FREEHOLD ROYALTIES LTD (FRU.CA) Stock Fundamental Analysis
Canada - TSX:FRU - CA3565001086 - Common Stock
14.04 CAD
+0.07 (+0.5%)
We assign a fundamental rating of 6 out of 10 to FRU. FRU was compared to 220 industry peers in the Oil, Gas & Consumable Fuels industry. While FRU belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. FRU has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
FRU had positive earnings in the past year.
FRU had a positive operating cash flow in the past year.
FRU had positive earnings in 4 of the past 5 years.
In the past 5 years FRU always reported a positive cash flow from operatings.
1.2 Ratios
FRU's Return On Assets of 8.50% is amongst the best of the industry. FRU outperforms 90.91% of its industry peers.
FRU has a Return On Equity of 11.53%. This is amongst the best in the industry. FRU outperforms 82.27% of its industry peers.
The Return On Invested Capital of FRU (10.28%) is better than 92.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FRU is significantly above the industry average of 6.91%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.5% | ||
| ROE | 11.53% | ||
| ROIC | 10.28% |
ROA(3y)13.04%
ROA(5y)8.84%
ROE(3y)16.55%
ROE(5y)11.13%
ROIC(3y)13.42%
ROIC(5y)N/A
1.3 Margins
FRU has a better Profit Margin (37.39%) than 96.36% of its industry peers.
In the last couple of years the Profit Margin of FRU has grown nicely.
Looking at the Operating Margin, with a value of 57.15%, FRU belongs to the top of the industry, outperforming 99.09% of the companies in the same industry.
FRU's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 96.46%, FRU belongs to the top of the industry, outperforming 99.09% of the companies in the same industry.
In the last couple of years the Gross Margin of FRU has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 57.15% | ||
| PM (TTM) | 37.39% | ||
| GM | 96.46% |
OM growth 3Y6.46%
OM growth 5Y25%
PM growth 3Y11.37%
PM growth 5Y67.22%
GM growth 3Y-1%
GM growth 5Y-0.1%
2. Health
2.1 Basic Checks
FRU has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
FRU has more shares outstanding than it did 1 year ago.
FRU has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, FRU has a worse debt to assets ratio.
2.2 Solvency
FRU has an Altman-Z score of 3.75. This indicates that FRU is financially healthy and has little risk of bankruptcy at the moment.
FRU has a better Altman-Z score (3.75) than 81.36% of its industry peers.
The Debt to FCF ratio of FRU is 1.21, which is an excellent value as it means it would take FRU, only 1.21 years of fcf income to pay off all of its debts.
FRU has a better Debt to FCF ratio (1.21) than 90.45% of its industry peers.
A Debt/Equity ratio of 0.28 indicates that FRU is not too dependend on debt financing.
FRU has a Debt to Equity ratio (0.28) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 1.21 | ||
| Altman-Z | 3.75 |
ROIC/WACC1.29
WACC7.99%
2.3 Liquidity
A Current Ratio of 1.70 indicates that FRU should not have too much problems paying its short term obligations.
FRU has a better Current ratio (1.70) than 77.73% of its industry peers.
A Quick Ratio of 1.70 indicates that FRU should not have too much problems paying its short term obligations.
FRU's Quick ratio of 1.70 is fine compared to the rest of the industry. FRU outperforms 78.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.7 |
3. Growth
3.1 Past
The earnings per share for FRU have decreased strongly by -23.12% in the last year.
FRU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 89.73% yearly.
Looking at the last year, FRU shows a decrease in Revenue. The Revenue has decreased by -0.92% in the last year.
The Revenue has been growing by 17.06% on average over the past years. This is quite good.
EPS 1Y (TTM)-23.12%
EPS 3Y23.16%
EPS 5Y89.73%
EPS Q2Q%-85.41%
Revenue 1Y (TTM)-0.92%
Revenue growth 3Y14.5%
Revenue growth 5Y17.06%
Sales Q2Q%-7.34%
3.2 Future
Based on estimates for the next years, FRU will show a decrease in Earnings Per Share. The EPS will decrease by -6.43% on average per year.
Based on estimates for the next years, FRU will show a small growth in Revenue. The Revenue will grow by 0.32% on average per year.
EPS Next Y-16.42%
EPS Next 2Y-0.74%
EPS Next 3Y-6.43%
EPS Next 5YN/A
Revenue Next Year8.71%
Revenue Next 2Y6.63%
Revenue Next 3Y0.76%
Revenue Next 5Y0.32%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.47, which indicates a rather expensive current valuation of FRU.
FRU's Price/Earnings ratio is a bit cheaper when compared to the industry. FRU is cheaper than 62.27% of the companies in the same industry.
