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FRMO Corporation (FRMO)
OTHER OTC:FRMO
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FRMO
(OTC:FRMO)
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Rating:72Outperform
Price Target:
$9.50
▲(11.76% Upside)
FRMO's strong financial performance and attractive valuation are the primary drivers of its stock score. However, technical analysis indicates weak market momentum, which slightly offsets the positive financial and valuation aspects.
FRMO (FRMO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$369.79M
Dividend YieldN/A
Average Volume (3M)15.32K
Price to Earnings (P/E)6.5
Beta (1Y)0.46
Revenue Growth-6.81%
EPS Growth-23.44%
CountryUS
Employees5
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)-0.36
Shares Outstanding44,022,780
10 Day Avg. Volume19,421
30 Day Avg. Volume15,321
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)1.06
Price to Sales (P/S)1.42
P/FCF Ratio48.60
Enterprise Value/Market Cap0.63
Enterprise Value/Revenue0.97
Enterprise Value/Gross Profit1.47
Enterprise Value/Ebitda0.92
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
FRMO Business Overview & Revenue Model
Company DescriptionFRMO Corp (FRMO) is a financial services holding company that focuses on managing and investing in various asset classes, including financial securities and alternative investments. The company operates primarily in the investment management sector and is known for its strategic partnerships and investments in hedge funds and other investment vehicles. FRMO aims to generate superior returns for its shareholders through a diversified portfolio and a disciplined investment approach, leveraging its expertise in market analysis and investment strategies.
How the Company Makes MoneyFRMO generates revenue through several key streams, primarily from management fees and performance fees associated with its investments in various funds and securities. The company earns management fees from the assets it manages on behalf of its investors, which are typically calculated as a percentage of the assets under management (AUM). Additionally, FRMO may receive performance fees based on the profits generated by the funds it manages, which incentivizes strong investment performance. The company also benefits from strategic partnerships with other investment firms, which may provide additional revenue opportunities through co-investment arrangements or shared management fees. Furthermore, FRMO's investment in proprietary trading and its own portfolio of investments contribute to its overall earnings, allowing it to capitalize on market opportunities and fluctuations.
FRMO Earnings Call Summary
Earnings Call Date:Oct 15, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jan 08, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant strategic advancements in digital assets and cryptocurrency mining, along with notable achievements in Horizon Kinetics. However, challenges in mining profitability and ETF short positions were also discussed, balancing the overall sentiment.Q3-2025 Updates
Positive Updates
Growth in Digital Assets
The company holds $13.7 million in digital assets, primarily Bitcoin, and $1 million in digital mining assets. Additionally, they own 1,997,007 shares of Winland, which is expanding and trades at a premium to net asset value.
Positive Performance in Horizon Kinetics
Horizon Kinetics is in the best position it's been in 18 years, with significant performance fees contributing to the revenue stream.
Indirect Bitcoin Mining Strategy
FRMO has been using indirect mining strategies to grow their Bitcoin per share at a higher rate than direct mining, capitalizing on cryptocurrencies with higher momentary returns.
Strong Performance Fee from Horizon Kinetics
Horizon Kinetics received the largest performance fee in its history, contributing significantly to FRMO's income.
Negative Updates
Challenges in Cryptocurrency Mining Profitability
Profitability from mining rigs is challenging, especially with upcoming Bitcoin halving, which will reduce mining rewards by half while expenses remain the same.
Volatility in Short Path-Dependent ETFs
The short position in path-dependent ETFs is constrained by borrowing limitations, leading to small, incremental positions rather than large, opportunistic shorts.
Loss on Mark-to-Market Valuation
The company reported a mark-to-market loss due to the decline in the price of Texas Pacific Land Trust, affecting the income statement.
