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Friedman Industries (FRD)
NASDAQ:FRD
US Market

Friedman Industries (FRD) AI Stock Analysis

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Friedman Industries

(NASDAQ:FRD)

Rating:62Neutral
Price Target:
$17.00
▲(1.98%Upside)
Friedman Industries' overall stock score of 62 reflects significant challenges in financial performance, particularly with declining revenues and profitability. Technical indicators show mixed signals, suggesting some recent weakness in the stock's performance. Valuation is reasonable, supported by a moderate P/E ratio and a small dividend yield. The positive corporate event provides some financial stability, but the primary focus remains on addressing fundamental financial issues.

Friedman Industries (FRD) vs. SPDR S&P 500 ETF (SPY)

Friedman Industries Business Overview & Revenue Model

Company DescriptionFriedman Industries, Incorporated engages in steel processing, pipe manufacturing and processing, and the steel and pipe distribution businesses the United States. It operates in two segments, Coil and Tubular. The Coil segment is involved in the conversion of steel coils into flat sheet and plate steel cut to customer specifications and reselling steel coils. This segment also processes customer-owned coils on a fee basis. The company sells coil products and processing services to approximately 230 customers located primarily in the midwestern, southwestern and southeastern regions of the United States. Its principal customers for these products and services are steel distributors and customers manufacturing steel products, such as steel buildings, railroad cars, barges, tanks and containers, trailers, component parts and other fabricated steel products. The Tubular segment manufactures line and oil country pipes, as well as pipes for structural applications. This segment sells its tubular products principally to steel and pipe distributors through its own sales force. Friedman Industries, Incorporated was incorporated in 1965 and is headquartered in Longview, Texas.
How the Company Makes MoneyFriedman Industries makes money by processing and selling steel products such as hot-rolled steel coils and manufactured pipes. The company purchases steel coils from major steel mills and processes them into specific products that meet customer requirements. These products are then distributed to a diverse customer base, including manufacturers and construction companies, who utilize them in their production processes. Key revenue streams for Friedman Industries include the sale of finished steel products and the provision of processing services to other companies. Additionally, strategic partnerships with major steel producers and a strong distribution network play a significant role in the company's ability to generate revenue and maintain competitiveness in the market.

Friedman Industries Financial Statement Overview

Summary
Friedman Industries faces challenges with declining revenues and profitability as evidenced by the income statement. While the balance sheet remains strong with healthy equity levels, the increasing leverage and lower ROE are concerns. The cash flow statement reflects a negative trend in cash generation, emphasizing potential liquidity issues.
Income Statement
60
Neutral
Friedman Industries has experienced a decline in revenue from 2024 to 2025, with a decrease in total revenue from $516.25 million to $444.6 million, representing a negative revenue growth rate. The gross profit margin decreased from 14.03% to 10.23% year-over-year, indicating pressure on profitability. The net profit margin also fell from 3.36% to 1.37%, while EBIT and EBITDA margins showed similar declines. Overall, the income statement indicates challenges in maintaining revenue and profitability.
Balance Sheet
72
Positive
The balance sheet reflects a stable level of stockholders' equity, increasing from $127.48 million to $132.43 million. The debt-to-equity ratio rose slightly, indicating a modest increase in leverage. The equity ratio improved, suggesting a strong capital structure with equity financing. ROE decreased due to lower net income, but overall, the balance sheet presents a solid financial foundation with manageable debt levels and strong equity support.
Cash Flow
50
Neutral
Cash flow from operations turned negative in 2025, showing a decline from $4.98 million in 2024 to -$4.41 million. Free cash flow remained negative, decreasing further from -$0.81 million to -$9.41 million. The operating cash flow to net income and free cash flow to net income ratios are unfavorably impacted, highlighting potential liquidity concerns. The cash flow statement indicates challenges in generating sufficient cash flow to support operations and investments.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue444.60M516.25M547.54M285.23M126.10M
Gross Profit45.48M72.42M43.09M40.99M23.59M
EBITDA13.94M29.46M24.80M18.59M16.26M
Net Income6.08M17.34M21.34M14.07M11.42M
Balance Sheet
Total Assets226.82M230.02M199.31M159.28M95.01M
Cash, Cash Equivalents and Short-Term Investments3.69M2.89M2.99M2.60M8.19M
Total Debt50.48M43.13M33.22M18.54M1.79M
Total Liabilities94.40M102.54M83.88M79.59M29.67M
Stockholders Equity132.43M127.47M115.43M79.69M65.34M
Cash Flow
Free Cash Flow-9.41M-813.00K47.44M-21.46M3.82M
Operating Cash Flow-4.41M4.98M63.89M-13.40M8.43M
Investing Cash Flow-3.43M-5.80M-88.19M-7.92M-4.59M
Financing Cash Flow6.09M1.34M13.56M17.25M-701.91K

Friedman Industries Technical Analysis

Technical Analysis Sentiment
Positive
Last Price16.67
Price Trends
50DMA
16.53
Positive
100DMA
16.21
Positive
200DMA
15.62
Positive
Market Momentum
MACD
<0.01
Negative
RSI
53.10
Neutral
STOCH
76.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FRD, the sentiment is Positive. The current price of 16.67 is above the 20-day moving average (MA) of 16.55, above the 50-day MA of 16.53, and above the 200-day MA of 15.62, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.10 is Neutral, neither overbought nor oversold. The STOCH value of 76.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FRD.

Friedman Industries Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
WSWS
77
Outperform
$1.65B14.8010.75%1.97%-9.83%-28.70%
SISIM
71
Outperform
$4.65B7.3819.79%-15.93%86.43%
FRFRD
62
Neutral
$117.68M19.094.66%0.96%-13.95%-63.56%
60
Neutral
€6.39B8.300.45%1.72%-2.39%100.22%
57
Neutral
$388.57M24.232.95%1.84%-9.65%-61.57%
54
Neutral
$133.68M-8.42%-6.70%61.17%
49
Neutral
$840.10M-17.65%2.52%4.13%62.89%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FRD
Friedman Industries
16.67
2.31
16.09%
SIM
Grupo Simec SA De CV
29.04
-0.96
-3.20%
ZEUS
Olympic Steel
34.81
-6.64
-16.02%
RDUS
Schnitzer Steel Industries
29.73
15.21
104.75%
ACNT
Ascent Industries
12.72
3.07
31.81%
WS
Worthington Steel, Inc.
32.42
0.75
2.37%

Friedman Industries Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Friedman Industries Amends Credit Agreement with JPMorgan
Positive
May 9, 2025

On May 6, 2025, Friedman Industries, Incorporated amended its existing credit agreement with JPMorgan Chase Bank to extend the maturity date to August 19, 2026. This amendment may provide the company with additional financial flexibility and stability, potentially impacting its operations and positioning within the industry.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 01, 2025