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Friedman Industries

AMEX:FRD
Snowflake Description

Flawless balance sheet and undervalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FRD
AMEX
$48M
Market Cap
  1. Home
  2. US
  3. Materials
Company description

Friedman Industries, Incorporated engages in steel processing, pipe manufacturing and processing, and steel and pipe distribution activities in the United States. The last earnings update was 124 days ago. More info.


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FRD Share Price and Events
7 Day Returns
-4%
AMEX:FRD
1.4%
US Metals and Mining
0.1%
US Market
1 Year Returns
9.2%
AMEX:FRD
-24%
US Metals and Mining
1.2%
US Market
FRD Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Friedman Industries (FRD) -4% -6.7% -14.2% 9.2% 14.5% -20.1%
US Metals and Mining 1.4% 3.4% -6.7% -24% 3.3% -19.4%
US Market 0.1% 0.6% 0.9% 1.2% 36.7% 37.9%
1 Year Return vs Industry and Market
  • FRD outperformed the Metals and Mining industry which returned -24% over the past year.
  • FRD outperformed the Market in United States of America which returned 1.2% over the past year.
Price Volatility
FRD
Industry
5yr Volatility vs Market

FRD Value

 Is Friedman Industries undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Friedman Industries to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Friedman Industries.

AMEX:FRD Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 8.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for AMEX:FRD
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 1.02
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.024 (1 + (1- 21%) (0%))
1.016
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.02
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.016 * 5.96%)
8.78%

Discounted Cash Flow Calculation for AMEX:FRD using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Friedman Industries is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

AMEX:FRD DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.78%)
2019 5.63 Est @ 18.85% 5.17
2020 6.41 Est @ 14.01% 5.42
2021 7.10 Est @ 10.63% 5.51
2022 7.68 Est @ 8.26% 5.48
2023 8.19 Est @ 6.6% 5.37
2024 8.63 Est @ 5.44% 5.21
2025 9.03 Est @ 4.63% 5.01
2026 9.40 Est @ 4.06% 4.79
2027 9.74 Est @ 3.66% 4.57
2028 10.07 Est @ 3.38% 4.34
Present value of next 10 years cash flows $50.88
AMEX:FRD DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $10.07 × (1 + 2.73%) ÷ (8.78% – 2.73%)
$170.90
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $170.90 ÷ (1 + 8.78%)10
$73.63
AMEX:FRD Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $50.88 + $73.63
$124.51
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $124.51 / 7.01
$17.76
AMEX:FRD Discount to Share Price
Calculation Result
Value per share (USD) From above. $17.76
Current discount Discount to share price of $6.78
= -1 x ($6.78 - $17.76) / $17.76
61.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Friedman Industries is available for.
Intrinsic value
>50%
Share price is $6.78 vs Future cash flow value of $17.76
Current Discount Checks
For Friedman Industries to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Friedman Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Friedman Industries's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Friedman Industries's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Friedman Industries's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
AMEX:FRD PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $1.16
AMEX:FRD Share Price ** AMEX (2019-06-18) in USD $6.78
United States of America Metals and Mining Industry PE Ratio Median Figure of 44 Publicly-Listed Metals and Mining Companies 9.08x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.63x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Friedman Industries.

AMEX:FRD PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= AMEX:FRD Share Price ÷ EPS (both in USD)

= 6.78 ÷ 1.16

5.86x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Friedman Industries is good value based on earnings compared to the US Metals and Mining industry average.
  • Friedman Industries is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Friedman Industries's expected growth come at a high price?
Raw Data
AMEX:FRD PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.86x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
12.8%per year
United States of America Metals and Mining Industry PEG Ratio Median Figure of 24 Publicly-Listed Metals and Mining Companies 0.58x
United States of America Market PEG Ratio Median Figure of 2,126 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Friedman Industries, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Friedman Industries's assets?
Raw Data
AMEX:FRD PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $10.56
AMEX:FRD Share Price * AMEX (2019-06-18) in USD $6.78
United States of America Metals and Mining Industry PB Ratio Median Figure of 107 Publicly-Listed Metals and Mining Companies 1.38x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
AMEX:FRD PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= AMEX:FRD Share Price ÷ Book Value per Share (both in USD)

