Friedman IndustriesFRD -2.40%72 ROC (Joel Greenblatt) % is 22.67% as of Mar. 2026, which is 85% above its 10-year median of 12.25. GuruFocus rates FRD with a GF Score™ of 72/100 and a GF Value™ of $22.26 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 631 Steel companies, Friedman Industries ranks better than 72.11% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Friedman Industries's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 22.67%.
The historical rank and industry rank for Friedman Industries's ROC (Joel Greenblatt) % or its related term are showing as below:
FRD'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -12.15 Med: 12.25 Max: 28.38
Current: 13.96
During the past 13 years, Friedman Industries's highest ROC (Joel Greenblatt) % was 28.38%. The lowest was -12.15%. And the median was 12.25%.
FRD's ROC (Joel Greenblatt) % is ranked better than 72.11% of 631
companies
in the Steel industry
Industry Median: 6.97
vs FRD: 13.96
Friedman Industries's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -21.10% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Friedman Industries ROC (Joel Greenblatt) % Related Terms
Friedman Industries ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Friedman Industries's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the Steel subindustry, Friedman Industries's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Steel Industry
For the Steel industry and Basic Materials sector, Friedman Industries's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Friedman Industries's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 22.67% mean?
Friedman Industries (FRD) has a ROC (Joel Greenblatt) % of 22.67% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Friedman Industries and its competitors. This is 85% above median its historical median of 12.25. According to the industry distribution chart, Friedman Industries ranks #176 out of 631 companies in the Steel industry, placing it in the top 27.9%.
Is Friedman Industries' ROC (Joel Greenblatt) % too high?
Friedman Industries' current ROC (Joel Greenblatt) % of 22.67% is 85% above median its 10-year median of 12.25. The Steel industry median ROC (Joel Greenblatt) % is 6.97. Friedman Industries' value of 22.67% is 225.3% above this industry median. Based on the distribution chart, Friedman Industries ranks #176 out of 631 companies in the Steel industry, which is above the industry midpoint. 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' ROC (Joel Greenblatt) % compare to INHD and MSB?
According to the Steel industry distribution chart, Friedman Industries ranks #176 out of 631 companies for ROC (Joel Greenblatt) %. This puts Friedman Industries in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 6.97. Friedman Industries' value of 22.67% is 225.3% above this benchmark. While the company's 10-year median is 12.25 vs. the industry median of 6.97, 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 ROC (Joel Greenblatt) % for a Steel company?
The median ROC (Joel Greenblatt) % among Steel companies is 6.97, based on 631 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Friedman Industries's current ROC (Joel Greenblatt) % of 22.67% is 225.3% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Friedman Industries and its competitors. For the Steel industry, the median ROC (Joel Greenblatt) % is 6.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Friedman Industries's current ROC (Joel Greenblatt) % is 22.67%, which is 85% above median its own 10-year median of 12.25. 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 $22.26, compared to a current price of $32.69 — trading 46.8% above its estimated fair value. The current ROC (Joel Greenblatt) % is 22.67%, which is 85% above median its 10-year median of 12.25 and 225.3% above the Steel industry median of 6.97. Friedman Industries' overall GF Score™ is 72/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Friedman Industries (FRD), the current ROC (Joel Greenblatt) % is 22.67% 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 $32.69 is trading 46.8% above its estimated GF Value™ of $22.26.
GuruFocus considers Friedman Industries to be Significantly Overvalued.
Key valuation signals for FRD:
ROC (Joel Greenblatt) %: 22.67% (85% above median its 10-year median of 12.25)
GF Value™: $22.26 vs. price of $32.69 (46.8% above fair value)
Industry Position: 225.3% above the Steel median (#176 of 631)
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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