Webco Industries

WEBC

Steel · Basic Materials

Price

$330.00

-2.00 (-0.60%)

Market Cap

$231.9M

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Share count falling — buybacks

−13.9% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 880K (2021) → 758K (2025)

Webco Industries makes steel tubes and pipes used in industries like oil and gas, automotive, and industrial manufacturing. The company takes raw steel and processes it into precision-tubing products that other businesses use to build equipment, vehicles, and energy infrastructure. It is a privately held, Oklahoma-based manufacturer that has operated in the specialty tubing market for decades.

Webco earns revenue by selling its finished steel tube and pipe products directly to industrial customers, acting as a toll processor and manufacturer rather than a retailer. It operates primarily in the United States, with a relatively small market cap of around $200 million, reflecting its niche position in the broader steel industry. The company's main competitive edge comes from its specialized processing capabilities and long-standing customer relationships, but its thin operating margin of roughly 4.6% means profitability is sensitive to swings in raw steel prices and shifts in demand from cyclical end markets like energy and auto.

Winston Score History

Score breakdown

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Quality

Gross Margin

11.5%

Thin — 11.5% gross margin

Operating Margin

1.5%

Thin — 1.5% operating margin

ROCE

0.5%

Weak — 0.5% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

-4.1%

Shrinking sales (-4.1% YoY)

EPS YoY

-27.0%

Earnings shrinking (-27.0% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

Weak — only 0% of profit becomes cash

FCF Margin

0.0%

Thin free cash flow (0.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

0.39

Conservative — low debt load (0.39)

Interest Cover

3.14x

Tight — interest eats into profit (3.1x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)

21.6x

Growth-priced — P/E 21.6

P/E above the market average. People are paying up for expected growth.

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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