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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Freehold Royalties Ltd.

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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.

10.81%

7.64

23.82%

S&P/TSX 60

19.1%

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)

23.60%

EBIT Growth (5y)

93.69%

EBIT to Interest (avg)

21.34

Debt to EBITDA (avg)

0.76

Net Debt to Equity (avg)

0.27

Sales to Capital Employed (avg)

0.28

Tax Ratio

22.25%

Dividend Payout Ratio

109.40%

Pledged Shares

Institutional Holding

0.08%

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

1.99

EV to EBIT

12.87

EV to EBITDA

8.14

EV to Capital Employed

1.77

EV to Sales

7.36

PEG Ratio

Dividend Yield

ROCE (Latest)

13.75%

ROE (Latest)

11.53%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bearish

No Trend

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

1What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 710.53%

-23What is not working for the Company

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

RAW MATERIAL COST(Y)

Grown by 7.75% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 28.33 %

PRE-TAX PROFIT(Q)

Lowest at CAD 12.32 MM

NET PROFIT(Q)

Lowest at CAD 6.24 MM

EPS(Q)

Lowest at CAD 0.04

Here's what is working for Freehold Royalties Ltd.

Dividend Payout Ratio

Highest at 710.53%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at CAD 27.29 MM

in the last five periods

MOJO Watch

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

Depreciation (CAD MM)

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

Pre-Tax Profit

At CAD 12.32 MM has Fallen at -74.92%

over average net sales of the previous four periods of CAD 49.11 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 6.24 MM has Fallen at -83.67%

over average net sales of the previous four periods of CAD 38.18 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Interest Coverage Ratio

Lowest at 1,510.4

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At CAD 9.71 MM has Grown at 25.39%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Pre-Tax Profit

Lowest at CAD 12.32 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

Lowest at CAD 6.24 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

EPS

Lowest at CAD 0.04

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)

Debt-Equity Ratio

Highest at 28.33 %

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 7.75% (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