Freehold Royalties Ltd
TSX:FRU

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Freehold Royalties Ltd
TSX:FRU
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Price: 13.2 CAD 0.08% Market Closed
Market Cap: 2.2B CAD

Net Margin
Freehold Royalties Ltd

46.8%
Current
47%
Average
5.7%
Industry

Net Margin measures how much net income is generated as a percentage of revenues received. It helps investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Net Margin
46.8%
=
Net Income
152.7m
/
Revenue
326.3m

Net Margin Across Competitors

Freehold Royalties Ltd
Glance View

Economic Moat
None
Market Cap
2.2B CAD
Industry
Energy

Freehold Royalties Ltd. intricately weaves its operations through the energy sector, capitalizing on a business model that diverges from the traditional exploration and production ventures typical of oil and gas companies. Founded in the mid-1990s, the company stands as a steward of one of Canada's most extensive portfolios of oil and gas mineral rights. These assets give Freehold the unique advantage of generating revenue by leasing its land to other energy companies for exploration and extraction. Instead of bearing the risks and costs associated with drilling operations, Freehold collects a steady stream of royalty payments, which are calculated as a percentage of the production from their lands. This model allows the company to enjoy stable cash flows and maintain a low-cost structure, as they are not responsible for the operational expenses of drilling or extraction. Geographically, the company's reach extends beyond Canada, making strategic inroads into the United States as well. This diversification is a key element of Freehold's strategy, providing resilience against regional market volatility and exposure to different regulatory environments and geological formations. Alongside its asset management, Freehold maintains a disciplined financial approach—often characterized by minimal debt and a robust dividend policy—drawing in investors attracted to the stability and potential growth of its payouts. By focusing on the core business of managing its expansive land holdings and seeking out lucrative partnerships with established operators, Freehold Royalties Ltd. crafts a narrative of steady growth and fiscal prudence within the often volatile energy market.

FRU Intrinsic Value
29.17 CAD
Undervaluation 55%
Intrinsic Value
Price
What is Net Margin?

Net Margin measures how much net income is generated as a percentage of revenues received. It helps investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Net Margin
46.8%
=
Net Income
152.7m
/
Revenue
326.3m
What is the Net Margin of Freehold Royalties Ltd?

Based on Freehold Royalties Ltd's most recent financial statements, the company has Net Margin of 46.8%.

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