= 6.78 ÷ 10.56

0.64x

* Primary Listing of Friedman Industries.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Friedman Industries is good value based on assets compared to the US Metals and Mining industry average.
X
Value checks
We assess Friedman Industries's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. Friedman Industries has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

FRD Future Performance

 How is Friedman Industries expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Friedman Industries, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
12.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Friedman Industries expected to grow at an attractive rate?
  • Friedman Industries's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Friedman Industries's earnings growth is positive but not above the United States of America market average.
  • Unable to compare Friedman Industries's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
AMEX:FRD Future Growth Rates Data Sources
Data Point Source Value (per year)
AMEX:FRD Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 12.8%
United States of America Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 18.3%
United States of America Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 5.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
AMEX:FRD Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
AMEX:FRD Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 189 6 8
2018-09-30 174 1 8
2018-06-30 146 0 6
2018-03-31 121 3 3
2017-12-31 98 -7 1
2017-09-30 86 -3 0
2017-06-30 78 4 -1
2017-03-31 78 0 -3
2016-12-31 73 3 -3
2016-09-30 75 7 -2
2016-06-30 80 -1 -2
2016-03-31 82 3 0

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Friedman Industries's earnings are expected to grow by 12.8% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Friedman Industries is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
AMEX:FRD Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Friedman Industries Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AMEX:FRD Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 1.16
2018-09-30 1.08
2018-06-30 0.86
2018-03-31 0.39
2017-12-31 0.08
2017-09-30 0.02
2017-06-30 -0.12
2017-03-31 -0.39
2016-12-31 -0.42
2016-09-30 -0.31
2016-06-30 -0.25
2016-03-31 0.04

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Friedman Industries will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Friedman Industries's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Friedman Industries has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

FRD Past Performance

  How has Friedman Industries performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Friedman Industries's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Friedman Industries has delivered over 20% year on year earnings growth in the past 5 years.
  • Friedman Industries's 1-year earnings growth exceeds its 5-year average (1389.8% vs 31%)
  • Friedman Industries's earnings growth has exceeded the US Metals and Mining industry average in the past year (1389.8% vs 43.8%).
Earnings and Revenue History
Friedman Industries's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Friedman Industries Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AMEX:FRD Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 188.91 8.10 5.06
2018-09-30 173.62 7.60 5.00
2018-06-30 146.27 5.99 4.64
2018-03-31 121.16 2.76 4.18
2017-12-31 98.25 0.54 4.01
2017-09-30 86.21 0.15 3.97
2017-06-30 78.45 -0.85 3.96
2017-03-31 77.76 -2.68 4.02
2016-12-31 72.65 -2.83 3.97
2016-09-30 75.21 -2.10 4.11
2016-06-30 80.06 -1.69 4.41
2016-03-31 81.63 0.29 4.67
2015-12-31 91.00 0.37 4.71
2015-09-30 96.01 0.07 4.59
2015-06-30 104.39 1.03 4.67
2015-03-31 108.32 0.38 4.45
2014-12-31 114.98 1.22 4.52
2014-09-30 119.71 1.52 4.67
2014-06-30 114.47 0.79 4.42
2014-03-31 116.15 1.71 4.59
2013-12-31 116.13 2.57 4.72
2013-09-30 119.57 3.24 4.78
2013-06-30 126.60 4.85 5.06
2013-03-31 136.45 6.14 5.31
2012-12-31 148.05 7.09 5.47
2012-09-30 153.32 7.74 5.53
2012-06-30 162.02 8.41 5.63

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Friedman Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Friedman Industries used its assets more efficiently than the US Metals and Mining industry average last year based on Return on Assets.
  • Friedman Industries has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Friedman Industries's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Friedman Industries has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

FRD Health

 How is Friedman Industries's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Friedman Industries's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Friedman Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Friedman Industries's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Friedman Industries's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Friedman Industries has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Friedman Industries Company Filings, last reported 5 months ago.

