Freedom Holding Corp. (NASDAQ: FRHC)

Sector: Financial Services Industry: Financial Conglomerates CIK: 0000924805
Market Cap 6.65 Bn
P/B 4.77
P/E 2,496.76
P/S 3.24
ROIC (Qtr) 13.17
Div Yield % 0.00
Rev 1y % (Qtr) -5.41
Total Debt (Qtr) 2.17 Bn
Debt/Equity (Qtr) 1.56
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About

Freedom Holding Corp., often referred to as FRHC, is a diversified financial services company with operations in securities brokerage, banking, insurance, and payment services. The company has a significant presence in over 20 countries, with a strong focus on Central Asia, Europe, and the United States. FRHC's main business activities include securities trading, margin lending, investment banking, retail and commercial banking, life and general insurance, and payment processing. The company's revenue is primarily generated through its securities...

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Investment thesis

Bull case

  • Strong operating cash flow of 3.07B provides robust 1.41x coverage of total debt 2.17B, indicating excellent debt servicing capability and financial flexibility.
  • Operating cash flow of 3.07B provides exceptional 9422.22x coverage of minority interest expenses 326000, showing strong core operations.
  • Operating cash flow of 3.07B provides strong 39.68x coverage of stock compensation 77.41M, indicating sustainable incentive practices.
  • Strong tangible asset base of 12.26B provides 5.64x coverage of total debt 2.17B, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 2.85B exceeds capital expenditure of 217.52M by 13.12x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 3.07B barely covers its investment activities of (1.19B), with a coverage ratio of -2.57, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 3.51B provide limited coverage of acquisition spending of (21.33M), which is -164.71x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Free cash flow of 2.85B represents just -5.07x of debt issuance (563.36M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Retained earnings of 1.23B provide limited buffer against comprehensive income items of (135.98M), which is -9.05x, indicating elevated exposure to market risks.
  • R&D investment of 0 represents just 0x of SG&A expenses of 701.50M, indicating potential underinvestment in innovation relative to administrative overhead.

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Financial Conglomerates
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 IX Orix Corp 40.16 Bn 13.32 2.00 43.12 Bn
2 VOYA Voya Financial, Inc. 18.63 Bn 31.13 2.13 3.21 Bn
3 FRHC Freedom Holding Corp. 6.65 Bn 2,496.76 3.24 2.17 Bn
4 HTH Hilltop Holdings Inc. 3.22 Bn 7.52 1.58 0.96 Bn
5 TREE LendingTree, Inc. 0.52 Bn 36.42 0.49 0.44 Bn
6 RILY BRC Group Holdings, Inc. 0.20 Bn 0.94 0.23 1.51 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.65 0.57
EV to Cash from Ops. EV/CFO 2.62 1.32
EV to Debt EV to Debt 3.70 3.11
EV to EBIT EV/EBIT 15.54 11.84
EV to EBITDA EV/EBITDA 14.33 5.50
EV to Free Cash Flow [EV/FCF] EV/FCF 2.82 2.85
EV to Market Cap EV to Market Cap 1.21 2.45
EV to Revenue EV/Rev 3.92 2.03
Price to Book Value [P/B] P/B 4.77 1.99
Price to Earnings [P/E] P/E 2,496.76 431.02
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 5.44
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 9.60
Dividend per Basic Share Div per Share (Qtr) 0.00 0.46
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 32.70
Interest Coverage Int. cover (Qtr) 1.08 2.27
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -256.23 1,831.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 166.08 17.12
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -2.11
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -95.53 65.96
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -40.26 21.08
EBIT Growth (1y) % EBIT 1y % (Qtr) -43.18 85.57
EBT Growth (1y) % EBT 1y % (Qtr) -89.51 41.73
EPS Growth (1y) % EPS 1y % (Qtr) 0.00 51.48
FCF Growth (1y) % FCF 1y % (Qtr) 382.73 20.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -13.40 10.65
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.17 0.37
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.04
Cash Ratio Cash Ratio 0.00 0.06
Current Ratio Current Ratio 0.00 0.24
Debt to Equity Ratio Debt/Equity (Qtr) 1.56 0.28
Interest Cover Ratio Int Coverage (Qtr) 1.08 2.27
Times Interest Earned Times Interest Earned (Qtr) 1.08 2.27
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 27.30 18.20
EBIT Margin % EBIT Margin % (Qtr) 25.20 719.79
EBT Margin % EBT Margin % (Qtr) 1.91 12.61
Gross Margin % Gross Margin % (Qtr) 80.30 73.67
Net Profit Margin % Net Margin % (Qtr) 0.10 10.10