Friedman Industries (FRD) AI Stock Analysis

• Market Cap: $145.94M
• Dividend Yield: 0.75%
• Average Volume (3M): 22.76K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.74
• 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: 7,112,182
• 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: 1.02
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $23.50 ▲(9.71% Upside)

Friedman Industries has a solid overall stock score driven by strong technical analysis and positive corporate events. The financial performance is mixed, with a strong balance sheet but challenges in cash flow. Valuation is fair, and the absence of earnings call data limits insights into future guidance.

Positive Factors

Financial Flexibility

The amendment to the credit agreement increases commitments, enhancing financial flexibility and operational capacity, supporting long-term growth.

Revenue Growth

Consistent revenue growth indicates a recovering market position and effective sales strategies, contributing to long-term business stability.

Balance Sheet Strength

Low leverage and a strong equity position provide a solid foundation for financial stability and potential for future investment.

Negative Factors

Cash Flow Challenges

Declining free cash flow growth indicates potential liquidity issues, which could hinder the company's ability to invest in growth opportunities.

Modest Profit Margins

Relatively low profit margins suggest challenges in cost management and pricing power, impacting long-term profitability.

Operational Efficiency

Modest EBIT and EBITDA margins highlight the need for improved operational efficiency to enhance profitability and competitive positioning.

Friedman Industries Business Overview & Revenue Model

Company Description

Friedman Industries, Inc. is a manufacturing and processing company primarily operating in the steel industry. Founded in 1965 and headquartered in Longview, Texas, the company focuses on producing and processing steel products, particularly in the flat-rolled steel and pipe sectors. Its core products include steel sheets, coils, and pipes, serving a variety of industries such as construction, energy, and transportation.

How the Company Makes Money

Friedman Industries generates revenue through multiple key streams, primarily by selling steel products to industrial customers and distributors. The company sources raw materials, processes them into finished steel products, and then sells these products at competitive prices. Revenue is further enhanced through value-added services such as custom processing, cutting, and coating. Additionally, Friedman Industries may benefit from fluctuations in steel prices, which can positively impact profit margins. Strategic partnerships with suppliers and customers also play a crucial role in securing steady demand and fostering long-term contracts, contributing to consistent revenue generation.

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: Positive
• Last Price: 21.42
• 50DMA: Positive
• 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 Positive. The current price of 21.42 is above the 20-day moving average (MA) of 20.04, above the 50-day MA of 20.46, and above the 200-day MA of 18.09, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 51.53 is Neutral, neither overbought nor oversold. The STOCH value of 68.60 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MSB	80 Outperform	$470.22M	27.51	29.57%	19.32%	-78.78%	-81.27%
FRD	69 Neutral	$145.94M	12.65	8.47%	0.75%	8.72%	43.14%
ACNT	64 Neutral	$150.77M	173.28	-3.84%	―	-29.03%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ZEUS	61 Neutral	$496.28M	38.33	2.40%	1.42%	-5.64%	-48.34%
HUDI	53 Neutral	$17.92M	-34.25	-0.69%	―	-20.24%	-119.83%

Friedman Industries Corporate Events

Friedman Industries Enhances Credit Agreement with Sixth Amendment

On December 9, 2025, Friedman Industries entered into a Sixth Amendment to its Amended and Restated Credit Agreement, involving Century Metals & Supplies, LLC, and JPMorgan Chase Bank, N.A. This amendment increases the aggregate commitments from $125 million to $140 million, adjusts threshold amounts, and modifies the definition of ‘Eligible Accounts’, potentially enhancing the company’s financial flexibility and operational capacity.

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.