Freedom Holding Corp. (FRHC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Freedom Holding Corp.

Why is Freedom Holding Corp. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 33.48%

Healthy long term growth as Net Sales has grown by an annual rate of 69.85% and Operating profit at 59.37%
NET PROFIT(HY) At USD -112.29 MM has Grown at -186.63%
OPERATING CASH FLOW(Y) Lowest at USD 228.94 MM
ROCE(HY) Lowest at 6.78%

With ROE of 25.60%, it has a very expensive valuation with a 7.50 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 3.33%, its profits have fallen by -3.1%

Underperformed the market in the last 1 year

The stock has generated a return of 3.33% in the last 1 year, much lower than market (S&P 500) returns of 15.98%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Freedom Holding Corp. should be less than 10%
Overall Portfolio exposure to Capital Markets should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Freedom Holding Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Freedom Holding Corp.

-19.25%

1.68

43.47%

S&P 500

13.99%

0.81

19.85%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

69.85%

EBIT Growth (5y)

59.37%

EBIT to Interest (avg)

3.87

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

25.17%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

3.95%

ROCE (avg)

321.94%

ROE (avg)

33.48%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

7.50

EV to EBIT

9.52

EV to EBITDA

9.34

EV to Capital Employed

-961.03

EV to Sales

3.87

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

25.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

CASH AND EQV(HY)

Highest at USD 3,167.63 MM

DEBT-EQUITY RATIO (HY)

Lowest at 14.15 %

-14What is not working for the Company

NET PROFIT(HY)

At USD -112.29 MM has Grown at -186.63%

OPERATING CASH FLOW(Y)

Lowest at USD 228.94 MM

ROCE(HY)

Lowest at 6.78%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1 times

Here's what is working for Freedom Holding Corp.

Cash and Eqv

Highest at USD 3,167.63 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 14.15 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Depreciation

Highest at USD 6.11 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Depreciation

At USD 6.11 MM has Grown at 37.46%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (USD MM)

Here's what is not working for Freedom Holding Corp.

Net Profit

At USD -112.29 MM has Grown at -186.63%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Debtors Turnover Ratio

Lowest at 1 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Cash Flow

Lowest at USD 228.94 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)