MeritValue

Freedom Holding Corp.

FRHCdata completeness 88%16 fiscal years on file

Data notes: no data for concept 'totalDebt'

The thesis, from the filings

Freedom Holding Corp. earns about 97% on invested capital, and has bought back 100% of its shares over 5 years. The applicable estimate puts fair value near $34.78 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$689.8M1$02$21.6M3$40.1M3$97.4M3
Net income$227.5M4$205.1M5$379.1M6$76.3M6$153.3M6
Operating cash flow−$406.4M7−$951.7M8−$1.06B9$1.68B9$185.2M9
Capital expenditure$5.62M10$38.5M10$36.7M11$80.9M11$198.8M11
Free cash flow (derived)−$412M7−$990.2M8−$1.1B9$1.6B9−$13.5M9
Total debt—————
Cash & equivalents$225.5M12$581.4M13$545.1M14$837.3M14$966.1M14
Diluted shares59.38B59.5M59.4M60.5M61.1M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$243.67
your share of equity
Profit it earned you last year
$25.09
Free cash flow it threw off
−$2.22
Debt you’d be carrying
—

10 shares is a claim on $243.67 of net worth that earned you $25.09 and generated −$2.22 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
97% avg · 5y
FY22 120%FY23 186%FY24 131%FY25 20%FY26 29%

It earned an average 97% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−100% shares · 5y

Share count is down 100% over 5 years — management has been buying back stock, quietly handing owners a bigger slice.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
$34.78
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$205.1M
  • growthAssumed0.0%
Graham Number
$37.1
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2022-03-31 · accession 0000924805-24-000041 (Revenues)
  2. 10-K · period ending 2023-03-31 · accession 0000924805-25-000012 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 10-K · period ending 2024-03-31 · accession 0000924805-26-000012 (RevenueFromContractWithCustomerIncludingAssessedTax)
  4. 10-K · period ending 2022-03-31 · accession 0000924805-24-000041 (NetIncomeLoss)
  5. 10-K · period ending 2023-03-31 · accession 0000924805-25-000012 (NetIncomeLoss)
  6. 10-K · period ending 2024-03-31 · accession 0000924805-26-000012 (NetIncomeLoss)
  7. 10-K · period ending 2022-03-31 · accession 0000924805-24-000041 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-03-31 · accession 0000924805-25-000012 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2024-03-31 · accession 0000924805-26-000012 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-03-31 · accession 0000924805-23-000076 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2024-03-31 · accession 0000924805-26-000012 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2022-03-31 · accession 0000924805-24-000041 (CashAndCashEquivalentsAtCarryingValue)
  13. 10-K · period ending 2023-03-31 · accession 0000924805-25-000012 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2024-03-31 · accession 0000924805-26-000012 (CashAndCashEquivalentsAtCarryingValue)