FREEHOLD ROYALTIES LTD (FRU.CA) Stock Fundamental Analysis
TSX:FRU - Toronto Stock Exchange - CA3565001086 - Common Stock - Currency: CAD
Taking everything into account, FRU scores 6 out of 10 in our fundamental rating. FRU was compared to 209 industry peers in the Oil, Gas & Consumable Fuels industry. FRU has an excellent profitability rating, but there are some minor concerns on its financial health. FRU has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
FRU had positive earnings in the past year.
In the past year FRU had a positive cash flow from operations.
Of the past 5 years FRU 4 years were profitable.
In the past 5 years FRU always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 10.38%, FRU belongs to the best of the industry, outperforming 92.34% of the companies in the same industry.
FRU has a Return On Equity of 13.99%. This is amongst the best in the industry. FRU outperforms 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
With an excellent Profit Margin value of 46.81%, FRU belongs to the best of the industry, outperforming 97.61% of the companies in the same industry.
In the last couple of years the Profit Margin of FRU has grown nicely.
FRU has a better Operating Margin (58.82%) than 99.04% of its industry peers.
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.
FRU's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for FRU has been increased compared to 5 years ago.
The debt/assets ratio for FRU is higher compared to a year ago.
2.2 Solvency
FRU has an Altman-Z score of 3.44. This indicates that FRU is financially healthy and has little risk of bankruptcy at the moment.
FRU's Altman-Z score of 3.44 is amongst the best of the industry. FRU outperforms 81.34% of its industry peers.
The Debt to FCF ratio of FRU is 1.26, which is an excellent value as it means it would take FRU, only 1.26 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.26, FRU belongs to the top of the industry, outperforming 89.95% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that FRU is not too dependend on debt financing.
FRU has a Debt to Equity ratio (0.27) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.26 | ||
| Altman-Z | 3.44 |
ROIC/WACC1.27
WACC8.13%
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.
With a decent Current ratio value of 1.61, FRU is doing good in the industry, outperforming 74.64% of the companies in the same industry.
A Quick Ratio of 1.61 indicates that FRU should not have too much problems paying 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.
FRU shows a small growth in Revenue. In the last year, the Revenue has grown by 4.48%.
Measured over the past years, FRU shows a quite strong growth in Revenue. The Revenue has been growing by 17.06% on average per year.
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
The Earnings Per Share is expected to decrease by -6.43% on average over the next years.
Based on estimates for the next years, FRU will show a small growth in Revenue. The Revenue will grow by 0.29% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
A Price/Earnings ratio of 13.02 indicates a correct valuation of FRU.
Based on the Price/Earnings ratio, FRU is valued a bit cheaper than the industry average as 66.03% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.55. FRU is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 18.23, which indicates a rather expensive current valuation of FRU.
The rest of the industry has a similar Price/Forward Earnings ratio as FRU.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.40, FRU is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.02 | ||
| Fwd PE | 18.23 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FRU indicates a somewhat cheap valuation: FRU is cheaper than 66.51% of the companies listed in the same industry.
78.47% 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 | 9.04 | ||
| EV/EBITDA | 8.13 |
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.
FRU has an outstanding profitability rating, which 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)0.57
PEG (5Y)0.15
EPS Next 2Y-11.97%
EPS Next 3Y-6.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.80%, FRU is a good candidate for dividend investing.
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 (6/11/2025, 7:00:00 PM)
12.89
+0.28 (+2.22%)
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 Cap2.11B
Analysts72.94
Price Target16.08 (24.75%)
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 | 13.02 | ||
| Fwd PE | 18.23 | ||
| P/S | 6.48 | ||
| P/FCF | 9.04 | ||
| P/OCF | 9.04 | ||
| P/B | 1.94 | ||
| P/tB | 1.94 | ||
| EV/EBITDA | 8.13 |
EPS(TTM)0.99
EY7.68%
EPS(NY)0.71
Fwd EY5.48%
FCF(TTM)1.43
FCFY11.06%
OCF(TTM)1.43
OCFY11.06%
SpS1.99
BVpS6.66
TBVpS6.66
PEG (NY)0.57
PEG (5Y)0.15
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 | 3.44 |
F-Score4
WACC8.13%
ROIC/WACC1.27
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%