In a remarkable display of resilience amidst a volatile market, Freedom Holding Corp (FRHC) stock has soared to a 52-week high, reaching a price level of $97.91. This peak represents a significant milestone for the company, reflecting a robust 1-year change with an impressive 10.62% increase. Investors have shown growing confidence in Freedom's financial performance and strategic initiatives, propelling the stock to new heights over the past year. The achievement of this 52-week high marks a noteworthy moment for Freedom Holding Corp, as it continues to navigate the dynamic financial landscape.
In other recent news, Freedom Holding Corp. has seen a positive shift in its financial outlook. S&P Global Ratings has revised its outlook on several subsidiaries of the financial services conglomerate, including Freedom Finance JSC, Freedom Finance Europe Ltd., Freedom Finance Global PLC, and Freedom Bank Kazakhstan JSC, from negative to positive. The parent company's outlook was adjusted to stable from negative, reflecting reduced economic risk and enhanced banking sector supervision in Kazakhstan.
The ratings agency affirmed the subsidiaries' ratings at 'B/B', with the parent company's rating remaining at 'B-'. This change is supported by Freedom Holding Corp.'s strong capitalization, robust earnings, and a diversified revenue stream that now includes banking and insurance activities in Kazakhstan. The company's core earnings to S&P Global Ratings risk-weighted assets remained stable at about 3.4% over the three years leading up to March 2024, indicating a high risk-adjusted earnings ratio internationally.
The company's efforts to strengthen its consolidated risk management framework have also been noted. Freedom Holding Corp. has expanded its board of directors and hired a chief risk officer, a chief compliance officer, and a chief legal officer. These recent developments suggest that the operating subsidiaries of Freedom Holding Corp. could see a ratings upgrade within the next 12 months if the company continues to build on its risk management and compliance capabilities while maintaining strong capitalization and earnings.
InvestingPro Insights
In light of Freedom Holding Corp's (FRHC) recent surge to a 52-week high, a glance at the InvestingPro data and tips provides a deeper understanding of the stock's current position. The company is trading at a P/E ratio of 16.83, which is considered low relative to its near-term earnings growth. This attractive valuation metric aligns with the stock's robust performance, as evidenced by an impressive 90.07% revenue growth over the last twelve months as of Q1 2025.
Moreover, Freedom Holding Corp's strong financial health is further underscored by a high Price / Book multiple of 5.1, suggesting that investors are willing to pay a premium for the company's book value. The stock's significant price uptick, with a 33.86% return over the last six months, also reflects the market's bullish sentiment towards Freedom. Notably, the company has been profitable over the past year, boasting a gross profit margin of 82.21%.
For those seeking further insights, there are additional InvestingPro Tips on Freedom Holding Corp, indicating factors such as the stock trading near its 52-week high and its lack of dividend payments, which could influence investment decisions. To explore these tips and more, investors can visit InvestingPro's dedicated page for Freedom Holding Corp at https://www.investing.com/pro/FRHC, where a total of 9 tips are available to help guide investment strategies.
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