When comparing the Price/Earnings ratio of FRU to the average of the S&P500 Index (27.32), we can say FRU is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.62, the valuation of FRU can be described as correct.
Based on the Price/Forward Earnings ratio, FRU is valued a bit cheaper than 60.91% of the companies in the same industry.
FRU is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.89, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.47 | ||
| Fwd PE | 15.62 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FRU is on the same level as its industry peers.
84.09% of the companies in the same industry are more expensive than FRU, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.45 | ||
| EV/EBITDA | 8.94 |
4.3 Compensation for Growth
The excellent profitability rating of FRU may justify a higher PE ratio.
A cheap valuation may be justified as FRU's earnings are expected to decrease with -6.43% in the coming years.
PEG (NY)N/A
PEG (5Y)0.21
EPS Next 2Y-0.74%
EPS Next 3Y-6.43%
5. Dividend
5.1 Amount
FRU has a Yearly Dividend Yield of 7.93%, which is a nice return.
FRU's Dividend Yield is rather good when compared to the industry average which is at 6.65. FRU pays more dividend than 95.91% of the companies in the same industry.
FRU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.93% |
5.2 History
The dividend of FRU is nicely growing with an annual growth rate of 10.41%!
FRU has paid a dividend for at least 10 years, which is a reliable track record.
FRU has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)10.41%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
141.98% of the earnings are spent on dividend by FRU. This is not a sustainable payout ratio.
FRU's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP141.98%
EPS Next 2Y-0.74%
EPS Next 3Y-6.43%
TSX:FRU (9/26/2025, 7:00:00 PM)
14.04
+0.07 (+0.5%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners27.45%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner ChangeN/A
Market Cap2.30B
Analysts72.94
Price Target16.28 (15.95%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.93% |
Yearly Dividend1.03
Dividend Growth(5Y)10.41%
DP141.98%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.24%
PT rev (3m)1.72%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-31.98%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)50.11%
Revenue NY rev (3m)40.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.47 | ||
| Fwd PE | 15.62 | ||
| P/S | 7.19 | ||
| P/FCF | 9.45 | ||
| P/OCF | 9.45 | ||
| P/B | 2.22 | ||
| P/tB | 2.22 | ||
| EV/EBITDA | 8.94 |
EPS(TTM)0.76
EY5.41%
EPS(NY)0.9
Fwd EY6.4%
FCF(TTM)1.49
FCFY10.58%
OCF(TTM)1.49
OCFY10.58%
SpS1.95
BVpS6.33
TBVpS6.33
PEG (NY)N/A
PEG (5Y)0.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.5% | ||
| ROE | 11.53% | ||
| ROCE | 13.29% | ||
| ROIC | 10.28% | ||
| ROICexc | 10.28% | ||
| ROICexgc | 10.28% | ||
| OM | 57.15% | ||
| PM (TTM) | 37.39% | ||
| GM | 96.46% | ||
| FCFM | 76.1% |
ROA(3y)13.04%
ROA(5y)8.84%
ROE(3y)16.55%
ROE(5y)11.13%
ROIC(3y)13.42%
ROIC(5y)N/A
ROICexc(3y)13.43%
ROICexc(5y)N/A
ROICexgc(3y)13.43%
ROICexgc(5y)N/A
ROCE(3y)17.37%
ROCE(5y)N/A
ROICexcg growth 3Y9.49%
ROICexcg growth 5Y30.81%
ROICexc growth 3Y9.49%
ROICexc growth 5Y30.81%
OM growth 3Y6.46%
OM growth 5Y25%
PM growth 3Y11.37%
PM growth 5Y67.22%
GM growth 3Y-1%
GM growth 5Y-0.1%
F-Score3
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 1.21 | ||
| Debt/EBITDA | 1.02 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 10.98 | ||
| Cash Conversion | 84.22% | ||
| Profit Quality | 203.55% | ||
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.7 | ||
| Altman-Z | 3.75 |
F-Score3
WACC7.99%
ROIC/WACC1.29
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)156.79%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-23.12%
EPS 3Y23.16%
EPS 5Y89.73%
EPS Q2Q%-85.41%
EPS Next Y-16.42%
EPS Next 2Y-0.74%
EPS Next 3Y-6.43%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.92%
Revenue growth 3Y14.5%
Revenue growth 5Y17.06%
Sales Q2Q%-7.34%
Revenue Next Year8.71%
Revenue Next 2Y6.63%
Revenue Next 3Y0.76%
Revenue Next 5Y0.32%
EBIT growth 1Y-7.2%
EBIT growth 3Y21.89%
EBIT growth 5Y46.32%
EBIT Next Year10.21%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-11.46%
FCF growth 3Y11.29%
FCF growth 5Y16.12%
OCF growth 1Y-11.46%
OCF growth 3Y11.29%
OCF growth 5Y16.12%