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

Operating Margin
Freehold Royalties Ltd

58.8%
Current
61%
Average
11.4%
Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
58.8%
=
Operating Profit
191.9m
/
Revenue
326.3m

Operating 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
29.09 CAD
Undervaluation 55%
Intrinsic Value
Price
What is Operating Margin?

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
58.8%
=
Operating Profit
191.9m
/
Revenue
326.3m
What is the Operating Margin of Freehold Royalties Ltd?

Based on Freehold Royalties Ltd's most recent financial statements, the company has Operating Margin of 58.8%.

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