Freehold Royalties (FRU) AI Stock Analysis

• Market Cap: C$2.53B
• Dividend Yield: 7.05%
• Average Volume (3M): 688.02K
• Price to Earnings (P/E): 19.1
• Beta (1Y): 1.04
• Revenue Growth: 2.52%
• EPS Growth: -8.32%
• Country: CA
• Employees: N/A
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.21
• Shares Outstanding: 163,960,330
• 10 Day Avg. Volume: 635,950
• 30 Day Avg. Volume: 688,025
• PEG Ratio: 1.04
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 6.26
• P/FCF Ratio: -10.28
• 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: C$16.10
• Price Target Upside: 4.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: C$17.00 ▲(10.10% Upside)

The score is driven primarily by strong profitability and improving revenue trends, tempered by persistently negative free cash flow and increased debt versus 2023. Technicals are supportive with a clear uptrend across key moving averages, while valuation is helped by a high dividend yield but limited by a mid-teens P/E. Corporate updates are positive, highlighting continued dividends and operational growth.

Freehold Royalties Business Overview & Revenue Model

Company Description

Freehold Royalties Ltd., an oil and gas royalty company, owns working interests in oil, natural gas, natural gas liquids, and potash properties in Western Canada and the United States. The company holds approximately 6.2 million gross acres of land in Canada and 0.8 million gross drilling unit acres in the United States. It has royalty interests in approximately 15,000 producing wells and receives royalty from approximately 350 industry operators in North America. The company was founded in 1996 and is headquartered in Calgary, Canada.

How the Company Makes Money

Freehold Royalties makes money by collecting royalty payments from oil and gas production on its lands. The company owns mineral titles and royalty interests that entitle it to a percentage of the revenue generated from the production of oil and gas. These royalties are typically based on production volumes and commodity prices. The company's revenue streams are significantly influenced by the performance of the oil and gas markets, as well as its ability to acquire and manage high-quality assets. Freehold Royalties also benefits from strategic partnerships with oil and gas operators who manage the day-to-day production activities on the lands, allowing Freehold to maintain a low-cost structure while generating revenue from its royalty interests.

Freehold Royalties Financial Statement Overview

Summary

Freehold Royalties shows strong profitability and a solid balance sheet with manageable leverage. However, recent revenue declines and negative free cash flow in 2024 suggest potential areas of concern. Overall, the company's financial health is stable, but addressing cash flow challenges could enhance resilience.

Income Statement

Freehold Royalties has demonstrated strong revenue and profit growth over the years. The gross profit margin for 2024 is approximately 64.33%, which is a robust figure indicating efficient cost management. However, the company saw a decline in total revenue from 2023 to 2024 by approximately 1.62%, which may warrant attention. Net profit margin for 2024 is high at 48.29%, showcasing strong profitability. Both EBIT and EBITDA margins are unavailable for 2024, but previous years show consistent profitability.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of around 0.28 for 2024, indicating a conservative use of leverage. Return on equity (ROE) for 2024 is approximately 13.60%, reflecting efficient use of equity capital. The equity ratio stands at 74.16%, suggesting a strong equity base relative to total assets.

Cash Flow

Freehold Royalties experienced a significant decline in free cash flow in 2024, resulting in a negative figure, which could indicate potential cash management challenges. The operating cash flow to net income ratio for 2024 is approximately 1.49, showing strong cash generation relative to net income. However, the free cash flow to net income ratio is negative, highlighting the need for careful cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	320.56M	309.48M	314.57M	393.02M	206.19M	89.96M
Gross Profit	201.09M	199.06M	305.08M	281.72M	118.17M	10.56M
EBITDA	294.26M	308.18M	279.34M	360.27M	186.67M	65.58M
Net Income	128.82M	149.45M	131.90M	209.19M	72.08M	-13.93M
Balance Sheet
Total Assets	1.40B	1.48B	1.12B	1.21B	1.07B	829.91M
Cash, Cash Equivalents and Short-Term Investments	0.00	0.00	0.00	524.00K	2.19M	1.03M
Total Debt	284.87M	302.31M	124.59M	158.28M	147.81M	94.91M
Total Liabilities	369.07M	383.02M	194.66M	251.66M	179.54M	170.47M
Stockholders Equity	1.03B	1.10B	923.76M	960.34M	890.97M	659.44M
Cash Flow
Free Cash Flow	-51.36M	-188.38M	206.27M	136.55M	-214.98M	62.13M
Operating Cash Flow	239.48M	223.33M	216.92M	327.35M	162.02M	65.77M
Investing Cash Flow	-309.11M	-400.37M	-21.18M	-191.18M	-376.61M	-9.55M
Financing Cash Flow	69.63M	177.03M	-196.24M	-138.08M	215.78M	-56.36M

