Friedman IndustriesFRD -4.19%71 Altman Z-Score is 4.14 as of Jun. 25, 2026, which is 12% below its 10-year median of 4.70. 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 615 Steel companies, Friedman Industries ranks better than 76.26% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Good Sign:
Altman Z-score of 4.14 is strong.
Friedman Industries has a Altman Z-Score of 4.14, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Friedman Industries's Altman Z-Score or its related term are showing as below:
FRD'
s Altman Z-Score Range Over the Past 10 Years
Min: 3.64 Med: 4.7 Max: 11.8
Current: 4.14
During the past 13 years, Friedman Industries's highest Altman Z-Score was 11.80. The lowest was 3.64. And the median was 4.70.
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
Altman Z-Score does not apply to financial companies.
Friedman Industries Altman Z-Score Related Terms
Friedman Industries Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Friedman Industries's Altman Z-Score 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 Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score vs Steel Industry
For the Steel industry and Basic Materials sector, Friedman Industries's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Friedman Industries's Altman Z-Score falls into.
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
Friedman Industries's Altman Z-Score for today is calculated with this formula:
Z
=
1.2
*
X1
+
1.4
*
X2
+
3.3
*
X3
+
0.6
*
X4
+
1.0
*
X5
=
1.2
*
0.5371
+
1.4
*
0.3552
+
3.3
*
0.0905
+
0.6
*
1.294
+
1.0
*
1.9207
=
4.14
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Friedman Industries (FRD) has a Altman Z-Score of 4.14 as of Jun. 25, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Friedman Industries and its competitors. This is 12% below median its historical median of 4.70. Over the past decade, Friedman Industries' Altman Z-Score has ranged from 3.64 to 11.80. According to the industry distribution chart, Friedman Industries ranks #146 out of 615 companies in the Steel industry, placing it in the top 23.7%.
Is Friedman Industries' Altman Z-Score too high?
Friedman Industries' current Altman Z-Score of 4.14 is 12% below median its 10-year median of 4.70. Over the past 10 years, this metric has ranged from a low of 3.64 to a high of 11.80. The Steel industry median Altman Z-Score is 2.47. Friedman Industries' value of 4.14 is 67.6% above this industry median. Based on the distribution chart, Friedman Industries ranks #146 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 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Friedman Industries' Altman Z-Score compare to LUD and ZKIN?
According to the Steel industry distribution chart, Friedman Industries ranks #146 out of 615 companies for Altman Z-Score. This places Friedman Industries in the top 24% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 2.47. Friedman Industries' value of 4.14 is 67.6% above this benchmark. Historically, Friedman Industries' own Altman Z-Score has ranged from 3.64 to 11.80 over the past decade. While the company's 10-year median is 4.70 vs. the industry median of 2.47, 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 Altman Z-Score for a Steel company?
The median Altman Z-Score among Steel companies is 2.47, based on 615 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Friedman Industries's current Altman Z-Score of 4.14 is 67.6% 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 Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Friedman Industries and its competitors. For the Steel industry, the median Altman Z-Score is 2.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Friedman Industries's current Altman Z-Score is 4.14, which is 12% below median its own 10-year median of 4.70. 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 Altman Z-Score is 4.14, which is 12% below median its 10-year median of 4.70 and 67.6% above the Steel industry median of 2.47. 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 Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Friedman Industries (FRD), the current Altman Z-Score is 4.14 as of Jun. 25, 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:
Altman Z-Score: 4.14 (12% below median its 10-year median of 4.70)
GF Value™: $22.21 vs. price of $33.74 (51.9% above fair value)
Industry Position: 67.6% above the Steel median (#146 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.
71GF Score
Get the complete analysis for FRD
Altman Z-Score 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 
