Freedom Holding Corp. Fundamental Analysis (NASDAQ: FRHC)
Freedom Holding Corp. Fundamental Analysis (NASDAQ: FRHC)
Freedom Holding Corp. (NASDAQ: FRHC) shows moderate financial fundamentals with a PE ratio of 73.72, profit margin of 9.89%, and ROE of 12.26%. The company generates $1.8B in annual revenue with strong year-over-year growth of 22.74%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 25.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FRHC's fundamental strength across five key dimensions:
Efficiency Score
WeakFRHC struggles to generate sufficient returns from assets.
Valuation Score
ModerateFRHC shows balanced valuation metrics.
Growth Score
ModerateFRHC shows steady but slowing expansion.
Financial Health Score
WeakFRHC carries high financial risk with limited liquidity.
Profitability Score
WeakFRHC struggles to sustain strong margins.
Key Financial Metrics
Is FRHC Expensive or Cheap?
P/E Ratio
FRHC trades at 73.72 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, FRHC's PEG of 1.66 indicates fair valuation.
Price to Book
The market values Freedom Holding Corp. at 5.95 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.97 times EBITDA. This signals the market has high growth expectations.
How Well Does FRHC Make Money?
Net Profit Margin
For every $100 in sales, Freedom Holding Corp. keeps $9.89 as profit after all expenses.
Operating Margin
Core operations generate 29.89 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.26 in profit for every $100 of shareholder equity.
ROA
Freedom Holding Corp. generates $1.23 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Freedom Holding Corp. generates limited operating cash flow of $-576.50M, signaling weaker underlying cash strength.
Free Cash Flow
Freedom Holding Corp. generates weak or negative free cash flow of $-827.28M, restricting financial flexibility.
FCF Per Share
Each share generates $-13.50 in free cash annually.
FCF Yield
FRHC converts -8.83% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
73.72
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.66
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.95
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.30
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.82
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.76
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How FRHC Stacks Against Its Sector Peers
| Metric | FRHC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 73.72 | 21.17 | Worse (Expensive) |
| ROE | 12.26% | 668.00% | Weak |
| Net Margin | 9.89% | 1006.00% | Weak |
| Debt/Equity | 1.82 | 0.79 | Weak (High Leverage) |
| Current Ratio | 0.76 | 905.28 | Weak Liquidity |
| ROA | 1.23% | 4469147.00% | Weak |
FRHC outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Freedom Holding Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
2287.91%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
233.76%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
1892.50%
Industry Style: Value, Dividend, Cyclical
High Growth