Huadi International Group (HUDI) AI Stock Analysis

• Market Cap: $18.71M
• Dividend Yield: N/A
• Average Volume (3M): 12.81K
• Price to Earnings (P/E): 135.1
• Beta (1Y): 0.61
• Revenue Growth: -11.93%
• EPS Growth: -95.78%
• Country: US
• Employees: 355
• Sector: Basic Materials
• Sector Strength: 71
• Industry: Steel
• EPS (TTM): <0.01
• Shares Outstanding: 14,279,182
• 10 Day Avg. Volume: 12,024
• 30 Day Avg. Volume: 12,811
• PEG Ratio: -5.89
• Price to Book (P/B): 6.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 41.39
• Enterprise Value/Market Cap: 17.76
• Enterprise Value/Revenue: 0.81
• Enterprise Value/Gross Profit: 45.41
• Enterprise Value/Ebitda: 31.27
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 44 Neutral
• Price Target: $1.50 ▲(14.50%Upside)

The overall stock score of 44 reflects significant financial challenges, bearish technical indicators, and unattractive valuation. The company's declining revenues and profitability, coupled with negative technical signals and high P/E ratio, are major concerns. The absence of earnings call data and corporate events does not impact the evaluation.

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 makes money through the manufacturing and sale of stainless steel products. The company's revenue model is primarily based on the production of stainless steel seamless pipes and tubes, which are used across multiple industries such as oil and gas, petrochemical, and automotive. Key revenue streams include direct sales of these products to industrial clients, as well as potential long-term supply agreements. The company might also benefit from strategic partnerships with other industrial firms or suppliers that enhance its market reach and distribution capabilities. Factors contributing to its earnings include the global demand for stainless steel products, technological advancements in manufacturing processes, and the company's ability to maintain competitive pricing and high-quality standards.

Huadi International Group Financial Statement Overview

Summary

Huadi International Group's financial performance reveals areas of concern, particularly in income generation and profitability. Despite a relatively stable balance sheet, declining revenues and profitability, alongside mixed cash flow performance, highlight significant operational challenges.

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: Negative
• Last Price: 1.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HUDI, the sentiment is Negative. The current price of 1.31 is below the 20-day moving average (MA) of 1.37, below the 50-day MA of 1.40, and below the 200-day MA of 1.71, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 40.28 is Neutral, neither overbought nor oversold. The STOCH value of 24.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HUDI.

Huadi International Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$10.27B	9.83	-0.18%	2.87%	2.21%	-32.50%
FRD	62 Neutral	$117.68M	19.09	4.66%	0.96%	-13.95%	-63.56%
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%
ZKIN	47 Neutral	$11.26M	―	-10.45%	―	-3.05%	95.83%
HUDI	44 Neutral	$18.71M	135.05	0.18%	―	-11.93%	-95.78%
HLP		$56.17M	―	-5.04%	―	―	―