FRP Holdings (FRPH) AI Stock Analysis

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FRP Holdings

(NASDAQ:FRPH)

62Neutral

FRP Holdings presents a mixed investment case with strong revenue growth and a solid balance sheet but faces challenges in cash flow consistency and high valuation. While the company is making progress in its Multifamily and Mining segments, significant risks remain due to vacancy pressures and tenant issues. The technical indicators suggest caution with current bearish trends.

FRP Holdings (FRPH) vs. S&P 500 (SPY)

Market Cap

$508.10M

Dividend YieldN/A

Average Volume (3M)54.17K

Price to Earnings (P/E)79.1

Beta (1Y)0.57

Revenue Growth0.65%

EPS Growth19.89%

CountryUS

Employees19

SectorReal Estate

Sector Strength71

IndustryReal Estate - Services

Share Statistics

EPS (TTM)0.34

Shares Outstanding19,087,334

10 Day Avg. Volume74,285

30 Day Avg. Volume54,168

Financial Highlights & Ratios

PEG Ratio3.98

Price to Book (P/B)N/A

Price to Sales (P/S)17.16

Price to Cash Flow (P/CF)21.30

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

FRP Holdings Business Overview & Revenue Model

Company DescriptionFRP Holdings, Inc. (FRPH) is a holding company engaged in various real estate activities, primarily focusing on the development and management of commercial and industrial properties. The company operates through several segments, including Asset Management, Mining Royalty Lands, and Development. Its core services involve leasing and managing properties, as well as investing in and developing real estate projects that cater to specific market needs.

How the Company Makes MoneyFRP Holdings generates revenue through its diversified real estate operations. The Asset Management segment earns money by leasing office, warehouse, and other commercial spaces to tenants, providing a steady stream of rental income. The Mining Royalty Lands segment generates income by leasing land to mining operators, who pay royalties based on the volume of resources extracted. Additionally, the Development segment contributes to revenue through the sale and leasing of developed properties, often in strategic locations. The company's earnings are further supported by its strategic partnerships and collaborations in the real estate market, which help optimize property utilization and maximize returns on investment.

FRP Holdings Financial Statement Overview

Summary

FRP Holdings has demonstrated strong revenue growth and solid operational margins. The balance sheet is robust with no debt, enhancing financial resilience. However, cash flow inconsistencies and a moderate ROE suggest areas for improvement in operational efficiency and capital utilization.

Income Statement

Positive

FRP Holdings has demonstrated strong revenue growth with a notable increase from $23.58M in 2020 to $41.77M in 2024, indicating a robust upward trajectory. The company maintains a solid gross profit margin, reaching 100% in 2024, and a healthy EBIT margin of 28% for the same year. However, the net profit margin of 15.5% in 2024, while decent, suggests room for improvement in cost management or operational efficiency.

Balance Sheet

Positive

FRP Holdings boasts a strong equity position with a debt-free balance sheet in 2024, enhancing financial stability. The equity ratio stands at a solid 58.1%. However, the return on equity (ROE) has room for improvement at 1.5% in 2024, indicating potential inefficiencies in utilizing shareholder capital to generate profits.

Cash Flow

Positive

The company shows volatility in its cash flow metrics with a zero free cash flow in 2024, down from $32.97M in 2023. The absence of operating cash flow in 2024 is concerning and may indicate operational cash generation challenges. While FRP Holdings has previously demonstrated strong free cash flow generation, maintaining consistent cash flow performance will be pivotal for future stability.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
41.77M	41.51M	37.48M	31.22M	23.58M
	Gross Profit
38.34M	19.67M	33.36M	27.47M	20.76M
	EBIT
11.70M	11.70M	2.03M	-3.69M	-778.00K
	EBITDA
22.03M	22.52M	20.08M	9.26M	5.27M
	Net Income Common Stockholders
6.38M	5.30M	4.57M	40.09M	12.71M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
148.62M	157.56M	177.50M	165.84M	149.52M
	Total Assets
728.49M	709.17M	701.08M	678.19M	535.73M
	Total Debt
178.85M	178.71M	178.56M	178.41M	89.96M
	Net Debt
-148.62M	21.15M	1.06M	16.89M	16.05M
	Total Liabilities
259.37M	261.19M	256.87M	252.94M	154.18M
	Stockholders Equity
423.10M	414.52M	407.14M	396.42M	366.55M
Cash Flow		Free Cash Flow
28.99M	32.97M	71.53M	52.21M	1.07M
	Operating Cash Flow
28.99M	32.97M	22.34M	22.24M	18.61M
	Investing Cash Flow
-50.62M	-48.75M	-23.20M	66.60M	50.53M
	Financing Cash Flow
12.70M	-4.17M	16.83M	-1.23M	-21.84M

FRP Holdings Technical Analysis

Technical Analysis Sentiment

Negative

Last Price26.62

Price Trends

50DMA

29.54

Negative

100DMA

30.18

Negative

200DMA

29.79

Negative

Market Momentum

MACD

-0.42

Negative

RSI

47.07

Neutral

STOCH

70.21

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FRPH, the sentiment is Negative. The current price of 26.62 is below the 20-day moving average (MA) of 28.05, below the 50-day MA of 29.54, and below the 200-day MA of 29.79, indicating a bearish trend. The MACD of -0.42 indicates Negative momentum. The RSI at 47.07 is Neutral, neither overbought nor oversold. The STOCH value of 70.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FRPH.

