Huadi International Group (HUDI) AI Stock Analysis

• Market Cap: $23.70M
• Dividend Yield: N/A
• Average Volume (3M): 1.62M
• Price to Earnings (P/E): 118.6
• Beta (1Y): 0.70
• Revenue Growth: -20.24%
• EPS Growth: -119.83%
• Country: US
• Employees: 355
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Steel
• EPS (TTM): <0.01
• Shares Outstanding: 14,279,182
• 10 Day Avg. Volume: 4,807,438
• 30 Day Avg. Volume: 1,621,050
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 3.24
• Enterprise Value/Ebitda: -25.03
• 1Y Price Target: $1.50
• Price Target Upside: -3.23% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: $1.50 ▼(-3.23% Downside)

Huadi International Group's overall stock score is primarily impacted by its financial performance and valuation concerns. The declining revenues and negative profitability metrics weigh heavily on the score. While technical analysis shows some short-term bullish signals, the overbought RSI and negative P/E ratio highlight significant risks. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Stable Revenue Source

Long-term contracts with major industry players ensure consistent revenue streams, enhancing financial stability and reducing market volatility impact.

Improved Debt-to-Equity Ratio

An improved debt-to-equity ratio indicates better financial management and reduced leverage, which enhances the company's long-term financial health.

Positive Operating Cash Flow

Positive operating cash flow suggests improved cash generation capabilities, providing more resources for reinvestment and debt servicing.

Negative Factors

Declining Revenue

Declining revenue reflects potential market share loss or operational inefficiencies, posing risks to long-term growth and competitiveness.

Negative Profitability

Negative EBIT and EBITDA highlight profitability challenges, which can hinder reinvestment and impact long-term financial sustainability.

Inconsistent Free Cash Flow

Inconsistent free cash flow growth indicates volatility in cash conversion, potentially affecting the company's ability to fund operations and growth initiatives.

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 challenges, particularly in income generation and profitability. The income statement shows declining revenues and negative EBIT and EBITDA, indicating market or operational issues. The balance sheet is moderately stable with improved debt-to-equity, but low return on equity is a concern. Cash flow shows mixed results 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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	74.27M	84.33M	76.37M	70.25M	59.14M
Gross Profit	7.32M	12.36M	11.14M	11.32M	10.66M
EBITDA	396.85K	3.56M	4.54M	3.35M	5.36M
Net Income	137.42K	3.26M	1.92M	2.53M	3.32M
Balance Sheet
Total Assets	103.59M	103.01M	84.64M	100.25M	69.12M
Cash, Cash Equivalents and Short-Term Investments	18.12M	20.19M	13.20M	15.35M	796.79K
Total Debt	14.59M	11.52M	21.74M	35.77M	32.74M
Total Liabilities	25.28M	28.33M	35.00M	48.77M	43.33M
Stockholders Equity	78.00M	74.41M	49.38M	51.21M	25.56M
Cash Flow
Free Cash Flow	9.93M	-6.05M	7.82M	-6.57M	2.54M
Operating Cash Flow	12.99M	-2.45M	8.03M	-5.65M	3.20M
Investing Cash Flow	-3.07M	-3.59M	-206.18K	-897.25K	59.79K
Financing Cash Flow	-8.81M	11.58M	-9.74M	21.28M	-4.69M

Huadi International Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HUDI, the sentiment is Positive. The current price of 1.55 is above the 20-day moving average (MA) of 1.28, above the 50-day MA of 1.25, and above the 200-day MA of 1.49, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 61.68 is Neutral, neither overbought nor oversold. The STOCH value of 12.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HUDI.

Huadi International Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZEUS	71 Outperform	$378.48M	27.59	2.50%	1.92%	-9.21%	-60.42%
FRD	64 Neutral	$150.93M	17.63	6.34%	0.76%	-5.81%	-29.10%
Sector *	61 Neutral	$10.48B	7.52	-0.05%	2.87%	2.87%	-36.73%
HUDI	51 Neutral	$23.70M	118.56	-0.69%	―	-20.24%	-119.83%
ZKIN	51 Neutral	$11.15M	―	-10.45%	―	-3.05%	95.83%
ACNT	49 Neutral	$114.85M	―	-10.88%	―	-20.35%	77.51%
HLP	―	$70.50M	―	-5.04%	―	―	―

Huadi International Group Corporate Events

Huadi International Reports Revenue Decline Amid Economic Downturn

Huadi International Group reported a decline in revenues and gross profit for the six months ended March 31, 2025, compared to the same period in 2024, due to an economic downturn in China that affected demand for construction materials. Despite the revenue drop, the company improved its gross profit margin through increased production efficiency and reduced defective parts. However, the company experienced an operating loss of approximately $0.4 million, contrasting with the previous year’s operating income, and a decrease in net income due to reduced government grants and increased interest expenses.