Friedman IndustriesFRD -4.19%71 Gross Margin % is 15.75% as of Mar. 2026, which is 37% above its 10-year median of 11.51. GuruFocus rates FRD with a GF Score™ of 71/100 and a GF Value™ of $22.21 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 598 Steel companies, Friedman Industries ranks better than 51.67% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Friedman Industries had a gross margin of 15.75% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Friedman Industries Gross Margin % Related Terms
Friedman Industries Gross Margin % Historical Data
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The historical data trend for Friedman Industries's Gross Margin % 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 Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Friedman Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Friedman Industries's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Friedman Industries (FRD) has a Gross Margin % of 15.75% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Friedman Industries and its competitors. This is 37% above median its historical median of 11.51. According to the industry distribution chart, Friedman Industries ranks #289 out of 598 companies in the Steel industry, placing it in the top 48.3%.
Is Friedman Industries' Gross Margin % too high?
Friedman Industries' current Gross Margin % of 15.75% is 37% above median its 10-year median of 11.51. The Steel industry median Gross Margin % is 12.61. Friedman Industries' value of 15.75% is 24.9% above this industry median. Based on the distribution chart, Friedman Industries ranks #289 out of 598 companies in the Steel industry, which is above the industry midpoint. Overall, Friedman Industries has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Friedman Industries' Gross Margin % compare to LUD and ZKIN?
According to the Steel industry distribution chart, Friedman Industries ranks #289 out of 598 companies for Gross Margin %. This puts Friedman Industries in the upper half of its industry. The industry median Gross Margin % is 12.61. Friedman Industries' value of 15.75% is 24.9% above this benchmark. While the company's 10-year median is 11.51 vs. the industry median of 12.61, Friedman Industries has consistently been above 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 Gross Margin % for a Steel company?
The median Gross Margin % among Steel companies is 12.61, based on 598 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Friedman Industries's current Gross Margin % of 15.75% is 24.9% above 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Friedman Industries and its competitors. For the Steel industry, the median Gross Margin % is 12.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Friedman Industries's current Gross Margin % is 15.75%, which is 37% above median its own 10-year median of 11.51. 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 $22.21, compared to a current price of $33.74 — trading 51.9% above its estimated fair value. The current Gross Margin % is 15.75%, which is 37% above median its 10-year median of 11.51 and 24.9% above the Steel industry median of 12.61. Friedman Industries' overall GF Score™ is 71/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Friedman Industries (FRD), the current Gross Margin % is 15.75% 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 $33.74 is trading 51.9% above its estimated GF Value™ of $22.21.
GuruFocus considers Friedman Industries to be Significantly Overvalued.
Key valuation signals for FRD:
Gross Margin %: 15.75% (37% above median its 10-year median of 11.51)
GF Value™: $22.21 vs. price of $33.74 (51.9% above fair value)
Industry Position: 24.9% above the Steel median (#289 of 598)
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.
71GF Score
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