Friedman Industries Inc. (FRD) vs Inno Holdings Inc. (INHD)

Friedman Industries Inc. and Inno Holdings Inc. are both Steel companies. Friedman Industries Inc. is the larger, with a market value of $256.1M against $7.6M — 33.7× the size. Inno Holdings Inc. has negative trailing earnings, so its P/E is not meaningful; Friedman Industries Inc. trades at 6.2×. Inno Holdings Inc. grew revenue faster over the last twelve months: 123.5% against 73.7%. Friedman Industries Inc. has the higher net margin (0.00% vs −72.7%) and the higher return on invested capital (25.8% vs −10.5%). Across the 18 metrics below, Friedman Industries Inc. leads on 12 and Inno Holdings Inc. on 6.

Valuation

Metric FRD INHD Steel median
P/E 6.19 n/m 16.37
P/S 0.28 1.28 0.70
P/B 1.37 0.13 1.10
Price to free cash flow n/m n/m 22.15
EV/EBITDA 5.62 6.92 8.16
EV/Sales 0.28 (4.70) 0.79
Earnings yield 16.16% (2,318.40%) 5.02%
Free cash flow yield (0.61%) (186.18%) 0.00%

Profitability

Metric FRD INHD Steel median
Gross margin 0.00% 3.67% 13.96%
Operating margin 8.27% (67.86%) 6.93%
Net margin 0.00% (72.70%) 3.14%
Free cash flow margin 0.68% (238.96%) 0.00%
Return on equity 0.00% (12.67%) 2.21%
Return on assets 0.00% (12.41%) 1.83%
Return on invested capital 25.76% (10.47%) 3.18%

Growth

Metric FRD INHD Steel median
Revenue growth (TTM) 73.68% 123.53% 15.40%
EPS growth (last fiscal year) 217.24% 17.61% (18.80%)
Revenue growth, 5-year CAGR 38.68% — 7.46%
Net income growth, 5-year CAGR 10.96% — 0.00%

Health

Metric FRD INHD Steel median
Debt to equity 0.02 0.00 0.25
Current ratio 2.68 137.22 2.56
Net debt to EBITDA 0.04 2.31 0.10

Dividend

Metric FRD INHD Steel median
Dividend yield 0.45% — 1.20%
Payout ratio 0.03 — 0.36

Size

Metric FRD INHD Steel median
Market cap 256.05m 7.59m 2.07b

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