FIRST NATIONAL FINANCIAL COR (FN.CA) Stock Fundamental Analysis
Canada - TSX:FN - CA33564P1036 - Common Stock
48.05 CAD
+0.12 (+0.25%)
Taking everything into account, FN scores 3 out of 10 in our fundamental rating. FN was compared to 29 industry peers in the Financial Services industry. Both the profitability and financial health of FN have multiple concerns. FN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
FN had positive earnings in the past year.
In the past year FN had a positive cash flow from operations.
In the past 5 years FN has always been profitable.
In the past 5 years FN reported 4 times negative operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.34%, FN is doing worse than 68.97% of the companies in the same industry.
FN has a better Return On Equity (24.60%) than 93.10% of its industry peers.
The Return On Invested Capital of FN (0.35%) is worse than 89.66% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FN is below the industry average of 5.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.34% | ||
| ROE | 24.6% | ||
| ROIC | 0.35% |
ROA(3y)0.46%
ROA(5y)0.46%
ROE(3y)29.54%
ROE(5y)30.93%
ROIC(3y)0.47%
ROIC(5y)0.47%
1.3 Margins
With a Profit Margin value of 7.95%, FN is not doing good in the industry: 65.52% of the companies in the same industry are doing better.
FN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 11.01%, FN is doing worse than 86.21% of the companies in the same industry.
In the last couple of years the Operating Margin of FN has declined.
The Gross Margin of FN (25.03%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of FN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.01% | ||
| PM (TTM) | 7.95% | ||
| GM | 25.03% |
OM growth 3Y-12.95%
OM growth 5Y-7.29%
PM growth 3Y-13.2%
PM growth 5Y-7.28%
GM growth 3Y-10.39%
GM growth 5Y-2.89%
2. Health
2.1 Basic Checks
FN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for FN remains at a similar level compared to 1 year ago.
Compared to 5 years ago, FN has about the same amount of shares outstanding.
The debt/assets ratio for FN is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.01, we must say that FN is in the distress zone and has some risk of bankruptcy.
FN has a worse Altman-Z score (-0.01) than 86.21% of its industry peers.
FN has a debt to FCF ratio of 184.75. This is a negative value and a sign of low solvency as FN would need 184.75 years to pay back of all of its debts.
FN has a Debt to FCF ratio of 184.75. This is in the lower half of the industry: FN underperforms 65.52% of its industry peers.
A Debt/Equity ratio of 71.28 is on the high side and indicates that FN has dependencies on debt financing.
With a Debt to Equity ratio value of 71.28, FN is not doing good in the industry: 93.10% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 71.28 | ||
| Debt/FCF | 184.75 | ||
| Altman-Z | -0.01 |
ROIC/WACC0.12
WACC2.9%
2.3 Liquidity
A Current Ratio of 0.05 indicates that FN may have some problems paying its short term obligations.
FN has a Current ratio of 0.05. This is in the lower half of the industry: FN underperforms 79.31% of its industry peers.
FN has a Quick Ratio of 0.05. This is a bad value and indicates that FN is not financially healthy enough and could expect problems in meeting its short term obligations.
FN has a worse Quick ratio (0.05) than 79.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 |
3. Growth
3.1 Past
The earnings per share for FN have decreased strongly by -19.69% in the last year.
FN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.03% yearly.
FN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.85%.
The Revenue has been growing by 10.82% on average over the past years. This is quite good.
EPS 1Y (TTM)-19.69%
EPS 3Y1.44%
EPS 5Y2.03%
EPS Q2Q%16.85%
Revenue 1Y (TTM)8.85%
Revenue growth 3Y16.71%
Revenue growth 5Y10.82%
Sales Q2Q%23.39%
3.2 Future
FN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.25% yearly.
FN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.01% yearly.
EPS Next Y2.15%
EPS Next 2Y10.19%
EPS Next 3Y7.25%
EPS Next 5YN/A
Revenue Next Year6.11%
Revenue Next 2Y7.29%
Revenue Next 3Y5.01%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
FN is valuated correctly with a Price/Earnings ratio of 15.70.
Based on the Price/Earnings ratio, FN is valued a bit cheaper than 68.97% of the companies in the same industry.
FN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.49, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.85, which indicates a very decent valuation of FN.
Based on the Price/Forward Earnings ratio, FN is valued a bit cheaper than 72.41% of the companies in the same industry.
FN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.7 | ||
| Fwd PE | 11.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FN is valued a bit cheaper than the industry average as 68.97% of the companies are valued more expensively.
FN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FN is cheaper than 89.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10 | ||
| EV/EBITDA | 191.19 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)7.3
PEG (5Y)7.72
EPS Next 2Y10.19%
EPS Next 3Y7.25%
5. Dividend
5.1 Amount
FN has a Yearly Dividend Yield of 5.21%, which is a nice return.
FN's Dividend Yield is slightly below the industry average, which is at 7.85.
FN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.21% |
5.2 History
The dividend of FN has a limited annual growth rate of 4.25%.
