Freedom Holding (FRHC) AI Stock Analysis

• Market Cap: $8.49B
• Dividend Yield: N/A
• Average Volume (3M): 103.50K
• Price to Earnings (P/E): 23.9
• Beta (1Y): 0.89
• Revenue Growth: 7.40%
• EPS Growth: -97.69%
• Country: US
• Employees: 7,761
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 1.25
• Shares Outstanding: 61,190,536
• 10 Day Avg. Volume: 75,241
• 30 Day Avg. Volume: 103,499
• PEG Ratio: -1.20
• Price to Book (P/B): 6.46
• Price to Sales (P/S): 3.86
• P/FCF Ratio: 4.95
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 4.77
• Enterprise Value/Gross Profit: 8.93
• Enterprise Value/Ebitda: 18.05
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $140.00 ▲(3.01% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is driven primarily by solid financial momentum from strong revenue expansion and a major recent cash flow rebound, but it is held back by sharply weakened recent profitability/ROE. Technicals are negative (below key moving averages with a bearish MACD), and valuation is a major headwind due to the extremely high P/E.

Positive Factors

Scale & Revenue Growth

Sustained multi-year revenue expansion to ~$2.03B by 2025 indicates the company has scaled its client base and product distribution. Scale supports durable operating leverage, better cost absorption, broader market access, and a stronger platform to invest in technology and cross-selling over the next 2–6 months.

Strong recent cash generation

A sharp rebound to sizeable operating and free cash flow in the TTM provides persistent financial flexibility: it can fund growth initiatives, reduce leverage, and satisfy regulatory capital needs. If sustained, this improves resilience versus peers and enables strategic investments or capital returns.

Diversified financial-services model

A multi-product, multi-subsidiary model spanning brokerage, capital markets, banking and insurance creates recurring and transaction revenue mixes. That structural diversification smooths cycles, enables cross-selling, and strengthens client stickiness—advantages likely to persist over months.

Negative Factors

Profitability deterioration / ROE collapse

A material decline in net margin and ROE to near-zero reflects weakening ability to convert revenue into lasting earnings. Low return metrics limit reinvestment capacity, make capital allocation harder, and raise the bar for any operational turnaround to sustainably restore shareholder returns over the medium term.

Historical cash-flow volatility

Prior multi-year cash burn followed by a recent surge signals unstable cash conversion drivers like working-capital swings or episodic items. This volatility complicates forecasting, increases refinancing or liquidity risk if the rebound proves temporary, and weakens confidence in durable free cash flow.

Revenue sensitivity to market cycles and rates

Core revenue streams are directly tied to trading volumes, capital markets activity and interest-rate spreads, making earnings cyclically sensitive to macro conditions. Structural exposure to market cycles and rates constrains predictability of margins and cash flow across coming quarters.

Freedom Holding Business Overview & Revenue Model

Company Description

Freedom Holding Corp., through its subsidiaries, provides retail securities brokerage, research, investment counseling, securities trading, market making, retail banking, 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; investment research services; and commercial banking services, including payment cards, digital mortgages, and digital auto loans, as well as insurance products. 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. In addition, the company is involved in trading, investment, and brokerage activities. Further, it facilitates repurchase and reverse repurchase agreements in proprietary trading activities; and covers short positions and settle other securities obligations to accommodate customers' needs and finance its inventory positions. Additionally, the company offers Tradernet software platform for client margin risk evaluation and middle office security transfer requests. It operates in Central Asia, Europe, the United States, Russia, and the Middle East/Caucasus. The company was formerly known as BMB Munai, Inc. and changed its name to Freedom Holding Corp. Freedom Holding Corp. was incorporated in 1981 and is headquartered in Almaty, Kazakhstan.

How the Company Makes Money

Freedom Holding makes money primarily through a mix of transaction-based and spread/interest-based financial services revenues across its brokerage, capital markets, banking, and insurance-related operations. Key revenue streams typically include: (1) Brokerage and trading-related income: commissions and fees earned when clients execute trades in equities, options, fixed income, and other instruments; service fees tied to account activity; and in some cases market-making or principal trading results (where applicable under local regulations and the company’s operating model). (2) Net interest income and financing: interest income earned on margin lending and other client financing products (where offered), interest earned on banking assets (loans and securities portfolios) minus interest paid on customer deposits and other funding, and related fees; results depend on interest-rate levels, funding mix, and credit performance. (3) Investment banking and capital markets fees: advisory, underwriting, placement/arrangement, and other corporate finance fees associated with helping issuers raise capital (equity and debt) or execute capital markets transactions; these revenues depend on deal volume and market conditions. (4) Asset/wealth management and client service fees: recurring or semi-recurring fees for portfolio/wealth services, custody, and other client administration services where provided. (5) Insurance-related income (where operated through subsidiaries): premiums earned on written policies, net of claims and policyholder benefits, plus investment income on the insurance float; profitability depends on underwriting performance and investment returns. Across these lines, earnings are influenced by trading volumes, client asset balances, capital markets activity, interest-rate spreads, credit losses, underwriting/claims experience, and regulatory requirements in the jurisdictions where the company operates. Specific material partnerships or counterparties are not reliably identifiable from the prompt; null.

