Q: Current thoughts on FRU?
5i Research Answer:
FRU pays a nice yield of 8.1% but is expected to see earnings and sales decline in the current year. Sales and earnings growth has been great over the previous few years due to the boon in the price of oil and gas, and its valuation is fairly cheap (12.1X forward P/E), alongside the relative cheapness of the entire energy sector. We would be comfortable owning it for income, but we might not expect much in the way of capital appreciation over the near term.