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. While FRU belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. FRU is not valued too expensively and it also shows a decent growth rate.
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
FRU has a Return On Assets of 10.38%. This is amongst the best in the industry. FRU outperforms 92.34% of its industry peers.
FRU's Return On Equity of 13.99% is amongst the best of the industry. FRU outperforms 84.21% of its industry peers.
FRU has a Return On Invested Capital of 10.34%. This is amongst the best in the industry. FRU outperforms 91.39% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FRU 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
FRU has a Profit Margin of 46.81%. This is amongst the best in the industry. FRU outperforms 97.61% of its industry peers.
FRU's Profit Margin has improved in the last couple of years.
FRU's Operating Margin of 58.82% is amongst the best of the industry. FRU outperforms 99.04% of its industry peers.
FRU's Operating Margin has improved in the last couple of years.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FRU is still creating some value.
The number of shares outstanding for FRU has been increased compared to 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 3.42. This indicates that FRU is financially healthy and has little risk of bankruptcy at the moment.
FRU has a Altman-Z score of 3.42. This is amongst the best in the industry. FRU outperforms 80.86% 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.
The Debt to FCF ratio of FRU (1.26) is better than 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's Debt to Equity ratio of 0.27 is in line compared 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 | 3.42 |
ROIC/WACC1.37
WACC7.54%
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 has a Current ratio of 1.61. This is in the better half 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.
The Quick ratio of FRU (1.61) is better than 76.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
FRU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.32%, which is quite good.
FRU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 89.73% yearly.
The Revenue has been growing slightly by 4.48% in the past year.
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
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.
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
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
FRU is valuated correctly with a Price/Earnings ratio of 13.13.
66.03% of the companies in the same industry are more expensive than FRU, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.31, FRU is valued rather cheaply.
A Price/Forward Earnings ratio of 18.39 indicates a rather expensive valuation of FRU.
FRU's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, FRU is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.13 | ||
| Fwd PE | 18.39 |
4.2 Price Multiples
66.99% of the companies in the same industry are more expensive than FRU, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FRU indicates a somewhat cheap valuation: FRU is cheaper than 78.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.12 | ||
| EV/EBITDA | 8.09 |
4.3 Compensation for Growth
FRU's 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.
FRU's earnings are expected to decrease with -6.43% in the coming years. This may justify a cheaper valuation.
PEG (NY)0.57
PEG (5Y)0.15
EPS Next 2Y-11.97%
EPS Next 3Y-6.43%
5. Dividend
5.1 Amount
FRU has a Yearly Dividend Yield of 8.43%, which is a nice return.
FRU's Dividend Yield is rather good when compared to the industry average which is at 6.54. FRU pays more dividend than 94.74% of the companies in the same industry.
FRU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.43% |
5.2 History
On average, the dividend of FRU grows each year by 10.41%, which is quite nice.
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
108.90% 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.
DP108.9%
EPS Next 2Y-11.97%
EPS Next 3Y-6.43%
TSX:FRU (6/13/2025, 7:00:00 PM)
13
+0.19 (+1.48%)
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 Cap2.13B
Analysts72.94
Price Target16.08 (23.69%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.43% |
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 | 13.13 | ||
| Fwd PE | 18.39 | ||
| P/S | 6.53 | ||
| P/FCF | 9.12 | ||
| P/OCF | 9.12 | ||
| P/B | 1.95 | ||
| P/tB | 1.95 | ||
| EV/EBITDA | 8.09 |
EPS(TTM)0.99
EY7.62%
EPS(NY)0.71
Fwd EY5.44%
FCF(TTM)1.43
FCFY10.97%
OCF(TTM)1.43
OCFY10.97%
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 | 3.42 |
F-Score4
WACC7.54%
ROIC/WACC1.37
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%