,969
  • growthAssumed0.0%
Graham Number
$3.43
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-11-30 · accession 0001437749-23-003620 (RevenueFromContractWithCustomerIncludingAssessedTax)
  2. 10-K · period ending 2023-11-30 · accession 0001437749-25-004172 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 10-K · period ending 2025-11-30 · accession 0001437749-26-003904 (Revenues)
  4. 10-K · period ending 2021-11-30 · accession 0001437749-23-003620 (NetIncomeLoss)
  5. 10-K · period ending 2022-11-30 · accession 0001437749-24-005855 (NetIncomeLoss)
  6. 10-K · period ending 2023-11-30 · accession 0001437749-25-004172 (NetIncomeLoss)
  7. 10-K · period ending 2024-11-30 · accession 0001437749-26-003904 (NetIncomeLoss)
  8. 10-K · period ending 2021-11-30 · accession 0001437749-23-003620 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2022-11-30 · accession 0001437749-24-005855 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2023-11-30 · accession 0001437749-25-004172 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2024-11-30 · accession 0001437749-26-003904 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2021-11-30 · accession 0001437749-23-003620 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2022-11-30 · accession 0001437749-24-005855 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2023-11-30 · accession 0001437749-25-004172 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2024-11-30 · accession 0001437749-26-003904 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2021-11-30 · accession 0001437749-23-003620 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2022-11-30 · accession 0001437749-24-005855 (LongTermDebtNoncurrent)
  18. 10-K · period ending 2023-11-30 · accession 0001437749-25-004172 (LongTermDebtNoncurrent)
  19. 10-K · period ending 2024-11-30 · accession 0001437749-26-003904 (LongTermDebtNoncurrent)
  20. 10-K · period ending 2021-11-30 · accession 0001437749-23-003620 (CashAndCashEquivalentsAtCarryingValue)
  21. 10-K · period ending 2022-11-30 · accession 0001437749-24-005855 (CashAndCashEquivalentsAtCarryingValue)
  22. 10-K · period ending 2023-11-30 · accession 0001437749-25-004172 (CashAndCashEquivalentsAtCarryingValue)
  23. 10-K · period ending 2024-11-30 · accession 0001437749-26-003904 (CashAndCashEquivalentsAtCarryingValue)