AMEX:FRD

Stock Analysis Report

Executive Summary

Friedman Industries, Incorporated engages in steel processing, pipe manufacturing and processing, and the steel and pipe distribution businesses the United States.

Snowflake

Fundamentals

Flawless balance sheet and fair value.

Share Price & News

How has Friedman Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.9%

FRD

0.7%

US Metals and Mining

1.8%

US Market


1 Year Return

-25.6%

FRD

-9.4%

US Metals and Mining

7.3%

US Market

Return vs Industry: FRD underperformed the US Metals and Mining industry which returned -9.4% over the past year.

Return vs Market: FRD underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

FRDIndustryMarket
7 Day0.9%0.7%1.8%
30 Day6.2%-4.4%-0.7%
90 Day6.6%-7.6%0.06%
1 Year-24.0%-25.6%-6.7%-9.4%9.7%7.3%
3 Year28.8%23.3%7.6%2.0%46.3%36.9%
5 Year-9.9%-15.0%-2.7%-10.0%64.5%46.5%

Price Volatility Vs. Market

How volatile is Friedman Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Friedman Industries undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: FRD ($6.51) is trading below our estimate of fair value ($61.55)

Significantly Undervalued: FRD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FRD is poor value based on its PE Ratio (26.9x) compared to the Metals and Mining industry average (13.4x).

PE vs Market: FRD is poor value based on its PE Ratio (26.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate FRD's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FRD is good value based on its PB Ratio (0.6x) compared to the US Metals and Mining industry average (1.4x).


Next Steps

Future Growth

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

32.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FRD's forecast earnings growth (32.5% per year) is above the savings rate (2.7%).

Earnings vs Market: FRD's earnings (32.5% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if FRD's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if FRD's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if FRD's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Friedman Industries performed over the past 5 years?

44.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FRD's earnings have grown significantly by 44.5% per year over the past 5 years.

Accelerating Growth: FRD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FRD had negative earnings growth (-76.4%) over the past year, making it difficult to compare to the Metals and Mining industry average (26.6%).


Return on Equity

High ROE: FRD's Return on Equity (2.3%) is considered low.


Return on Assets

ROA vs Industry: FRD's Return on Assets is below or equal to the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: FRD's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Friedman Industries's financial position?


Financial Position Analysis

Short Term Liabilities: FRD's short term assets ($70.9M) exceeds its short term liabilities ($9.3M)

Long Term Liabilities: FRD's short term assets (70.9M) exceeds its long term liabilities (1.8M)


Debt to Equity History and Analysis

Debt Level: FRD is debt free.

Reducing Debt: FRD had no debt 5 years ago.

Debt Coverage: FRD has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: FRD has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: FRD has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if FRD's debt is covered by short term assets.


Next Steps

Dividend

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

2.92%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%1.5%markettop25%3.7%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: FRD's dividend (2.92%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: FRD's dividend (2.92%) is low compared to the top 25% of dividend payers in the US market (3.72%).

Stable Dividend: FRD's dividend payments have been volatile in the past 10 years.

Growing Dividend: FRD's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (82.7%), FRD's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

12.0yrs

Average board tenure


CEO

Mike Taylor (60yo)

0.7yrs

Tenure

US$271,563

Compensation

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. Mr. Taylor is President and Ch ...


CEO Compensation Analysis

Compensation vs. Market: Mike has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Mike's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Age and Tenure

12.0yrs

Average Tenure

67yo

Average Age

Experienced Board: FRD's board of directors are seasoned and experienced ( 12 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Charles Hall (89yo)

    Assistant Secretary

    • Tenure: 0yrs
    • Compensation: US$24.00k
  • Mike Taylor (60yo)

    Chairman of the Board

    • Tenure: 0.7yrs
    • Compensation: US$271.56k
  • Alex LaRue (33yo)

    CFO, Secretary & Treasurer

    • Tenure: 6.2yrs
    • Compensation: US$363.29k

Board Members

  • Joe Williams (73yo)

    Director

    • Tenure: 19.8yrs
    • Compensation: US$24.00k
  • Durga Agrawal (74yo)

    Director

    • Tenure: 12.8yrs
    • Compensation: US$33.00k
  • Joel Spira (81yo)

    Director

    • Tenure: 12.5yrs
    • Compensation: US$36.00k
  • Mike Taylor (60yo)

    Chairman of the Board

    • Tenure: 0.7yrs
    • Compensation: US$271.56k
  • Max Reichenthal (61yo)

    Director

    • Tenure: 11.6yrs
    • Compensation: US$24.00k
  • Tim Stevenson (52yo)

    Director

    • Tenure: 0.08yrs

Company Information

Friedman Industries, Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Friedman Industries, Incorporated
  • Ticker: FRD
  • Exchange: AMEX
  • Founded: 1965
  • Industry: Steel
  • Sector: Materials
  • Market Cap: US$45.559m
  • Shares outstanding: 7.00m
  • Website: https://www.friedmanindustries.com

Number of Employees


Location

  • Friedman Industries, Incorporated
  • 1121 Judson Road
  • Suite 124
  • Longview
  • Texas
  • 75601
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FRDAMEX (NYSE MKT LLC)YesCommon StockUSUSDMay 1975

Biography

Friedman Industries, Incorporated engages in steel processing, pipe manufacturing and processing, and the steel and pipe distribution businesses the United States. It operates in two segments, Coil and Tub ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:35
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.