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Friedman IndustriesFRD +4.03%70 Cash Ratio is 0.03 as of Mar. 2026, which is 84% below its 10-year median of 0.19. GuruFocus rates FRD with a GF Score™ of 70/100 and a GF Value™ of $22.35 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 615 Steel companies, Friedman Industries ranks worse than 91.06% on this metric.
Friedman Industries has a Cash Ratio of 0.03. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Friedman Industries's Cash Ratio or its related term are showing as below:
FRD'
s Cash Ratio Range Over the Past 10 Years
Min: 0.03 Med: 0.19 Max: 1.77
Current: 0.03
During the past 13 years, Friedman Industries's highest Cash Ratio was 1.77. The lowest was 0.03. And the median was 0.19.
FRD's Cash Ratio is ranked worse than 91.06% of 615
companies
in the Steel industry
Industry Median: 0.28
vs FRD: 0.03
Friedman Industries (NAS:FRD) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Friedman Industries Cash Ratio Related Terms
Friedman Industries Cash Ratio Historical Data
* Premium members only.
The historical data trend for Friedman Industries's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Steel subindustry, Friedman Industries's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Friedman Industries Cash Ratio vs Steel Industry
For the Steel industry and Basic Materials sector, Friedman Industries's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Friedman Industries's Cash Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Friedman Industries (FRD) has a Cash Ratio of 0.03 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Friedman Industries and its competitors. This is 84% below median its historical median of 0.19. Over the past decade, Friedman Industries' Cash Ratio has ranged from 0.03 to 1.77. According to the industry distribution chart, Friedman Industries ranks #560 out of 615 companies in the Steel industry, placing it in the top 91.1%.
Is Friedman Industries' Cash Ratio too high?
Friedman Industries' current Cash Ratio of 0.03 is 84% below median its 10-year median of 0.19. Over the past 10 years, this metric has ranged from a low of 0.03 to a high of 1.77. The Steel industry median Cash Ratio is 0.28. Friedman Industries' value of 0.03 is 89.3% below this industry median. Based on the distribution chart, Friedman Industries ranks #560 out of 615 companies in the Steel industry, which is in the bottom quartile relative to peers. Overall, Friedman Industries has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Friedman Industries' Cash Ratio compare to MSB and INHD?
According to the Steel industry distribution chart, Friedman Industries ranks #560 out of 615 companies for Cash Ratio. This places Friedman Industries in the lower half of its industry. The industry median Cash Ratio is 0.28. Friedman Industries' value of 0.03 is 89.3% below this benchmark. Historically, Friedman Industries' own Cash Ratio has ranged from 0.03 to 1.77 over the past decade. While the company's 10-year median is 0.19 vs. the industry median of 0.28, Friedman Industries has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Steel company?
The median Cash Ratio among Steel companies is 0.28, based on 615 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Friedman Industries's current Cash Ratio of 0.03 is 89.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Friedman Industries and its competitors. For the Steel industry, the median Cash Ratio is 0.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Friedman Industries's current Cash Ratio is 0.03, which is 84% below median its own 10-year median of 0.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Friedman Industries stock overvalued right now?
Based on GuruFocus' analysis, Friedman Industries (FRD) is currently considered Significantly Overvalued. The stock's GF Value™ is $22.35, compared to a current price of $37.19 — trading 66.4% above its estimated fair value. The current Cash Ratio is 0.03, which is 84% below median its 10-year median of 0.19 and 89.3% below the Steel industry median of 0.28. Friedman Industries' overall GF Score™ is 70/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Friedman Industries (FRD), the current Cash Ratio is 0.03 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Friedman Industries (FRD) Overvalued in 2026?
Based on GuruFocus' analysis, Friedman Industries stock appears to be overvalued.
The current stock price of $37.19 is trading 66.4% above its estimated GF Value™ of $22.35.
GuruFocus considers Friedman Industries to be Significantly Overvalued.
Key valuation signals for FRD:
Cash Ratio: 0.03 (84% below median its 10-year median of 0.19)
GF Value™: $22.35 vs. price of $37.19 (66.4% above fair value)
Industry Position: 89.3% below the Steel median (#560 of 615)
No single metric tells the full story. See the FRD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Friedman Industries Inc is a manufacturer and processor of metals and operates in two reportable segments: flat-roll products and tubular products. The flat-roll product segment consists of flat-roll processing facilities located in Hickman, Arkansas; Decatur, Alabama; Miami, Florida; East Chicago, Indiana; Granite City, Illinois and Sinton, Texas and a flat-roll distribution facility located in Orlando, Florida. The tubular product segment consists of the Company's Texas Tubular Products division (TTP) located in Lone Star, Texas. TTP operates two electric resistance welded pipe mills with a combined outside diameter (OD). Its products are flat-roll products and tubular products.
70GF Score
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