Related posts

Most Anticipated Earnings: BLDP-T, BOS-T and more Canadian Companies Reporting Earnings this Week (May 06-10)This week’s new 52-week lows… (Dec 12-18)This week’s new 52-week lows… (Nov 28-Dec 04)
Investor Insights

This summary was created by AI, based on 16 opinions in the last 12 months.

Freehold Royalties Ltd (FRU-T) is a Canadian royalty company with a strong focus on the US Permian region. While some experts find its dividend attractive and its asset package strong, others believe there are better options in the market. The company is seen as relatively safe with a conservative balance sheet and strong management team. Its low-cost production and diversification across North America are viewed positively, but some concerns remain about its growth prospects and exposure to energy prices.

Consensus
Mixed
Valuation
Fair Value
BUY

Owns shares in company - a bedrock security. Excellent company with good assets and strong management team. Royalty structure creates high margins with low liability (no physical well bores). 

Financial Services
BUY

If you're looking for good exposure to the commodity, with a higher yield, he'd recommend this one. Yield is 7.8%, extremely sustainable at current prices. Very good exposure to oil and nat gas, without taking on capex and exploration risk.

Financial Services
BUY

Excellent team with strong dividend. Good assets with strong backing from CPP. Lots of prospective lands. Has been expanding USA land footprint. Would recommend holding for the long term. 

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

FRU is quite cheap at 11X earnings, and it has a strong balance sheet with net debt about 1X cash flow. Free cash flow is good and the dividend is good and now higher than its pre-covid level (it was reduced in the pandemic). In the context of the volatile oil and gas sector, we would be comfortable owning it. 
Unlock Premium - Try 5i Free

Financial Services
PAST TOP PICK
(A Top Pick Feb 13/23, Down 5%)

A screaming buy at this level. Very cheap. Trades at a 40-50% discount to Prairie Sky and pays a higher 7.9% dividend at 13% free-cash flow yield.

Financial Services
BUY

Nearly 7% dividend yield - very strong. Less capital intensive business (doesn't drill wells). Owns shares in business. Recent weakness in share price - good time to buy. Strong management team. Excellent business for the long term shareholder. 

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

EPS beat estimates of 19c coming in at 23c. Revenue missed estimates of $83.4M coming in at $74.3M and declining 3% year-over-year. Profit increased 9.3% from the prior year. Royalty production dropped 0.7% in the quarter while average price per barrel also dropped 3.8% to C$54.81. The company recorded 22 new leases in the quarter. FRU will be highly dependent on oil prices & production for future growth. The quarter is OK despite the revenue miss and the dividend yield continues to be high.
Unlock Premium - Try 5i Free

Financial Services
WEAK BUY

Pays a 7.5% dividend, but badly lags its royalty peers. Are struggling to put up a large deal in the Permian. Trades at a cheap 8x PE and the dividend is safe. A lower beta energy name offering modest capital appreciation, and overall good.

Financial Services
WEAK BUY

Pays nearly an 8% dividend. 40% of its NAV is now in the US and likely 80%of future activity will be there, in the Permian. Are also operating in Canada's Clearwater. They just reported disappointing growth, but he expects more growth in the U.S. rather than Canada. Not his go-to name. Nice dividend and no downside risk. You can sleep at night owning this, but he prefers others like Topaz.

Financial Services
PAST TOP PICK
(A Top Pick Feb 13/23, Down 6%)

Did well in 2021-2, but sideways in 2023 despite fundamentals improving. Pays a safe 7.8% dividend yield as they build free cash flow. Costs of production are only $5/barrel. Likely is the cheapest royalty company in North America. Downside is $12, while he targets as high as $30.

Financial Services
WEAK BUY

His preference in the space. A bit less cyclical to commodity prices, as they get royalty payments more on production than on commodity prices. Yield is pretty high, almost 8%. See his Top Picks.

Financial Services
BUY

Lower beta way to get exposure to oil and nat gas. Conservative. Attempting M&A in US, but balance sheets are so strong, fewer companies need royalty deals to raise cash. Strong organic growth prospects next year. Yield is 7.5%, payout ratio at low 60% range. Trades at 8.5x, compared to the unjustified 14x for PSK.

Financial Services
HOLD

Does not own shares, but follows company closely. Very high exposure to energy prices. Excellent company for dividend investors. Prefers companies like CNQ with capital appreciation. 

Financial Services
HOLD
FRU vs. PSK

FRU is such a low-cost producer, it hasn't benefited as much as marginal producers have in the uptick in oil/gas prices. So its margins haven't increased as much. FRU asset package is so good, he's happy to own it despite this year's price action. He likes both names.

Financial Services
BUY

Excellent company that owns shares in company. Strong commodity prices. Expecting strong Q3 results. Very good management team. No wellbore liability risk. Diverse asset base across North America. Current share price a good place to buy. Strong long term investment. 

Financial Services
Showing 1 to 15 of 253 entries

Freehold Royalties Ltd(FRU-T) Rating

Ranking : 5 out of 5

Bullish - Buy Signals / Votes : 17

Neutral - Hold Signals / Votes : 3

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 20

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, 20 stock analysts published opinions about FRU-T. 17 analysts recommended to BUY the stock. 0 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?

20 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 2024-07-22, Freehold Royalties Ltd (FRU-T) stock closed at a price of $14.18.