Huadi International Group (HUDI) AI Stock Analysis

• Market Cap: $17.73M
• Dividend Yield: N/A
• Average Volume (3M): 1.67M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• Revenue Growth: -20.24%
• EPS Growth: -119.83%
• Country: US
• Employees: 355
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): N/A
• Shares Outstanding: 14,299,182
• 10 Day Avg. Volume: 72,742
• 30 Day Avg. Volume: 1,670,900
• PEG Ratio: 0.01
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.31
• P/FCF Ratio: -0.96
• Enterprise Value/Market Cap: 1.64
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 4.29
• Enterprise Value/Ebitda: -23.28
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $1.00 ▼(-18.70% Downside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

HUDI scores below average primarily due to weakening financial performance—recent losses and significant cash burn outweigh a relatively manageable balance sheet. Technicals provide some support with the stock trading above major moving averages, but momentum is mixed. Valuation is constrained by negative earnings (negative P/E) and no provided dividend yield.

Positive Factors

Manageable leverage / balance sheet cushion

A debt-to-equity near 0.30 and sizable equity relative to assets supply a durable financial buffer. This lower leverage reduces refinancing and solvency risk, giving management flexibility to fund working capital or restructuring and absorb cyclical volatility over months.

Proven cash-generation in prior periods

Historic episodes of strong operating and free cash flow indicate the business model can be cash generative when volumes and pricing normalize. That operational leverage suggests the company can restore liquidity internally rather than rely solely on external financing.

Focused industrial manufacturing business model

A focused product set (stainless-steel tubulars) creates manufacturing know-how, repeat B2B customers, and order-driven revenue. Pricing tied to specifications and input costs supports predictable contract economics and durable customer relationships in industrial end markets.

Negative Factors

Deteriorating profitability / net loss

A recent net loss and negative operating profit erode retained earnings and limit reinvestment capacity. Persistent unprofitability undermines return metrics, can pressure supplier/customer confidence, and makes sustaining capital spending or recovery plans harder over coming quarters.

Negative operating and free cash flow (2025)

Material cash burn in 2025 reduces liquidity and raises funding needs. If cash generation does not rebound, the firm may need external financing or asset sales, which increases execution risk and can divert management attention from operations during the next several quarters.

Revenue decline and margin compression

Falling revenue and compressed gross margins indicate weaker demand or pricing pressure in end markets. This reduces operating leverage, makes margin recovery more difficult without structural market improvements, and can prolong weak profitability into the medium term.

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

HUDI primarily makes money by manufacturing and selling stainless-steel pipes and related products to customers that use them in industrial projects and operations. Revenue is generated from product sales (typically priced based on order specifications such as grade, dimensions, and volume) and is influenced by demand in the end markets served and by movements in raw-material input costs (e.g., stainless-steel feedstock). null

Huadi International Group Financial Statement Overview

Summary

Overall fundamentals are pressured: profitability deteriorated to a net loss in 2025 with negative operating profit, revenue declined, and margins compressed. Cash flow is the main weakness with negative operating cash flow and deeply negative free cash flow in 2025. The balance sheet is comparatively steadier with moderate leverage (debt-to-equity ~0.30) and meaningful equity, but returns turned negative due to the earnings downturn.

Income Statement

Profitability has deteriorated meaningfully: the latest annual period (2025) shows a net loss (-$1.4M) and negative operating profit, following a near-breakeven 2024 and solid profitability in 2022–2023. Revenue has been declining recently (down ~5.5% in 2025 after prior softness), and margins compressed sharply versus earlier years (gross margin ~10.8% in 2025 vs mid-teens previously). Strengths include a history of profitable years and positive margins earlier in the cycle, but the current trajectory points to weakening demand/pricing and reduced earnings quality.

Balance Sheet

Leverage looks manageable with debt-to-equity at ~0.30 in 2025, improved from higher leverage levels earlier in the period (notably 2020–2021). Equity is sizable (~$75.5M) relative to total assets (~$109.5M), which provides balance sheet cushion. The main weakness is returns: return on equity turned negative in 2025 after being modestly positive in prior years, reflecting the earnings downturn rather than a highly levered capital structure.

Cash Flow

Cash generation is currently a key concern: 2025 shows negative operating cash flow (-$5.5M) and deeply negative free cash flow (-$20.2M), a sharp reversal from strong positive cash flow in 2024. Cash flow has also been inconsistent over time (negative in multiple earlier years), increasing execution and liquidity risk if the downturn persists. A relative positive is that the business has demonstrated the ability to generate strong operating and free cash flow in some periods (e.g., 2024), but the latest year indicates elevated cash burn.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	62.90M	74.27M	84.33M	76.37M	70.25M
Gross Profit	6.79M	7.32M	12.36M	11.14M	11.32M
EBITDA	-1.25M	396.85K	4.53M	4.54M	5.29M
Net Income	-1.40M	137.42K	3.26M	1.92M	2.53M
Balance Sheet
Total Assets	108.40M	103.59M	103.01M	84.64M	100.25M
Cash, Cash Equivalents and Short-Term Investments	9.73M	18.12M	20.19M	13.20M	15.35M
Total Debt	22.34M	14.59M	11.52M	21.74M	35.77M
Total Liabilities	32.59M	25.28M	28.33M	35.00M	48.77M
Stockholders Equity	75.51M	78.00M	74.41M	49.38M	51.21M
Cash Flow
Free Cash Flow	-20.25M	9.93M	-6.05M	7.82M	-6.57M
Operating Cash Flow	-5.52M	12.99M	-2.45M	8.03M	-5.65M
Investing Cash Flow	-14.97M	-3.07M	-3.59M	-206.18K	-897.25K
Financing Cash Flow	7.81M	-8.81M	11.58M	-9.74M	21.28M

Huadi International Group Technical Analysis

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

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 1.23 is below the 20-day moving average (MA) of 1.32, below the 50-day MA of 1.25, and below the 200-day MA of 1.29, indicating a bearish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 43.41 is Neutral, neither overbought nor oversold. The STOCH value of 11.70 is Positive, 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 *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
FRD	58 Neutral	$121.33M	11.73	11.34%	0.75%	8.72%	43.14%
HUDI	48 Neutral	$17.73M	-13.91	-1.85%	―	-20.24%	-119.83%
KBSX	42 Neutral	$62.67M	-8.81	-62.42%	―	―	-267.14%
ZKIN	41 Neutral	$31.44M	-3.13	-15.63%	―	-17.00%	95.53%