Frp Holdings, Inc. (NASDAQ: FRPH)

Sector: Real Estate Industry: Real Estate Services CIK: 0000844059
Market Cap 444.96 Mn
P/B 1.04
P/E 96.12
P/S 10.48
ROIC (Qtr) 1.04
Div Yield % 0.00
Rev 1y % (Qtr) 1.34
Total Debt (Qtr) 185.34 Mn
Debt/Equity (Qtr) 0.43

About

FRP Holdings, Inc., a real estate holding company, operates through its subsidiaries FRP Development Corp. and Florida Rock Properties, Inc. The company's main business activities include leasing and management of industrial and commercial properties, leasing and management of mining royalty land, real property acquisition and development, and ownership and management of apartment buildings. FRP Holdings' operations span across various submarkets, with a focus on owning, leasing, and managing commercial properties, mining royalty land, and apartment...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 731.26M provides 3.95x coverage of total debt 185.34M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 28.83M provides strong 14.19x coverage of stock compensation 2.03M, indicating sustainable incentive practices.
  • Tangible assets of 731.26M provide exceptional 245.97x coverage of deferred revenue 2.97M, showing strong service capability backing.
  • Operating cash flow of 28.83M provides strong 9.70x coverage of deferred revenue 2.97M, indicating service delivery capability.
  • Cash reserves of 135.82M provide ample 29.80x coverage of acquisition spending 4.56M, enabling strategic growth opportunities.

Bear case

  • Operating cash flow of 28.83M barely covers its investment activities of (33.47M), with a coverage ratio of -0.86, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Free cash flow of (9.21M) provides weak coverage of capital expenditures of 38.05M, with a -0.24 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 8.75M show weak coverage of depreciation charges of 11.18M, with a 0.78 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of (9.21M) represents just -1.48x of debt issuance 6.21M, suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 28.83M shows concerning coverage of minority interest expenses of (119000), which is -242.30x, suggesting complex corporate structure risks.

Segments Breakdown of Revenue (2024)

Equity Method Investment, Nonconsolidated Investee Breakdown of Revenue (2024)

Peer comparison

Companies in the Real Estate Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CBRE Cbre Group, Inc. 51.14 Bn 41.65 1.30 9.48 Bn
2 CSGP Costar Group, Inc. 26.47 Bn 1,304.00 8.66 1.18 Bn
3 BEKE KE Holdings Inc. 21.08 Bn 43.29 1.45 2.96 Bn
4 JLL Jones Lang Lasalle Inc 16.90 Bn 26.75 0.67 3.48 Bn
5 FSV FirstService Corp 7.01 Bn 56.92 1.78 1.51 Bn
6 COMP Compass, Inc. 6.69 Bn -118.64 1.01 0.48 Bn
7 CIGI Colliers International Group Inc. 5.39 Bn 69.70 2.00 2.50 Bn
8 OPEN Opendoor Technologies Inc. 4.15 Bn -13.09 0.88 1.79 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.64 1.34
EV to Cash from Ops. EV/CFO 16.33 2.97
EV to Debt EV to Debt 2.54 6.15
EV to EBIT EV/EBIT 53.83 5.23
EV to EBITDA EV/EBITDA 24.22 18.71
EV to Free Cash Flow [EV/FCF] EV/FCF -51.12 -9.39
EV to Market Cap EV to Market Cap 1.06 4.27
EV to Revenue EV/Rev 11.09 3.62
Price to Book Value [P/B] P/B 1.04 2.10
Price to Earnings [P/E] P/E 96.12 45.45
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.38
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -6.05
Dividend per Basic Share Div per Share (Qtr) 0.00 0.22
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 0.42
Interest Coverage Int. cover (Qtr) 2.99 -2.22
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 29.08 -12,525.88
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -6.76 23.84
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.27
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -32.41 4.69
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -12.53 26.73
EBIT Growth (1y) % EBIT 1y % (Qtr) -35.17 12.80
EBT Growth (1y) % EBT 1y % (Qtr) -41.47 21.27
EPS Growth (1y) % EPS 1y % (Qtr) -40.00 22.42
FCF Growth (1y) % FCF 1y % (Qtr) 53.92 54.29
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -30.95 39.11
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.06 1.45
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.01
Cash Ratio Cash Ratio (Qtr) 0.00 1.45
Current Ratio Curr Ratio (Qtr) 0.00 2.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.43 -0.06
Interest Cover Ratio Int Coverage (Qtr) 2.99 -2.22
Times Interest Earned Times Interest Earned (Qtr) 2.99 -2.22
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 46.90 -121.98
EBIT Margin % EBIT Margin % (Qtr) 20.60 -136.76
EBT Margin % EBT Margin % (Qtr) 13.71 -144.54
Gross Margin % Gross Margin % (Qtr) 19.50 32.87
Net Profit Margin % Net Margin % (Qtr) 10.90 -139.89