Below please find a table outlining a discounted cash flow forecast for FRD, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Friedman Industries Inc ranked in the 96th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 8326.67%. As for the metrics that stood out in our discounted cash flow analysis of Friedman Industries Inc, consider:
The company has produced more trailing twelve month cash flow than only 16.58% of its sector Basic Materials.
The business' balance sheet suggests that 0% of the company's capital is sourced from debt; this is greater than only 3.63% of the free cash flow producing stocks we're observing.
Friedman Industries Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -1,773.95. This coverage rate is greater than that of only 0.14% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as FRD, try BTG, BMCH, WMLPQ, USCR, and DOW.