FRP Holdings (FRPH) AI Stock Analysis

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FRP Holdings

(NASDAQ:FRPH)

Rating:61Neutral

Price Target:

$27.00

▲(4.49% Upside)

FRP Holdings' overall stock score is primarily influenced by its strong financial performance and promising future growth prospects in certain segments. However, the high P/E ratio and bearish technical indicators weigh down the score. The earnings call provided mixed signals, with challenges in some areas but optimism in others.

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

Market Cap

$497.03M

Dividend YieldN/A

Average Volume (3M)40.77K

Price to Earnings (P/E)92.2

Beta (1Y)0.47

Revenue Growth2.45%

EPS Growth-29.26%

CountryUS

Employees19

SectorReal Estate

Sector Strength47

IndustryReal Estate - Services

Share Statistics

EPS (TTM)0.03

Shares Outstanding19,109,234

10 Day Avg. Volume46,999

30 Day Avg. Volume40,765

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.15

Enterprise Value/Revenue13.64

Enterprise Value/Gross Profit14.90

Enterprise Value/Ebitda25.57

Forecast

1Y Price Target

$27.00

Price Target Upside4.49% Upside

Rating ConsensusHold

Number of Analyst Covering1

FRP Holdings Business Overview & Revenue Model

Company DescriptionFRP Holdings, Inc. (FRPH) is a diversified real estate company primarily engaged in the acquisition, development, and management of properties across various sectors, including industrial, commercial, and residential real estate. The company focuses on creating value through strategic investments in properties, particularly in the southeastern United States, where it identifies opportunities for growth and development. FRPH also provides asset management services, leveraging its expertise to enhance the performance and profitability of its property portfolio.

How the Company Makes MoneyFRP Holdings generates revenue primarily through leasing and rental income from its diversified real estate portfolio. The company earns money by renting out space in its commercial properties, including warehouses and office buildings, to tenants. Additionally, FRPH may realize profits through capital appreciation from property sales and strategic development projects. The company also benefits from property management fees, which are earned by managing third-party properties. Key partnerships with various stakeholders in the real estate sector, including developers, local governments, and financial institutions, further enhance FRP Holdings' ability to generate revenue and expand its market reach.

FRP Holdings Earnings Call Summary

Earnings Call Date:Aug 06, 2025

(Q2-2025)

% Change Since: -2.86%|

Next Earnings Date:Nov 05, 2025

Earnings Call Sentiment Neutral

The earnings call indicates a challenging quarter with significant declines in net income and occupancy issues in the Industrial and Commercial segment. However, there are positive developments in the Mining and Royalty and Multifamily segments, as well as new joint ventures in industrial development, which provide a promising outlook for future growth.

Q2-2025 Updates

Positive Updates

Increase in Pro Rata NOI

The company's pro rata share of NOI in the second quarter increased 5% year-over-year to $9.7 million, primarily driven by higher contributions from the multifamily and mining royalty segments.

Strong Performance in Mining and Royalty Segment

Total revenues and NOI for the Mining and Royalty business segment increased by 12% and 21% over the same period last year, respectively.

New Joint Ventures in Industrial Development

FRP entered into a new joint venture agreement to develop over 375,000 square feet in Lake County, Florida, with plans for additional industrial development, expected to generate significant NOI upon completion.

Multifamily Segment Growth

The Verge contributed significantly to the multifamily segment, increasing FRP's share of revenues and NOI, with renewal rental rate increases trending over 3.6% on average in Q2.

Negative Updates

Significant Decrease in Net Income

Net income for the second quarter decreased 72% to $600,000 or $0.03 per share, down from $2 million or $0.11 per share in the same period last year, primarily due to due diligence-related legal expenses and lower interest income.

Vacancies Impacting Industrial and Commercial Segment

NOI for the Industrial and Commercial segment decreased by $177,000 year-over-year due to tenant evictions and lease expirations, with over 400,000 square feet of vacant space impacting short-term NOI.

Challenges in Leasing Velocity and Market Conditions

Uncertainty around trade policy, the economy, and financial markets has caused headwinds in leasing velocity, impacting rental rates and occupancy.

Company Guidance

During the FRP Holdings, Inc. 2025 2Q earnings call, CFO Matt McNulty outlined the company's financial performance and guidance for the year. Net income for the second quarter decreased by 72% to $600,000, or $0.03 per share, compared to $2 million, or $0.11 per share, in the same period last year. This decline was attributed to legal expenses related to due diligence and reduced interest income. However, the company's pro rata share of net operating income (NOI) increased by 5% year-over-year to $9.7 million, driven by higher contributions from the multifamily and mining royalty segments. The multifamily segment saw a $57,000 increase in NOI, while the mining segment experienced a $637,000 increase. The Industrial and Commercial segment, however, faced a $177,000 decline in NOI due to vacancies and uncollectible revenue following a tenant eviction and lease expirations. Looking ahead, the company anticipates relatively flat NOI for 2025 compared to 2024 but expects growth to resume post-2026 as new projects are leased up.

