Friedman Industries (FRD) AI Stock Analysis

• Market Cap: $148.46M
• Dividend Yield: 0.73%
• 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: 64 Neutral
• Price Target: $22.00 ▲(6.43% Upside)

Friedman Industries' stock score is primarily influenced by its solid balance sheet and reasonable valuation. However, liquidity challenges and moderate technical indicators suggest caution. The absence of earnings call data and corporate events limits additional insights.

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 demonstrates a stable financial position with low leverage and a solid equity base. Revenue growth and profitability margins show positive trends, but cash flow management remains a concern with significant negative growth in free cash flow. The company needs to focus on improving operational efficiency and cash flow generation to enhance overall financial health.

Income Statement

Friedman Industries shows a moderate revenue growth rate of 4.55% in the TTM, with stable gross and net profit margins at 10.33% and 1.84%, respectively. The EBIT and EBITDA margins are relatively low, indicating room for operational efficiency improvements. The company has experienced fluctuations in revenue growth, with a notable decline in previous years, but recent trends suggest a recovery.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.02 in the TTM, reflecting minimal leverage and financial risk. Return on equity is modest at 6.50%, suggesting efficient use of equity capital. The equity ratio is healthy, indicating a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow performance is mixed, with a significant negative free cash flow growth rate of -247.52% in the TTM, highlighting potential cash management issues. However, the operating cash flow to net income ratio is positive at 0.42, indicating some ability to generate cash from operations. The free cash flow to net income ratio is also favorable at 0.72, suggesting decent cash conversion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	510.45M	444.60M	516.25M	547.54M	285.23M	126.10M
Gross Profit	47.04M	45.48M	72.42M	43.09M	40.99M	23.59M
EBITDA	21.21M	13.94M	29.46M	24.80M	19.91M	16.26M
Net Income	11.46M	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	92.25M	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: Neutral
• Last Price: 20.67
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FRD, the sentiment is Neutral. The current price of 20.67 is below the 20-day moving average (MA) of 20.79, below the 50-day MA of 21.20, and above the 200-day MA of 17.48, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 48.11 is Neutral, neither overbought nor oversold. The STOCH value of 35.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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%	20.14%	303.10%	425.35%
ZEUS	65 Neutral	$389.12M	29.59	2.40%	1.71%	-5.64%	-48.34%
FRD	64 Neutral	$148.46M	17.34	8.47%	0.73%	8.72%	43.14%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ACNT	54 Neutral	$118.84M	136.75	-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.