Freehold Royalties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FRU, the sentiment is Positive. The current price of 15.44 is above the 20-day moving average (MA) of 15.09, above the 50-day MA of 14.88, and above the 200-day MA of 13.10, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 59.85 is Neutral, neither overbought nor oversold. The STOCH value of 81.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:FRU.

Freehold Royalties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HWX	79 Outperform	C$2.34B	13.49	23.55%	4.58%	6.44%	-6.74%
PXT	76 Outperform	C$1.86B	11.90	5.77%	8.48%	-20.07%	-53.33%
FRU	75 Outperform	C$2.53B	19.13	13.00%	7.05%	2.52%	-8.32%
PSK	75 Outperform	C$6.23B	28.73	8.16%	3.76%	-1.59%	0.09%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
VET	64 Neutral	C$1.87B	-7.81	2.34%	4.60%	-2.32%	70.14%
IPCO	60 Neutral	C$2.94B	61.78	3.59%	―	-9.12%	-70.87%

Freehold Royalties Corporate Events

Freehold Royalties Declares December 2025 Dividend

Freehold Royalties Ltd. has announced a dividend of Cdn. $0.09 per common share, payable on January 15, 2026, to shareholders recorded by December 31, 2025. This announcement highlights Freehold’s commitment to providing returns to its shareholders and reinforces its position as a significant player in the North American energy royalty market.

The most recent analyst rating on (TSE:FRU) stock is a Buy with a C$17.50 price target. To see the full list of analyst forecasts on Freehold Royalties stock, see the TSE:FRU Stock Forecast page.

Freehold Royalties Restructures Executive Team Following COO Departure

Freehold Royalties announced the departure of its Chief Operating Officer, Robert King, and the subsequent elimination of the COO role. This decision aligns with the termination of a management agreement with Rife Resources Ltd., leading to a redistribution of responsibilities within the executive team to fit the company’s new operating structure.

The most recent analyst rating on (TSE:FRU) stock is a Buy with a C$17.00 price target. To see the full list of analyst forecasts on Freehold Royalties stock, see the TSE:FRU Stock Forecast page.

Freehold Royalties Reports Strong Q3 2025 Results with Increased Production and Revenue

Freehold Royalties reported a strong third quarter for 2025, with a 10% increase in total production to 16,054 boe/d, driven by a significant rise in U.S. production. The company achieved $74 million in revenue and $59 million in funds from operations, while paying $44 million in dividends. The growth was bolstered by strategic acquisitions and enhanced drilling efficiencies, leading to improved well productivity. The company’s diversified, liquids-rich portfolio and North American market exposure have provided stability in cash flows and allowed it to benefit from favorable U.S. natural gas pricing.

The most recent analyst rating on (TSE:FRU) stock is a Buy with a C$15.00 price target. To see the full list of analyst forecasts on Freehold Royalties stock, see the TSE:FRU Stock Forecast page.

Freehold Royalties Schedules Q3 Results Release and Conference Call

Freehold Royalties Ltd. has announced it will release its third-quarter financial results on November 13, 2025, after market close. The company will hold a conference call and webcast on November 14, 2025, to discuss the results, providing an opportunity for stakeholders to gain insights into the company’s performance and strategic direction.

The most recent analyst rating on (TSE:FRU) stock is a Buy with a C$15.00 price target. To see the full list of analyst forecasts on Freehold Royalties stock, see the TSE:FRU Stock Forecast page.

Freehold Royalties Declares October 2025 Dividend

Freehold Royalties Ltd. has declared a dividend of Cdn. $0.09 per common share, payable on November 17, 2025, to shareholders recorded as of October 31, 2025. This announcement underscores Freehold’s commitment to delivering shareholder value and reflects its stable financial position in the energy royalty sector.

The most recent analyst rating on (TSE:FRU) stock is a Buy with a C$17.00 price target. To see the full list of analyst forecasts on Freehold Royalties stock, see the TSE:FRU Stock Forecast page.