# Freehold Royalties Ltd. (FRU.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Energy / Oil, Gas & Consumable Fuels. Price C$17.60, market value C$2.9 billion.

## Valuation
- **P/E (trailing): 20.7×** (5-yr avg 15.1×, 3-yr avg 17.0×). Freehold Royalties Ltd. trades at 20.7× trailing earnings, well above its own five-year average of 15.1×: investors are paying up relative to the company's past. The Energy median in the September 2026 study was 16.8×. Forward P/E is 22.4×, higher than trailing, so analysts expect earnings to fall.
- **Price / sales: 9.0×**. Each dollar of revenue is priced at 9.0×.
- **Price / book: 2.8×**. The shares trade at 2.8× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 10.5×**. Enterprise value is 10.5× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 6.9%** (5-yr avg -0.4%). Free cash flow equals 6.9% of the market value, above its five-year average of -0.4%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 4.8%**. The inverse of the P/E: 4.8% of the price is earned each year.

## Profitability
- **Gross margin: 64.9%**. Freehold Royalties Ltd. keeps 64.9% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 55.0%**. 55.0% of revenue is left after running the business, an exceptional level.
- **Net margin: 29.3%**. 29.3% of each dollar of sales reaches the bottom line.
- **Return on equity: 9.2%**. 9.2% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 10.7%**. Return on all capital, debt included, is 10.7%.
- **Return on assets: 10.2%**. Each dollar of assets produces 10.2% of profit.

## Growth
- **Revenue growth (1 yr): 1.3%** (3-yr -7.3%/yr, 5-yr 28.4%/yr). Revenue grew 1.3% over the last year, against 28.4% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -42.9%** (3-yr -26.1%/yr). Earnings per share fell 42.9%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 11.9%/yr**. Free cash flow has compounded at 11.9% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.29**. Debt is 0.29 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 0.9×**. It would take 0.9 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 10.6×**. Operating profit covers interest 10.6× over, a safe margin.
- **Current ratio: 1.41** (quick 1.41). Current assets cover the next year's liabilities 1.41 times.
- **Altman Z-score: 6.31**. A Z-score of 6.31 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 6.14%** (C$1.08 per share, trailing). Freehold Royalties Ltd. yields 6.14%, high enough to check carefully: yields this high often precede a cut.
- **Payout ratio: 193%** (90% of free cash flow). The dividend exceeds earnings (193% payout), though free cash flow still covers it.
- **Consecutive years of increases: 5**. 5 straight years of increases.
- **Dividend growth (5 yr): 29.3%/yr** (1-yr 0.0%). The dividend has compounded at 29.3% a year over five years, doubling roughly every 2 years at that pace.

## Analyst view
- **Analyst consensus: buy** (10 analysts). 10 analysts cover Freehold Royalties Ltd.; the consensus is buy, with an average price target of C$18.90 (+7% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 39.9%** (YTD 19.6%, 3-mo 2.9%). The shares are up 39.9% over twelve months including dividends.
- **From 52-week high: -3.4%** (33.3% above the low). Trading within 5% of its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 56**. An RSI of 56 is neutral.
- **Beta (1 yr): 0.21** (volatility 20%). Beta of 0.21 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=FRU.TO · Page: https://foliofundamentals.com/stocks/fru.to

Not investment advice.