FRIEDMAN INDUSTRIES (FRD)
US3584351056 - Common Stock
We assign a fundamental rating of 6 out of 10 to FRD. FRD was compared to 154 industry peers in the Metals & Mining industry. While FRD belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. FRD has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
FRD had positive earnings in the past year.
In the past year FRD had a positive cash flow from operations.
Of the past 5 years FRD 4 years were profitable.
FRD had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 8.07%, FRD belongs to the best of the industry, outperforming 83.12% of the companies in the same industry.
FRD's Return On Equity of 15.05% is amongst the best of the industry. FRD outperforms 83.77% of its industry peers.
FRD has a better Return On Invested Capital (11.13%) than 83.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FRD is significantly above the industry average of 8.82%.
The 3 year average ROIC (17.10%) for FRD is well above the current ROIC(11.13%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.07% | ||
| ROE | 15.05% | ||
| ROIC | 11.13% |
ROA(3y)10.46%
ROA(5y)6.11%
ROE(3y)17.78%
ROE(5y)10.52%
ROIC(3y)17.1%
ROIC(5y)N/A
1.3 Margins
FRD's Profit Margin of 3.64% is fine compared to the rest of the industry. FRD outperforms 68.18% of its industry peers.
FRD's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 5.01%, FRD perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
In the last couple of years the Operating Margin of FRD has declined.
The Gross Margin of FRD (9.08%) is worse than 60.39% of its industry peers.
In the last couple of years the Gross Margin of FRD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.01% | ||
| PM (TTM) | 3.64% | ||
| GM | 9.08% |
OM growth 3YN/A
OM growth 5Y-2.84%
PM growth 3YN/A
PM growth 5Y3.57%
GM growth 3Y62.64%
GM growth 5Y-0.74%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FRD is creating value.
FRD has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, FRD has more shares outstanding
FRD has a worse debt/assets ratio than last year.
2.2 Solvency
FRD has an Altman-Z score of 4.51. This indicates that FRD is financially healthy and has little risk of bankruptcy at the moment.
FRD's Altman-Z score of 4.51 is fine compared to the rest of the industry. FRD outperforms 70.78% of its industry peers.
FRD has a debt to FCF ratio of 5.87. This is a neutral value as FRD would need 5.87 years to pay back of all of its debts.
FRD has a better Debt to FCF ratio (5.87) than 70.78% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that FRD is not too dependend on debt financing.
FRD has a worse Debt to Equity ratio (0.37) than 70.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 5.87 | ||
| Altman-Z | 4.51 |
ROIC/WACC1.29
WACC8.6%
2.3 Liquidity
FRD has a Current Ratio of 3.13. This indicates that FRD is financially healthy and has no problem in meeting its short term obligations.
FRD has a better Current ratio (3.13) than 61.04% of its industry peers.
FRD has a Quick Ratio of 1.04. This is a normal value and indicates that FRD is financially healthy and should not expect problems in meeting its short term obligations.
FRD has a worse Quick ratio (1.04) than 67.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 234.48% over the past year.
FRD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 39.04% yearly.
FRD shows a small growth in Revenue. In the last year, the Revenue has grown by 1.94%.
Measured over the past years, FRD shows a very strong growth in Revenue. The Revenue has been growing by 35.20% on average per year.
EPS 1Y (TTM)234.48%
EPS 3YN/A
EPS 5Y39.04%
EPS growth Q2Q-14.72%
Revenue 1Y (TTM)1.94%
Revenue growth 3Y56.77%
Revenue growth 5Y35.2%
Revenue growth Q2Q3.64%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.50 indicates a rather cheap valuation of FRD.
Based on the Price/Earnings ratio, FRD is valued cheaply inside the industry as 94.16% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of FRD to the average of the S&P500 Index (28.02), we can say FRD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.5 | ||
| Fwd PE | N/A |
4.2 Price Multiples
78.57% of the companies in the same industry are more expensive than FRD, based on the Enterprise Value to EBITDA ratio.
FRD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FRD is cheaper than 79.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.91 | ||
| EV/EBITDA | 6.16 |
4.3 Compensation for Growth
The decent profitability rating of FRD may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.19
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
FRD has a yearly dividend return of 0.83%, which is pretty low.
FRD's Dividend Yield is a higher than the industry average which is at 2.86.
With a Dividend Yield of 0.83, FRD pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
5.2 History
On average, the dividend of FRD grows each year by 15.58%, which is quite nice.
FRD has paid a dividend for at least 10 years, which is a reliable track record.
FRD has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)15.58%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
3.21% of the earnings are spent on dividend by FRD. This is a low number and sustainable payout ratio.
FRD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP3.21%
EPS Next 2YN/A
EPS Next 3YN/A
FRIEDMAN INDUSTRIES
NYSEARCA:FRD (5/6/2024, 7:04:00 PM)
19.05
-0.21 (-1.09%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap132.97M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.5 | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.07% | ||
| ROE | 15.05% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.01% | ||
| PM (TTM) | 3.64% | ||
| GM | 9.08% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.13 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)234.48%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next YN/A
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.94%
Revenue growth 3Y56.77%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y