Hi folks,
I recently found what I think is a solid company to invest in. Freedom Holding Inc. (FRHC) is, in essence, a brokerage business. I don't know if you guys have read the news lately, but brokerage businesses have been doing well for themselves lately, and FRHC financials reflect that.
Revenues have risen from $120m in 2020 to $349m in 2020, with estimates saying the company can achieve $588m revs in 2022. Operating profit has risen from $38.4m in 2020 to $197m in 2021. The company has taken advantage of these fundamentals and has significantly increased its cash position which has risen from $63.2m in 2020 to $699m in 2021 through what I understand to be primarily a mix of cash from operating activities ($565m in 2021) and cash from issuing debt ($348m in 2021).
Margins look solid too. Their operating margin has remained steadily above 30% since 2017, with their 2021 operating margin being at 56.4%. ROCE and ROE metrics seem relatively stable as well, averaging at 25.54% and 29.35% since 2017, respectively.
From a technical point of view, the stock seems to have bounced from recent highs and might continue upward. However, with a PE of 25 and a Price to Book of 13.17, I think this company might be a tad overvalued. What do you guys think?
Submitted June 25, 2021 at 03:05AM by IamBlaze123 https://ift.tt/3zSqKZD
