Friedman IndustriesFRD -4.19%71 ROA % 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 71/100 and a GF Value™ of $22.21 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 638 Steel companies, Friedman Industries ranks better than 84.17% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Friedman Industries's annualizedNet Income for the quarter that ended in Mar. 2026 was $36.9 Mil.
Friedman Industries's average Total Assets over the quarter that ended in Mar. 2026 was $324.3 Mil. Therefore, Friedman Industries's annualized ROA % for the quarter that ended in Mar. 2026 was 11.37%.
The historical rank and industry rank for Friedman Industries's ROA % or its related term are showing as below:
FRD'
s ROA % 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 ROA % was 13.26%. The lowest was -6.40%. And the median was 6.50%.
FRD's ROA % is ranked better than 84.17% of 638
companies
in the Steel industry
Industry Median: 1.93
vs FRD: 6.95
Friedman Industries (NAS:FRD) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Friedman Industries ROA % Related Terms
Friedman Industries ROA % Historical Data
* Premium members only.
The historical data trend for Friedman Industries's ROA % 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Steel Industry
For the Steel industry and Basic Materials sector, Friedman Industries's ROA % distribution charts can be found below:
* The bar in red indicates where Friedman Industries's ROA % 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 ROA %, the net income of the last fiscal year and the average total 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.
ROA % is displayed in the 30-year financial page.
Friedman Industries (FRD) has a ROA % of 11.37% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total 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 #101 out of 638 companies in the Steel industry, placing it in the top 15.8%.
Is Friedman Industries' ROA % too high?
Friedman Industries' current ROA % of 11.37% is 75% above median its 10-year median of 6.50. The Steel industry median ROA % is 1.93. Friedman Industries' value of 11.37% is 489.1% above this industry median. Based on the distribution chart, Friedman Industries ranks #101 out of 638 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 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Friedman Industries' ROA % compare to LUD and ZKIN?
According to the Steel industry distribution chart, Friedman Industries ranks #101 out of 638 companies for ROA %. This places Friedman Industries in the top 16% of its industry — outperforming the majority of peers. The industry median ROA % is 1.93. Friedman Industries' value of 11.37% is 489.1% above this benchmark. While the company's 10-year median is 6.50 vs. the industry median of 1.93, 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 ROA % for a Steel company?
The median ROA % among Steel companies is 1.93, based on 638 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Friedman Industries's current ROA % of 11.37% is 489.1% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Friedman Industries and its competitors. For the Steel industry, the median ROA % is 1.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Friedman Industries's current ROA % 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 $22.21, compared to a current price of $33.74 — trading 51.9% above its estimated fair value. The current ROA % is 11.37%, which is 75% above median its 10-year median of 6.50 and 489.1% above the Steel industry median of 1.93. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Friedman Industries (FRD), the current ROA % 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 $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:
ROA %: 11.37% (75% above median its 10-year median of 6.50)
GF Value™: $22.21 vs. price of $33.74 (51.9% above fair value)
Industry Position: 489.1% above the Steel median (#101 of 638)
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
Get the complete analysis for FRD
ROA % 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 
