FREEHOLD ROYALTIES LTD (FRU.CA) Stock Fundamental Analysis
TSX:FRU - Toronto Stock Exchange - CA3565001086 - Common Stock - Currency: CAD
Overall FRU gets a fundamental rating of 6 out of 10. We evaluated FRU against 209 industry peers in the Oil, Gas & Consumable Fuels industry. While FRU has a great profitability rating, there are some minor concerns on its financial health. FRU has a correct valuation and a medium growth rate.
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
The Return On Assets of FRU (10.38%) is better than 92.34% of its industry peers.
The Return On Equity of FRU (13.99%) is better than 84.21% of its industry peers.
FRU's Return On Invested Capital of 10.34% is amongst the best of the industry. FRU outperforms 91.39% of its industry peers.
FRU had an Average Return On Invested Capital over the past 3 years of 13.42%. This is significantly above the industry average of 7.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.38% | ||
| ROE | 13.99% | ||
| ROIC | 10.34% |
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
The Profit Margin of FRU (46.81%) is better than 97.61% of its industry peers.
FRU's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 58.82%, FRU belongs to the top of the industry, outperforming 99.04% of the companies in the same industry.
In the last couple of years the Operating Margin of FRU has grown nicely.
Looking at the Gross Margin, with a value of 96.58%, FRU belongs to the top of the industry, outperforming 99.04% 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 | 58.82% | ||
| PM (TTM) | 46.81% | ||
| GM | 96.58% |
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.
The number of shares outstanding for FRU has been increased compared to 1 year ago.
Compared to 5 years ago, FRU has more shares outstanding
The debt/assets ratio for FRU is higher compared to a year ago.
2.2 Solvency
FRU has an Altman-Z score of 3.31. This indicates that FRU is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.31, FRU belongs to the top of the industry, outperforming 81.34% of the companies in the same industry.
FRU has a debt to FCF ratio of 1.26. This is a very positive value and a sign of high solvency as it would only need 1.26 years to pay back of all of its debts.
FRU has a Debt to FCF ratio of 1.26. This is amongst the best in the industry. FRU outperforms 89.95% of its industry peers.
FRU has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
FRU has a Debt to Equity ratio of 0.27. This is comparable to the rest of the industry: FRU outperforms 59.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.26 | ||
| Altman-Z | 3.31 |
ROIC/WACC1.28
WACC8.1%
2.3 Liquidity
FRU has a Current Ratio of 1.61. This is a normal value and indicates that FRU is financially healthy and should not expect problems in meeting its short term obligations.
FRU's Current ratio of 1.61 is fine compared to the rest of the industry. FRU outperforms 74.64% of its industry peers.
FRU has a Quick Ratio of 1.61. This is a normal value and indicates that FRU is financially healthy and should not expect problems in meeting its short term obligations.
FRU has a better Quick ratio (1.61) than 76.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.32% over the past year.
Measured over the past years, FRU shows a very strong growth in Earnings Per Share. The EPS has been growing by 89.73% on average per year.
Looking at the last year, FRU shows a small growth in Revenue. The Revenue has grown by 4.48% 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)10.32%
EPS 3Y23.16%
EPS 5Y89.73%
EPS Q2Q%0.8%
Revenue 1Y (TTM)4.48%
Revenue growth 3Y14.5%
Revenue growth 5Y17.06%
Sales Q2Q%22.61%
3.2 Future
FRU is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -6.43% yearly.
FRU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.29% yearly.
EPS Next Y22.88%
EPS Next 2Y-11.97%
EPS Next 3Y-6.43%
EPS Next 5YN/A
Revenue Next Year-22.89%
Revenue Next 2Y-10.68%
Revenue Next 3Y2.24%
Revenue Next 5Y0.29%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.53, FRU is valued correctly.
FRU's Price/Earnings ratio is a bit cheaper when compared to the industry. FRU is cheaper than 65.07% of the companies in the same industry.