FRP Holdings Financial Statement Overview

Summary

FRP Holdings demonstrates strong financial performance with robust revenue growth and profitability. The company maintains a conservative balance sheet with low leverage, though it faces potential risks due to high capital expenditures. Continued focus on operational efficiency and liquidity management will be crucial for sustaining growth.

Income Statement

Very Positive

FRP Holdings has shown strong revenue growth and profitability. The TTM (Trailing-Twelve-Months) revenue of $41.95M represents a steady increase from previous years, with a notable gross profit margin of 91.5%. The net profit margin improved to 16.2%, indicating effective cost management. However, the slight decline in EBIT margin from 28.0% to 26.6% suggests potential pressure on operational efficiency.

Balance Sheet

Positive

The company's balance sheet is robust, with a strong equity base and low leverage. The debt-to-equity ratio stands at 0.42, reflecting conservative financial management. The equity ratio of 59.3% indicates a solid financial footing. However, the slight decline in stockholders' equity growth warrants attention.

Cash Flow

Positive

FRP Holdings' cash flow is stable, with a consistent operating cash flow to net income ratio of 4.5. The free cash flow growth rate has been significant, indicating effective cash generation. However, high investing cash outflows in the TTM period suggest aggressive capital investments, which could pose liquidity risks if not managed carefully.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	41.95M	41.77M	41.51M	37.48M	31.22M	23.58M
Gross Profit	38.38M	38.34M	37.86M	33.36M	27.47M	20.76M
EBITDA	22.37M	22.03M	21.69M	20.08M	9.26M	5.27M
Net Income	6.79M	6.38M	5.30M	4.57M	28.21M	12.71M
Balance Sheet
Total Assets	717.12M	728.49M	709.17M	701.08M	678.19M	535.73M
Cash, Cash Equivalents and Short-Term Investments	142.93M	148.62M	157.56M	177.50M	162.27M	149.52M
Total Debt	178.25M	178.85M	178.71M	178.56M	178.41M	89.96M
Total Liabilities	256.63M	259.37M	261.19M	256.87M	252.94M	154.18M
Stockholders Equity	425.17M	423.10M	414.52M	407.14M	396.42M	366.55M
Cash Flow
Free Cash Flow	30.58M	28.99M	32.97M	71.53M	52.21M	1.07M
Operating Cash Flow	30.58M	28.99M	32.97M	22.34M	22.24M	18.61M
Investing Cash Flow	-42.32M	-50.62M	-48.75M	-23.20M	66.60M	50.53M
Financing Cash Flow	2.18M	12.70M	-4.17M	16.83M	-1.23M	-21.84M

FRP Holdings Technical Analysis

Technical Analysis Sentiment

Negative

Last Price25.84

Price Trends

50DMA

26.86

Negative

100DMA

27.06

Negative

200DMA

28.78

Negative

Market Momentum

MACD

-0.26

Positive

RSI

43.55

Neutral

STOCH

63.14

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 25.84 is below the 20-day moving average (MA) of 26.55, below the 50-day MA of 26.86, and below the 200-day MA of 28.78, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 43.55 is Neutral, neither overbought nor oversold. The STOCH value of 63.14 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 (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMR	68 Neutral	$528.40M	14.40	8.12%	10.84%	-16.99%	-24.57%
RMAX	67 Neutral	$286.14M	18.90	2.21%	―	-5.21%	―
Sector *	63 Neutral	$6.83B	13.32	-1.02%	7.20%	3.66%	-22.87%
FRPH	61 Neutral	$497.03M	92.22	1.26%	―	2.45%	-29.26%
TCI	55 Neutral	$394.90M	61.80	0.79%	―	-4.20%	11.20%
MLP	49 Neutral	$338.77M	―	-45.55%	―	57.16%	-372.16%

* Real Estate Sector Average

Performance Comparison

FRPH

FRP Holdings

25.84

-3.71

-12.55%

MLP

Maui Land & Pineapple Company

17.12

-5.67

-24.88%

TCI

Transcontinental Realty Investors

47.23

17.90

61.03%

RMAX

Re/Max Holdings

8.90

-1.93

-17.82%

RMR

The RMR Group

16.61

-5.75

-25.72%

FRP Holdings Corporate Events

Business Operations and StrategyFinancial Disclosures

FRP Holdings Hosts Investor Day on Strategic Plans

Positive

May 22, 2025

FRP Holdings announced its Investor Day event scheduled for May 22, 2025, where it will present its strategic plans and financial outlook. The company is shifting its portfolio towards industrial and commercial properties, aiming for long-term growth in net operating income, and leveraging strong market fundamentals and strategic partnerships to maximize returns.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 11, 2025