Freedom Holding (FRHC) AI Stock Analysis

• Market Cap: $10.44B
• Dividend Yield: N/A
• Average Volume (3M): 212.50K
• Price to Earnings (P/E): 121.6
• Beta (1Y): 0.91
• Revenue Growth: 20.50%
• EPS Growth: -76.59%
• Country: US
• Employees: 7,761
• Sector: Financial
• Sector Strength: 73
• Industry: Financial - Capital Markets
• EPS (TTM): -2.34
• Shares Outstanding: 61,205,640
• 10 Day Avg. Volume: 188,876
• 30 Day Avg. Volume: 212,499
• PEG Ratio: -4.12
• Price to Book (P/B): 8.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.63
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 30.68K
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -11.76K
• 1Y Price Target: $144.00
• Price Target Upside: -16.63% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: $191.00 ▲(10.58%Upside)

Freedom Holding's strong financial performance, particularly in revenue growth and cash management, is a key strength. However, high leverage and overvaluation are significant risks. Technical indicators suggest strong momentum, but caution is warranted due to potential overbought conditions.

Freedom Holding Business Overview & Revenue Model

Company Description

Freedom Holding Corp. (FRHC) is a diversified financial services company operating primarily in the securities brokerage and investment banking sectors. The company offers a wide range of services including securities trading, investment advisory, underwriting, and market making. With a strong presence in Eastern Europe and Central Asia, particularly in Russia and Kazakhstan, Freedom Holding Corp. caters to both retail and institutional clients, providing them with access to global financial markets through its proprietary trading platforms and a network of branch offices.

How the Company Makes Money

Freedom Holding Corp. generates revenue through multiple streams within the financial services sector. The primary source of income is commissions and fees from brokerage services, which include securities trading for retail and institutional clients. Additionally, the company earns money from underwriting services, where it assists clients in raising capital by issuing new shares. Freedom Holding also benefits from advisory fees, offering clients financial consulting and investment advice. Other revenue sources include interest income from margin lending, where clients borrow funds to trade securities, and proprietary trading activities that involve trading the company's own capital in financial markets. Strategic partnerships with financial institutions and a focus on expanding its geographic footprint significantly contribute to its earnings.

Freedom Holding Financial Statement Overview

Summary

Freedom Holding shows strong revenue growth and effective cash management, but declining net profit margins and high leverage pose risks to financial stability. Continued focus on improving profitability and managing debt levels will be crucial.

Income Statement

Freedom Holding has demonstrated strong revenue growth over the years, with recent growth from $1635 million to $2033 million, reflecting a 24.3% increase. The company maintains a solid gross profit margin of 52.6% and an EBIT margin of 31.1%. However, the net profit margin has declined significantly from 22.9% to 4.2%, indicating rising expenses or other financial pressures impacting profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.61, indicating significant leverage, which could pose financial risks. The equity ratio stands at 12.2%, suggesting modest equity financing relative to total assets. Despite these concerns, the return on equity is commendable at 7.0%, although it has decreased from previous years, reflecting challenges in generating returns for shareholders.

Cash Flow

Cash flow analysis shows a robust operating cash flow to net income ratio of 19.9, indicating strong cash flow generation relative to net income. The company has turned around its free cash flow from negative to a substantial positive $1586 million, reflecting effective cash management and operational efficiency improvements.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.03B	1.66B	795.69M	689.79M	346.88M
Gross Profit	1.07B	1.16B	570.88M	503.15M	200.51M
EBITDA	666.00M	951.09M	450.02M	444.06M	176.94M
Net Income	84.65M	375.54M	205.14M	227.49M	149.65M
Balance Sheet
Total Assets	9.91B	8.30B	5.08B	2.92B	2.02B
Cash, Cash Equivalents and Short-Term Investments	3.65B	4.45B	3.23B	1.83B	1.44B
Total Debt	1.95B	3.07B	1.61B	893.06M	511.78M
Total Liabilities	8.70B	7.13B	4.31B	2.41B	1.74B
Stockholders Equity	1.21B	1.16B	777.28M	514.67M	277.31M
Cash Flow
Free Cash Flow	1.59B	-1.11B	-990.23M	-357.02M	561.14M
Operating Cash Flow	1.68B	-1.06B	-951.68M	-347.99M	565.30M
Investing Cash Flow	-905.47M	-638.22M	-1.46B	-8.70M	97.04M
Financing Cash Flow	-1.58M	1.67B	2.13B	453.68M	348.41M

Freedom Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 172.73
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 172.73 is above the 20-day moving average (MA) of 155.26, above the 50-day MA of 156.82, and above the 200-day MA of 136.52, indicating a bullish trend. The MACD of 6.40 indicates Negative momentum. The RSI at 63.96 is Neutral, neither overbought nor oversold. The STOCH value of 67.58 is Neutral, 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
VIRT	81 Outperform	$6.75B	12.62	23.87%	2.17%	26.02%	142.79%
SF	75 Outperform	$11.40B	21.08	11.48%	1.59%	12.85%	20.21%
FRHC	73 Outperform	$10.44B	121.57	7.12%	―	20.50%	-76.59%
XP	72 Outperform	$8.77B	10.85	21.71%	0.30%	-2.79%	1.33%
MKTX	70 Outperform	$8.02B	37.12	16.25%	1.42%	7.22%	-15.53%
Sector *	68 Neutral	$17.10B	11.19	9.70%	3.58%	11.11%	-4.55%
JEF	68 Neutral	$11.76B	21.62	5.75%	2.63%	1.00%	46.98%