AMEX:FRD Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 74.01 0.00 2.58
2018-09-30 73.69 0.00 3.67
2018-06-30 72.04 0.00 3.30
2018-03-31 63.05 0.00 4.05
2017-12-31 60.97 3.75 2.12
2017-09-30 60.84 0.00 3.20
2017-06-30 60.53 0.00 3.90
2017-03-31 60.36 0.00 1.46
2016-12-31 60.73 0.00 5.93
2016-09-30 61.04 0.00 7.13
2016-06-30 61.71 0.00 0.82
2016-03-31 63.24 0.00 2.80
2015-12-31 63.83 0.00 4.46
2015-09-30 63.41 0.00 1.73
2015-06-30 63.67 0.00 3.82
2015-03-31 63.22 0.00 2.23
2014-12-31 63.74 0.00 6.96
2014-09-30 63.69 0.00 7.23
2014-06-30 63.06 0.00 10.79
2014-03-31 63.31 0.00 15.08
2013-12-31 63.06 0.00 17.09
2013-09-30 62.71 0.00 13.98
2013-06-30 63.22 0.00 17.60
2013-03-31 62.96 0.00 15.92
2012-12-31 62.25 0.00 16.60
2012-09-30 65.39 0.00 20.68
2012-06-30 64.63 0.00 13.86
  • Friedman Industries has no debt.
  • Friedman Industries had no debt 5 years ago.
  • Friedman Industries has no debt, it does not need to be covered by operating cash flow.
  • Friedman Industries has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Friedman Industries's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Friedman Industries has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

FRD Dividends

 What is Friedman Industries's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.8%
Current annual income from Friedman Industries dividends.
If you bought $2,000 of Friedman Industries shares you are expected to receive $56 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Friedman Industries's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • Friedman Industries's dividend is below the markets top 25% of dividend payers in United States of America (3.72%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
AMEX:FRD Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United States of America Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 30 Stocks 2.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

AMEX:FRD Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-19 0.190 2.542
2018-12-04 0.240 3.128
2018-08-31 0.240 2.727
2018-06-06 0.120 1.394
2018-03-27 0.080 1.319
2017-12-06 0.040 0.700
2017-09-19 0.040 0.679
2017-06-02 0.040 0.721
2017-03-30 0.040 0.675
2016-12-02 0.040 0.613
2016-09-01 0.040 0.744
2016-06-03 0.040 0.690
2016-03-29 0.040 0.677
2015-12-01 0.040 0.763
2015-08-28 0.040 0.666
2015-08-13 0.040 0.659
2015-03-27 0.040 0.633
2014-12-03 0.080 1.207
2014-08-28 0.080 1.022
2014-05-30 0.080 0.948
2014-03-21 0.080 0.956
2013-11-22 0.080 0.941
2013-08-29 0.320 3.213
2013-05-23 0.320 3.263
2013-03-22 0.320 3.295
2012-11-30 0.520 4.862
2012-08-30 0.520 5.077
2012-05-31 0.520 5.290
2012-03-23 0.520 4.790
2011-12-02 0.520 4.822
2011-09-01 0.520 5.401
2011-05-27 0.520 5.158
2011-03-18 0.440 4.394
2010-12-02 0.440 4.810
2010-09-02 0.320 4.645
2010-05-28 0.160 2.838
2010-03-12 0.040 0.685
2009-12-04 0.040 0.709
2009-09-03 0.040 0.677

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Friedman Industries's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (6.8x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Friedman Industries's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Friedman Industries afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Friedman Industries has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

FRD Management

 What is the CEO of Friedman Industries's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mike Taylor
COMPENSATION $30,750
AGE 59
TENURE AS CEO 0.3 years
CEO Bio

