Start here if you're new
what it is
Friedman buys and processes steel, then sells sheet and pipe products to distributors and fabricators.
how it gets paid
Last year Frd made $445M in revenue. Hickman coil operations was the main engine at $170M, or 38% of sales.
why growth slowed
Revenue fell 13.9% last year. $168M mattered because this business lives on volume.
what just happened
The latest reported quarter showed revenue of $168M and a swing back to profit, which is what the market cared about.
At a glance
C++ balance sheet — some cracks in the foundation
20/100 earnings predictability — expect surprises
13.1x trailing p/e — the market's not buying it — or you found a deal
0.9% dividend yield — cash in your pocket every quarter
4.2% return on capital — nothing to write home about
xvary composite: 40/100 — below average
What they do
Friedman buys and processes steel, then sells sheet and pipe products to distributors and fabricators.
The moat is local and practical, not glamorous. FRD runs 3 plants in Arkansas, Alabama, and Texas, which puts inventory close to customers who need steel processed fast. With only 271 employees, this is a service-and-location edge, not a brand edge, so your advantage is convenience more than pricing power.
How they make money
$445M
annual revenue · their business grew -13.9% last year
Hickman coil operations
$170M
Decatur coil operations
$70M
Customer-owned coil processing
$25M
Line and oil country pipe
$110M
Structural and piling pipe
$70M
The products that matter
processes and sells steel coil
Flat-roll steel
~$311M · roughly 70% of revenue
it appears to be the core business at about $311M of annual revenue, and it generated $5.7M of operating profit last quarter versus $2.7M from a year ago.
profit swing driver
manufactures pipe products
Tubular steel
~$134M · roughly 30% of revenue
this segment looks like about $134M of annual revenue, but segment-level growth was not disclosed here. Thin disclosure is part of the challenge with small caps like this.
less disclosed
recent acquisition impact
Century integration
linked to the latest quarter
management tied the move to a $3M quarterly profit to stronger pricing and the Century acquisition. If that contribution fades, the margin story gets thin fast.
catalyst watch
Key numbers
$0.87
fy2024 eps est
$445M
fy2024 rev est
13.1x
trailing p/e
0.9%
dividend yield
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 3 — safer than 50% of stocks
- price stability 15 / 100
- long-term debt $92M (43% of capital)
C++ — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total return vs. market
Return history isn't available for FRD right now.
source: institutional data · return history unavailable
What just happened
beat estimates
The latest reported quarter showed revenue of $168M and a swing back to profit, which is what the market cared about.
Company-reported third-quarter 2026 results showed revenue up 79% vs. prior year to $168M and net income around $3M. That is a sharp reversal from the prior-year loss, even if quarterly figures across sources do not line up cleanly.
$168M
revenue
$0.43
eps
$3M
net income
the number that mattered
$168M mattered because this business lives on volume, and a 79% revenue jump can rescue a thin-margin steel processor.
source: company earnings report, 2026
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What could go wrong
the #1 risk here is steel price and oversupply pressure. when your net margin is 2.6%, you do not need a collapse to feel pain.
high
steel oversupply
the stock is down 15% over six months as the market worries about oversupply and weak steel pricing. With a 2.6% net margin, even modest price pressure can wipe out profit.
puts recent profitability at risk
high
thin margin structure
the latest quarter produced $3M of net income on $168M of revenue. That's a recovery, not a cushion.
small operating misses hit earnings hard
med
balance sheet pressure
long-term debt is $92M, or 43% of capital. In a cyclical business, leverage matters more when demand softens and working capital gets tighter.
limits flexibility in a downturn
med
acquisition integration
management credited the Century acquisition for part of the latest improvement. If integration benefits stall, the market will treat that quarter as temporary.
raises the odds of a one-quarter head fake
a business with $445M in annual revenue and a 2.6% net margin is exposed to steel prices first, strategy second.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next quarter margin hold
the big question is simple: does net margin stay around 2.6%, or was the latest quarter a brief pricing window plus acquisition help.
balance sheet
debt as a share of capital
$92M of long-term debt equals 43% of capital. If the cycle weakens, that number matters more than the 13.1x p/e.
industry
steel pricing and demand
there is no moat here. Better steel pricing can rescue earnings quickly, and weaker pricing can do the opposite just as fast.
integration
Century follow-through
management cited the acquisition as part of the quarter's improvement. You want proof in repeatable profit, not just one good print.
Analyst rankings
earnings predictability
20 / 100
in human-speak, analysts do not trust this earnings stream to stay smooth.
risk rank
3
roughly middle-of-the-pack risk on paper, but the 15 / 100 price stability score tells you the ride is not calm.
source: institutional data
Institutional activity
institutional ownership data for FRD is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$17
current price
n/a
target midpoint · n/a from current
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