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 3.7% profit margin vs 2.7%. FRD trades at a lower P/E of 11.0x. TX earns a higher WallStSmart Score of 60/100 (C+).

FRD

Hold

49

out of 100

Grade: D+

Growth: 6.7Profit: 5.0Value: 7.7Quality: 7.5
Piotroski: 3/9Altman Z: 4.26

TX

Buy

60

out of 100

Grade: C+

Growth: 5.3Profit: 4.5Value: 7.7Quality: 8.0
Piotroski: 3/9Altman Z: 3.14
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FRDUndervalued (+24.4%)

Margin of Safety

+24.4%

Fair Value

$27.81

Current Price

$24.40

$3.41 discount

UndervaluedFair: $27.81Overvalued

Intrinsic value data unavailable for TX.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FRD4 strengths · Avg: 10.0/10
P/E RatioValuation
11.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
78.6%10/10

Revenue surging 78.6% year-over-year

Altman Z-ScoreHealth
4.2610/10

Safe zone — low bankruptcy risk

TX6 strengths · Avg: 9.5/10
PEG RatioValuation
0.1310/10

Growing faster than its price suggests

Price/BookValuation
0.8x10/10

Reasonable price relative to book value

EPS GrowthGrowth
218.1%10/10

Earnings expanding 218.1% YoY

Altman Z-ScoreHealth
3.1410/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.259/10

Conservative balance sheet, low leverage

P/E RatioValuation
15.9x8/10

Attractively priced relative to earnings

Areas to Watch

FRD4 concerns · Avg: 3.0/10
Market CapQuality
$173.54M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
2.7%3/10

2.7% margin — thin

Operating MarginProfitability
2.3%3/10

Operating margin of 2.3%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

TX4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
0.0%4/10

0.0% revenue growth

Return on EquityProfitability
4.7%3/10

ROE of 4.7% — below average capital efficiency

Profit MarginProfitability
3.7%3/10

3.7% margin — thin

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, Revenue Growth. Revenue growth of 78.6% demonstrates continued momentum.

Bull Case : TX

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

Bear Case : FRD

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

Bear Case : TX

The primary concerns for TX are Revenue Growth, Return on Equity, Profit Margin. Thin 3.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

FRD profiles as a hypergrowth stock while TX is a value play — different risk/reward profiles.

FRD carries more volatility with a beta of 1.63 — expect wider price swings.

FRD is growing revenue faster at 78.6% — sustainability is the question.

FRD generates stronger free cash flow (-6M), providing more financial flexibility.

Bottom Line

TX scores higher overall (60/100 vs 49/100). FRD offers better value entry with a 24.4% margin of safety. 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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