Freedom Holding (FRHC) AI Stock Analysis

• Market Cap: $7.98B
• Dividend Yield: N/A
• Average Volume (3M): 79.76K
• Price to Earnings (P/E): 24.6
• Beta (1Y): 0.69
• Revenue Growth: 47.17%
• EPS Growth: 0.09%
• Country: US
• Employees: 7,761
• Sector: Financial
• Sector Strength: 82
• Industry: Financial - Capital Markets
• EPS (TTM): 5.34
• Shares Outstanding: 60,620,216
• 10 Day Avg. Volume: 65,029
• 30 Day Avg. Volume: 79,760
• PEG Ratio: 283.50
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.04
• Price to Cash Flow (P/CF): -27.90
• P/FCF Ratio: 173.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Freedom Holding demonstrates strong financial performance with solid revenue and profit growth, supported by improved operational efficiency and debt elimination. Technical indicators present mixed signals, with a slight bearish momentum. The valuation is moderate, with a P/E ratio that does not signal extreme overvaluation or undervaluation. The absence of a dividend yield is a downside for income investors. Overall, the company is financially strong with potential for growth, but technical signals suggest caution.

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 through multiple revenue streams centered around its financial services offerings. The primary source of income is from brokerage commissions and fees, which are generated when clients trade securities through the company's platforms. Additionally, the company earns revenue from investment banking activities, such as underwriting and advisory fees for corporate clients involved in mergers, acquisitions, and other capital-raising activities. Another significant revenue stream is derived from interest income on margin lending and proprietary trading activities. Furthermore, Freedom Holding benefits from strategic partnerships and investments in financial technology ventures, which enhance its service offerings and expand its market reach, contributing to its earnings.

Freedom Holding Financial Statement Overview

Summary

Freedom Holding presents a strong financial performance with notable revenue and profit growth, especially in operational efficiency. The elimination of debt enhances financial stability, although the equity ratio indicates reliance on liabilities. Cash flow improvements are evident, although past volatility necessitates caution. Overall, the company is in a robust position but should focus on sustaining growth and enhancing equity levels for long-term resilience.

Income Statement

Freedom Holding has demonstrated strong growth in total revenue and net income over the years. The gross profit margin is high at 77.33% TTM, indicating efficient production processes. The net profit margin stands at 15.76% TTM, reflecting solid profitability. The EBIT margin is 47.12% TTM and EBITDA margin is 47.51% TTM, showcasing strong operational performance. However, there was a decline in net income from the previous annual period, signaling potential issues in sustaining growth momentum.

Balance Sheet

The balance sheet of Freedom Holding reveals no debt in the TTM period, significantly improving financial leverage. The debt-to-equity ratio has improved due to debt reduction. The return on equity (ROE) is 25.61% TTM, suggesting efficient use of equity to generate profits. The equity ratio is 13.79% TTM, which is relatively low, indicating a higher dependency on liabilities. Overall, the balance sheet shows improvement but highlights a need for higher equity levels.

Cash Flow

There is a positive free cash flow of $490 million TTM, indicating good cash generation from operations. The free cash flow growth is strong compared to the previous period. However, the operating cash flow to net income ratio shows variability, with significant fluctuations in past periods. The cash flow from operations has turned positive TTM, which is a positive development but suggests prior operational challenges.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
2.05B	1.64B	795.69M	564.66M	352.55M	121.90M
	Gross Profit
1.58B	1.16B	570.88M	483.43M	279.45M	99.97M
	EBIT
964.90M	922.75M	193.16M	315.78M	200.39M	40.53M
	EBITDA
635.88M	865.11M	450.02M	320.43M	176.94M	40.40M
	Net Income Common Stockholders
322.56M	375.54M	205.14M	227.49M	149.65M	24.84M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.44M	872.76M	3.23B	1.83B	1.44B	226.19M
	Total Assets
291.88M	8.30B	5.08B	2.92B	2.02B	453.52M
	Total Debt
67.26M	3.07B	1.61B	893.06M	511.78M	134.88M
	Net Debt
60.82M	2.52B	1.03B	267.51M	-187.05M	71.68M
	Total Liabilities
81.62M	7.13B	4.31B	2.41B	1.74B	324.49M
	Stockholders Equity
210.26M	1.16B	777.28M	514.67M	277.31M	131.31M
Cash Flow		Free Cash Flow
490.25M	-1.11B	-990.23M	-357.02M	561.14M	39.64M
	Operating Cash Flow
551.32M	-1.06B	-951.68M	-347.99M	565.30M	44.27M
	Investing Cash Flow
-484.43M	-638.22M	-1.46B	-8.70M	97.04M	-10.85M
	Financing Cash Flow
245.54M	1.67B	2.13B	453.68M	348.41M	33.11M

Freedom Holding Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 132.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FRHC, the sentiment is Negative. The current price of 132.17 is below the 20-day moving average (MA) of 133.98, below the 50-day MA of 141.41, and above the 200-day MA of 111.21, indicating a neutral trend. The MACD of -1.63 indicates Negative momentum. The RSI at 43.74 is Neutral, neither overbought nor oversold. The STOCH value of 37.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FRHC.

Freedom Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IBKR	74 Outperform	$69.61B	23.78	19.20%	0.61%	19.54%	22.23%
FRHC	73 Outperform	$7.98B	24.64	28.10%	―	47.17%	0.09%
SCHW	72 Outperform	$145.07B	26.05	13.30%	1.31%	1.87%	17.63%
AMTD	71 Outperform	$1.06B	―	11.11%	―	―	―
RJF	69 Neutral	$28.48B	13.58	19.07%	1.33%	13.79%	28.57%
MS	67 Neutral	$186.01B	14.52	13.16%	3.14%	7.16%	53.77%
Sector *	63 Neutral	$14.20B	10.11	9.01%	4.34%	16.34%	-11.27%