Friend Co (SHSE:605050) EBIT: ¥520 Mil (TTM As of Mar. 2026)

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SHSE:605050 Friend Co Ltd SHSE:605050
62 GF Score
Price ¥10.13
GF Value ¥14.23
Valuation Modestly Undervalued
! 5 Warning Signs
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What is Friend Co EBIT?

Friend Co SHSE:605050 -0.30% 62 EBIT is ¥520 Mil as of Mar. 2026. GuruFocus rates SHSE:605050 with a GF Score™ of 62/100 and a GF Value™ of ¥14.23 (Modestly Undervalued). The stock has 5 warning signs investors should review.

Friend Co's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was ¥121 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was ¥520 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Friend Co's annualized ROC % for the quarter that ended in Mar. 2026 was 7.14%. Friend Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 12.49%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Friend Co's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 9.00%.


Friend Co  (SHSE:605050) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Friend Co's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=508.96 * ( 1 - 24.61% )/( (5155.377 + 5595.792)/ 2 )
=383.704944/5375.5845
=7.14 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=9691.233 - 2659.789 - ( 1876.067 - max(0, 4784.98 - 7843.428+1876.067))
=5155.377

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=9095.607 - 2400.538 - ( 1099.277 - max(0, 4181.421 - 7256.597+1099.277))
=5595.792

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Friend Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=482.06/( ( (1513.371 + max(2214.991, 0)) + (1487.089 + max(2504.468, 0)) )/ 2 )
=482.06/( ( 3728.362 + 3991.557 )/ 2 )
=482.06/3859.9595
=12.49 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2101.895 + 2085.654 + 994.093) - (2659.789 + 0 + 306.862)
=2214.991

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1965.493 + 2053.088 + 1238.732) - (2400.538 + 0 + 352.307)
=2504.468

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Friend Co's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=520.229/5779.664
=9.00 %

* 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.


Friend Co EBIT Related Terms


Friend Co EBIT Historical Data

* Premium members only.

The historical data trend for Friend Co's EBIT 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.

Friend Co EBIT Chart

Friend Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 469.90 414.53 571.45 442.75 530.58

Friend Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 130.86 88.30 129.79 181.62 120.52

SHSE:605050 vs NUE, STLD, RS: EBIT Comparison

For the Steel subindustry, Friend Co's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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.


Friend Co EV-to-EBIT vs Steel Industry

For the Steel industry and Basic Materials sector, Friend Co's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Friend Co's EV-to-EBIT falls into.


SHSE:605050
62GF Score
Friend Co Ltd SHSE:605050
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Friend Co EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was ¥520 Mil.

* 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of ¥520 Mil mean?
Friend Co (SHSE:605050) has a EBIT of ¥520 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Friend Co.
Is Friend Co's EBIT too high?
Friend Co's current EBIT is ¥520 Mil. Overall, Friend Co has a GF Score™ of 62/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Friend Co's EBIT compare to NUE and STLD?
Friend Co's EBIT of ¥520 Mil can be compared against companies in the Steel industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Steel company?
A good EBIT depends on the Steel industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Friend Co. Friend Co's current EBIT is ¥520 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Friend Co stock overvalued right now?
Based on GuruFocus' analysis, Friend Co (SHSE:605050) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥14.23, compared to a current price of ¥10.13 — trading 28.8% below its estimated fair value. The current EBIT is ¥520 Mil. Friend Co's overall GF Score™ is 62/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Friend Co (SHSE:605050), the current EBIT is ¥520 Mil 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 Friend Co (SHSE:605050) Overvalued in 2026?

Based on GuruFocus' analysis, Friend Co stock appears to be undervalued. The current stock price of ¥10.13 is trading 28.8% below its estimated GF Value™ of ¥14.23. GuruFocus considers Friend Co to be Modestly Undervalued.

Key valuation signals for SHSE:605050:

  • EBIT: ¥520 Mil
  • GF Value™: ¥14.23 vs. price of ¥10.13 (28.8% below fair value)
  • GF Score™: 62/100 with 5 warning signs

No single metric tells the full story. See the SHSE:605050 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Friend Co Business Description

Address No. 3759, Panjing Road, Baoshan Industrial Park, Baoshan District, Shanghai, CHN, 200942
Friend Co Ltd is engaged in providing complete steel logistics supply chain services for mid-to-high-end automotive, home appliance and other industries or their supporting manufacturers, including procurement, processing, warehousing, cutting, and packaging , Transportation and distribution services, and corresponding technical support services.
62GF Score

Get the complete analysis for SHSE:605050

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

¥10.13
Price
¥14.23
GF Value