📊 FRD Key Takeaways
Is FRD a Good Investment? Thesis Analysis
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.
Why Buy 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
FRD Investment Risks to Consider
- 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
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
FRD Financial Metrics
💡 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 Profitability Ratios
FRD vs Default Sector
How FRIEDMAN INDUSTRIES INC compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is FRD Overvalued or Undervalued?
Based on fundamental analysis, FRIEDMAN INDUSTRIES INC has mixed fundamental signals relative to the Default 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.
FRD Balance Sheet & Liquidity
FRD 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
FRD Quarterly 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.
FRD Capital Allocation
FRD SEC 10-K & 10-Q Filing 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 an AI rating of SELL with 72% 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.
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.
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 March 2026, FRIEDMAN INDUSTRIES INC has a SELL rating with 72% 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: 15%), net margin of 2.3% (sector avg: 12%). 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 Default stocks?
Vs Default sector averages: Net margin 2.3% (avg: 12%), ROE 7.3% (avg: 15%), current ratio 3.59 (avg: 1.8).