FN has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.25%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
99.34% of the earnings are spent on dividend by FN. This is not a sustainable payout ratio.
The dividend of FN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP99.34%
EPS Next 2Y10.19%
EPS Next 3Y7.25%
TSX:FN (10/14/2025, 7:00:00 PM)
48.05
+0.12 (+0.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners3.8%
Inst Owner ChangeN/A
Ins Owners59.79%
Ins Owner ChangeN/A
Market Cap2.88B
Analysts40
Price Target48.96 (1.89%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.21% |
Yearly Dividend3.02
Dividend Growth(5Y)4.25%
DP99.34%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-21.25%
Min EPS beat(2)-51.46%
Max EPS beat(2)8.96%
EPS beat(4)2
Avg EPS beat(4)-19.04%
Min EPS beat(4)-51.46%
Max EPS beat(4)8.96%
EPS beat(8)3
Avg EPS beat(8)-5.78%
EPS beat(12)5
Avg EPS beat(12)2.58%
EPS beat(16)7
Avg EPS beat(16)2.11%
Revenue beat(2)1
Avg Revenue beat(2)-4.35%
Min Revenue beat(2)-18.02%
Max Revenue beat(2)9.31%
Revenue beat(4)2
Avg Revenue beat(4)-5.71%
Min Revenue beat(4)-18.02%
Max Revenue beat(4)9.31%
Revenue beat(8)4
Avg Revenue beat(8)16%
Revenue beat(12)8
Avg Revenue beat(12)40.65%
Revenue beat(16)12
Avg Revenue beat(16)52.39%
PT rev (1m)0%
PT rev (3m)17.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.18%
EPS NY rev (1m)0%
EPS NY rev (3m)-16.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.7 | ||
| Fwd PE | 11.85 | ||
| P/S | 1.25 | ||
| P/FCF | 10 | ||
| P/OCF | 9.95 | ||
| P/B | 3.86 | ||
| P/tB | 4.02 | ||
| EV/EBITDA | 191.19 |
EPS(TTM)3.06
EY6.37%
EPS(NY)4.06
Fwd EY8.44%
FCF(TTM)4.8
FCFY10%
OCF(TTM)4.83
OCFY10.05%
SpS38.53
BVpS12.45
TBVpS11.95
PEG (NY)7.3
PEG (5Y)7.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.34% | ||
| ROE | 24.6% | ||
| ROCE | 0.52% | ||
| ROIC | 0.35% | ||
| ROICexc | 0.35% | ||
| ROICexgc | 0.35% | ||
| OM | 11.01% | ||
| PM (TTM) | 7.95% | ||
| GM | 25.03% | ||
| FCFM | 12.47% |
ROA(3y)0.46%
ROA(5y)0.46%
ROE(3y)29.54%
ROE(5y)30.93%
ROIC(3y)0.47%
ROIC(5y)0.47%
ROICexc(3y)0.47%
ROICexc(5y)0.47%
ROICexgc(3y)0.47%
ROICexgc(5y)0.47%
ROCE(3y)0.7%
ROCE(5y)0.71%
ROICexcg growth 3Y-4.65%
ROICexcg growth 5Y-3.34%
ROICexc growth 3Y-4.64%
ROICexc growth 5Y-3.34%
OM growth 3Y-12.95%
OM growth 5Y-7.29%
PM growth 3Y-13.2%
PM growth 5Y-7.28%
GM growth 3Y-10.39%
GM growth 5Y-2.89%
F-Score5
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 71.28 | ||
| Debt/FCF | 184.75 | ||
| Debt/EBITDA | 199.55 | ||
| Cap/Depr | 13.55% | ||
| Cap/Sales | 0.07% | ||
| Interest Coverage | 0.17 | ||
| Cash Conversion | 108.63% | ||
| Profit Quality | 156.82% | ||
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 | ||
| Altman-Z | -0.01 |
F-Score5
WACC2.9%
ROIC/WACC0.12
Cap/Depr(3y)54.65%
Cap/Depr(5y)111.75%
Cap/Sales(3y)0.43%
Cap/Sales(5y)0.77%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-19.69%
EPS 3Y1.44%
EPS 5Y2.03%
EPS Q2Q%16.85%
EPS Next Y2.15%
EPS Next 2Y10.19%
EPS Next 3Y7.25%
EPS Next 5YN/A
Revenue 1Y (TTM)8.85%
Revenue growth 3Y16.71%
Revenue growth 5Y10.82%
Sales Q2Q%23.39%
Revenue Next Year6.11%
Revenue Next 2Y7.29%
Revenue Next 3Y5.01%
Revenue Next 5YN/A
EBIT growth 1Y-19.24%
EBIT growth 3Y1.6%
EBIT growth 5Y2.74%
EBIT Next Year-98.27%
EBIT Next 3Y-72.17%
EBIT Next 5YN/A
FCF growth 1Y12.08%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y8.58%
OCF growth 3YN/A
OCF growth 5YN/A