📊 FRD Key Takeaways
Is Friedman Industries Inc. (FRD) a Good Investment?
Friedman Industries faces significant headwinds with revenue declining 13.9% YoY while profitability metrics compress to anemic levels (2.3% net margin, 3.0% operating margin). The steel industry downturn is evident in poor asset utilization (3.3% ROA), and despite positive free cash flow, the company's low cash reserves ($3.0M) and minimal earnings cushion create vulnerability to further demand deterioration.
Friedman Industries shows solid balance-sheet quality with no long-term debt, strong current liquidity, and continued profitability despite a 13.9% revenue decline. However, the business operates on very thin margins and modest free cash flow, which makes earnings quality sensitive to steel pricing, volume swings, and working capital movements. Fundamentals support resilience, but not enough operating strength to justify a more aggressive rating.
Why Buy Friedman Industries Inc. Stock? FRD Key Strengths
- Strong liquidity position with 3.59x current ratio provides buffer for operational challenges
- Positive free cash flow generation of $5.3M indicates ability to service obligations despite margin compression
- Zero long-term debt and 0.00x debt-to-equity ratio eliminates refinancing risk in uncertain commodity environment
- Debt-free capital structure and solid liquidity reduce financial risk
- Net income remained stable year over year despite lower revenue
- Positive operating cash flow and free cash flow support self-funded operations
FRD Stock Risks: Friedman Industries Inc. Investment Risks
- Revenue contraction of 13.9% YoY signals weakening demand in cyclical steel industry with no visible recovery signs
- Severely depressed margins (3.9% gross, 3.0% operating, 2.3% net) indicate operational stress and limited pricing power
- Critically low cash position of $3.0M relative to $311.9M asset base creates financial fragility if operating cash flow deteriorates further
- Very thin gross, operating, and net margins leave little room for execution or pricing pressure
- Revenue contraction suggests cyclical or demand-related weakness in core operations
- Low cash balance and sub-1.0 quick ratio indicate reliance on inventory and working capital management
Key Metrics to Watch
- Revenue stabilization and margin recovery in next two quarters as indicator of demand stabilization
- Operating cash flow sustainability and cash balance growth relative to capex requirements
- Gross margin trends reflecting commodity steel pricing environment and production efficiency
- Gross margin and operating margin trend
- Revenue growth and free cash flow conversion
Friedman Industries Inc. (FRD) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.2% FCF margin may limit capital allocation flexibility. Strong liquidity with a 3.59x current ratio provides a solid financial cushion.
FRD Profit Margin, ROE & Profitability Analysis
FRD vs Materials Sector: How Friedman Industries Inc. Compares
How Friedman Industries Inc. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Friedman Industries Inc. Stock Overvalued? FRD Valuation Analysis 2026
Based on fundamental analysis, Friedman Industries Inc. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Friedman Industries Inc. Balance Sheet: FRD Debt, Cash & Liquidity
FRD Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Friedman Industries Inc.'s revenue has grown significantly by 263% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.39 reflects profitable operations.
FRD Revenue Growth, EPS Growth & YoY Performance
FRD Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $94.1M | -$675.0K | $0.11 |
| Q2 2026 | $106.8M | -$675.0K | $-0.10 |
| Q1 2026 | $114.6M | $2.6M | $0.37 |
| Q3 2025 | $94.1M | -$675.0K | $0.11 |
| Q2 2025 | $106.8M | -$675.0K | $-0.10 |
| Q1 2025 | $114.6M | $2.6M | $0.37 |
| Q3 2024 | $111.9M | $1.2M | $0.16 |
| Q2 2024 | $130.7M | $2.5M | $0.34 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Friedman Industries Inc. Dividends, Buybacks & Capital Allocation
FRD SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Friedman Industries Inc. (CIK: 0000039092)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FRD
What is the AI rating for FRD?
Friedman Industries Inc. (FRD) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FRD's key strengths?
Claude: Strong liquidity position with 3.59x current ratio provides buffer for operational challenges. Positive free cash flow generation of $5.3M indicates ability to service obligations despite margin compression. ChatGPT: Debt-free capital structure and solid liquidity reduce financial risk. Net income remained stable year over year despite lower revenue.
What are the risks of investing in FRD?
Claude: Revenue contraction of 13.9% YoY signals weakening demand in cyclical steel industry with no visible recovery signs. Severely depressed margins (3.9% gross, 3.0% operating, 2.3% net) indicate operational stress and limited pricing power. ChatGPT: Very thin gross, operating, and net margins leave little room for execution or pricing pressure. Revenue contraction suggests cyclical or demand-related weakness in core operations.
What is FRD's revenue and growth?
Friedman Industries Inc. reported revenue of $455.1M.
Does FRD pay dividends?
Friedman Industries Inc. pays dividends, with $0.8M distributed to shareholders in the trailing twelve months.
Where can I find FRD SEC filings?
Official SEC filings for Friedman Industries Inc. (CIK: 0000039092) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FRD's EPS?
Friedman Industries Inc. has a diluted EPS of $1.46.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FRD a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Friedman Industries Inc. has a SELL rating with 75% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FRD stock overvalued or undervalued?
Valuation metrics for FRD: ROE of 7.3% (sector avg: 14%), net margin of 2.3% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy FRD stock in 2026?
Our dual AI analysis gives Friedman Industries Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FRD's free cash flow?
Friedman Industries Inc.'s operating cash flow is $11.2M, with capital expenditures of $5.8M. FCF margin is 1.2%.
How does FRD compare to other Materials stocks?
Vs Materials sector averages: Net margin 2.3% (avg: 10%), ROE 7.3% (avg: 14%), current ratio 3.59 (avg: 1.6).