Friedman Industries (FRD) AI Stock Analysis

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Friedman Industries

(NASDAQ:FRD)

Select Model

Rating:72Outperform

Price Target:$44.00▲(4.36% Upside)

Action:reiterated

Date:09/28/26

Strong financial performance from revenue growth and margin gains, plus attractive valuation, are the primary drivers; positive corporate events add support while short-term technical weakness and cash flow volatility limit upside.

Positive Factors

Improved profitabilityImproved 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 conversionNear-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.

Friedman Industries (FRD) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $304.09M
Dividend Yield: 0.38%
Average Volume (3M): 62.77K
Price to Earnings (P/E): 11.0
Beta (1Y): 1.13
Revenue Growth: 61.80%
EPS Growth: 214.07%
Country: US
Employees: 381
Sector: Basic Materials
Sector Strength: 61
Industry: Steel

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 spec...

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 distributi...

Friedman Industries Financial Statement Overview

Summary

Robust revenue growth and margin expansion in the income statement, supported by a strengthening balance sheet with low debt-to-equity, though cash flow volatility and negative free cash flow remain concerns.

Income Statement

85Very Positive

Balance Sheet

78Positive

Cash Flow

45Neutral

Financial statement breakdown
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	45.42M	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

Technical Analysis SentimentPositive

Last Price42.16

Price Trends

50DMA42.02Positive

100DMA39.11Positive

200DMA29.38Positive

Market Momentum

MACD0.31Negative

RSI51.73Neutral

STOCH68.60Neutral

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 42.16 is above the 20-day moving average (MA) of 42.08, above the 50-day MA of 42.02, and above the 200-day MA of 29.38, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 51.73 is Neutral, neither overbought nor oversold. The STOCH value of 68.60 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

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

FRD against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRD	72Outperform	$304.09M	10.98	18.07%	0.38%	61.80%	214.07%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HLP	58Neutral	$303.44M	153.21	3.43%	―	38.96%	―
MSB	58Neutral	$232.36M	35.73	33.51%	5.03%	-87.62%	-93.01%
ACNT	53Neutral	$123.88M	-29.25	-5.25%	―	-34.20%	-59.08%
HUDI	42Neutral	$7.30M	-2.73	-3.47%	―	-12.79%	-406.58%

* Basic Materials Sector Average

Performance Comparison

FRD and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
FRD	Friedman Industries, Incorporated	42.16	19.93	89.63%
ACNT	Ascent Industries Co.	13.75	1.67	13.82%
MSB	Mesabi Trust Shs	17.71	-16.10	-47.62%
HUDI	Huadi International Group Co., Ltd.	0.51	-0.76	-59.84%
HLP	Hongli Group, Inc.	4.06	2.59	176.19%

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 of...

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...

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: Sep 28, 2026

Friedman Industries AI Stock Analysis

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