Friedman Industries (FRD) AI Stock Analysis

• Market Cap: $123.12M
• Dividend Yield: 0.95%
• Average Volume (3M): 22.11K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.99
• Revenue Growth: -5.81%
• EPS Growth: -29.10%
• Country: US
• Employees: 268
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Steel
• EPS (TTM): 0.71
• Shares Outstanding: 7,059,440
• 10 Day Avg. Volume: 30,465
• 30 Day Avg. Volume: 22,106
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 3.09
• Enterprise Value/Ebitda: 8.56
• 1Y Price Target: $19.00
• Price Target Upside: 12.49% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: $19.00 ▲(12.49% Upside)

Friedman Industries' overall stock score is primarily influenced by its stable financial position and positive corporate event. The company's strong balance sheet and recent executive appointment are significant strengths. However, concerns about cash flow management and the lack of technical analysis data weigh down the score. Valuation is fair, providing a balanced outlook for potential investors.

Friedman Industries Business Overview & Revenue Model

Company Description

Friedman Industries, Inc. operates in the steel and metal processing sector, primarily focusing on the production and distribution of steel products. The company is involved in the manufacturing of steel coils, sheets, and plates, serving a variety of industries including construction, manufacturing, and energy. With facilities located in the United States, Friedman Industries also engages in metal recycling, further enhancing its commitment to sustainability and resource efficiency.

How the Company Makes Money

Friedman Industries generates revenue primarily through the sale of steel products, including hot-rolled and cold-rolled steel sheets and coils. The company's revenue model is built upon both direct sales to end-users and distribution through various channels. Key revenue streams include the sale of processed steel, which is influenced by market prices for raw materials, and recycling operations that provide additional income through the recovery and resale of scrap metal. Additionally, partnerships with manufacturers and suppliers in the steel industry contribute to securing a steady market for its products, while fluctuations in demand and pricing in the steel market play a significant role in the company's earnings.

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. Overall, the company needs to address revenue growth and profitability while managing cash flows effectively to enhance financial performance.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	464.83M	444.60M	516.25M	547.54M	285.23M	126.10M
Gross Profit	48.01M	45.48M	72.42M	43.09M	40.99M	23.59M
EBITDA	17.33M	13.94M	29.46M	24.80M	19.91M	16.26M
Net Income	8.55M	6.08M	17.34M	21.34M	14.07M	11.42M
Balance Sheet
Total Assets	219.08M	226.82M	230.02M	199.31M	159.28M	95.01M
Cash, Cash Equivalents and Short-Term Investments	2.10M	3.69M	2.89M	2.99M	2.60M	8.19M
Total Debt	2.71M	50.48M	43.13M	34.45M	18.54M	1.79M
Total Liabilities	81.80M	94.40M	102.54M	83.88M	79.59M	29.67M
Stockholders Equity	137.28M	132.43M	127.47M	115.43M	79.69M	65.34M
Cash Flow
Free Cash Flow	12.41M	-9.41M	-813.00K	47.44M	-21.46M	3.82M
Operating Cash Flow	17.14M	-4.41M	4.98M	63.89M	-13.40M	8.43M
Investing Cash Flow	-4.16M	-3.43M	-5.80M	-88.19M	-7.92M	-4.59M
Financing Cash Flow	-14.25M	6.09M	1.34M	13.56M	17.25M	-701.91K

Friedman Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 16.89 is above the 20-day moving average (MA) of 15.97, above the 50-day MA of 16.23, and above the 200-day MA of 15.74, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 58.29 is Neutral, neither overbought nor oversold. The STOCH value of 85.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FRD.

Friedman Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WS	77 Outperform	$1.64B	14.73	10.75%	2.02%	-9.83%	-28.70%
SIM	69 Neutral	$4.68B	13.62	10.49%	―	-18.58%	-35.32%
ZEUS	66 Neutral	$364.37M	26.56	2.50%	1.93%	-9.21%	-60.42%
FRD	64 Neutral	$123.12M	14.38	6.34%	0.95%	-5.81%	-29.10%
ACNT	55 Neutral	$117.47M	―	-10.88%	―	-20.35%	77.51%
Sector *	44 Neutral	C$925.84M	-8.85	-0.23%	2.68%	24.44%	-41.96%

Friedman Industries Corporate Events

Friedman Industries Appoints New Chief Operating Officer

On July 14, 2025, Friedman Industries announced the appointment of Gaurav Chhibbar as the new Chief Operating Officer, effective July 10, 2025. Chhibbar brings a wealth of experience from his previous roles at Boston Consulting Group, Metal Edge Partners, and Cargill Inc., with a strong background in operations excellence and strategic management. His appointment is expected to enhance operational efficiency and drive the company’s continued success, aligning with Friedman’s future goals.