Huadi International Group (HUDI) AI Stock Analysis

• Market Cap: $17.56M
• Dividend Yield: N/A
• Average Volume (3M): 1.67M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.97
• Revenue Growth: -20.24%
• EPS Growth: -119.83%
• Country: US
• Employees: 355
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.01
• Shares Outstanding: 14,279,182
• 10 Day Avg. Volume: 72,742
• 30 Day Avg. Volume: 1,670,900
• PEG Ratio: -2.98
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.53
• P/FCF Ratio: 3.95
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 3.60
• Enterprise Value/Ebitda: -13.15
• 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: 53 Neutral
• Price Target: $1.50 ▲(21.95% Upside)

The overall stock score for Huadi International Group is primarily influenced by its financial performance, which highlights significant challenges in income generation and profitability. Technical analysis provides a neutral outlook, while valuation concerns due to a negative P/E ratio further impact the score. The absence of earnings call data and corporate events means these factors did not contribute to the score.

Positive Factors

Improved Production Efficiency

Enhancing production efficiency and reducing defects can lead to sustainable cost savings, improving long-term profitability and competitiveness.

Stable Long-term Contracts

Long-term contracts provide a stable revenue base, reducing volatility and ensuring consistent cash flow, which supports strategic planning and investment.

Debt-to-Equity Improvement

Improved debt-to-equity ratio indicates better financial health, reducing risk and enhancing the company's ability to invest in growth opportunities.

Negative Factors

Declining Revenue

A consistent decline in revenue suggests underlying market or operational issues, which may impact long-term growth and market position.

Negative Profitability Metrics

Negative profitability metrics indicate challenges in cost management and pricing power, potentially affecting long-term financial sustainability.

Inconsistent Free Cash Flow

Inconsistent free cash flow can hinder the company's ability to fund operations and growth initiatives, impacting financial flexibility and resilience.

Huadi International Group Business Overview & Revenue Model

Company Description

Huadi International Group Co., Ltd. develops, manufactures, markets, and sells industrial stainless steel seamless pipes, tubes, bars, and plates in the People's Republic of China. The company's products are used in oil and gas transmission, chemistry engineering, food processing, medical devices, aeronautics and astronautics, boiler, irrigation works construction, electricity, automobile, naval architecture, paper mill, and mechanical industries. It also exports its products to 20 countries, including the United States, Mexico, Thailand, Australia, Argentina, India, the Philippines, the United Arab Emirates, Taiwan, Canada, and internationally. The company was founded in 1992 and is based in Wenzhou, the People's Republic of China. Huadi International Group Co., Ltd. is a subsidiary of Yongqiang Donghai Limited.

How the Company Makes Money

Huadi International Group generates revenue primarily through the manufacturing and sale of steel pipes to various industries, with a significant focus on the oil and gas sector. Key revenue streams include the sale of seamless and welded steel pipes, which are sold to both domestic and international customers. The company benefits from long-term contracts and relationships with major industry players, providing a stable source of income. Additionally, Huadi International may engage in partnerships with other manufacturers and suppliers to enhance its product offerings and expand its market reach, further contributing to its earnings.

Huadi International Group Financial Statement Overview

Summary

Huadi International Group's financial performance reveals areas of concern, particularly in income generation and profitability. The income statement reflects declining revenues and profitability, with negative EBIT and EBITDA. The balance sheet shows moderate stability with improved debt-to-equity ratio but low return on equity. Cash flow metrics indicate mixed performance with positive operating cash flow but inconsistent free cash flow growth.

Income Statement

Huadi International Group's income statement reflects a challenging year with declining revenues and profitability. The gross profit margin and net profit margin have decreased significantly in the latest year, and there is a negative EBIT and EBITDA. Revenue has declined year-over-year, indicating potential market or operational challenges.

Balance Sheet

The company's balance sheet shows moderate stability. The debt-to-equity ratio has improved, reflecting reduced leverage. However, the return on equity is low, which may concern investors. The equity ratio is stable, showing a strong equity base relative to total assets.

Cash Flow

Cash flow metrics indicate a mixed performance. Operating cash flow has turned positive in the latest year, signaling a potential recovery in cash generation. However, free cash flow growth is inconsistent, and the ratios of operating and free cash flow to net income suggest volatility in the cash conversion cycle.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	66.57M	74.27M	84.33M	76.37M	70.25M	59.14M
Gross Profit	6.58M	7.32M	12.36M	11.14M	11.32M	10.66M
EBITDA	-1.80M	-947.43K	4.53M	4.54M	5.29M	5.36M
Net Income	-521.18K	137.42K	3.26M	1.92M	2.53M	3.32M
Balance Sheet
Total Assets	99.10M	103.59M	103.01M	84.64M	100.25M	69.12M
Cash, Cash Equivalents and Short-Term Investments	9.21M	18.12M	20.19M	13.20M	15.35M	796.79K
Total Debt	13.72M	14.59M	11.52M	21.74M	35.77M	32.74M
Total Liabilities	23.21M	25.28M	28.33M	35.00M	48.77M	43.33M
Stockholders Equity	75.60M	78.00M	74.41M	49.38M	51.21M	25.56M
Cash Flow
Free Cash Flow	1.54M	9.93M	-6.05M	7.82M	-6.57M	2.54M
Operating Cash Flow	7.56M	12.99M	-2.45M	8.03M	-5.65M	3.20M
Investing Cash Flow	-9.02M	-3.07M	-3.59M	-206.18K	-897.25K	59.79K
Financing Cash Flow	-3.93M	-8.81M	11.58M	-9.74M	21.28M	-4.69M

Huadi International Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HUDI, the sentiment is Neutral. The current price of 1.23 is above the 20-day moving average (MA) of 1.22, below the 50-day MA of 1.25, and below the 200-day MA of 1.34, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 50.38 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HUDI.

Huadi International Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRD	69 Neutral	$138.76M	12.10	8.47%	0.75%	8.72%	43.14%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HUDI	53 Neutral	$17.56M	-33.70	-0.69%	―	-20.24%	-119.83%
ZKIN	50 Neutral	$8.31M	-2.63	-11.31%	―	-17.00%	95.53%
KBSX	40 Underperform	$59.54M	-2.85	―	―	―	-267.14%