Mr. Michael J. Taylor, also known as Mike, has been Chairman of the Board at Friedman Industries, Incorporated since June 2, 2017 and as its Director since December 02, 2016. He serves as interim President and interim Chief Executive Officer of Friedman Industries, Incorporated since March 31, 2019. He serves as Presiding Director of Friedman Industries, Incorporated. He served as President of Steel Service Center Business at Cargill Steel Group. Mr. Taylor served as President of Cargill Metals Supply Chain from 2003 to 2014. He served as Business Unit Leader of the Steel Service Center Business at Cargill Steel Group since July 1, 2003. Mr. Taylor retired in 2014 from a 33 year career in the steel industry. Mr. Taylor served as General Manager of the Steel Service Center's (SSC) Midwest region since 1997. He served as an Assistant Vice President of Cargill Ferrous International from 1991 to 1997 and has extensive experience in the international steel trading and steel processing businesses. He holds a bachelor of arts degree in business administration from Linfield College in McMinnville, Ore.

CEO Compensation
  • Mike's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Mike's remuneration is lower than average for companies of similar size in United States of America.
Management Team

Mike Taylor

TITLE
Interim CEO
COMPENSATION
$31K
AGE
59
TENURE
0.3 yrs

Alex LaRue

TITLE
CFO, Secretary & Treasurer
COMPENSATION
$120K
AGE
32
TENURE
5.8 yrs

Charles Hall

TITLE
Assistant Secretary & Director
COMPENSATION
$24K
AGE
88
Board of Directors Tenure

Average tenure and age of the Friedman Industries board of directors in years:

12.3
Average Tenure
72.5
Average Age
  • The average tenure for the Friedman Industries board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Mike Taylor

TITLE
Interim CEO
COMPENSATION
$31K
AGE
59
TENURE
2 yrs

Charles Hall

TITLE
Assistant Secretary & Director
COMPENSATION
$24K
AGE
88
TENURE
45.4 yrs

Joel Spira

TITLE
Director
COMPENSATION
$36K
AGE
80
TENURE
12.2 yrs

Max Reichenthal

TITLE
Director
COMPENSATION
$24K
AGE
60
TENURE
11.3 yrs

Joe Williams

TITLE
Director
COMPENSATION
$24K
AGE
72
TENURE
19.4 yrs

Durga Agrawal

TITLE
Director
COMPENSATION
$31K
AGE
73
TENURE
12.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Friedman Industries's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Friedman Industries has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

FRD News

Simply Wall St News

How Does Friedman Industries, Incorporated (NYSEMKT:FRD) Fare As A Dividend Stock?

Historically, Friedman Industries, Incorporated (NYSEMKT:FRD) has paid a dividend to shareholders. … Let's take a look at Friedman Industries in more detail. … View our latest analysis for Friedman Industries

Simply Wall St -

Is Friedman Industries Incorporated's (NYSEMKT:FRD) 8.3% Better Than Average?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows Friedman Industries has a return on equity of 8.3% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Investors In Friedman Industries Incorporated (NYSEMKT:FRD) Should Consider This Data

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Over the past 10 years, Friedman Industries Incorporated (NYSEMKT:FRD) has returned an average of 3.00% per year to shareholders in terms of dividend yield. … Let's dig deeper into whether Friedman Industries should have a place in your portfolio.

Simply Wall St -

What You Must Know About Friedman Industries Incorporated's (NYSEMKT:FRD) Major Investors

In this article, I will take a quick look at Friedman Industries Incorporated’s (NYSEMKT:FRD) recent ownership structure – an unconventional investing subject, but an important one. … Ownership structure has been found to have an impact on shareholder returns in both short- and long-term. … Differences in ownership structure of companies can have a profound effect on how management's incentives are aligned with shareholder returns, and whether they adhere to corporate governance best practices.

Simply Wall St -

Will Friedman Industries Incorporated (NYSEMKT:FRD) Continue To Underperform Its Industry?

