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Investor Insights

This summary was created by AI, based on 20 opinions in the last 12 months.

Based on the reviews from different experts, it appears that Freehold Royalties Ltd (FRU-T) is a solid company with a high dividend yield and minimal downside risk. The company has a strong presence in the US and Canada and has the potential for future growth. However, there are mixed opinions on whether it is the top pick in the industry, with some experts preferring other companies. Overall, it seems to be a good long-term investment with a focus on stable dividend income.

Consensus
Stable
Valuation
Fair Value
Similar
PrairieSky,FPS-T
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
BUY

Excellent company with safe dividend.
Conservative balance sheet with strong management team.
~7% dividend yield.
Owns shares in company.
Expecting share upside. 
Trading at discount to PrairieSky Royalty.
Company needs to prove that they can acquire assets. 

Financial Services
TOP PICK

Super cheap. As a royalty company, rock-bottom production costs. Only costs are running the office, which comes to about $5 a barrel. They make money in every environment. Yield is 7.53%, which is about 60% of free cashflow.

(Analysts’ price target is $19.25)
Financial Services
WEAK BUY

High quality, relatively safe dividend. Energy prices should remain firm, and FRU will benefit. Oil usage at all-time high, have to rebuild US reserves. Prefers CNQ and TOU for growth, though dividends are not as high. Yield is 7.5%.

Financial Services
PARTIAL BUY

Looks to be on a downslide. Consolidating, so probably won't go much lower. Buy a bit, hoping for a breakout to the upside. If drops below $13, will probably be more sellers than buyers, so be careful. Yield is a decent 7.8%. 

Financial Services
HOLD

Excellent business model that is asset light (does not own wellbore liabilities).
No exploration risk.
Safe dividend - good for defensive investors.
Does not own shares at the moment.
5-10 year time horizon is a good investment.

Financial Services
BUY

Good to hold 5 years or longer, but it depends on commodity (oil) prices. He's bullish oil long term, because there's a lack of investment in oil globally. It can pay 7.6% dividend for a while. Their royalty structure means they are capital-lite and not investment much.

Financial Services
BUY

Likes the dividend. Less risky than some smaller plays. Be patient. He doesn't believe we're going to be using less energy in 5-10 years. Exit from fossil fuels is a 3-5 decade process. 

Financial Services
DON'T BUY

A solid pick over some of the other Canadian royalty names. He wants more risk now, as that's where the opportunities are. He wants names that have sold off aggressively, with a good dividend and a bias to grow that. He wants more leverage to a more bullish oil price. See his Top Picks.

Financial Services
Showing 1 to 15 of 245 entries

Freehold Royalties Ltd(FRU-T) Rating

Ranking : 5 out of 5

Bullish - Buy Signals / Votes : 13

Neutral - Hold Signals / Votes : 3

Bearish - Sell Signals / Votes : 2

Total Signals / Votes : 18

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, 18 stock analysts published opinions about FRU-T. 13 analysts recommended to BUY the stock. 2 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?

18 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 2024-03-18, Freehold Royalties Ltd (FRU-T) stock closed at a price of $14.46.