FREEHOLD ROYALTIES LTD (FRU.CA) Stock Fundamental Analysis
TSX:FRU - Toronto Stock Exchange - CA3565001086 - Common Stock - Currency: CAD
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.
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.
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 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'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 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.
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.26 | ||
| Altman-Z | 3.34 |
ROIC/WACC1.27
WACC8.12%
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 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.
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.74 | ||
| Fwd PE | 17.84 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.84 | ||
| EV/EBITDA | 7.92 |
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%
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 Rank | Sector 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
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 (6/10/2025, 7:00:00 PM)
12.61
+0.21 (+1.69%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
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 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 | 12.74 | ||
| 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 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 | 3.34 |
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%