WallStSmart

Friedman Industries Inc. Common Stock (FRD)vsTernium SA ADR (TX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Ternium SA ADR generates 2571% more annual revenue ($15.61B vs $584.35M). TX leads profitability with a 2.7% profit margin vs 2.7%. FRD trades at a lower P/E of 7.8x. FRD earns a higher WallStSmart Score of 58/100 (C).

FRD

Buy

58

out of 100

Grade: C

Growth: 4.7Profit: 6.0Value: 5.7Quality: 8.5
Piotroski: 3/9Altman Z: 4.26

TX

Hold

47

out of 100

Grade: D+

Growth: 2.0Profit: 4.0Value: 7.3Quality: 6.8
Piotroski: 3/9Altman Z: 3.34
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FRDSignificantly Overvalued (-39.3%)

Margin of Safety

-39.3%

Fair Value

$15.10

Current Price

$17.99

$2.89 premium

UndervaluedFair: $15.10Overvalued
TXSignificantly Overvalued (-202.5%)

Margin of Safety

-202.5%

Fair Value

$14.96

Current Price

$39.57

$24.61 premium

UndervaluedFair: $14.96Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FRD5 strengths · Avg: 9.6/10
P/E RatioValuation
7.8x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.0310/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.2610/10

Safe zone — low bankruptcy risk

Operating MarginProfitability
21.6%8/10

Strong operational efficiency at 21.6%

TX4 strengths · Avg: 9.5/10
PEG RatioValuation
0.1310/10

Growing faster than its price suggests

Price/BookValuation
0.7x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.3410/10

Safe zone — low bankruptcy risk

P/E RatioValuation
17.7x8/10

Attractively priced relative to earnings

Areas to Watch

FRD4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
1.8%4/10

1.8% revenue growth

Market CapQuality
$123.75M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
2.7%3/10

2.7% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

TX4 concerns · Avg: 3.0/10
Return on EquityProfitability
1.9%3/10

ROE of 1.9% — below average capital efficiency

Profit MarginProfitability
2.7%3/10

2.7% margin — thin

Operating MarginProfitability
4.7%3/10

Operating margin of 4.7%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : FRD

The strongest argument for FRD centers on P/E Ratio, Price/Book, Debt/Equity.

Bull Case : TX

The strongest argument for TX centers on PEG Ratio, Price/Book, Altman Z-Score. PEG of 0.13 suggests the stock is reasonably priced for its growth.

Bear Case : FRD

The primary concerns for FRD are Revenue Growth, Market Cap, Profit Margin. Thin 2.7% margins leave little buffer for downturns.

Bear Case : TX

The primary concerns for TX are Return on Equity, Profit Margin, Operating Margin. Thin 2.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

FRD carries more volatility with a beta of 1.58 — expect wider price swings.

FRD is growing revenue faster at 1.8% — sustainability is the question.

TX generates stronger free cash flow (65M), providing more financial flexibility.

Monitor STEEL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

FRD scores higher overall (58/100 vs 47/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Friedman Industries Inc. Common Stock

BASIC MATERIALS · STEEL · USA

Friedman Industries, Incorporated is engaged in the steel processing, pipe fabrication and processing, and steel and pipe distribution businesses in the United States. The company is headquartered in Longview, Texas.

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Ternium SA ADR

BASIC MATERIALS · STEEL · USA

Ternium SA manufactures and processes various steel products in Mexico, Argentina, Paraguay, Chile, Bolivia, Uruguay, Brazil, the United States, Colombia, Guatemala, Costa Rica, Honduras, El Salvador and Nicaragua. The company is headquartered in Luxembourg City, Luxembourg.

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