AMEX:FRD

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

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

Stable Share Price: FRD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.4%

FRD

2.3%

US Metals and Mining

1.3%

US Market


1 Year Return

-17.1%

FRD

5.5%

US Metals and Mining

6.1%

US Market

Return vs Industry: FRD underperformed the US Metals and Mining industry which returned 5.5% over the past year.

Return vs Market: FRD underperformed the US Market which returned 6.1% over the past year.


Shareholder returns

FRDIndustryMarket
7 Day0.4%2.3%1.3%
30 Day8.6%1.2%-0.3%
90 Day7.9%19.2%16.6%
1 Year-15.6%-17.1%8.1%5.5%8.4%6.1%
3 Year-2.0%-6.5%8.9%1.8%35.8%26.9%
5 Year-8.6%-14.0%48.4%35.8%62.7%44.7%

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

Below Fair Value: FRD ($5.18) is trading below our estimate of fair value ($36.18)

Significantly Below Fair Value: FRD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FRD is unprofitable, so we can't compare its PE Ratio to the US Metals and Mining industry average.

PE vs Market: FRD is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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 (0.5x) compared to the US Metals and Mining industry average (1.3x).


Next Steps

Future Growth

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

22.5%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Friedman Industries has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Friedman Industries performed over the past 5 years?

12.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FRD is currently unprofitable.

Growing Profit Margin: FRD is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FRD is unprofitable, but has reduced losses over the past 5 years at a rate of 12.8% per year.

Accelerating Growth: Unable to compare FRD's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: FRD is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-11.3%).


Return on Equity

High ROE: FRD has a negative Return on Equity (-7.85%), as it is currently unprofitable.


Next Steps

Financial Health

How is Friedman Industries's financial position?


Financial Position Analysis

Short Term Liabilities: FRD's short term assets ($65.2M) exceed its short term liabilities ($9.6M).

Long Term Liabilities: FRD's short term assets ($65.2M) exceed its long term liabilities ($833.4K).


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


Next Steps

Dividend

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

1.93%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: FRD's dividend (1.93%) is higher than the bottom 25% of dividend payers in the US market (1.7%).

High Dividend: FRD's dividend (1.93%) is low compared to the top 25% of dividend payers in the US market (4.69%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: FRD is paying a dividend but the company is unprofitable.


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

How experienced are the management team and are they aligned to shareholders interests?

12.8yrs

Average board tenure


CEO

Mike Taylor (61yo)

1.42yrs

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 serves as President ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD271.56K) is below average for companies of similar size in the US market ($USD620.12K).

Compensation vs Earnings: Mike's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
Michael Taylor
Chairman of the Board1.42yrsUS$271.56k1.13% $414.4k
Joe Williams
Independent Director20.5yrsUS$24.00k0.25% $92.0k
Durga Agrawal
Independent Director13.58yrsUS$33.00k0.13% $47.7k
Joel Spira
Independent Director13.25yrsUS$36.00k0.12% $42.5k
Max Reichenthal
Independent Director12.33yrsUS$24.00k0.13% $47.7k
Tim Stevenson
Director0.83yrno data0.31% $115.0k

12.8yrs

Average Tenure

68yo

Average Age

Experienced Board: FRD's board of directors are seasoned and experienced ( 12.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$36.677m
  • Shares outstanding: 7.08m
  • 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 Tubular. The Coil segment is involved in the processing and wholesale of hot-roll coils into sheet and plate, as well as customer-owned coils. This segment 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 segment manufactures line and oil country pipes, as well as pipes for structural applications. This segment sells its tubular products principally to steel and pipe distributors through its own sales force. The company was founded in 1965 and is headquartered in Longview, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/11 00:12
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.