Friedman Industries Inc. (FRD) intrinsic value & 10-year financials

Friedman Industries Inc. (FRD) has a Graham intrinsic value of $28.90 per share. At $40.48 on Oct 17, 2026, the stock trades 40% above that value. Over the last 10 fiscal years revenue grew 20.7% a year to $444.6M, with an average return on invested capital of 7.8%.

Graham intrinsic value
$28.90
Share price (Oct 17, 2026)
$40.48
Price vs Graham value
40% above
Market cap
$281.1M
Revenue (FY2025)
$444.6M
Revenue growth (10-yr CAGR)
20.7%
ROIC (10-yr avg)
7.8%
Free cash flow (FY2025)
-$8.4M

FRD 10-year financial history

Fiscal year Revenue Net income EPS (diluted) Free cash flow Operating margin ROIC
FY2025 $444.6M $6.1M $0.87 -$8.4M 0.7% 1.9%
FY2024 $516.3M $17.3M $2.39 -$813.0K 4.7% 15.1%
FY2023 $547.5M $21.3M $2.91 $47.4M 3.8% 14.0%
FY2022 $285.2M $14.1M $2.04 -$21.5M 9.9% 29.9%
FY2021 $126.1M $11.4M $1.63 $3.8M 12.5% 17.9%
FY2020 $142.1M -$5.2M -$0.75 $6.3M -4.8% -7.6%
FY2019 $187.2M $5.1M $0.73 $8.8M 3.4% 7.0%
FY2018 $121.2M $2.8M $0.39 $2.9M 3.3% 4.4%
FY2017 $77.8M -$2.7M -$0.39 -$1.0M -5.4% -4.4%
FY2016 $81.6M $294.0K $0.04 $901.8K 0.0% 0.0%

Source: annual 10-K filings on SEC EDGAR. Figures in USD.

Executive summary

FRIEDMAN INDUSTRIES INC is a consistent compounder, expanding top-line revenue at 20.7% annually over the past decade.

FRIEDMAN INDUSTRIES INC has historically struggled to out-earn its cost of capital, averaging just 7.8% ROIC.

FRIEDMAN INDUSTRIES INC has not shown aggressive share repurchases (>10% retirement) or a major balance-sheet leverage increase (>50% net debt growth) over the 10-year window.

Benjamin Graham lens

Under Benjamin Graham's formula using SEC EDGAR fundamentals, FRIEDMAN INDUSTRIES INC is modeled at 15.0% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $28.90 per share.

FRD stock: frequently asked questions

What is the intrinsic value of Friedman Industries Inc. (FRD) stock?

Using Benjamin Graham's revised formula, V = EPS × (8.5 + 2g) × 4.4 / Y, with reported diluted earnings per share, a 15.0% normalized growth rate (capped at 15%) and a 5.1% AAA corporate bond yield, FRD's intrinsic value is about $28.90 per share.

Is FRD stock undervalued?

At $40.48 (close on Oct 17, 2026), FRD trades 40% above its Graham value of $28.90. On Graham's terms the shares look fully priced. A formula is a starting point for research, not a recommendation.

How fast has Friedman Industries Inc. grown?

Revenue went from $81.6M in fiscal 2016 to $444.6M in fiscal 2025, a compound annual growth rate of 20.7%. Net income was $6.1M in fiscal 2025.

Does Friedman Industries Inc. generate free cash flow?

Friedman Industries Inc. generated -$8.4M of free cash flow (operating cash flow minus capital expenditures) in fiscal 2025. Free cash flow was positive in 6 of the last 10 reported years.

What is FRD's return on invested capital?

Average ROIC over the last 10 fiscal years was 7.8%, and average return on equity was 7.8%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this FRD data come from?

From Friedman Industries Inc.'s annual 10-K filings on SEC EDGAR. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.

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