FRMO

Asset Management · Financial Services

Price

$7.49

-0.01 (-0.13%)

Market Cap

$329.7M

Winston Score

Winston is happy

A high-quality business with solid fundamentals.

Based on the IPO prospectus (annual filing). This score will refine automatically once the company reports its first quarters.

Data as of Aug 23, 2026 · filings through Feb 28, 2026

How the score breaks down

Quality

Exceptional

Growth

Good

Cash Flow

Weak

Stability

Exceptional

Valuation

Good

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Winston Score History

The full picture

FRMO Corporation is a small financial services company based in New York. It invests in and holds stakes in other asset management businesses, and it also invests directly in financial assets like cryptocurrencies and mining operations. Its main "customers" are really its own shareholders, who benefit if the value of its investments grows over time.

FRMO makes money through its ownership stakes in affiliated investment firms, including Horizon Kinetics, which manages money for outside clients and pays fees back to FRMO. The company operates almost entirely in the United States and has a market cap of roughly $300 million, making it quite small compared to traditional asset managers. Its close relationship with Horizon Kinetics is both its main competitive advantage and a key risk, since FRMO's financial results depend heavily on how well that one partner firm performs and how much it earns in management fees.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-39.0% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+390.8% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (7%)

Research and development spending

Insider Activity

49.3%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$908M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

FRMO's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

−0.0% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 44.0M (2021) → 44.0M (2025)

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

100.0%

Premium pricing power — 100.0% gross margin

Profit after running costs

Operating Margin

99.5%

Excellent — 99.5% operating margin

Return on the money invested

ROCE

74.1%

Exceptional — 74.1% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth

Sales YoY

+90.3%

Fast-growing sales (+90.3% YoY)

Profit growth

EPS YoY

+47.9%

Earnings growing fast (+47.9% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is

EPS Consistency

N/A

Data not available

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Cash Flow

Profit that turns into cash

Cash Conversion

Weak — only 7% of profit becomes cash

Spare cash per sale

FCF Margin

2.9%

Thin free cash flow (2.9%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

0.00

Conservative — low debt load (0.00)

Covers its interest

Interest Cover

100.00x

—

Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

4.4x

Attractive valuation — P/E 4.4

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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