Friedman Industries, Incorporated (FRD) AI Stock Analysis

Friedman Industries operates through two key business segments: Coil and Tubular. The Coil segment converts steel coils into flat sheet and plate steel customized to client specifications, resells coils, and performs processing for customer-owned coils on a fee basis. This segment serves around 230 customers, primarily steel distributors and manufacturers building railroad cars, barges, steel buildings, tanks, and trailers across the Midwest, Southwest, and Southeast. The Tubular segment manufactures line pipes, oil country pipes, and structural pipes, marketing them directly to steel and pipe distributors through an internal sales force.

Over the past five years, Friedman Industries generated a revenue compound annual growth rate of 38.7% from FY2021 to FY2026. After revenue fell 5.7% in FY2024 and 13.9% in FY2025, it rebounded by 45.5% to $646.9M in FY2026. Net margin was 3.0% in FY2026, generating $19.5M in net income or $2.73 per share. For the trailing twelve months ended June 30, 2026, revenue stood at $752.1M with an operating margin of 8.8% and EPS of $3.84. In the latest quarter ended June 30, 2026, quarterly revenue surged 78.1% year-over-year, while quarterly earnings grew 152.1%.

As of June 30, 2026, Friedman Industries held $5.0M in cash and short-term investments against $101.3M in total debt, leading to net debt of $96.3M. The company has a current ratio of 2.90, debt-to-equity ratio of 0.62, and shareholders' equity of $164.2M out of $373.4M in total assets. Operating cash flow stood at $8.5M in FY2026, yielding free cash flow of $1.4M after $7.2M in capital expenditures. During FY2026, capital deployment also included $1.1M in dividends paid and $10,000 used for share buybacks.

At a share price of $40.48, Friedman Industries has a market capitalization of $292.0M and an enterprise value of $379.4M. The stock trades at a trailing price-to-earnings multiple of 10.5x, below the 19.7x median of its US-listed Basic Materials peers. Its forward P/E of 14.4x sits slightly above the peer median of 13.4x, while its EV/EBITDA of 8.4x is below the peer median of 10.5x. Over the past year, the stock returned 102.4%, outperforming the S&P 500's return of 16.8%, and its 5-year return of 232.3% exceeds the S&P 500's 83.0%.

Friedman Industries pays a forward annual dividend of $0.16 per share, representing a 0.40% dividend yield with a payout ratio of 4.2%. The company has paid quarterly dividends for 42 consecutive years, generating a 5-year annualized dividend growth rate of 14.9%. The most recent ex-dividend date listed was October 23, 2026.

Friedman Industries beat earnings per share estimates in 3 of the last 4 quarters. The company's next earnings report is scheduled for November 9, 2026. Institutional ownership accounts for 54.8% of outstanding shares, while insiders hold 6.6%, and short interest represents 2.4% of the float.

This page is an AI-written research summary of Friedman Industries, Incorporated (FRD). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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