RE:All These Analysts Recommending FRU Makes me NervousI dunno what your fear is other than a oil downturn which doesn't seem imminent.
They have a 47% payout ratio as per the last quarterly, they target around 60%, I'm expecting them to increase the payout out by another penny soon. Maybe 2 by late summer.
- Dividends declared for Q3-2022 totaled $39.2 million ($0.26 per share), up 102% versus the same period in 2021 when Freehold declared dividends of $19.4 million ($0.14 per share). Freehold’s dividend payout ratio(1) for Q3-2022 was 47% versus 35% during the same period in 2021. Freehold has increased its dividend six of the last nine quarters and is targeting its payout at approximately 60% of forward-looking funds from operations.
Also they were pretty much debt free until they made the 160 million in 3 acquisitions last quarter that should start hitting the balance sheet in the next quarterly report or maybe the following one fully. They will have free cashflow of 15-25 mil per quarter after dividends paying that down.
They are in pretty solid shape, I personally ignore most analysts commentary, I just look at the situation myself and look for red flags, none that I see at the moment unless the commodity goes sour and low chance of that as it seems like the US is done with SPR releases/will eventually have to replenish and OPEC seemes to be holding the line well. I'm pretty comfortable/confident in here at 70-100 oil.
Your fear might be justified if they were well into over value, but thier Price to Earnings seems lower than has been in the past currently about 11.6, while in the past 13-16 seemed about the range with wild swings due to Covid and Major Oil market fluctuations. Overvalue is likely in the $20 range some place.
You do you tho...