Friedman IndustriesFRD -4.33%72 Return-on-Tangible-Equity is 25.12% as of Mar. 2026, which is 139% above its 10-year median of 10.50. GuruFocus rates FRD with a GF Score™ of 72/100 and a GF Value™ of $22.24 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 615 Steel companies, Friedman Industries ranks better than 85.04% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Friedman Industries's annualized net income for the quarter that ended in Mar. 2026 was $36.9 Mil. Friedman Industries's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $146.9 Mil. Therefore, Friedman Industries's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 25.12%.
The historical rank and industry rank for Friedman Industries's Return-on-Tangible-Equity or its related term are showing as below:
FRD'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -7.53 Med: 10.5 Max: 21.88
Current: 13.9
During the past 13 years, Friedman Industries's highest Return-on-Tangible-Equity was 21.88%. The lowest was -7.53%. And the median was 10.50%.
FRD's Return-on-Tangible-Equity is ranked better than 85.04% of 615
companies
in the Steel industry
Industry Median: 3.93
vs FRD: 13.90
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Friedman Industries Return-on-Tangible-Equity Related Terms
Friedman Industries Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Friedman Industries's Return-on-Tangible-Equity 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-Equity Comparison
For the Steel subindustry, Friedman Industries's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Steel Industry
For the Steel industry and Basic Materials sector, Friedman Industries's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Friedman Industries's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 25.12% mean?
Friedman Industries (FRD) has a Return-on-Tangible-Equity of 25.12% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Friedman Industries and its competitors. This is 139% above median its historical median of 10.50. According to the industry distribution chart, Friedman Industries ranks #92 out of 615 companies in the Steel industry, placing it in the top 15%.
Is Friedman Industries' Return-on-Tangible-Equity too high?
Friedman Industries' current Return-on-Tangible-Equity of 25.12% is 139% above median its 10-year median of 10.50. The Steel industry median Return-on-Tangible-Equity is 3.93. Friedman Industries' value of 25.12% is 539.2% above this industry median. Based on the distribution chart, Friedman Industries ranks #92 out of 615 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 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Friedman Industries' Return-on-Tangible-Equity compare to INHD and MSB?
According to the Steel industry distribution chart, Friedman Industries ranks #92 out of 615 companies for Return-on-Tangible-Equity. This places Friedman Industries in the top 15% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 3.93. Friedman Industries' value of 25.12% is 539.2% above this benchmark. While the company's 10-year median is 10.50 vs. the industry median of 3.93, 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-Equity for a Steel company?
The median Return-on-Tangible-Equity among Steel companies is 3.93, based on 615 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Friedman Industries's current Return-on-Tangible-Equity of 25.12% is 539.2% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Friedman Industries and its competitors. For the Steel industry, the median Return-on-Tangible-Equity is 3.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Friedman Industries's current Return-on-Tangible-Equity is 25.12%, which is 139% above median its own 10-year median of 10.50. 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 $22.24, compared to a current price of $33.62 — trading 51.2% above its estimated fair value. The current Return-on-Tangible-Equity is 25.12%, which is 139% above median its 10-year median of 10.50 and 539.2% above the Steel industry median of 3.93. Friedman Industries' overall GF Score™ is 72/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Friedman Industries (FRD), the current Return-on-Tangible-Equity is 25.12% 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 $33.62 is trading 51.2% above its estimated GF Value™ of $22.24.
GuruFocus considers Friedman Industries to be Significantly Overvalued.
Key valuation signals for FRD:
Return-on-Tangible-Equity: 25.12% (139% above median its 10-year median of 10.50)
GF Value™: $22.24 vs. price of $33.62 (51.2% above fair value)
Industry Position: 539.2% above the Steel median (#92 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.
72GF Score
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