FRHC

Freedom Holding

Fundamental data last updated:April 13, 2026

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company profile

SECTOR

Financial Services

industry

Financial Conglomerates

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

06/12/26

Business Summary

Freedom Holding operates as a financial conglomerate providing brokerage, investment banking, and related financial services across multiple markets. It generates cash primarily through trading commissions, underwriting fees, interest income, and financial intermediation spreads. The business model relies on customer asset growth and transaction velocity rather than high-margin product differentiation, which explains the razor-thin 0.20% operating margin. Its moat, if any, stems from regional market positioning and integrated financial services distribution rather than structural cost advantages or proprietary technology.

 


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VALUATION

P/E

500+

Market Cap ($M USD)

$9,229

Forward P/E

-

PEG

-

PRICE TO SALES

4.5

PRICE TO BOOK

6.6

EV / EBITDA

15.2

5-Year Average P/E

Free Cash Flow Yield

DCF Value

Graham Number

Price to FCF

EV to FCF

Earnings Yield

FCF Yield

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$0.03

Next Year EPS Growth Estimate

-

Next Year Revenue Growth Estimate

-

Return on Equity (ROE)

0.20%

FREE CASH FLOW

Operating Margin

23.50%

Debt-to-Equity

1.6

Piotroski F-Score

3

Altman Z-Score

1.2

Return on Invested Capital (ROIC)

13.50%

Current Ratio

1.3

Quick Ratio

Net Debt to EBITDA

Interest Coverage

Gross Profit margin

FCF PER SHARE

REVENUE PER SHARE

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Gainseekers Quantitative Analysis

Summary

At a $9,229M market cap with a Price/Earnings listed at 500+, this stock is priced for perfection despite clear cracks in financial quality. The absence of a Forward P/E combined with EPS Next Year estimated at just $0.03 versus current EPS of 15.2 signals a dramatic earnings compression that the market is either ignoring or discounting irrationally. An Altman Z-Score of 1.2 places the company in financial distress territory, and a Piotroski F-Score of 3 confirms weak fundamental momentum. This is not a clean growth compounder; it is an expensive, fragile financial conglomerate with deteriorating earnings visibility and elevated balance sheet risk.

AI Exposure / Tech Reliance

As a Financial Conglomerate trading on Nasdaq, the company operates in a sector where AI integration primarily enhances trading infrastructure, underwriting efficiency, and risk analytics. The 0.20% operating margin suggests limited operating leverage, meaning technology-driven cost efficiencies could be material if executed properly. However, financial services are increasingly technology-competitive, and without visible margin strength, resilience to AI-driven disruption remains questionable.

The Bull Case

A GARP investor could argue that the 13.50% ROIC demonstrates the company can still generate meaningful returns on invested capital despite sector headwinds. A Price/Sales ratio of 4.5 is not extreme for a financial platform with diversified revenue streams, and a Current Ratio of 1.3 indicates acceptable short-term liquidity. The 1.6 TTM yield, while modest, signals at least some shareholder return orientation. If earnings normalize anywhere near historical levels implied by EPS of 15.2, the market may be pricing in a worst-case earnings reset that proves overly pessimistic.

The Bear Case

The red flags are impossible to ignore. Debt/Equity at 23.50% in a financial entity with an Altman Z-Score of 1.2 points to balance sheet fragility, not strength. A P/E above 500+ paired with collapsing forward EPS expectations is a classic late-cycle overvaluation setup, and the absence of PEG data or forward growth visibility reinforces that growth durability is highly uncertain. A Piotroski F-Score of 3 confirms deteriorating fundamentals, and with operating margins at just 0.20%, there is virtually no margin of safety if revenue slows or credit conditions tighten.

Market Sentiment & Smart Money

Short Interest %

5.40%

Analyst Consensus

-

Average Analyst Price Target

-

Institutional Ownership %

3.90%

1-Year Beta

1.03

Insider Buying % (6 Mo)

70.60%%

Distance to 52-Week High

77.80%

Distance to 52-Week Low

139.70%

EARNINGS SURPRISE %

50-DAY SMA

200-DAY SMA

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.