The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Friedman Industries Inc. To summarize, we found that Friedman Industries Inc ranked in the 70th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Friedman Industries Inc ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is -765.25; that's higher than only 0% of US stocks in the Basic Materials sector that have positive free cash flow.
The business' balance sheet reveals debt to be 2% of the company's capital (with equity being the remaining amount). Approximately only 8.09% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
FF, ICL, LIN, VMC, and IAG can be thought of as valuation peers to FRD, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.
Friedman Industries, Incorporated announced today a share repurchase program authorized by the Board of Directors on June 25, 2020 under which the Company may repurchase up to 1,062,067 shares of the Company’s outstanding common stock through June 30, 2023, which equates to 15% of the Company’s outstanding shares of common stock as of June 29, 2020. Repurchases under the program may be made from time to time at the Company’s discretion and may be made in open market transactions, through block trades, in privately negotiated transactions and pursuant to any trading plan that may be adopted by the Company’s management in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, or otherwise. The repurchase program does not obligate the Company to acquire a specifi...
The Company will pay the cash dividend on August 7, 2020 to shareholders of record at the close of business on July 17, 2020. This dividend marks the Company’s 194th consecutive quarterly cash dividend with the Company having paid a cash dividend every quarter since becoming publicly traded in 1972.