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Friedman Industries (FRD)
NASDAQ:FRD
US Market
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Friedman Industries (FRD) AI Stock Analysis

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FRD

Friedman Industries

(NASDAQ:FRD)

Rating:64Neutral
Price Target:
$23.50
▲(8.20% Upside)
Friedman Industries' overall stock score reflects a stable financial position with strong balance sheet metrics but challenges in cash flow management. The stock's technical indicators suggest overbought conditions despite strong momentum. Valuation metrics indicate fair pricing, and recent corporate events are positive, potentially enhancing future growth and operational efficiency.

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

Friedman Industries Business Overview & Revenue Model

Company DescriptionFriedman 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 MoneyFriedman 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
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue464.83M444.60M516.25M547.54M285.23M126.10M
Gross Profit48.01M45.48M72.42M43.09M40.99M23.59M
EBITDA17.33M13.94M29.46M24.80M19.91M16.26M
Net Income8.55M6.08M17.34M21.34M14.07M11.42M
Balance Sheet
Total Assets219.08M226.82M230.02M199.31M159.28M95.01M
Cash, Cash Equivalents and Short-Term Investments2.10M3.69M2.89M2.99M2.60M8.19M
Total Debt2.71M50.48M43.13M34.45M18.54M1.79M
Total Liabilities81.80M94.40M102.54M83.88M79.59M29.67M
Stockholders Equity137.28M132.43M127.47M115.43M79.69M65.34M
Cash Flow
Free Cash Flow12.41M-9.41M-813.00K47.44M-21.46M3.82M
Operating Cash Flow17.14M-4.41M4.98M63.89M-13.40M8.43M
Investing Cash Flow-4.16M-3.43M-5.80M-88.19M-7.92M-4.59M
Financing Cash Flow-14.25M6.09M1.34M13.56M17.25M-701.91K

Friedman Industries Technical Analysis

Technical Analysis Sentiment
Positive
Last Price21.72
Price Trends
50DMA
16.93
Positive
100DMA
16.71
Positive
200DMA
16.08
Positive
Market Momentum
MACD
1.31
Negative
RSI
77.38
Negative
STOCH
87.01
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 21.72 is above the 20-day moving average (MA) of 18.49, above the 50-day MA of 16.93, and above the 200-day MA of 16.08, indicating a bullish trend. The MACD of 1.31 indicates Negative momentum. The RSI at 77.38 is Negative, neither overbought nor oversold. The STOCH value of 87.01 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$1.68B15.0710.75%1.94%-9.83%-28.70%
68
Neutral
$378.59M27.602.50%1.86%-9.21%-60.42%
64
Neutral
$4.68B12.6610.49%-18.58%-35.32%
64
Neutral
$153.33M17.916.34%0.74%-5.81%-29.10%
62
Neutral
$10.36B6.350.76%2.84%3.10%-36.03%
55
Neutral
4.13%62.89%
50
Neutral
$114.29M-10.88%-20.35%77.51%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FRD
Friedman Industries
21.72
7.48
52.53%
SIM
Grupo Simec SA De CV
26.60
-1.06
-3.83%
ZEUS
Olympic Steel
33.81
-1.32
-3.76%
RDUS
Schnitzer Steel Industries
30.00
15.77
110.82%
ACNT
Ascent Industries
12.20
2.52
26.03%
WS
Worthington Steel, Inc.
33.03
1.38
4.36%

Friedman Industries Corporate Events

Private Placements and FinancingM&A TransactionsBusiness Operations and Strategy
Friedman Industries Expands with Century Metals Acquisition
Positive
Sep 3, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
Friedman Industries Appoints New Chief Operating Officer
Positive
Jul 14, 2025

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.

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: Sep 04, 2025