Friedman IndustriesFRD -1.41%71 ROE % 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 71/100 and a GF Value™ of $22.21 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 623 Steel companies, Friedman Industries ranks better than 86.68% on this metric.
The historical rank and industry rank for Friedman Industries's ROE % or its related term are showing as below:
FRD'
s ROE % 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 ROE % was 21.88%. The lowest was -7.53%. And the median was 10.50%.
FRD's ROE % is ranked better than 86.68% of 623
companies
in the Steel industry
Industry Median: 3.7
vs FRD: 13.90
Friedman Industries (NAS:FRD) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Friedman Industries ROE % Related Terms
Friedman Industries ROE % Historical Data
* Premium members only.
The historical data trend for Friedman Industries's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Steel Industry
For the Steel industry and Basic Materials sector, Friedman Industries's ROE % distribution charts can be found below:
* The bar in red indicates where Friedman Industries's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Friedman Industries (FRD) has a ROE % of 25.12% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total 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 #83 out of 623 companies in the Steel industry, placing it in the top 13.3%.
Is Friedman Industries' ROE % too high?
Friedman Industries' current ROE % of 25.12% is 139% above median its 10-year median of 10.50. The Steel industry median ROE % is 3.70. Friedman Industries' value of 25.12% is 578.9% above this industry median. Based on the distribution chart, Friedman Industries ranks #83 out of 623 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' ROE % compare to LUD and ZKIN?
According to the Steel industry distribution chart, Friedman Industries ranks #83 out of 623 companies for ROE %. This places Friedman Industries in the top 13% of its industry — outperforming the majority of peers. The industry median ROE % is 3.70. Friedman Industries' value of 25.12% is 578.9% above this benchmark. While the company's 10-year median is 10.50 vs. the industry median of 3.70, 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 ROE % for a Steel company?
The median ROE % among Steel companies is 3.70, based on 623 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Friedman Industries's current ROE % of 25.12% is 578.9% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Friedman Industries and its competitors. For the Steel industry, the median ROE % is 3.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Friedman Industries's current ROE % 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 $22.21, compared to a current price of $33.27 — trading 49.8% above its estimated fair value. The current ROE % is 25.12%, which is 139% above median its 10-year median of 10.50 and 578.9% above the Steel industry median of 3.70. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Friedman Industries (FRD), the current ROE % 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 $33.27 is trading 49.8% above its estimated GF Value™ of $22.21.
GuruFocus considers Friedman Industries to be Significantly Overvalued.
Key valuation signals for FRD:
ROE %: 25.12% (139% above median its 10-year median of 10.50)
GF Value™: $22.21 vs. price of $33.27 (49.8% above fair value)
Industry Position: 578.9% above the Steel median (#83 of 623)
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
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