I am writing today to help inform people who are new to the stock market. … and want a simplistic look at the return on Friedman Industries Incorporated (NYSEMKT:FRD) stock. … Friedman Industries Incorporated (NYSEMKT:FRD) generated a below-average return on equity of 0.37% in the past 12 months, while its industry returned 11.07%.

Simply Wall St -

How Friedman Industries Incorporated (NYSEMKT:FRD) Can Impact Your Portfolio Volatility

A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one. … Based on this beta value, FRD appears to be a stock that an investor with a high-beta portfolio would look for to reduce risk exposure to the market. … An asset-heavy company tends to have a higher beta because the risk associated with running fixed assets during a downturn is highly expensive.

Simply Wall St -

Who Owns Most Of Friedman Industries Incorporated (NYSEMKT:FRD)?

Ownership structure of a company has been found to affect share performance over time. … We should dig deeper into the company's ownership structure to find how the rest of its ownership structure can impact its investment case. … With this size of ownership, retail investors can collectively play a role in major company policies that affect shareholders returns, including executive remuneration and the appointment of directors.

Simply Wall St -

Does Friedman Industries Incorporated's (NYSEMKT:FRD) PE Ratio Signal A Selling Opportunity?

It compares a stock’s price per share to the stock’s earnings per share. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for FRD Price per share = $5.56 Earnings per share = $0.032 ∴ Price-Earnings Ratio = $5.56 ÷ $0.032 = 172x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … For example, if you inadvertently compared riskier firms with FRD, then investors would naturally value FRD at a higher price since it is a less risky investment.

Simply Wall St -

What You Must Know About Friedman Industries Incorporated's (NYSEMKT:FRD) 0.37% ROE

View our latest analysis for Friedman Industries Breaking down Return on Equity Return on Equity (ROE) weighs Friedman Industries’s profit against the level of its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of Friedman Industries’s equity capital deployed. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity AMEX:FRD Last Perf Mar 19th 18 The first component is profit margin, which measures how much of sales is retained after the company pays for all its expenses.

Simply Wall St -

Why Friedman Industries Incorporated's (NYSEMKT:FRD) CEO Pay Check Matters To You

Therefore I will use earnings as a proxy of Sparkman's performance in the past year. … Although I couldn't find information on the composition of Sparkman's pay, if some portion were non-cash items such as stocks and options, then fluctuations in FRD's share price can affect the true level of what the CEO actually collects at the end of the year. … Normally I'd use market cap and profit as factors determining performance, however, FRD's negative earnings lower the usefulness of my formula.

Simply Wall St -

FRD Company Info

Description

Friedman Industries, Incorporated engages in steel processing, pipe manufacturing and processing, and steel and pipe distribution activities in the United States. The company operates in two segments, Coil Products and Tubular Products. The Coil Products segment processes hot-roll coils into sheet and plate, as well as customer-owned coils on a fee basis; and sells these products on a wholesale basis. It offers its coil products and processing services primarily to steel distributors and customers manufacturing steel products, such as steel buildings, railroad cars, barges, tanks and containers, trailers, component parts, and other fabricated steel products through its own sales force. The Tubular Products segment manufactures line and oil country pipes, as well as pipes for structural applications. It sells its tubular products principally to steel and pipe distributors through its own sales force. Friedman Industries, Incorporated was founded in 1965 and is headquartered in Longview, Texas.

Details
Name: Friedman Industries, Incorporated
FRD
Exchange: AMEX
Founded: 1965
$47,524,030
7,009,444
Website: http://www.friedmanindustries.com
Address: Friedman Industries, Incorporated
1121 Judson Road,
Suite 124,
Longview,
Texas, 75601,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
AMEX FRD Common Stock NYSE MKT LLC US USD 07. May 1975
Number of employees
Current staff
Staff numbers
90
Friedman Industries employees.
Industry
Steel
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/18 23:36
End of day share price update: 2019/06/18 00:00
Last earnings filing: 2019/02/14
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.