Freedom Holding (FRHC) AI Stock Analysis

• Market Cap: $8.59B
• Dividend Yield: N/A
• Average Volume (3M): 118.35K
• Price to Earnings (P/E): 104.2
• Beta (1Y): 0.88
• Revenue Growth: 7.40%
• EPS Growth: -97.69%
• Country: US
• Employees: 7,761
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.63
• Shares Outstanding: 61,221,687
• 10 Day Avg. Volume: 138,323
• 30 Day Avg. Volume: 118,350
• 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: 1.06
• Enterprise Value/Revenue: 4.38
• Enterprise Value/Gross Profit: 9.10
• Enterprise Value/Ebitda: 16.64
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $140.00 ▲(2.36% Upside)

The overall stock score is primarily influenced by strong financial performance, particularly in revenue growth and cash flow management. However, the stock's technical indicators suggest bearish momentum, and the valuation appears stretched with a very high P/E ratio. These factors collectively result in a moderate overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's ability to expand its market presence and enhance its service offerings, which is crucial for long-term sustainability in the competitive financial services sector.

Leverage Management

Improved leverage management enhances financial stability and reduces risk, providing the company with greater flexibility to invest in growth opportunities and withstand economic fluctuations.

Cash Conversion Efficiency

Strong cash conversion efficiency indicates effective management of cash resources, supporting the company's ability to fund operations, invest in growth, and return value to shareholders over the long term.

Negative Factors

Profitability Challenges

Declining margins suggest pressure on profitability, which could impact the company's ability to reinvest in its business and maintain competitive positioning in the market.

Cash Flow Stability

A decline in free cash flow growth indicates potential challenges in generating sufficient cash to support operations and growth initiatives, which could affect long-term financial health.

Profitability Metrics

A decrease in return on equity reflects reduced profitability and efficiency in generating returns from shareholders' equity, potentially impacting investor confidence and capital attraction.

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 generates revenue through multiple channels, primarily from brokerage fees, commissions on trades, and asset management fees. The company earns significant income from its online trading platforms by charging clients for executing trades and providing premium services. Additionally, Freedom Holding engages in investment banking activities, which contribute to its revenue through advisory fees and underwriting services. The company has established partnerships with various financial institutions, enhancing its service offerings and expanding its client base. Its presence in emerging markets, combined with a focus on technology-driven trading solutions, further solidifies its revenue streams.

Freedom Holding Financial Statement Overview

Summary

Freedom Holding is experiencing moderate revenue growth but faces challenges in maintaining profitability and cash flow stability. While leverage has improved, profitability metrics such as ROE have declined. The company needs to focus on enhancing operational efficiency and cash flow management to strengthen its financial position.

Income Statement

Freedom Holding shows moderate revenue growth with a TTM increase of 4.34%. However, margins have declined compared to previous years, with the TTM gross profit margin at 51.05% and net profit margin at 4.30%. The EBIT and EBITDA margins are stable but lower than historical levels, indicating some pressure on profitability.

Balance Sheet

The company's debt-to-equity ratio has improved to 1.61 from higher levels, showing better leverage management. However, the return on equity has decreased to 6.93% in the TTM, reflecting reduced profitability. The equity ratio remains stable, indicating a balanced asset structure.

Cash Flow

Cash flow performance is mixed, with a significant decline in free cash flow growth at -23.95% in the TTM. The operating cash flow to net income ratio is low at 0.23, suggesting potential cash flow challenges. However, the free cash flow to net income ratio remains strong at 95.72%, indicating efficient cash conversion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.08B	2.03B	1.66B	795.69M	689.79M	346.88M
Gross Profit	998.53M	1.07B	1.16B	570.88M	503.15M	200.51M
EBITDA	546.52M	666.00M	951.09M	450.02M	444.06M	176.94M
Net Income	4.71M	84.65M	375.54M	205.14M	227.49M	149.65M
Balance Sheet
Total Assets	10.35B	9.91B	8.30B	5.08B	3.23B	2.10B
Cash, Cash Equivalents and Short-Term Investments	2.47B	3.59B	4.45B	3.23B	1.55B	755.56M
Total Debt	1.59B	1.95B	3.07B	1.61B	885.66M	414.25M
Total Liabilities	9.13B	8.70B	7.13B	4.31B	2.68B	1.82B
Stockholders Equity	1.22B	1.21B	1.16B	777.28M	553.60M	277.31M
Cash Flow
Free Cash Flow	2.11B	1.59B	-1.11B	-990.23M	-411.99M	527.88M
Operating Cash Flow	2.28B	1.68B	-1.06B	-951.68M	-406.37M	529.40M
Investing Cash Flow	-1.37B	-905.47M	-638.22M	-1.46B	-146.32M	6.35M
Financing Cash Flow	-152.15M	-1.58M	1.67B	2.13B	618.53M	492.52M

Freedom Holding Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 136.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 136.77 is above the 20-day moving average (MA) of 134.61, below the 50-day MA of 147.41, and below the 200-day MA of 153.14, indicating a neutral trend. The MACD of -3.22 indicates Negative momentum. The RSI at 47.11 is Neutral, neither overbought nor oversold. The STOCH value of 64.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FRHC.

Freedom Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EVR	76 Outperform	$13.04B	26.88	31.39%	0.99%	27.00%	63.47%
SF	74 Outperform	$13.22B	22.93	11.73%	1.42%	7.54%	2.73%
XP	74 Outperform	$9.22B	10.46	21.24%	1.03%	-3.47%	7.48%
HLI	70 Outperform	$12.58B	28.98	20.29%	1.32%	20.99%	25.02%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
JEF	63 Neutral	$12.79B	21.36	6.29%	2.58%	-5.41%	25.28%
FRHC	58 Neutral	$8.59B	104.16	0.38%	―	7.40%	-97.69%

Freedom Holding Corporate Events

Freedom Holding Elects Directors and Approves Compensation

On September 29, 2025, Freedom Holding Corp. held its annual meeting of stockholders where key decisions were made regarding the company’s leadership and financial oversight. Stockholders elected Timur Turlov and Philippe Vogeleer as Class III directors until 2028, approved the compensation of named executive officers, and ratified the appointment of Deloitte LLP in Kazakhstan as the independent registered public accounting firm for the 2026 fiscal year.