Freehold Royalties Ltd T.FRU

Ruus's Comments

[retiredcf]

He and his family also own it personally. Also worth noting that he has a degree in Engineering and previously worked at Chevron before becoming an analyst. GLTA

Freehold Royalties (FRU - TSX)

A leading oil and gas royalty company designed to prosper in all markets. The company is way undervalued trading at a double-digit free cash flow yield and an attractive 7.5 per cent dividend.

TOP PICK

Freehold Royalties Ltd(FRU-T)

31/08/2023

 

Super cheap. As a royalty company, rock-bottom production costs. Only costs are running the office, which comes to about $5 a barrel. They make money in every environment. Yield is 7.53%, which is about 60% of free cashflow.

(Analysts’ price target is $19.25)

Financial Services

Alex Ruus

$14.340

Owned

[stockmarket1]

Alex Ruus is great. I wish he was on more oftern. What's impressive even more is that FRU makes money even @ $40 wti.  What make me wonder about FRU is it's payout ratio of 100%. Can that be harmful to a company? 

[BlueJay2020]

Cashflow is the key and the payout ratio is 60% - that's pretty conservative and allows them to be able to pay out all the way down to $40 a barrel.  Personally, I'd prefer them to have $60 as their cut-off point and bump the dividend accordingly.  When you can get close to 6% risk-free, I am looking for close to double-digit distributions for the additional risk profile.