FRU is valuated cheaply when we compare the Price/Earnings ratio to 26.53, which is the current average of the S&P500 Index.
FRU is valuated rather expensively with a Price/Forward Earnings ratio of 17.54.
FRU's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.27. FRU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.53 | ||
| Fwd PE | 17.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FRU is valued a bit cheaper than 67.46% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FRU is valued cheaper than 80.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.7 | ||
| EV/EBITDA | 7.86 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
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)0.55
PEG (5Y)0.14
EPS Next 2Y-11.97%
EPS Next 3Y-6.43%
5. Dividend
5.1 Amount
FRU has a Yearly Dividend Yield of 8.80%, which is a nice return.
Compared to an average industry Dividend Yield of 6.54, FRU pays a better dividend. On top of this FRU pays more dividend than 94.74% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, FRU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.8% |
5.2 History
On average, the dividend of FRU grows each year by 10.41%, which is quite nice.
FRU has been paying a dividend for at least 10 years, so it has 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
FRU pays out 108.90% of its income as dividend. 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.
DP108.9%
EPS Next 2Y-11.97%
EPS Next 3Y-6.43%
TSX:FRU (6/6/2025, 7:00:00 PM)
12.4
+0.13 (+1.06%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners28.32%
Inst Owner ChangeN/A
Ins Owners0.44%
Ins Owner ChangeN/A
Market Cap2.03B
Analysts72.94
Price Target16.08 (29.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.8% |
Yearly Dividend1.03
Dividend Growth(5Y)10.41%
DP108.9%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.27%
Min EPS beat(2)16.69%
Max EPS beat(2)19.85%
EPS beat(4)2
Avg EPS beat(4)-9.37%
Min EPS beat(4)-53.25%
Max EPS beat(4)19.85%
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)-5.09%
PT rev (3m)-7.97%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-4.03%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-33.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.53 | ||
| Fwd PE | 17.54 | ||
| P/S | 6.23 | ||
| P/FCF | 8.7 | ||
| P/OCF | 8.7 | ||
| P/B | 1.86 | ||
| P/tB | 1.86 | ||
| EV/EBITDA | 7.86 |
EPS(TTM)0.99
EY7.98%
EPS(NY)0.71
Fwd EY5.7%
FCF(TTM)1.43
FCFY11.5%
OCF(TTM)1.43
OCFY11.5%
SpS1.99
BVpS6.66
TBVpS6.66
PEG (NY)0.55
PEG (5Y)0.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.38% | ||
| ROE | 13.99% | ||
| ROCE | 13.37% | ||
| ROIC | 10.34% | ||
| ROICexc | 10.34% | ||
| ROICexgc | 10.34% | ||
| OM | 58.82% | ||
| PM (TTM) | 46.81% | ||
| GM | 96.58% | ||
| FCFM | 71.66% |
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-Score4
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.26 | ||
| Debt/EBITDA | 1 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 11.85 | ||
| Cash Conversion | 78.92% | ||
| Profit Quality | 153.07% | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 | ||
| Altman-Z | 3.31 |
F-Score4
WACC8.1%
ROIC/WACC1.28
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)10.32%
EPS 3Y23.16%
EPS 5Y89.73%
EPS Q2Q%0.8%
EPS Next Y22.88%
EPS Next 2Y-11.97%
EPS Next 3Y-6.43%
EPS Next 5YN/A
Revenue 1Y (TTM)4.48%
Revenue growth 3Y14.5%
Revenue growth 5Y17.06%
Sales Q2Q%22.61%
Revenue Next Year-22.89%
Revenue Next 2Y-10.68%
Revenue Next 3Y2.24%
Revenue Next 5Y0.29%
EBIT growth 1Y2.95%
EBIT growth 3Y21.89%
EBIT growth 5Y46.32%
EBIT Next Year10.21%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-22.23%
FCF growth 3Y11.29%
FCF growth 5Y16.12%
OCF growth 1Y-22.23%
OCF growth 3Y11.29%
OCF growth 5Y16.12%