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In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
Friedman Industries's Net-Net Working Capital for the quarter that ended in Mar. 2026 was $-5.15.
The industry rank for Friedman Industries's Net-Net Working Capital or its related term are showing as below:
FRD's Price-to-Net-Net-Working-Capital is not ranked *
in the Steel industry.
Industry Median: 4.35 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
Friedman Industries (NAS:FRD) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Friedman Industries Net-Net Working Capital Related Terms
Friedman Industries Net-Net Working Capital Historical Data
* Premium members only.
The historical data trend for Friedman Industries's Net-Net Working Capital 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.
FRD vs MSB, INHD, LUD: Net-Net Working Capital Comparison
For the Steel subindustry, Friedman Industries's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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 Price-to-Net-Net-Working-Capital vs Steel Industry
For the Steel industry and Basic Materials sector, Friedman Industries's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Friedman Industries's Price-to-Net-Net-Working-Capital 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.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $-5.15 mean?
Friedman Industries (FRD) has a Net-Net Working Capital of $-5.15 as of Mar. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Friedman Industries According to the industry distribution chart, Friedman Industries ranks #999999 out of 179 companies in the Steel industry.
Is Friedman Industries' Net-Net Working Capital too high?
Friedman Industries' current Net-Net Working Capital is $-5.15. Based on the distribution chart, Friedman Industries ranks #999999 out of 179 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' Net-Net Working Capital compare to MSB and INHD?
According to the Steel industry distribution chart, Friedman Industries ranks #999999 out of 179 companies for Net-Net Working Capital. This places Friedman Industries in the lower half of its industry. The industry median Net-Net Working Capital is 4.35. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Steel company?
The median Net-Net Working Capital among Steel companies is 4.35, based on 179 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital 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 Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Friedman Industries For the Steel industry, the median Net-Net Working Capital is 4.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Friedman Industries's current Net-Net Working Capital is $-5.15. 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 $22.34, compared to a current price of $35.60 — trading 59.4% above its estimated fair value. The current Net-Net Working Capital is $-5.15. 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 Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Friedman Industries (FRD), the current Net-Net Working Capital is $-5.15 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 $35.60 is trading 59.4% above its estimated GF Value™ of $22.34.
GuruFocus considers Friedman Industries to be Significantly Overvalued.
Key valuation signals for FRD:
Net-Net Working Capital: $-5.15
GF Value™: $22.34 vs. price of $35.60 (59.4% above fair value)
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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