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Friedman Industries
(NASDAQ:FRD)
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Rating:61Neutral
Price Target:
$42.00
▼(-4.44% Downside)
Action:Downgraded
Date:09/28/26
FRD scores moderately due to strong balance sheet positioning and improved profitability, partially offset by weak cash flow conversion (negative TTM free cash flow). Near-term technical indicators are also a drag, while valuation (low P/E) and supportive corporate actions (expanded credit facility) provide secondary support.
Positive Factors
Improved profitability
Improved revenue and profitability indicate stronger operating performance and customer demand. The combination of positive net income, solid gross margin, and operating earnings gives Friedman a better base to reinvest, absorb normal steel-market fluctuations, and build earnings over the next several quarters.
Negative Factors
Weak cash conversion
Near-breakeven operating cash flow and negative free cash flow show that recent accounting earnings are not converting efficiently into liquidity. Elevated working-capital swings or capital spending can therefore pressure funding needs and limit the cash available for reinvestment or shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved profitability
Improved revenue and profitability indicate stronger operating performance and customer demand. The combination of positive net income, solid gross margin, and operating earnings gives Friedman a better base to reinvest, absorb normal steel-market fluctuations, and build earnings over the next several quarters.
Read all positive factors
Friedman Industries (FRD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$275.53M
Dividend Yield0.4%
Average Volume (3M)59.48K
Price to Earnings (P/E)10.2
Beta (1Y)1.12
Revenue Growth61.80%
EPS Growth214.07%
CountryUS
Employees381
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)3.84
Shares Outstanding7,212,791
10 Day Avg. Volume55,598
30 Day Avg. Volume59,480
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)0.81
Price to Sales (P/S)0.19
P/FCF Ratio89.51
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Friedman Industries Business Overview & Revenue Model
Company Description
Friedman Industries, Inc. (FRD) is a U.S.-based company primarily involved in the processing and manufacturing of steel and pipe, as well as their distribution. The firm operates through two distinct divisions: Coil and Tubular. The Coil segment s...
How the Company Makes Money
Friedman Industries primarily makes money by purchasing steel (such as hot-rolled coil and steel plate) and selling it at a markup after performing processing and distribution services. Key revenue streams include: (1) Steel processing and distrib...
Friedman Industries Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
85
Very Positive
Cash Flow
34
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Jun 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 752.11M | 646.91M | 444.60M | 516.25M | 547.54M | 285.24M |
| Gross Profit | 100.42M | 86.50M | 45.48M | 72.42M | 69.98M | 40.99M |
| EBITDA | 45.40M | 34.30M | 13.94M | 29.46M | 32.93M | 19.91M |
| Net Income | 26.97M | 19.53M | 6.08M | 17.34M | 21.34M | 14.07M |
Balance Sheet | ||||||
| Total Assets | 373.44M | 336.81M | 226.82M | 230.02M | 199.31M | 159.28M |
| Cash, Cash Equivalents and Short-Term Investments | 5.03M | 2.45M | 3.69M | 2.89M | 2.99M | 2.60M |
| Total Debt | 101.32M | 100.91M | 50.64M | 43.13M | 34.45M | 18.82M |
| Total Liabilities | 209.29M | 185.32M | 94.40M | 102.54M | 83.88M | 79.59M |
| Stockholders Equity | 164.15M | 151.49M | 132.43M | 127.47M | 115.43M | 79.69M |
Cash Flow | ||||||
| Free Cash Flow | -7.19M | 1.38M | -9.41M | -813.00K | 47.44M | -21.46M |
| Operating Cash Flow | 362.00K | 8.54M | -4.41M | 4.98M | 63.89M | -13.40M |
| Investing Cash Flow | -52.08M | -52.76M | -3.43M | -5.80M | -88.19M | -7.92M |
| Financing Cash Flow | 56.84M | 43.30M | 6.09M | 1.34M | 13.56M | 17.25M |
Friedman Industries Technical Analysis
Positive
43.95
Price Trends
41.08
Negative
35.04
Positive
27.13
Positive
Market Momentum
-0.83
Positive
44.49
Neutral
25.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FRD, the sentiment is Positive. The current price of 43.95 is above the 20-day moving average (MA) of 41.43, above the 50-day MA of 41.08, and above the 200-day MA of 27.13, indicating a neutral trend. The MACD of -0.83 indicates Positive momentum. The RSI at 44.49 is Neutral, neither overbought nor oversold. The STOCH value of 25.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FRD.
Friedman Industries Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $188.34M | 98.49 | 3.43% | ― | 38.96% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $275.53M | 10.20 | 18.07% | 0.40% | 61.80% | 214.07% | |
58 Neutral | $257.02M | 39.19 | 33.51% | 4.66% | -87.62% | -93.01% | |
50 Neutral | $127.03M | -29.69 | -5.25% | 1.54% | -34.20% | -59.08% | |
45 Neutral | $9.72M | -3.67 | -3.47% | ― | -12.79% | -406.58% |
* Basic Materials Sector Average
FRD
Friedman Industries
39.63
18.65
88.90%
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13.95
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Friedman Industries Corporate Events
Executive/Board ChangesShareholder Meetings
Friedman Industries Shareholders Approve Directors and Executive Pay
Positive
Sep 28, 2026
On September 22, 2026, Friedman Industries shareholders elected all six board nominees to serve until the next annual meeting, signaling continuity in the company’s governance. Investors also approved, on an advisory basis, the compensation ...
Business Operations and StrategyPrivate Placements and Financing
Friedman Industries Expands Credit Facility to Support Growth
Positive
Sep 10, 2026
On September 3, 2026, Friedman Industries and Century Metals Supplies, LLC entered into a seventh amendment to their amended and restated credit agreement with a lender group and JPMorgan Chase Bank, N.A. as administrative agent. The amendment ra...
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.