Friedman Industries (FRD) AI Stock Analysis

• Market Cap: $148.46M
• Dividend Yield: 0.86%
• Average Volume (3M): 22.76K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.78
• Revenue Growth: 8.72%
• EPS Growth: 43.14%
• Country: US
• Employees: 268
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.32
• Shares Outstanding: 7,059,440
• 10 Day Avg. Volume: 15,212
• 30 Day Avg. Volume: 22,764
• PEG Ratio: -0.27
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.23
• P/FCF Ratio: -10.99
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 0.29
• Enterprise Value/Gross Profit: 3.15
• Enterprise Value/Ebitda: 7.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $21.00 ▲(13.15% Upside)

Friedman Industries' overall stock score reflects a mixed financial performance with strong balance sheet fundamentals but significant cash flow challenges. Technical analysis indicates potential short-term weakness, while valuation metrics suggest the stock is fairly priced. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Revenue Growth

The positive revenue growth indicates a recovery and potential for continued expansion, reflecting resilience in market demand and effective sales strategies.

Balance Sheet Strength

A strong balance sheet with low leverage provides financial stability and flexibility, enabling the company to invest in growth opportunities without over-reliance on debt.

Sustainability Commitment

Commitment to sustainability through recycling operations can improve brand reputation and align with increasing environmental regulations, supporting long-term viability.

Negative Factors

Cash Flow Challenges

Severe decline in free cash flow growth indicates potential liquidity issues, which could limit the company's ability to invest in growth or weather economic downturns.

Operational Efficiency

Modest operational margins suggest inefficiencies that could hinder profitability. Improving operational efficiency is crucial for enhancing long-term financial performance.

Return on Equity

A declining return on equity indicates challenges in generating higher returns for shareholders, potentially affecting investor confidence and long-term growth prospects.

Friedman Industries Business Overview & Revenue Model

Company Description

Friedman 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 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 shows moderate financial performance. The income statement indicates stable margins and positive revenue growth, but operational efficiency needs improvement. The balance sheet is strong with low leverage, but cash flow challenges are evident, with significant declines in free cash flow growth, highlighting liquidity concerns.

Income Statement

Friedman Industries shows a moderate performance in its income statement. The TTM data indicates a gross profit margin of 10.33% and a net profit margin of 1.84%, which are relatively stable compared to previous periods. Revenue growth is positive at 9.82% TTM, recovering from a decline in the previous year. However, margins like EBIT and EBITDA remain modest, suggesting room for improvement in operational efficiency.

Balance Sheet

The balance sheet reflects a solid equity position with a debt-to-equity ratio of 0.02 TTM, indicating low leverage and financial stability. Return on equity is at 8.55% TTM, showing a decent return for shareholders. The equity ratio is strong, suggesting a well-capitalized structure, although the return on equity has decreased from previous years, indicating potential challenges in generating higher returns.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth at -96.38% TTM. The operating cash flow to net income ratio is 0.42, indicating some difficulty in converting income into cash. The free cash flow to net income ratio is 0.72, suggesting that while the company is generating cash, it is not as robust as desired, highlighting potential liquidity concerns.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	510.45M	444.60M	516.25M	547.54M	285.24M	126.10M
Gross Profit	47.04M	45.48M	72.42M	69.98M	40.99M	23.59M
EBITDA	21.21M	13.94M	29.46M	32.93M	29.84M	16.76M
Net Income	11.43M	6.08M	17.34M	21.34M	14.07M	11.42M
Balance Sheet
Total Assets	311.29M	226.82M	230.02M	199.31M	159.28M	95.01M
Cash, Cash Equivalents and Short-Term Investments	4.59M	3.69M	2.89M	2.99M	2.60M	8.19M
Total Debt	91.50M	50.48M	43.13M	34.45M	18.82M	2.06M
Total Liabilities	172.02M	94.40M	102.54M	83.88M	79.59M	29.67M
Stockholders Equity	139.27M	132.43M	127.47M	115.43M	79.69M	65.34M
Cash Flow
Free Cash Flow	449.00K	-9.41M	-813.00K	47.44M	-21.46M	3.82M
Operating Cash Flow	6.79M	-4.41M	4.98M	63.89M	-13.40M	8.43M
Investing Cash Flow	-50.37M	-3.43M	-5.80M	-88.19M	-7.92M	-4.59M
Financing Cash Flow	46.12M	6.09M	1.34M	13.56M	17.25M	-701.91K

Friedman Industries Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FRD, the sentiment is Negative. The current price of 18.56 is below the 20-day moving average (MA) of 20.72, below the 50-day MA of 20.84, and above the 200-day MA of 17.77, indicating a neutral trend. The MACD of -0.41 indicates Positive momentum. The RSI at 38.51 is Neutral, neither overbought nor oversold. The STOCH value of 19.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FRD.

Friedman Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MSB	80 Outperform	$439.13M	4.73	413.24%	21.93%	303.10%	425.35%
FRD	62 Neutral	$148.46M	17.34	8.47%	0.86%	8.72%	43.14%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ZEUS	61 Neutral	$437.72M	33.29	2.40%	1.64%	-5.64%	-48.34%
ACNT	61 Neutral	$141.69M	163.04	-3.84%	―	-29.03%	―
HUDI	53 Neutral	$18.68M	-35.84	-0.69%	―	-20.24%	-119.83%

Friedman Industries Corporate Events

Friedman Industries Reports Record Sales and Earnings Growth

Friedman Industries, Incorporated is a diversified metals processing and pipe manufacturing company, operating in the flat-roll and tubular products segments, headquartered in Longview, Texas. In its latest earnings report, Friedman Industries announced a significant increase in sales and net earnings for the second quarter of 2025, marking a record sales volume in the company’s history. The company reported net earnings of $2.2 million and sales of $152.4 million, reflecting a 43% increase in sales year-over-year. The acquisition of Century Metals & Supplies was a notable highlight, expanding the company’s product portfolio and geographic reach.

Friedman Industries Holds Annual Shareholder Meeting

On September 18, 2025, Friedman Industries held its Annual Meeting of Shareholders, where seven directors were elected, and several key resolutions were voted on. Shareholders approved the executive compensation and the 2025 Long-Term Incentive Plan but did not pass an amendment to allow bylaw changes. Additionally, Baker Tilly US, LLP was ratified as the independent public accounting firm for the fiscal year ending March 31, 2026.

The most recent analyst rating on (FRD) stock is a Hold with a $23.50 price target. To see the full list of analyst forecasts on Friedman Industries stock, see the FRD Stock Forecast page.

Friedman Industries Expands with Century Metals Acquisition

On August 29, 2025, Friedman Industries entered into a definitive agreement to acquire assets from Century Metals & Supplies, Inc., including real estate, operations, and inventory, for approximately $45.25 million in cash and a $3.5 million note. The acquisition, announced on September 2, 2025, expands Friedman’s presence in the southeastern U.S. and Latin American markets, enhances its product offerings, and is expected to be immediately accretive. Additionally, Friedman amended its credit facility to accommodate the acquisition, reducing commitments and extending the maturity date to 2030.

The most recent analyst rating on (FRD) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on Friedman Industries stock, see the FRD Stock Forecast page.

Friedman Industries Reports Strong Q2 2025 Earnings

Friedman Industries, Incorporated is a Texas-based company engaged in the manufacturing and processing of steel products, operating primarily in the flat-roll and tubular segments. In its latest earnings report for the quarter ended June 30, 2025, the company reported a significant increase in net sales, reaching $134.8 million compared to $114.6 million in the same quarter of the previous year. This growth was driven by higher sales volumes and improved market conditions.