Freedom Holding Financial Statement Overview

Summary

Strong multi-year revenue growth and a sharp rebound to strong positive operating/free cash flow in the latest periods support the score. Offsetting this, profitability has deteriorated materially with net margin falling to ~4.2% in 2025 and near-breakeven in TTM, and ROE compressing sharply (to ~0.4% TTM), indicating elevated earnings volatility.

Income Statement

Revenue growth has been strong over the full period (annual revenue rose from ~$0.35B in 2021 to ~$2.03B in 2025), showing clear scale-up. However, profitability has become much less consistent: net margin fell sharply from very strong levels in 2021–2024 to ~4.2% in 2025 (annual) and near-breakeven in TTM (Trailing-Twelve-Months) (~0.1%), despite still-positive operating profitability in TTM (operating margin ~13.9%). The mix of strong top-line momentum but a steep drop in bottom-line profitability drives a mid-range score.

Balance Sheet

The balance sheet shows improving leverage over time, with debt-to-equity declining from elevated levels in 2023–2024 (above 2x) to ~1.6x in 2025 (annual), and TTM (Trailing-Twelve-Months) showing zero debt reported. Equity has also grown versus earlier years. The key weakness is return on equity: it was very strong in 2021–2024, but dropped materially to ~7.0% in 2025 (annual) and ~0.4% in TTM (Trailing-Twelve-Months), reflecting weaker profitability and reducing balance-sheet quality despite the leverage improvement.

Cash Flow

Cash generation has been volatile, with large negative operating and free cash flow in 2022–2024, followed by a sharp rebound to strong positive levels in 2025 (annual) and especially in TTM (Trailing-Twelve-Months) (operating cash flow ~$3.07B; free cash flow ~$3.03B). Free cash flow growth is strong in the latest periods, suggesting improved cash conversion and/or working-capital normalization. The main risk is the historical instability—multiple years of cash burn make the durability of the recent surge less certain.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.05B	2.03B	1.66B	795.69M	689.79M	346.88M
Gross Profit	1.10B	1.07B	1.16B	570.88M	503.15M	200.51M
EBITDA	542.59M	666.00M	951.09M	450.02M	444.06M	176.94M
Net Income	2.66M	84.65M	375.54M	205.14M	227.49M	149.65M
Balance Sheet
Total Assets	12.38B	9.91B	8.30B	5.08B	3.23B	2.10B
Cash, Cash Equivalents and Short-Term Investments	3.14B	3.59B	4.45B	3.23B	1.55B	755.56M
Total Debt	2.17B	1.95B	3.07B	1.61B	885.66M	414.25M
Total Liabilities	10.98B	8.70B	7.13B	4.31B	2.68B	1.82B
Stockholders Equity	1.39B	1.21B	1.16B	777.28M	553.60M	277.31M
Cash Flow
Free Cash Flow	2.85B	1.59B	-1.11B	-990.23M	-411.99M	527.88M
Operating Cash Flow	3.07B	1.68B	-1.06B	-951.68M	-406.37M	529.40M
Investing Cash Flow	-1.19B	-905.47M	-638.22M	-1.46B	-146.32M	6.35M
Financing Cash Flow	168.65M	-1.58M	1.67B	2.13B	618.53M	492.52M

Freedom Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 135.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FRHC, the sentiment is Positive. The current price of 135.91 is above the 20-day moving average (MA) of 129.85, above the 50-day MA of 125.89, and below the 200-day MA of 147.74, indicating a neutral trend. The MACD of 4.15 indicates Negative momentum. The RSI at 68.02 is Neutral, neither overbought nor oversold. The STOCH value of 85.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FRHC.

Freedom Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EVR	70 Outperform	$10.89B	16.14	33.81%	0.95%	27.00%	63.47%
SF	69 Neutral	$10.95B	12.55	11.96%	1.43%	7.54%	2.73%
XP	69 Neutral	$9.59B	9.33	22.53%	1.10%	-3.47%	7.48%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
HLI	64 Neutral	$9.74B	24.90	20.14%	1.33%	20.99%	25.02%
JEF	56 Neutral	$7.88B	17.25	6.84%	2.52%	-5.41%	25.28%
FRHC	52 Neutral	$8.49B	23.92	0.21%	―	7.40%	-97.69%