Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Friedman IndustriesFRD +0.73%70 Return-on-Tangible-Asset is 11.37% as of Mar. 2026, which is 75% above its 10-year median of 6.50. GuruFocus rates FRD with a GF Score™ of 70/100 and a GF Value™ of $22.29 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 634 Steel companies, Friedman Industries ranks better than 83.75% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Friedman Industries's annualizedNet Income for the quarter that ended in Mar. 2026 was $36.9 Mil. Friedman Industries's average total tangible assets for the quarter that ended in Mar. 2026 was $324.3 Mil. Therefore, Friedman Industries's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 11.37%.
The historical rank and industry rank for Friedman Industries's Return-on-Tangible-Asset or its related term are showing as below:
FRD'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -6.4 Med: 6.5 Max: 13.26
Current: 6.95
During the past 13 years, Friedman Industries's highest Return-on-Tangible-Asset was 13.26%. The lowest was -6.40%. And the median was 6.50%.
FRD's Return-on-Tangible-Asset is ranked better than 83.75% of 634
companies
in the Steel industry
Industry Median: 1.995
vs FRD: 6.95
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Friedman Industries Return-on-Tangible-Asset Related Terms
Friedman Industries Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Friedman Industries's Return-on-Tangible-Asset 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 INHD, MSB, LUD: Return-on-Tangible-Asset Comparison
For the Steel subindustry, Friedman Industries's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Steel Industry
For the Steel industry and Basic Materials sector, Friedman Industries's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Friedman Industries's Return-on-Tangible-Asset 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 the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 11.37% mean?
Friedman Industries (FRD) has a Return-on-Tangible-Asset of 11.37% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Friedman Industries and its competitors. This is 75% above median its historical median of 6.50. According to the industry distribution chart, Friedman Industries ranks #103 out of 634 companies in the Steel industry, placing it in the top 16.2%.
Is Friedman Industries' Return-on-Tangible-Asset too high?
Friedman Industries' current Return-on-Tangible-Asset of 11.37% is 75% above median its 10-year median of 6.50. The Steel industry median Return-on-Tangible-Asset is 2.00. Friedman Industries' value of 11.37% is 469.9% above this industry median. Based on the distribution chart, Friedman Industries ranks #103 out of 634 companies in the Steel industry, which is in the top quartile — a strong position 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' Return-on-Tangible-Asset compare to INHD and MSB?
According to the Steel industry distribution chart, Friedman Industries ranks #103 out of 634 companies for Return-on-Tangible-Asset. This places Friedman Industries in the top 16% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.00. Friedman Industries' value of 11.37% is 469.9% above this benchmark. While the company's 10-year median is 6.50 vs. the industry median of 2.00, 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 Return-on-Tangible-Asset for a Steel company?
The median Return-on-Tangible-Asset among Steel companies is 2.00, based on 634 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Friedman Industries's current Return-on-Tangible-Asset of 11.37% is 469.9% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Friedman Industries and its competitors. For the Steel industry, the median Return-on-Tangible-Asset is 2.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Friedman Industries's current Return-on-Tangible-Asset is 11.37%, which is 75% above median its own 10-year median of 6.50. 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 $22.29, compared to a current price of $34.48 — trading 54.7% above its estimated fair value. The current Return-on-Tangible-Asset is 11.37%, which is 75% above median its 10-year median of 6.50 and 469.9% above the Steel industry median of 2.00. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Friedman Industries (FRD), the current Return-on-Tangible-Asset is 11.37% 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 $34.48 is trading 54.7% above its estimated GF Value™ of $22.29.
GuruFocus considers Friedman Industries to be Significantly Overvalued.
Key valuation signals for FRD:
Return-on-Tangible-Asset: 11.37% (75% above median its 10-year median of 6.50)
GF Value™: $22.29 vs. price of $34.48 (54.7% above fair value)
Industry Position: 469.9% above the Steel median (#103 of 634)
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
Get the complete analysis for FRD
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRD has been successfully added to your 
