Friedman Industries (FRD) AI Stock Analysis

• Market Cap: $117.68M
• Dividend Yield: 0.96%
• Average Volume (3M): 45.41K
• Price to Earnings (P/E): 19.1
• Beta (1Y): 0.94
• Revenue Growth: -13.95%
• EPS Growth: -63.56%
• Country: US
• Employees: 268
• Sector: Basic Materials
• Sector Strength: 70
• Industry: Steel
• EPS (TTM): 0.76
• Shares Outstanding: 7,059,440
• 10 Day Avg. Volume: 98,463
• 30 Day Avg. Volume: 45,409
• PEG Ratio: 2.54
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -13.84
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 0.09
• Enterprise Value/Gross Profit: 5.04
• Enterprise Value/Ebitda: 2.09
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: $17.00 ▲(1.98%Upside)

Friedman Industries' overall stock score of 62 reflects significant challenges in financial performance, particularly with declining revenues and profitability. Technical indicators show mixed signals, suggesting some recent weakness in the stock's performance. Valuation is reasonable, supported by a moderate P/E ratio and a small dividend yield. The positive corporate event provides some financial stability, but the primary focus remains on addressing fundamental financial issues.

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 makes money by processing and selling steel products such as hot-rolled steel coils and manufactured pipes. The company purchases steel coils from major steel mills and processes them into specific products that meet customer requirements. These products are then distributed to a diverse customer base, including manufacturers and construction companies, who utilize them in their production processes. Key revenue streams for Friedman Industries include the sale of finished steel products and the provision of processing services to other companies. Additionally, strategic partnerships with major steel producers and a strong distribution network play a significant role in the company's ability to generate revenue and maintain competitiveness in the market.

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.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	444.60M	516.25M	547.54M	285.23M	126.10M
Gross Profit	45.48M	72.42M	43.09M	40.99M	23.59M
EBITDA	13.94M	29.46M	24.80M	18.59M	16.26M
Net Income	6.08M	17.34M	21.34M	14.07M	11.42M
Balance Sheet
Total Assets	226.82M	230.02M	199.31M	159.28M	95.01M
Cash, Cash Equivalents and Short-Term Investments	3.69M	2.89M	2.99M	2.60M	8.19M
Total Debt	50.48M	43.13M	33.22M	18.54M	1.79M
Total Liabilities	94.40M	102.54M	83.88M	79.59M	29.67M
Stockholders Equity	132.43M	127.47M	115.43M	79.69M	65.34M
Cash Flow
Free Cash Flow	-9.41M	-813.00K	47.44M	-21.46M	3.82M
Operating Cash Flow	-4.41M	4.98M	63.89M	-13.40M	8.43M
Investing Cash Flow	-3.43M	-5.80M	-88.19M	-7.92M	-4.59M
Financing Cash Flow	6.09M	1.34M	13.56M	17.25M	-701.91K

Friedman Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.67
• 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 16.67 is above the 20-day moving average (MA) of 16.55, above the 50-day MA of 16.53, and above the 200-day MA of 15.62, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.10 is Neutral, neither overbought nor oversold. The STOCH value of 76.35 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
WS	77 Outperform	$1.65B	14.80	10.75%	1.97%	-9.83%	-28.70%
SIM	71 Outperform	$4.65B	7.38	19.79%	―	-15.93%	86.43%
FRD	62 Neutral	$117.68M	19.09	4.66%	0.96%	-13.95%	-63.56%
Sector *	60 Neutral	€6.39B	8.30	0.45%	1.72%	-2.39%	100.22%
ZEUS	57 Neutral	$388.57M	24.23	2.95%	1.84%	-9.65%	-61.57%
ACNT	54 Neutral	$133.68M	―	-8.42%	―	-6.70%	61.17%
RDUS	49 Neutral	$840.10M	―	-17.65%	2.52%	4.13%	62.89%

Friedman Industries Corporate Events

Friedman Industries Amends Credit Agreement with JPMorgan

On May 6, 2025, Friedman Industries, Incorporated amended its existing credit agreement with JPMorgan Chase Bank to extend the maturity date to August 19, 2026. This amendment may provide the company with additional financial flexibility and stability, potentially impacting its operations and positioning within the industry.