Related posts

Nervous markets await Nvidia
Investor Insights

This summary was created by AI, based on 24 opinions in the last 12 months.

Freehold Royalties Ltd (FRU) is viewed favorably by analysts who highlight its strong dividend yield, which currently stands around 8% to 9%. As a royalty company, it is considered to have lower operational risks compared to traditional exploration-focused companies. Analysts appreciate its recent expansion into the United States, where more than 60% of its cash flow is now generated, offering a degree of insulation from tariffs affecting Canadian oil. The company is perceived as a stable investment for income-focused investors, although some experts note recent share price weaknesses and equity financing concerns. Overall, there is an optimistic outlook for gradual capital appreciation alongside consistent income generation from dividends.

Consensus
Positive
Valuation
Undervalued
SELL

Support level around $13 was broken. Not great news from his viewpoint. He'd want to know if the company is stable enough to continue paying the dividend. If yes, it'll probably move up again.

BUY

A major holding. It yields 9%, which is defendable even at lower oil prices. It's a royalty company, so there's no exploration risk. They have expanded into the US; hopes their next quarter shows US stability. They have done accretive deals in the US and are expanding in the Permian, because there is less room in Canada. Expect modest capital appreciation, but you get a stable 9% dividend. Good for income investors.

BUY

Believes dividend is safe. Strong business with good capital discipline. Royalty business capital light. Under valued business. 

TOP PICK

They just bought a US company. More than 60% of cash flow comes from the US, so they are better insulated from tariffs than peers. Pay over an 8% dividend. Will convert USD revenues into CAD, which is good. Oil prices should be stable.

(Analysts’ price target is $17.10)
HOLD

No operational risk with liabilities from wellbore. High margin business. If "Drill baby bill" materializes, will not be good for company. Dividend is stable. Most of returns have been generated by dividend growth. Good for yield seeking investors. 

BUY

Likes exposure to energy and energy prices without the exploration costs. Stock's come down on issuing equity for recent acquisition. Substantial dividend in the space, minimal risk. Good value. Compelling yield of 8.3%.

WATCH

Just starting to break support. When it's this early into a break (a few days or a week), you have to cut it some slack. Sometimes you can get head fakes, so be careful. The old low from 2022 is a support level, and there's more support just above that. 

At this point, it's hard to tell. Give it a tiny bit of time. If it doesn't recover quickly, he wouldn't want to own it.

DON'T BUY

Lots of people were unhappy with the latest equity financing. Typical for income-focused securities. REITs and royalty companies tend to pay out most cashflows to shareholders; so when they want to do something, they need to raise equity. Makes it unable to deploy a counter-cyclical playbook the way a CNQ can. And in a cyclical industry, that's what creates the most value.

HOLD

Comes down to what you're trying to achieve. A sleepy, not-get-rich-overnight name. He's happy to collect the yield of 7.6%, well funded down to about $50 WTI. Eventually, you'll get modest upside relative to commodities going up. Trades at half the valuation of PSK (he doesn't understand why).

PAST TOP PICK
(A Top Pick Aug 31/23, Up 6%)

Dividends have more than made up for share price volatility. Market not recognizing value of company - shares remain highly under valued. Has annualized ~12% returns since inception. Not as widely recognized in the markets. Will continue to hold. Expecting higher share price going forward. 

HOLD

The chart hasn't risen in the last 18 months and he doesn't see a catalyst to raise it. You collect the 7.75% yield as they acquire. Happy to collect that. Steady as she goes. 

BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

We think FRU can work here. FRU operates as a royalty company that owns royalty interests in the oil, gas and potash properties. It is a much less capital intensive energy play as a result which makes it an attractive business that typically trades at a relatively higher valuation. It is still cheap at 9x forward earnings and we think it is a good dividend name that benefits from lower rates. Other names we do prefer are ENB, H, and X due to more stable business models.
Unlock Premium - Try 5i Free 

TOP PICK

Defensive name that has 10% interest in (income fund). Royalty paying 8% yield to investors. Doesn't trade at same multiple as PrairieSky Royalty. Excellent acreage in the USA and Canada. Great long term investment. 

DON'T BUY
Looking for yield.

Investing is about yield and capital appreciation, not one or the other. Not expensive, but not cheap. Has no edge, nothing to make him think the business will be better in a few years. You're guessing on commodity prices, and that's not his game.

BUY

Low-risk dividend name that screams out to him. Yield is 7.9%, very safe, extremely sustainable at current pricing. Boring, not a "double overnight" kind of stock. Stock's mispriced at this point.

Showing 1 to 15 of 270 entries

Freehold Royalties Ltd(FRU-T) Rating

Ranking : 5 out of 5

Bullish - Buy Signals / Votes : 16

Neutral - Hold Signals / Votes : 3

Bearish - Sell Signals / Votes : 3

Total Signals / Votes : 22

Stockchase rating for Freehold Royalties Ltd is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Freehold Royalties Ltd(FRU-T) Frequently Asked Questions

What is Freehold Royalties Ltd stock symbol?

Freehold Royalties Ltd is a Canadian stock, trading under the symbol FRU-T on the Toronto Stock Exchange (FRU-CT). It is usually referred to as TSX:FRU or FRU-T

Is Freehold Royalties Ltd a buy or a sell?

In the last year, 22 stock analysts published opinions about FRU-T. 16 analysts recommended to BUY the stock. 3 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Freehold Royalties Ltd.

Is Freehold Royalties Ltd a good investment or a top pick?

Freehold Royalties Ltd was recommended as a Top Pick by on . Read the latest stock experts ratings for Freehold Royalties Ltd.

Why is Freehold Royalties Ltd stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Freehold Royalties Ltd worth watching?

22 stock analysts on Stockchase covered Freehold Royalties Ltd In the last year. It is a trending stock that is worth watching.

What is Freehold Royalties Ltd stock price?

On 2025-03-18, Freehold Royalties Ltd (FRU-T) stock closed at a price of $12.61.