Company Guidance
During the FRMO Corp. earnings call for the third fiscal quarter of 2025, key financial metrics discussed included the company's holdings of approximately $13.7 million in digital assets, primarily Bitcoin, and around $1 million in digital mining assets. The company owns 1,997,007 shares of Winland as of February 28th, with plans to increase this holding. The discussion highlighted the strategic focus on cryptocurrency mining, emphasizing the numerical growth potential of digital assets through mining. A significant portion of the conversation centered around the impact of tax rates on corporate performance, noting the substantial decline in tax rates for major corporations like Apple and Microsoft from 2007 to 2024. The call also addressed the company's strategy in shorting path-dependent ETFs and the implications of performance fees on revenue streams, with the latest performance fee being the largest in Horizon's history. Additionally, the discussion touched on the potential for Horizon to become capacity constrained and the importance of research in investment strategies.FRMO Financial Statement Overview
Summary
FRMO demonstrates strong profitability with high margins and a robust balance sheet with minimal leverage. Despite a recent revenue decline, the company maintains improved cash flow generation, indicating financial stability.Income Statement
FRMO's income statement shows strong profitability with a high gross profit margin of 100% and a net profit margin of 40.84% for the latest year. However, the company experienced a significant revenue decline of 36.34% compared to the previous year. Despite this, the EBIT and EBITDA margins remain exceptionally high, indicating efficient cost management.75
Positive
Balance Sheet
The balance sheet is robust with a very low debt-to-equity ratio of 0.0018, indicating minimal leverage. The equity ratio is strong, reflecting a solid capital structure. The company has shown a significant increase in stockholders' equity over the years, enhancing its financial stability.80
Positive
Cash Flow
Cash flow analysis reveals a substantial growth in free cash flow by 97.87% in the latest year, indicating improved cash generation. The operating cash flow to net income ratio is healthy at 4.91, suggesting efficient conversion of income into cash. However, historical fluctuations in free cash flow growth highlight potential volatility.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 239.62M | 263.36M | 138.43M | 7.27M | 4.82M | 3.00M |
| Gross Profit | 157.39M | 263.36M | 138.43M | 7.27M | 13.87M | 150.57M |
| EBITDA | 251.27M | 262.01M | 137.12M | -36.26M | 12.14M | 142.92M |
| Net Income | 107.55M | 107.55M | 72.56M | -34.98M | 12.49M | 149.22M |
Balance Sheet | ||||||
| Total Assets | 713.40M | 713.40M | 439.16M | 303.49M | 338.28M | 328.79M |
| Cash, Cash Equivalents and Short-Term Investments | 452.42M | 452.42M | 260.87M | 197.81M | 220.68M | 206.70M |
| Total Debt | 647.79K | 647.79K | 668.62K | 699.84K | 729.86K | 758.74K |
| Total Liabilities | 62.21M | 62.21M | 35.88M | 19.38M | 23.96M | 29.87M |
| Stockholders Equity | 352.98M | 352.98M | 242.14M | 169.28M | 181.41M | 177.90M |
Cash Flow | ||||||
| Free Cash Flow | 3.55M | 7.71M | 3.59M | 5.20M | 841.32K | -198.58K |
| Operating Cash Flow | 7.99M | 7.73M | 3.67M | 5.24M | 1.39M | 31.15K |
| Investing Cash Flow | -2.20M | -1.95M | -2.23M | 346.62K | -2.79M | -3.14M |
| Financing Cash Flow | -1.11M | -1.11M | -331.22K | -800.12K | -282.98K | -360.63K |
FRMO Technical Analysis
Negative
8.50
Price Trends
8.68
Negative
8.72
Negative
8.72
Negative
Market Momentum
-0.11
Positive
43.57
Neutral
29.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FRMO, the sentiment is Negative. The current price of 8.5 is above the 20-day moving average (MA) of 8.46, below the 50-day MA of 8.68, and below the 200-day MA of 8.72, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 43.57 is Neutral, neither overbought nor oversold. The STOCH value of 29.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FRMO.
FRMO Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $369.79M | 6.46 | 18.64% | ― | -6.81% | -23.44% | |
70 Neutral | $427.62M | 5.69 | 16.23% | 12.01% | 47.88% | -5.08% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $355.42M | 7.62 | 26.98% | 4.75% | 7.47% | -2.12% | |
64 Neutral | $336.73M | 8.22 | 10.88% | 13.54% | 65.75% | 14.28% | |
58 Neutral | $508.37M | 19.29 | 3.22% | 16.34% | -11.01% | -65.56% | |
48 Neutral | $423.12M | 30.10 | 2.89% | 14.79% | -35.46% | -67.15% |
* Financial Sector Average
FRMO
FRMO
8.34
-0.82
-8.95%
DHIL
Diamond Hill Investment Group
131.60
-33.62
-20.35%
GLAD
Gladstone Capital
19.15
-4.16
-17.85%
PNNT
Pennantpark Investment
6.38
0.26
4.30%
SCM
Stellus Capital
11.81
-0.44
-3.59%
CION
CION Investment Corp
9.62
-0.40
-3.99%
FRMO Corporate Events
FRMO Corporation Reports Strong Revenue Growth and Profit
Aug 28, 2025
FRMO Corporation is a Delaware-based company specializing in strategic investments in public and private companies, with a focus on intellectual capital and digital assets. In its latest earnings report, FRMO Corporation demonstrated significant growth, with total revenue reaching $263.4 million for the fiscal year ending May 31, 2025, a substantial increase from the previous year’s $138.4 million. The company’s net income attributable to shareholders rose to $107.5 million, up from $72.6 million in the prior year, reflecting strong performance across its investment portfolio. Key financial highlights include a notable increase in unrealized gains from equity securities and digital assets, contributing to the overall revenue growth. The fair value of digital assets held by the company increased to $16.9 million, showcasing its strategic focus on digital asset investments. Looking ahead, FRMO Corporation remains committed to maximizing returns on intellectual capital and digital assets, with management expressing confidence in the company’s investment strategies and future growth prospects.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.