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

Adequate balance sheet and slightly overvalued.

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

9.8%

FRU

0.1%

CA Oil and Gas

-0.5%

CA Market


1 Year Return

-40.1%

FRU

-32.7%

CA Oil and Gas

-3.5%

CA Market

Return vs Industry: FRU underperformed the Canadian Oil and Gas industry which returned -34.5% over the past year.

Return vs Market: FRU underperformed the Canadian Market which returned -4.3% over the past year.


Shareholder returns

FRUIndustryMarket
7 Day9.8%0.1%-0.5%
30 Day5.2%-1.0%3.0%
90 Day5.2%-10.5%2.4%
1 Year-35.0%-40.1%-29.0%-32.7%-0.06%-3.5%
3 Year-66.2%-72.4%-34.9%-42.9%7.1%-3.3%
5 Year-46.8%-60.4%-28.3%-40.9%36.8%15.8%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FRU (CA$4.04) is trading below our estimate of fair value (CA$24.15)

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 (0.7x) 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 3 analysts?

6.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if FRU's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if FRU's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FRU's revenue (6.6% per year) is forecast to grow faster than the Canadian market (5.8% per year).

High Growth Revenue: FRU's revenue (6.6% per year) is forecast to grow slower 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?

0.2%

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 0.2% 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 (-50.9%).


Return on Equity

High ROE: FRU has a negative Return on Equity (-0.84%), 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$12.1M) exceed its short term liabilities (CA$6.2M).

Long Term Liabilities: FRU's short term assets (CA$12.1M) do not cover its long term liabilities (CA$110.0M).


Debt to Equity History and Analysis

Debt Level: FRU's debt to equity ratio (15.2%) is considered satisfactory.

Reducing Debt: FRU's debt to equity ratio has reduced from 20.3% to 15.2% over the past 5 years.

Debt Coverage: FRU's debt is well covered by operating cash flow (100.7%).

Interest Coverage: FRU is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Freehold Royalties's current dividend yield, its reliability and sustainability?

4.46%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: FRU's dividend (4.46%) is higher than the bottom 25% of dividend payers in the Canadian market (1.69%).

High Dividend: FRU's dividend (4.46%) is low compared to the top 25% of dividend payers in the Canadian market (5.83%).


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?

1.6yrs

Average management tenure


CEO

David Spyker

0.083

Tenure

CA$347,289

Compensation

Mr. David Michael Spyker serves as Interim President and Chief Executive Officer at Rife Resources Ltd. since September 2020 and was Chief Operating Officer until September 2020. Mr. Spyker has been Chief ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD264.54K) is below average for companies of similar size in the Canadian market ($USD844.43K).

Compensation vs Earnings: David's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
David Spyker
Interim President & CEO0.083yrCA$347.29k0.022%
CA$ 100.8k
David Hendry
VP of Finance & CFO0.83yrCA$137.36k0.0042%
CA$ 19.3k
Robert Lamond
Vice-President of Asset Development1.58yrsCA$297.94k0.013%
CA$ 57.8k
Matt Donohue
Manager of Investor Relations & Capital Marketsno datano datano data
Karen Taylor
Corporate Secretary12.67yrsno datano data
Michael Mogan
Controller12.17yrsno data0.0029%
CA$ 13.1k
Robert King
Vice-President of Business Developmentno datano data0.0084%
CA$ 38.6k

1.6yrs

Average Tenure

Experienced Management: FRU's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Marvin Romanow
Independent Chairman of the Board4.42yrsCA$180.00k0.11%
CA$ 509.0k
Arthur Korpach
Independent Corporate Director8.42yrsCA$145.00k0.021%
CA$ 96.5k
Gary Bugeaud
Independent Corporate Director5.42yrsCA$130.00k0.013%
CA$ 59.5k
Aidan Walsh
Independent Director7.42yrsCA$137.50k0.017%
CA$ 79.2k
Peter Harrison
Non Independent Director24.25yrsCA$55.00k0.023%
CA$ 104.2k
Susan MacKenzie
Independent Corporate Director6.42yrsCA$140.00k0.011%
CA$ 48.2k
J. Kay
Independent Corporate Director4.42yrsCA$130.00k0.0042%
CA$ 19.3k

6.4yrs

Average Tenure

64yo

Average Age

Experienced Board: FRU's board of directors are considered experienced (6.4 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 not been meaningfully diluted in the past year.


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$458.202m
  • Shares outstanding: 118.71m
  • 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 6.8 milli ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 23:46
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.