Deep Value: cash covers more than 100% of the stock price

This company holds roughly $19M in cash and investments — more than its entire stock-market value, based on its latest quarterly filing. You're paying very little for the actual business. Sometimes that's a genuine bargain or a takeover target, sometimes it's cheap for a reason. Not a buy signal on its own — always ask why it's this cheap.

Huadi International Group Co.

HUDI

Steel · Basic Materials

Price

$0.84

-0.02 (-2.48%)

pre-market:$0.83-1.91%

Market Cap

$12.0M

Exchange

NASDAQ Capital Market

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Data as of Aug 13, 2026 · filings through Mar 31, 2026

Share count rising — dilution

+17.8% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 12.1M (2021) → 14.3M (2025)

Huadi International Group is a Chinese company that makes stainless steel pipes and tubes. These products are used in industries like oil and gas, chemicals, and construction. The company sells mainly to industrial customers in China, with some exports to international markets.

Huadi earns money by manufacturing and selling stainless steel products directly to buyers. It operates primarily in China, and with a market cap near zero and negative operating margins, it is a very small and financially stressed business. The main risk the company faces is its inability to consistently turn a profit — thin gross margins of around 10% and negative operating income suggest it struggles to cover its costs, making it vulnerable to any drop in steel prices or demand.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-16.5% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-854.9% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$2M/ year

→ Flat (-3% vs prior year)

3.4% of revenue

In line with sector average (3%)

Steady R&D investment year-over-year

Insider Activity

70.5%ownership

Insiders own a meaningful stake in the company

Cash Runway

~7 months

$22M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Cash watch

Huadi International Group Co. has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin

11.8%

Thin — 11.8% gross margin

Operating Margin

-5.7%

Losing money on operations — -5.7%

ROCE

-1.3%

Weak — -1.3% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

-12.8%

Shrinking sales (-12.8% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

-34.0%

Burning cash (-34.0%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

0.42

Conservative — low debt load (0.42)

Interest Cover

N/A

Data not available

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Valuation

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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