Friedman Industries, Incorporated (FRD) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-38.1%

$25.72

vs $41.54 price

Levered DCF

-$16.08

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

4.35

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	6.42×	17.11×	7.66×	3.9×	4.32×	4.96×	-5.88×	10.44×
P/B	0.81×	0.78×	1.03×	0.72×	0.73×	0.87×	0.46×	0.74×
P/S	0.19×	0.23×	0.25×	0.15×	0.2×	0.45×	0.22×	0.29×
EV / EBITDA	6.47×	10.79×	5.83×	3.48×	3.75×	3.03×	-14.49×	5.1×
Gross margin	13.4%	10.2%	14.0%	12.8%	14.4%	18.7%	1.8%	6.9%
Operating margin	4.0%	0.6%	4.7%	3.8%	10.0%	12.5%	-4.8%	3.4%
Net margin	3.0%	1.4%	3.4%	3.9%	4.9%	9.1%	-3.7%	2.7%
Current ratio	3.38×	4.34×	3.14×	3.19×	2.06×	2.67×	6.76×	6.02×
Debt / equity	0.67×	0.38×	0.34×	0.3×	0.24×	0.03×	0.01×	0×
Interest coverage	6.25×	0.94×	7.98×	9.5×	111.84×	638.75×	-1,426.85×	363.81×
Dividend yield	0.9%	1.1%	0.4%	0.7%	0.9%	1.0%	2.7%	2.2%
Payout ratio	5.8%	18.3%	3.3%	2.8%	3.9%	4.9%	-16.0%	23.4%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	12.9%	4.6%	13.6%	18.5%	17.7%	17.5%	-7.9%	7.0%
Return on invested capital	7.3%	1.2%	10.4%	10.3%	22.2%	17.5%	-7.7%	6.4%
Return on assets	5.8%	2.7%	7.5%	10.7%	8.8%	12.0%	-6.8%	5.9%
Free cash flow yield	1.1%	-9.1%	-0.6%	57.0%	-36.8%	6.7%	20.4%	16.5%
Earnings yield	15.8%	5.9%	13.2%	25.7%	24.1%	20.1%	-17.0%	9.5%
Enterprise value	$221.9M	$150.4M	$171.7M	$114.6M	$74.6M	$50.7M	$14.3M	$41.8M
Net debt / EBITDA	2.87×	3.37×	1.37×	0.96×	0.81×	-0.37×	16.72×	-1.43×
Cash conversion cycle (days)	114	111	95	71	81	133	100	104