TSX:FRU

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Freehold Royalties

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


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

FRUIndustryMarket
7 Day10.3%6.1%1.0%
30 Day26.2%11.5%2.1%
90 Day43.0%17.0%7.0%
1 Year81.5%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

Valuation

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

NamePositionTenureCompensationOwnership
David Spyker
President0.17yrCA$347.29k0.039%
CA$ 396.0k
David Hendry
VP of Finance & CFO1.25yrsCA$137.36k0.011%
CA$ 116.2k
Robert Lamond
Vice-President of Asset Development2yrsCA$297.94k0.011%
CA$ 116.0k
Matt Donohue
Manager of Investor Relations & Capital Marketsno datano datano data
Karen Taylor
Corporate Secretary13.08yrsno data0.0034%
CA$ 34.8k
Michael Mogan
Controller12.58yrsno datano data
Robert King
Vice-President of Business Developmentno datano data0.015%
CA$ 155.0k

2.0yrs

Average Tenure

Experienced Management: FRU's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Spyker
President0.17yrCA$347.29k0.039%
CA$ 396.0k
Marvin Romanow
Independent Chairman of the Board4.83yrsCA$180.00k0.12%
CA$ 1.2m
Arthur Korpach
Independent Corporate Director8.83yrsCA$145.00k0.021%
CA$ 217.0k
Gary Bugeaud
Independent Corporate Director5.83yrsCA$130.00k0.020%
CA$ 200.2k
Aidan Walsh
Independent Director7.83yrsCA$137.50k0.019%
CA$ 191.3k
Peter Harrison
Non Independent Director24.67yrsCA$55.00k0.021%
CA$ 209.2k
Susan MacKenzie
Independent Corporate Director6.83yrsCA$140.00k0.0095%
CA$ 96.9k
J. Kay
Independent Corporate Director4.83yrsCA$130.00k0.0076%
CA$ 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FRUTSX (The Toronto Stock Exchange)YesCommon SharesCACADFeb 1997
FRHL.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDFeb 1997
1FHDB (Deutsche Boerse AG)YesCommon SharesDEEURFeb 1997
0UWLLSE (London Stock Exchange)YesCommon SharesGBCADFeb 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/08 23:59
End of Day Share Price2021/03/08 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.