(FRD) Friedman Industries Common - Ratings and Ratios

Friedman Industries Inc. is a US-based steel manufacturer and processor that operates through two primary business segments: Flat-Roll Products and Tubular Products. The company has a diversified product portfolio, catering to various industries such as construction, transportation, and energy. With a strong presence in the domestic market, Friedman Industries has established itself as a reliable supplier of high-quality steel products, leveraging its in-house manufacturing capabilities and strategic partnerships.

The companys Flat-Roll Products segment is a significant contributor to its revenue, with a focus on converting steel coils into customized flat sheets and plates, as well as providing processing and storage services for customer-owned coils. This segments customer base includes steel distributors and manufacturers of steel products, such as railroad cars, trailers, and fabricated steel components. Meanwhile, the Tubular Products segment manufactures pipes for line, oil country, and structural applications, primarily selling to steel and pipe distributors through its dedicated sales force.

From a technical analysis perspective, Friedman Industries stock has been exhibiting a relatively stable trend, with its 20-day Simple Moving Average (SMA) at $16.63 and a 50-day SMA at $15.94, indicating a potential support level. The stocks Average True Range (ATR) is $0.97, representing a 5.91% volatility. Given the current price of $16.35, and considering the 52-week high and low of $18.38 and $13.49, respectively, it is likely that the stock will experience a breakout or a pullback in the near term.

Combining technical and fundamental insights, a forecast for Friedman Industries can be derived. With a market capitalization of $112.02M and a Price-to-Earnings (P/E) ratio of 19.84, the stock appears to be reasonably valued. The companys Return on Equity (RoE) of 4.44% suggests a relatively modest profitability. Considering the current technical trends and fundamental data, a potential price target for FRD could be around $18.00, representing a 10% upside from the current price. However, this forecast is contingent upon the companys ability to maintain its operational efficiency and navigate the cyclical nature of the steel industry.