Freehold Royalties Ltd. (FRU) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Freehold Royalties Ltd.

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Dream Impact Trust

Strategem Capital Corp.

Greencastle Resources Ltd.

Big Banc Split Corp.

Why is Freehold Royalties Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 21.34

Healthy long term growth as Net Sales has grown by an annual rate of 23.60% and Operating profit at 93.69%

With a fall in Net Sales of -14.05%, the company declared Very Negative results in Jun 25

INTEREST(HY) At CAD 9.71 MM has Grown at 25.39%
ROCE(HY) Lowest at 12.2%
INTEREST COVERAGE RATIO(Q) Lowest at 1,510.4

With ROE of 11.53%, it has a very attractive valuation with a 1.99 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -1.41%, its profits have fallen by -20.2%

Below par performance in long term as well as near term

Along with generating -1.41% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Freehold Royalties Ltd. 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 Freehold Royalties Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Freehold Royalties Ltd.

-100.0%

7.64

23.82%

S&P/TSX 60

21.87%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

28.36%

EBIT Growth (5y)

110.71%

EBIT to Interest (avg)

21.34

Debt to EBITDA (avg)

0.76

Net Debt to Equity (avg)

0.27

Sales to Capital Employed (avg)

0.26

Tax Ratio

22.25%

Dividend Payout Ratio

192.93%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

13.50%

ROE (avg)

12.32%

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

2.86

EV to EBIT

18.87

EV to EBITDA

11.42

EV to Capital Employed

2.45

EV to Sales

10.02

PEG Ratio

Dividend Yield

ROCE (Latest)

12.99%

ROE (Latest)

9.19%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 239.48 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 6.42 times

-14What is not working for the Company

NET PROFIT(HY)

At CAD 40.39 MM has Grown at -37.19%

INTEREST(HY)

At CAD 9.26 MM has Grown at 21.34%

ROCE(HY)

Lowest at 13.29%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,424.4

RAW MATERIAL COST(Y)

Grown by 5.42% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 27.54 %

OPERATING PROFIT(Q)

Lowest at CAD 65.44 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 88 %

Here's what is working for Freehold Royalties Ltd.

Operating Cash Flow

Highest at CAD 239.48 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Debtors Turnover Ratio

Highest at 6.42 times and Grown

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

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Freehold Royalties Ltd.

Interest Coverage Ratio

Lowest at 1,424.4

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CAD 40.39 MM has Grown at -37.19%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Interest

At CAD 9.26 MM has Grown at 21.34%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Operating Profit

Lowest at CAD 65.44 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Operating Profit Margin

Lowest at 88 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 27.54 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 5.42% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales