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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
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.
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Financial Services
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. 

Financial Services
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.

Financial Services
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.

Financial Services
TRADE

Takes a share of production, without those costs. Lower risk. Best upside is a higher price of oil. Down when the price of oil goes down. Oil prices are stable right now. So you could buy here, and then reduce when some incident or other causes oil to spike. Yield is 8%.

Financial Services
WEAK BUY
Freehold vs. Pembina for dividends

Politics is a terrible way to invest. Freehold will probably do well because of government environmental incentives and the ESG trend. Pembina will do better if the Republicans win in the US or the Tories in Canada. There will still be a need for pipelines; green energy won't do the trick.

Financial Services
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. 
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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.
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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
Showing 1 to 15 of 259 entries

Freehold Royalties Ltd(FRU-T) Rating

Ranking : 5 out of 5

Bullish - Buy Signals / Votes : 15

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 16

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, 16 stock analysts published opinions about FRU-T. 15 analysts recommended to BUY the stock. 1 analyst 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?

16 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 2024-10-31, Freehold Royalties Ltd (FRU-T) stock closed at a price of $13.73.