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FREEHOLD ROYALTIES LTD (FRU.CA) Stock Fundamental Analysis

TSX:FRU - Toronto Stock Exchange - CA3565001086 - Common Stock - Currency: CAD

12.61  +0.21 (+1.69%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to FRU. 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.


Dividend Valuation Growth Profitability Health

9

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.
FRU had positive earnings in 4 of the past 5 years.
FRU had a positive operating cash flow in each of the past 5 years.
FRU.CA Yearly Net Income VS EBIT VS OCF VS FCFFRU.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M

1.2 Ratios

The Return On Assets of FRU (10.38%) is better than 92.34% of its industry peers.
FRU has a better Return On Equity (13.99%) than 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 RankSector 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
FRU.CA Yearly ROA, ROE, ROICFRU.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 10 15 20

1.3 Margins

FRU's Profit Margin of 46.81% is amongst the best of the industry. FRU outperforms 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.
The Gross Margin of FRU (96.58%) is better than 99.04% of its industry peers.
In the last couple of years the Gross Margin of FRU has remained more or less at the same level.
Industry RankSector 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%
FRU.CA Yearly Profit, Operating, Gross MarginsFRU.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

6

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.
FRU has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, FRU has more shares outstanding
Compared to 1 year ago, FRU has a worse debt to assets ratio.
FRU.CA Yearly Shares OutstandingFRU.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
FRU.CA Yearly Total Debt VS Total AssetsFRU.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B

2.2 Solvency

FRU has an Altman-Z score of 3.34. This indicates that FRU is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of FRU (3.34) is better than 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.
The Debt to Equity ratio of FRU (0.27) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 1.26
Altman-Z 3.34
ROIC/WACC1.27
WACC8.12%
FRU.CA Yearly LT Debt VS Equity VS FCFFRU.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.3 Liquidity

A Current Ratio of 1.61 indicates that FRU should not have too much problems paying 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.
A Quick Ratio of 1.61 indicates that FRU should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.61, FRU is doing good in the industry, outperforming 76.56% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.61
Quick Ratio 1.61
FRU.CA Yearly Current Assets VS Current LiabilitesFRU.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M

4

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.
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.
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)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.
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.
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.
FRU.CA Yearly Revenue VS EstimatesFRU.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 100M 200M 300M
FRU.CA Yearly EPS VS EstimatesFRU.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 0.5 1

6

4. Valuation

4.1 Price/Earnings Ratio

FRU is valuated correctly with a Price/Earnings ratio of 12.74.
Compared to the rest of the industry, the Price/Earnings ratio of FRU indicates a somewhat cheap valuation: FRU is cheaper than 66.03% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.59. FRU is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 17.84 indicates a rather expensive valuation of FRU.
FRU's Price/Forward Earnings is on the same level as the industry average.
FRU is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.39, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 12.74
Fwd PE 17.84
FRU.CA Price Earnings VS Forward Price EarningsFRU.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

67.46% 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 rather cheap valuation: FRU is cheaper than 80.38% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 8.84
EV/EBITDA 7.92
FRU.CA Per share dataFRU.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

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.
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)0.56
PEG (5Y)0.14
EPS Next 2Y-11.97%
EPS Next 3Y-6.43%

6

5. Dividend

5.1 Amount

FRU has a Yearly Dividend Yield of 8.80%, 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 RankSector Rank
Dividend Yield 8.8%

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
FRU.CA Yearly Dividends per shareFRU.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

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%
FRU.CA Yearly Income VS Free CF VS DividendFRU.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M
FRU.CA Dividend Payout.FRU.CA Dividend Payout, showing the Payout Ratio.FRU.CA Dividend Payout.PayoutRetained Earnings

FREEHOLD ROYALTIES LTD

TSX:FRU (6/10/2025, 7:00:00 PM)

12.61

+0.21 (+1.69%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)05-13 2025-05-13/amc
Earnings (Next)07-29 2025-07-29
Inst Owners28.32%
Inst Owner ChangeN/A
Ins Owners0.44%
Ins Owner ChangeN/A
Market Cap2.07B
Analysts72.94
Price Target16.08 (27.52%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 8.8%
Yearly Dividend1.03
Dividend Growth(5Y)10.41%
DP108.9%
Div Incr Years4
Div Non Decr Years4
Ex-Date05-30 2025-05-30 (0.09)
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 RankSector Rank
PE 12.74
Fwd PE 17.84
P/S 6.34
P/FCF 8.84
P/OCF 8.84
P/B 1.89
P/tB 1.89
EV/EBITDA 7.92
EPS(TTM)0.99
EY7.85%
EPS(NY)0.71
Fwd EY5.61%
FCF(TTM)1.43
FCFY11.31%
OCF(TTM)1.43
OCFY11.31%
SpS1.99
BVpS6.66
TBVpS6.66
PEG (NY)0.56
PEG (5Y)0.14
Profitability
Industry RankSector 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 RankSector 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 3.34
F-Score4
WACC8.12%
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%