Q: What is yor view on FRU.TO. What do you expect for the year to come?
5i Research Answer:
We would consider FRU a decent mid-cap royalty company. Valuation is reasonable and yield is high (8.03%). Historical dividend growth has been good, though its last raise was in 2022. The balance sheet is decent, with debt/cash flow just below 1X. Next year, forecast calls for 11% earnings growth on 15% revenue growth. Insiders have been buying recently. The stock has not done much, and mostly trades for its dividend. But there is some upside potential if the energy sector starts to move more.