FREEHOLD ROYALTIES LTD (FRU.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:FRU - CA3565001086 - Common Stock
16.08 CAD
+0.14 (+0.88%)
We assign a fundamental rating of 6 out of 10 to FRU. FRU was compared to 206 industry peers in the Oil, Gas & Consumable Fuels industry. FRU gets an excellent profitability rating and is at the same time showing great financial health properties. FRU has a valuation in line with the averages, but it does not seem to be growing.
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.
- Each year in the past 5 years FRU had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 9.18%, FRU belongs to the best of the industry, outperforming 93.93% of the companies in the same industry.
- With an excellent Return On Equity value of 12.46%, FRU belongs to the best of the industry, outperforming 88.78% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 10.14%, FRU belongs to the best of the industry, outperforming 92.99% of the companies in the same industry.
- FRU had an Average Return On Invested Capital over the past 3 years of 13.42%. This is significantly above the industry average of 6.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.18% | ||
| ROE | 12.46% | ||
| ROIC | 10.14% |
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
- Looking at the Profit Margin, with a value of 40.19%, FRU belongs to the top of the industry, outperforming 97.66% of the companies in the same industry.
- In the last couple of years the Profit Margin of FRU has grown nicely.
- The Operating Margin of FRU (56.10%) is better than 99.07% of its industry peers.
- FRU's Operating Margin has improved in the last couple of years.
- The Gross Margin of FRU (96.34%) is better than 99.07% of its industry peers.
- FRU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 56.1% | ||
| PM (TTM) | 40.19% | ||
| GM | 96.34% |
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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FRU 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.
- FRU has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.31 indicates that FRU is not in any danger for bankruptcy at the moment.
- The Altman-Z score of FRU (4.31) is better than 83.18% of its industry peers.
- FRU has a debt to FCF ratio of 1.19. This is a very positive value and a sign of high solvency as it would only need 1.19 years to pay back of all of its debts.
- FRU's Debt to FCF ratio of 1.19 is amongst the best of the industry. FRU outperforms 90.19% of its industry peers.
- A Debt/Equity ratio of 0.28 indicates that FRU is not too dependend on debt financing.
- FRU has a better Debt to Equity ratio (0.28) than 62.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 4.31 |
ROIC/WACC1.29
WACC7.84%
2.3 Liquidity
- A Current Ratio of 1.63 indicates that FRU should not have too much problems paying its short term obligations.
- FRU has a Current ratio of 1.63. This is in the better half of the industry: FRU outperforms 74.77% of its industry peers.
- FRU has a Quick Ratio of 1.63. 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 Quick ratio value of 1.63, FRU is doing good in the industry, outperforming 77.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
- FRU shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.17%.
- 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 2.52% in the past year.
- FRU shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.06% yearly.
EPS 1Y (TTM)-8.17%
EPS 3Y23.16%
EPS 5Y89.73%
EPS Q2Q%23.85%
Revenue 1Y (TTM)2.52%
Revenue growth 3Y14.5%
Revenue growth 5Y17.06%
Sales Q2Q%2.6%
3.2 Future
- FRU is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.60% yearly.
- The Revenue is expected to decrease by -0.17% on average over the next years.
EPS Next Y-29.15%
EPS Next 2Y-12.29%
EPS Next 3Y-5.6%
EPS Next 5YN/A
Revenue Next Year3.83%
Revenue Next 2Y3.38%
Revenue Next 3Y2.5%
Revenue Next 5Y-0.17%
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
- Based on the Price/Earnings ratio of 20.10, the valuation of FRU can be described as rather expensive.
- Based on the Price/Earnings ratio, FRU is valued a bit cheaper than 63.55% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. FRU is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 22.91 indicates a rather expensive valuation of FRU.
- FRU's Price/Forward Earnings is on the same level as the industry average.
- FRU is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.1 | ||
| Fwd PE | 22.91 |
4.2 Price Multiples
- FRU's Enterprise Value to EBITDA ratio is in line with the industry average.
- FRU's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FRU is cheaper than 83.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.01 | ||
| EV/EBITDA | 10.13 |
4.3 Compensation for Growth
- 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 -5.60% in the coming years.
PEG (NY)N/A
PEG (5Y)0.22
EPS Next 2Y-12.29%
EPS Next 3Y-5.6%
5. Dividend
5.1 Amount
- FRU has a Yearly Dividend Yield of 6.78%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.29, FRU pays a better dividend. On top of this FRU pays more dividend than 93.93% of the companies listed in the same industry.
- FRU's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.78% |
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
- FRU pays out 134.68% of its income as dividend. This is not a sustainable payout ratio.
- The Dividend Rate of FRU has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP134.68%
EPS Next 2Y-12.29%
EPS Next 3Y-5.6%
FREEHOLD ROYALTIES LTD / FRU.CA FAQ
Can you provide the ChartMill fundamental rating for FREEHOLD ROYALTIES LTD?
ChartMill assigns a fundamental rating of 6 / 10 to FRU.CA.
What is the valuation status of FREEHOLD ROYALTIES LTD (FRU.CA) stock?
ChartMill assigns a valuation rating of 4 / 10 to FREEHOLD ROYALTIES LTD (FRU.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for FREEHOLD ROYALTIES LTD?
FREEHOLD ROYALTIES LTD (FRU.CA) has a profitability rating of 9 / 10.
What is the expected EPS growth for FREEHOLD ROYALTIES LTD (FRU.CA) stock?
The Earnings per Share (EPS) of FREEHOLD ROYALTIES LTD (FRU.CA) is expected to decline by -29.15% in the next year.
How sustainable is the dividend of FREEHOLD ROYALTIES LTD (FRU.CA) stock?
The dividend rating of FREEHOLD ROYALTIES LTD (FRU.CA) is 6 / 10 and the dividend payout ratio is 134.68%.