Huadi International Group (HUDI) AI Stock Analysis

• Market Cap: $20.64M
• Dividend Yield: N/A
• Average Volume (3M): 8.37K
• Price to Earnings (P/E): 144.3
• Beta (1Y): 1.18
• Revenue Growth: -11.93%
• EPS Growth: -95.78%
• Country: US
• Employees: 355
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): <0.01
• Shares Outstanding: 14,279,182
• 10 Day Avg. Volume: 5,557
• 30 Day Avg. Volume: 8,365
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.26
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Huadi International Group's stock reflects significant challenges, primarily in financial performance with declining revenues and profitability. The technical analysis confirms bearish momentum, and the valuation shows potential overvaluation risks with a high P/E ratio. The absence of dividends further detracts from the stock's attractiveness. Investors should be cautious and consider these factors before making investment decisions.

Huadi International Group Business Overview & Revenue Model

Company Description

Huadi International Group Co., Ltd. develops, manufactures, markets, and sells industrial stainless steel seamless pipes, tubes, bars, and plates in the People's Republic of China. The company's products are used in oil and gas transmission, chemistry engineering, food processing, medical devices, aeronautics and astronautics, boiler, irrigation works construction, electricity, automobile, naval architecture, paper mill, and mechanical industries. It also exports its products to 20 countries, including the United States, Mexico, Thailand, Australia, Argentina, India, the Philippines, the United Arab Emirates, Taiwan, Canada, and internationally. The company was founded in 1992 and is based in Wenzhou, the People's Republic of China. Huadi International Group Co., Ltd. is a subsidiary of Yongqiang Donghai Limited.

How the Company Makes Money

Huadi International Group generates revenue primarily through the manufacturing and sale of stainless steel pipes and tubes. The company serves a broad range of industries, providing products essential for construction, energy, transportation, and industrial applications. Revenue streams include direct sales to businesses in the oil and gas, automotive, and infrastructure sectors. Additionally, Huadi International Group engages in partnerships and long-term contracts with key players in these industries, ensuring a steady demand for its products. The company's earnings are further supported by its focus on product quality, technological advancements, and expanding its market reach both domestically and internationally.

Huadi International Group Financial Statement Overview

Summary

Huadi International Group's financial performance reveals areas of concern, particularly in income generation and profitability. The income statement reflects declining revenues and negative profitability, while the balance sheet shows moderate stability with reduced leverage. The cash flow metrics suggest a mixed performance with positive operating cash flow but inconsistent free cash flow growth.

Income Statement

Huadi International Group's income statement reflects a challenging year with declining revenues and profitability. The gross profit margin and net profit margin have decreased significantly in the latest year, and there is a negative EBIT and EBITDA. Revenue has declined year-over-year, indicating potential market or operational challenges.

Balance Sheet

The company's balance sheet shows moderate stability. The debt-to-equity ratio has improved, reflecting reduced leverage. However, the return on equity is low, which may concern investors. The equity ratio is stable, showing a strong equity base relative to total assets.

Cash Flow

Cash flow metrics indicate a mixed performance. Operating cash flow has turned positive in the latest year, signaling a potential recovery in cash generation. However, free cash flow growth is inconsistent, and the ratios of operating and free cash flow to net income suggest volatility in the cash conversion cycle.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
74.27M	84.33M	76.37M	70.25M	59.14M
	Gross Profit
7.32M	12.36M	11.14M	11.32M	10.66M
	EBIT
-1.61M	3.11M	3.75M	4.53M	4.46M
	EBITDA
-43.12K	3.56M	4.54M	3.35M	5.36M
	Net Income Common Stockholders
137.42K	3.26M	1.92M	2.53M	3.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.12M	20.19M	13.20M	15.35M	796.79K
	Total Assets
103.59M	103.01M	84.64M	100.25M	69.12M
	Total Debt
14.59M	11.52M	21.74M	35.77M	32.74M
	Net Debt
-3.53M	-8.67M	8.54M	20.42M	31.94M
	Total Liabilities
25.28M	28.33M	35.00M	48.77M	43.33M
	Stockholders Equity
78.00M	74.41M	49.38M	51.21M	25.56M
Cash Flow		Free Cash Flow
9.93M	-6.05M	7.82M	-6.57M	2.54M
	Operating Cash Flow
12.99M	-2.45M	8.03M	-5.65M	3.20M
	Investing Cash Flow
-3.07M	-3.59M	-206.18K	-897.25K	59.79K
	Financing Cash Flow
-8.81M	11.58M	-9.74M	21.28M	-4.69M

Huadi International Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HUDI, the sentiment is Negative. The current price of 1.4 is below the 20-day moving average (MA) of 1.48, below the 50-day MA of 1.55, and below the 200-day MA of 1.92, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 37.80 is Neutral, neither overbought nor oversold. The STOCH value of 14.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HUDI.

Huadi International Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRD	73 Outperform	$118.50M	21.01	4.51%	0.94%	-12.19%	-67.95%
ZEUS	52 Neutral	$343.36M	15.63	4.07%	1.98%	-10.03%	-48.82%
ACNT	50 Neutral	$128.40M	―	-11.17%	―	-14.57%	48.61%
Sector *	49 Neutral	$1.92B	-1.52	-22.04%	3.84%	0.67%	-27.41%
HUDI	48 Neutral	$20.64M	144.33	0.18%	―	-11.93%	-95.78%
ZKIN	40 Underperform	$5.37M	―	-10.45%	―	-3.05%	95.83%