(HUDI) Huadi International - Ratings and Ratios

Huadi International Group Co., Ltd. (NASDAQ:HUDI) is a China-based manufacturer specializing in stainless steel seamless pipes, tubes, and bars. The company serves multiple industries, including thermal and nuclear power plants, automotive, oil and gas, agricultural equipment, industrial machinery, chemical engineering, and electricity generation. Its products are exported to over 15 countries, including the United States, India, Canada, Germany, and Australia. Established in 2018 and headquartered in Wenzhou, China, Huadi operates as a subsidiary of Yongqiang Donghai Limited. The companys website is accessible at https://www.huadi.cc.

From a technical standpoint, HUDIs stock is currently trading below its 20-day, 50-day, and 200-day moving averages, suggesting bearish momentum. The stocks average trading volume over the past 20 days is 45,214 shares, with a last price of $1.55. The ATR of 0.12 indicates relatively low volatility. The SMA 20, SMA 50, and SMA 200 are $1.62, $1.65, and $2.08, respectively.

Fundamentally, the company has a market capitalization of $22.42 million, with a price-to-earnings (P/E) ratio of 157.00, indicating elevated valuations relative to earnings. The price-to-book (P/B) ratio of 0.29 suggests undervaluation compared to book value, while the price-to-sales (P/S) ratio of 0.30 reflects cheap valuation relative to sales. Return on equity (RoE) stands at 4.04%, which is below average and points to limited profitability.

3-Month Forecast: Based on the technical and fundamental data, HUDIs stock is expected to remain under pressure in the near term. The bearish crossover of the short-term and long-term moving averages, combined with the high P/E ratio and low RoE, suggests limited upside potential. The stock may consolidate within a narrow range, with resistance at $1.65 (SMA 50) and support at $1.45. Any upside is likely to be capped by the SMA 50, while downside risks could be mitigated by the stocks already depressed valuation metrics.