Freedom Holding Corp. Common Stock (FRHC)
StalwartFairStock Score: 14/100 — RISKY
Key Financials
| Current Price | $140.02 |
| Market Cap | $9.2B |
| P/E Ratio | 55.78 |
| ROE | 11.3% |
| Dividend Yield | —% |
| Sector | Financial Services |
Strengths
- Established organization with 10,747 employees providing operational scale
Concerns
- Trades significantly above Graham Number ($3) with negative 4601% margin of safety—limited downside protection
- Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
- Altman Z-Score of 1.0 places it in the financial distress zone—elevated bankruptcy risk
- No meaningful dividend despite modest growth—total return depends entirely on multiple expansion
AI Analysis
Freedom Holding Corp. Common Stock is a small-cap financial services company valued at $9.2 billion. Revenue stands at $1.5 billion, though the company is currently unprofitable. From a quality standpoint, Freedom shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 1.0 warrants caution. On valuation, the stock is commanding a steep 7270.5x multiple, with trades far above its Graham Number ($3) with no margin of safety. Growth dynamics show revenue growing at 4.8% and profit growth of -2.6%. Our composite FairStock Score of 14/100 reflects below-average fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.
Bull Case
Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.
Bear Case
At 7271x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.
Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer