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Operations: Revenue for Freehold Royalties is primarily generated from its oil and gas exploration and production segment, amounting to CA$309.48 million. The company's financial performance is characterized by a focus on maximizing returns from its royalty interests in the energy sector across North America.

Freehold Royalties has been making waves with its strategic moves and robust financials. Its net debt to equity ratio stands at a satisfactory 27.4%, showcasing prudent financial management over the past five years, despite an increase from 15.4%. The company reported earnings growth of 13% last year, outpacing the oil and gas industry's downturn of -22%. With EBIT covering interest payments by nearly 12 times, Freehold's strong position is further bolstered by recent production increases to over 15,000 boe/d. As it eyes acquisitions and boosts liquid production this year, Freehold seems poised for continued operational strength.

• Unlock comprehensive insights into our analysis of Freehold Royalties stock in this health report.

• Examine Freehold Royalties' past performance report to understand how it has performed in the past.

Itafos

Simply Wall St Value Rating: ★★★★★☆

Overview: Itafos Inc. is a company that specializes in phosphate and specialty fertilizers, with a market capitalization of CA$423.43 million.

Operations: The company generates revenue primarily from its Conda segment, contributing $467.78 million, while the Arraias segment adds $23.46 million.

Itafos, a nimble player in the Canadian market, has demonstrated remarkable financial agility. Its earnings surged by 2173.8% last year, outpacing the chemicals industry average of -5.8%. The company’s debt to equity ratio improved significantly from 148.5% to 28.2% over five years, reflecting prudent financial management with interest payments well covered at 23 times EBIT. Trading at a substantial discount of 42.4% below estimated fair value and boasting high-quality earnings, Itafos also declared a special dividend following its Araxa project sale, highlighting robust cash flow with US$491 million in sales and US$87 million net income for 2024.

• Click to explore a detailed breakdown of our findings in Itafos' health report.

• Gain insights into Itafos' historical performance by reviewing our past performance report.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include TSX:CJ TSX:FRU and TSXV:IFOS.

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