Friedman IndustriesFRD -0.30%72 3-Year ROIIC % is 2.81 as of Mar. 2026, which is 75% below its 10-year median of 11.23. 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 606 Steel companies, Friedman Industries ranks better than 56.93% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Friedman Industries's 3-Year ROIIC % for the quarter that ended in Mar. 2026 was 2.81%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Friedman Industries's 3-Year ROIIC % or its related term are showing as below:
FRD's 3-Year ROIIC % is ranked better than 56.93% of 606
companies
in the Steel industry
Industry Median: -0.25
vs FRD: 2.81
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Friedman Industries 3-Year ROIIC % Related Terms
Friedman Industries 3-Year ROIIC % Historical Data
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The historical data trend for Friedman Industries's 3-Year ROIIC % 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 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Steel Industry
For the Steel industry and Basic Materials sector, Friedman Industries's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Friedman Industries's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Friedman Industries (FRD) has a 3-Year ROIIC % of 2.81 as of Mar. 2026. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Friedman Industries and its competitors. This is 75% below median its historical median of 11.23. According to the industry distribution chart, Friedman Industries ranks #261 out of 606 companies in the Steel industry, placing it in the top 43.1%.
Is Friedman Industries' 3-Year ROIIC % too high?
Friedman Industries' current 3-Year ROIIC % of 2.81 is 75% below median its 10-year median of 11.23. Based on the distribution chart, Friedman Industries ranks #261 out of 606 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' 3-Year ROIIC % compare to INHD and MSB?
According to the Steel industry distribution chart, Friedman Industries ranks #261 out of 606 companies for 3-Year ROIIC %. This puts Friedman Industries in the upper half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Steel company?
A good 3-Year ROIIC % depends on the Steel industry context. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Friedman Industries and its competitors. Friedman Industries's current 3-Year ROIIC % is 2.81, which is 75% below median its own 10-year median of 11.23. 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 $33.49 — trading 50.4% above its estimated fair value. The current 3-Year ROIIC % is 2.81, which is 75% below median its 10-year median of 11.23. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Friedman Industries (FRD), the current 3-Year ROIIC % is 2.81 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 $33.49 is trading 50.4% above its estimated GF Value™ of $22.26.
GuruFocus considers Friedman Industries to be Significantly Overvalued.
Key valuation signals for FRD:
3-Year ROIIC %: 2.81 (75% below median its 10-year median of 11.23)
GF Value™: $22.26 vs. price of $33.49 (50.4% above fair value)
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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