Freedom Holding (NasdaqCM:FRHC) - Share price, News & Analysis

FRHC fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	5/6
Financial Health	4/6
Dividends	0/6

FRHC Stock Overview

Rewards

PE ratio (6.7x) is below the US market (15.3x)

Earnings grew by 288.1% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 26.8% per year for the next 3 years

Freedom Holding Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Freedom Holding
Historical stock prices
Current Share Price	US$40.46
52 Week High	US$72.43
52 Week Low	US$39.13
Beta	1.42
1 Month Change	-20.90%
3 Month Change	-36.14%
1 Year Change	-11.78%
3 Year Change	326.79%
5 Year Change	17,882.22%
Change since IPO	32,268.00%

Recent News & Updates

Mar 29

Do Freedom Holding's (NASDAQ:FRHC) Earnings Warrant Your Attention?

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Dec 30

Freedom Holding Corp.: The Slowdown Is Coming

Tightening of monetary policy will constrain the CIS financial market in the medium term. We expect a slowdown in the growth rate of Fee and commission income, as the inflow of new clients has slowed down significantly. Major competitors continue to grow. Freedom's critical competitive advantage is the ability to participate in IPOs, and the IPO ETF is significantly inferior to the S&P 500 in 2021.

Dec 29

Here's Why I Think Freedom Holding (NASDAQ:FRHC) Is An Interesting Stock

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

	FRHC	US Capital Markets	US Market
7D	-6.7%	-0.8%	-2.7%
1Y	-11.8%	-14.6%	-12.9%

Return vs Industry: FRHC exceeded the US Capital Markets industry which returned -14.6% over the past year.

Return vs Market: FRHC exceeded the US Market which returned -12.9% over the past year.

Price Volatility

Is FRHC's price volatile compared to industry and market?
FRHC volatility
FRHC Average Weekly Movement	5.0%
Capital Markets Industry Average Movement	0.5%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: FRHC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: FRHC's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1981	2,287	Timur Turlov	https://www.freedomholdingcorp.com

Freedom Holding Corp., through its subsidiaries, provides retail securities brokerage, research, investment counseling, securities trading, market making, corporate investment banking, and underwriting services. The company offers investment brokerage services for exchange-traded and over-the-counter corporate equity and debt securities, money market instruments, exchange traded options and futures contracts, government bonds, and mutual funds; Margin Lending services collateralized by securities and cash in the customer’s account; various investment education and training courses; and investment research services. It also provides capital raising solutions for corporate clients through initial public offerings and follow-on offerings; and debt capital markets solutions that focuses on structuring and distributing private and public debt for various purposes, including buyouts, acquisitions, growth capital financings, and recapitalizations.

Freedom Holding Fundamentals Summary

How do Freedom Holding's earnings and revenue compare to its market cap?
FRHC fundamental statistics
Market Cap	US$2.41b
Earnings (TTM)	US$359.90m
Revenue (TTM)	US$642.34m

6.7x

P/E Ratio

3.8x

P/S Ratio

Is FRHC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
FRHC income statement (TTM)
Revenue	US$642.34m
Cost of Revenue	US$233.18m
Gross Profit	US$409.16m
Other Expenses	US$49.26m
Earnings	US$359.90m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	6.04
Gross Margin	63.70%
Net Profit Margin	56.03%
Debt/Equity Ratio	138.5%

How did FRHC perform over the long term?

See historical performance and comparison

Valuation

Is Freedom Holding undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

6.69x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: FRHC ($40.46) is trading above our estimate of fair value ($9.51)

Significantly Below Fair Value: FRHC is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: FRHC is good value based on its PE Ratio (6.7x) compared to the US Capital Markets industry average (33x).

PE vs Market: FRHC is good value based on its PE Ratio (6.7x) compared to the US market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: FRHC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: FRHC is overvalued based on its PB Ratio (4.1x) compared to the US Capital Markets industry average (-17.2x).

Future Growth

How is Freedom Holding forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-26.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: FRHC's earnings are forecast to decline over the next 3 years (-26.8% per year).

Earnings vs Market: FRHC's earnings are forecast to decline over the next 3 years (-26.8% per year).

High Growth Earnings: FRHC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: FRHC's revenue is expected to decline over the next 3 years (-4.4% per year).

High Growth Revenue: FRHC's revenue is forecast to decline over the next 3 years (-4.4% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if FRHC's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Freedom Holding performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

71.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FRHC has high quality earnings.

Growing Profit Margin: FRHC's current net profit margins (56%) are higher than last year (39.7%).

Past Earnings Growth Analysis

Earnings Trend: FRHC's earnings have grown significantly by 71.9% per year over the past 5 years.

Accelerating Growth: FRHC's earnings growth over the past year (288.1%) exceeds its 5-year average (71.9% per year).

Earnings vs Industry: FRHC earnings growth over the past year (288.1%) exceeded the Capital Markets industry 98.3%.

Return on Equity

High ROE: Whilst FRHC's Return on Equity (60.84%) is outstanding, this metric is skewed due to their high level of debt.

Financial Health

How is Freedom Holding's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: FRHC's short term assets ($2.6B) exceed its short term liabilities ($2.0B).

Long Term Liabilities: FRHC's short term assets ($2.6B) exceed its long term liabilities ($131.9M).

Debt to Equity History and Analysis

Debt Level: FRHC has more cash than its total debt.

Reducing Debt: FRHC's debt to equity ratio has reduced from 186.5% to 138.5% over the past 5 years.

Debt Coverage: FRHC's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if FRHC's interest payments on its debt are well covered by EBIT.

Balance Sheet

Dividend

What is Freedom Holding current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate FRHC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FRHC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FRHC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FRHC's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as FRHC has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

6.5yrs

Average management tenure

CEO

Timur Turlov (33 yo)

6.5yrs

Tenure

US$301,714

Compensation

Mr. Timur Ruslanovich Turlov has been Chief Executive Officer of Freedom Holding Corp. (formerly known as BMB Munai, Inc.) since November 2015. Mr. Turlov served as the General Director and Chief Accountan...

CEO Compensation Analysis

Compensation vs Market: Timur's total compensation ($USD301.71K) is below average for companies of similar size in the US market ($USD6.86M).

Compensation vs Earnings: Timur's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: FRHC's management team is seasoned and experienced (6.5 years average tenure).

Board Members

Experienced Board: FRHC's board of directors are seasoned and experienced ( 10.3 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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2021/12/31
Annual Earnings	2021/03/31