Executive Summary
Freehold Royalties Ltd., an oil and gas royalty company, owns working interests in oil, natural gas, and potash properties in Western Canada and the United States. More Details
Rewards
Risk Analysis
Snowflake Analysis
High growth potential with adequate balance sheet.
Share Price & News
How has Freehold Royalties's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: FRU is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: FRU's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
10.3%
FRU
6.1%
CA Oil and Gas
1.0%
CA Market
1 Year Return
70.6%
FRU
20.8%
CA Oil and Gas
29.0%
CA Market
Return vs Industry: FRU exceeded the Canadian Oil and Gas industry which returned 20.8% over the past year.
Return vs Market: FRU exceeded the Canadian Market which returned 29% over the past year.
Shareholder returns
| FRU | Industry | Market | |
|---|---|---|---|
| 7 Day | 10.3% | 6.1% | 1.0% |
| 30 Day | 26.2% | 11.5% | 2.1% |
| 90 Day | 43.0% | 17.0% | 7.0% |
| 1 Year | 81.5%70.6% | 28.2%20.8% | 33.8%29.0% |
| 3 Year | -25.2%-39.1% | 1.0%-11.5% | 25.2%13.4% |
| 5 Year | -4.9%-28.6% | 3.5%-14.9% | 57.6%33.8% |
Long-Term Price Volatility Vs. Market
How volatile is Freehold Royalties's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall St
Freehold Royalties Ltd. (TSE:FRU) Just Reported And Analysts Have Been Lifting Their Price Targets2 weeks ago | Simply Wall St
Don't Race Out To Buy Freehold Royalties Ltd. (TSE:FRU) Just Because It's Going Ex-Dividend1 month ago | Simply Wall St
Why It Might Not Make Sense To Buy Freehold Royalties Ltd. (TSE:FRU) For Its Upcoming DividendValuation
Is Freehold Royalties undervalued compared to its fair value and its price relative to the market?
48.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FRU (CA$7.61) is trading below our estimate of fair value (CA$14.87)
Significantly Below Fair Value: FRU is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: FRU is unprofitable, so we can't compare its PE Ratio to the CA Oil and Gas industry average.
PE vs Market: FRU is unprofitable, so we can't compare its PE Ratio to the Canadian market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate FRU's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: FRU's PB Ratio (1.4x) is in line with the CA Oil and Gas industry average.
Next Steps
Future Growth
How is Freehold Royalties forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
112.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FRU is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).
Earnings vs Market: FRU is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: FRU's is expected to become profitable in the next 3 years.
Revenue vs Market: FRU's revenue (20.7% per year) is forecast to grow faster than the Canadian market (7.6% per year).
High Growth Revenue: FRU's revenue (20.7% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if FRU's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Freehold Royalties performed over the past 5 years?
21.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FRU is currently unprofitable.
Growing Profit Margin: FRU is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: FRU is unprofitable, but has reduced losses over the past 5 years at a rate of 21.9% per year.
Accelerating Growth: Unable to compare FRU's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: FRU is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-43.6%).
Return on Equity
High ROE: FRU has a negative Return on Equity (-2.11%), as it is currently unprofitable.
Next Steps
Financial Health
How is Freehold Royalties's financial position?
Financial Position Analysis
Short Term Liabilities: FRU's short term assets (CA$95.1M) exceed its short term liabilities (CA$67.9M).
Long Term Liabilities: FRU's short term assets (CA$95.1M) do not cover its long term liabilities (CA$102.6M).
Debt to Equity History and Analysis
Debt Level: FRU's debt to equity ratio (14.1%) is considered satisfactory.
Reducing Debt: FRU's debt to equity ratio has reduced from 20.5% to 14.1% over the past 5 years.
Debt Coverage: FRU's debt is well covered by operating cash flow (70.7%).
Interest Coverage: Insufficient data to determine if FRU's interest payments on its debt are well covered by EBIT.
Balance Sheet
Next Steps
Dividend
What is Freehold Royalties's current dividend yield, its reliability and sustainability?
4.73%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FRU's dividend (4.73%) is higher than the bottom 25% of dividend payers in the Canadian market (1.57%).
High Dividend: FRU's dividend (4.73%) is low compared to the top 25% of dividend payers in the Canadian market (4.87%).
Stability and Growth of Payments
Stable Dividend: FRU's dividends per share have been stable in the past 10 years.
Growing Dividend: FRU's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: FRU is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.0yrs
Average management tenure
CEO
David Spyker
0.17
Tenure
CA$347,289
Compensation
Mr. David Michael Spyker serves as President & Chief Executive Officer at Rife Resources Ltd. since January 2021 and served as its Interim President and Chief Executive Officer since September 2020 to Janu...
CEO Compensation Analysis
Compensation vs Market: David's total compensation ($USD274.36K) is below average for companies of similar size in the Canadian market ($USD1.21M).
Compensation vs Earnings: David's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 0.17yr | CA$347.29k | 0.039% CA$ 396.0k | |
| VP of Finance & CFO | 1.25yrs | CA$137.36k | 0.011% CA$ 116.2k | |
| Vice-President of Asset Development | 2yrs | CA$297.94k | 0.011% CA$ 116.0k | |
| Manager of Investor Relations & Capital Markets | no data | no data | no data | |
| Corporate Secretary | 13.08yrs | no data | 0.0034% CA$ 34.8k | |
| Controller | 12.58yrs | no data | no data | |
| Vice-President of Business Development | no data | no data | 0.015% CA$ 155.0k |
2.0yrs
Average Tenure
Experienced Management: FRU's management team is considered experienced (2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 0.17yr | CA$347.29k | 0.039% CA$ 396.0k | |
| Independent Chairman of the Board | 4.83yrs | CA$180.00k | 0.12% CA$ 1.2m | |
| Independent Corporate Director | 8.83yrs | CA$145.00k | 0.021% CA$ 217.0k | |
| Independent Corporate Director | 5.83yrs | CA$130.00k | 0.020% CA$ 200.2k | |
| Independent Director | 7.83yrs | CA$137.50k | 0.019% CA$ 191.3k | |
| Non Independent Director | 24.67yrs | CA$55.00k | 0.021% CA$ 209.2k | |
| Independent Corporate Director | 6.83yrs | CA$140.00k | 0.0095% CA$ 96.9k | |
| Independent Corporate Director | 4.83yrs | CA$130.00k | 0.0076% CA$ 77.5k |
6.3yrs
Average Tenure
64yo
Average Age
Experienced Board: FRU's board of directors are considered experienced (6.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.8%.
Top Shareholders
Company Information
Freehold Royalties Ltd.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Freehold Royalties Ltd.
- Ticker: FRU
- Exchange: TSX
- Founded: 1996
- Industry: Oil and Gas Exploration and Production
- Sector: Energy
- Market Cap: CA$1.019b
- Shares outstanding: 131.44m
- Website: https://www.freeholdroyalties.com
Location
- Freehold Royalties Ltd.
- 517 – 10 Avenue SW
- Suite 1000
- Calgary
- Alberta
- T2R 0A8
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| FRU | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Feb 1997 |
| FRHL.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Feb 1997 |
| 1FH | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Feb 1997 |
| 0UWL | LSE (London Stock Exchange) | Yes | Common Shares | GB | CAD | Feb 1997 |
Biography
Freehold Royalties Ltd., an oil and gas royalty company, owns working interests in oil, natural gas, and potash properties in Western Canada and the United States. The company holds approximately 6.7 milli...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/08 23:59 |
| End of Day Share Price | 2021/03/08 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.