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Huadi International Group (HUDI)
NASDAQ:HUDI
US Market

Huadi International Group (HUDI) AI Stock Analysis

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Huadi International Group

(NASDAQ:HUDI)

Rating:44Neutral
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 (HUDI) vs. SPDR S&P 500 ETF (SPY)

Huadi International Group Business Overview & Revenue Model

Company DescriptionHuadi 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 MoneyHuadi 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
45
Neutral
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
60
Neutral
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
55
Neutral
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.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue74.27M84.33M76.37M70.25M59.14M
Gross Profit7.32M12.36M11.14M11.32M10.66M
EBITDA396.85K3.56M4.54M3.35M5.36M
Net Income137.42K3.26M1.92M2.53M3.32M
Balance Sheet
Total Assets103.59M103.01M84.64M100.25M69.12M
Cash, Cash Equivalents and Short-Term Investments18.12M20.19M13.20M15.35M796.79K
Total Debt14.59M11.52M21.74M35.77M32.74M
Total Liabilities25.28M28.33M35.00M48.77M43.33M
Stockholders Equity78.00M74.41M49.38M51.21M25.56M
Cash Flow
Free Cash Flow9.93M-6.05M7.82M-6.57M2.54M
Operating Cash Flow12.99M-2.45M8.03M-5.65M3.20M
Investing Cash Flow-3.07M-3.59M-206.18K-897.25K59.79K
Financing Cash Flow-8.81M11.58M-9.74M21.28M-4.69M

Huadi International Group Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.31
Price Trends
50DMA
1.40
Negative
100DMA
1.48
Negative
200DMA
1.71
Negative
Market Momentum
MACD
-0.03
Positive
RSI
40.28
Neutral
STOCH
24.87
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 Risk Analysis

Huadi International Group disclosed 62 risk factors in its most recent earnings report. Huadi International Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Huadi International Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$10.27B9.83-0.18%2.87%2.21%-32.50%
FRFRD
62
Neutral
$117.68M19.094.66%0.96%-13.95%-63.56%
57
Neutral
$388.57M24.232.95%1.84%-9.65%-61.57%
54
Neutral
$133.68M-8.42%-6.70%61.17%
47
Neutral
$11.26M-10.45%-3.05%95.83%
44
Neutral
$18.71M135.050.18%-11.93%-95.78%
HLHLP
$56.17M-5.04%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HUDI
Huadi International Group
1.31
-1.06
-44.73%
FRD
Friedman Industries
16.67
2.31
16.09%
ZEUS
Olympic Steel
34.81
-6.64
-16.02%
ACNT
Ascent Industries
12.72
3.07
31.81%
ZKIN
Zk International Group Co
2.18
-1.39
-38.94%
HLP
Hongli Group, Inc.
0.76
-0.93
-55.03%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 02, 2025