FRP Holdings Risk Analysis

FRP Holdings disclosed 23 risk factors in its most recent earnings report. FRP Holdings reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

FRP Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMR	66 Neutral	$484.99M	11.51	9.28%	11.82%	-12.10%	-61.51%
FRPH	62 Neutral	$508.10M	79.13	1.52%	―	0.65%	19.89%
Sector *	61 Neutral	$4.24B	15.87	-3.65%	12.20%	6.29%	-21.37%
RMAX	57 Neutral	$232.46M	20.25	1.69%	―	-5.52%	―
TCI	52 Neutral	$244.49M	41.71	0.71%	―	-5.68%	-1.27%
MLP	46 Neutral	$314.11M	―	-21.77%	―	24.53%	-138.86%

* Real Estate Sector Average

Performance Comparison

FRPH

FRP Holdings

26.62

-3.55

-11.77%

MLP

Maui Land & Pineapple Company

15.91

-3.18

-16.66%

TCI

Transcontinental Realty Investors

28.30

-4.97

-14.94%

RMAX

Re/Max Holdings

7.16

-0.17

-2.32%

RMR

The RMR Group

15.23

-6.77

-30.77%

FRP Holdings Earnings Call Summary

Earnings Call Date: Mar 5, 2025 | % Change Since: -14.13% | Next Earnings Date: May 7, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed picture. While there were significant achievements in the Multifamily and Mining segments, challenges in net income declines, vacancy pressures, and tenant issues in the Commercial and Industrial segment balanced the positive aspects. The company remains optimistic about its development pipeline and future growth.

Highlights

Significant Increase in Net Operating Income

The company's pro rata share of NOI in the fourth quarter was up 21% to $9.1 million, and year-to-date was up 26% to $38.1 million, driven by improved results in the Multifamily segment.

Multifamily Segment Performance

The Multifamily segment contributed an additional $4.6 million in pro rata NOI compared to last year, with significant occupancy rates and revenue increases due to joint ventures.

Mining and Royalty Business Growth

The Mining and Royalty business segment reported total revenues and NOI for the quarter of $3.5 million, an increase of 19% and 34% respectively over the same period last year.

Development Pipeline Expansion

The company is expanding its industrial platform with over 2.1 million square feet of additional Industrial/Commercial product expected to grow from 550,000 square feet to over 2.7 million square feet.

Lowlights

Decrease in Net Income for the Quarter

Net income for the fourth quarter decreased by 41.7% to $1.68 million, primarily due to a one-time gain in the previous year.

Commercial and Industrial Segment Challenges

The Commercial and Industrial segment faced a decrease in total revenues and NOI due to a 50,000 square foot tenant defaulting on its lease obligations.

Vacancy Pressures in Multifamily Segment

New deliveries in the D.C. market are expected to continue to put pressure on vacancies and revenue growth in the foreseeable future.

Industrial and Commercial Segment Vacancy Risks

The company expects over 430,000 square feet of vacant or rolling over space in its Industrial/Commercial segment, which could impact NOI in the short term.

Company Guidance

During the FRP Holdings Incorporated 2024 4Q earnings call, several key financial metrics and guidance details were discussed. Net income for the fourth quarter decreased by 41.7% to $1.68 million, or $0.09 per share, compared to the previous year's $2.88 million, or $0.15 per share, which had included a one-time gain of $1.98 million. However, the net income for the fiscal year increased by 20.4% to $6.39 million, or $0.34 per share. The company's pro rata share of net operating income (NOI) for the fourth quarter rose by 21% to $9.1 million, and the year-to-date pro rata NOI increased by 26% to $38.1 million, driven by improvements in the Multifamily segment. Over the past three years, pro rata NOI has grown at a compound annual growth rate of 29.5%. The estimated value of FRP's real estate assets, net of debt and liabilities, was analyzed to yield a per share value ranging from $34.63 to $39.22. In 2025, FRP plans to invest approximately $71 million in equity capital, focusing on doubling their Industrial and Commercial segment's square footage and pursuing new multifamily developments. Despite anticipated challenges in maintaining NOI growth due to upcoming vacancies, FRP remains focused on managing tenant retention and rental growth.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.