FIRST NATIONAL FINANCIAL COR (FN.CA) Stock Fundamental Analysis
TSX:FN - Toronto Stock Exchange - CA33564P1036 - Common Stock - Currency: CAD
We assign a fundamental rating of 3 out of 10 to FN. FN was compared to 28 industry peers in the Financial Services industry. Both the profitability and financial health of FN have multiple concerns. FN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year FN was profitable.
In the past year FN has reported a negative cash flow from operations.
In the past 5 years FN has always been profitable.
FN had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
FN has a Return On Assets of 0.33%. This is amonst the worse of the industry: FN underperforms 85.71% of its industry peers.
FN has a better Return On Equity (24.34%) than 92.86% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.34%, FN is doing worse than 89.29% of the companies in the same industry.
FN had an Average Return On Invested Capital over the past 3 years of 0.47%. This is below the industry average of 5.22%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.33% | ||
| ROE | 24.34% | ||
| ROIC | 0.34% |
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
FN's Profit Margin of 7.82% is on the low side compared to the rest of the industry. FN is outperformed by 67.86% of its industry peers.
FN's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 10.85%, FN is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
FN's Operating Margin has declined in the last couple of years.
FN's Gross Margin of 25.05% is in line compared to the rest of the industry. FN outperforms 53.57% of its industry peers.
In the last couple of years the Gross Margin of FN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.85% | ||
| PM (TTM) | 7.82% | ||
| GM | 25.05% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FN is destroying value.
FN has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for FN remains at a similar level compared to 5 years ago.
FN has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.00, we must say that FN is in the distress zone and has some risk of bankruptcy.
FN's Altman-Z score of 0.00 is on the low side compared to the rest of the industry. FN is outperformed by 85.71% of its industry peers.
A Debt/Equity ratio of 71.34 is on the high side and indicates that FN has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 71.34, FN is doing worse than 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 71.34 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0 |
ROIC/WACC0.12
WACC2.8%
2.3 Liquidity
FN has a Current 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 Current ratio (0.05) than 60.71% of its industry peers.
A Quick Ratio of 0.05 indicates that FN may have some problems paying its short term obligations.
FN has a worse Quick ratio (0.05) than 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 |
3. Growth
3.1 Past
FN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.71%.
The Earnings Per Share has been growing slightly by 2.03% on average over the past years.
Looking at the last year, FN shows a small growth in Revenue. The Revenue has grown by 5.57% in the last year.
FN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.82% yearly.
EPS 1Y (TTM)-33.71%
EPS 3Y1.44%
EPS 5Y2.03%
EPS Q2Q%-52.44%
Revenue 1Y (TTM)5.57%
Revenue growth 3Y16.71%
Revenue growth 5Y10.82%
Sales Q2Q%-12.86%
3.2 Future
FN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.01% yearly.
Based on estimates for the next years, FN will show a quite strong growth in Revenue. The Revenue will grow by 8.40% on average per year.
EPS Next Y22.02%
EPS Next 2Y17.01%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.9%
Revenue Next 2Y7.06%
Revenue Next 3Y8.4%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.36, which indicates a correct valuation of FN.
FN's Price/Earnings ratio is a bit cheaper when compared to the industry. FN is cheaper than 67.86% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, FN is valued a bit cheaper.
A Price/Forward Earnings ratio of 9.14 indicates a reasonable valuation of FN.
Based on the Price/Forward Earnings ratio, FN is valued cheaply inside the industry as 82.14% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.90. FN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.36 | ||
| Fwd PE | 9.14 |
4.2 Price Multiples
FN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FN is cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 193.45 |
4.3 Compensation for Growth
FN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as FN's earnings are expected to grow with 17.01% in the coming years.
PEG (NY)0.65
PEG (5Y)7.06
EPS Next 2Y17.01%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FN has a Yearly Dividend Yield of 4.51%, which is a nice return.
FN's Dividend Yield is slightly below the industry average, which is at 7.22.
FN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.51% |
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
FN pays out 104.34% of its income as dividend. This is not a sustainable payout ratio.
FN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP104.34%
EPS Next 2Y17.01%
EPS Next 3YN/A
TSX:FN (7/4/2025, 7:00:00 PM)
41.8
+0.12 (+0.29%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners3.88%
Inst Owner ChangeN/A
Ins Owners71.46%
Ins Owner ChangeN/A
Market Cap2.51B
Analysts78.33
Price Target41.82 (0.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.51% |
Yearly Dividend3.02
Dividend Growth(5Y)4.25%
DP104.34%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-22.02%
Min EPS beat(2)-51.46%
Max EPS beat(2)7.42%
EPS beat(4)1
Avg EPS beat(4)-22.68%
Min EPS beat(4)-51.46%
Max EPS beat(4)7.42%
EPS beat(8)3
Avg EPS beat(8)3.62%
EPS beat(12)5
Avg EPS beat(12)3.49%
EPS beat(16)6
Avg EPS beat(16)-0.02%
Revenue beat(2)1
Avg Revenue beat(2)-7.9%
Min Revenue beat(2)-18.02%
Max Revenue beat(2)2.22%
Revenue beat(4)1
Avg Revenue beat(4)-11.56%
Min Revenue beat(4)-18.02%
Max Revenue beat(4)2.22%
Revenue beat(8)4
Avg Revenue beat(8)17.08%
Revenue beat(12)8
Avg Revenue beat(12)47.66%
Revenue beat(16)12
Avg Revenue beat(16)56.65%
PT rev (1m)0%
PT rev (3m)-5.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.95%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.36 | ||
| Fwd PE | 9.14 | ||
| P/S | 1.13 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.5 | ||
| P/tB | 3.65 | ||
| EV/EBITDA | 193.45 |
EPS(TTM)2.91
EY6.96%
EPS(NY)4.57
Fwd EY10.94%
FCF(TTM)-12.62
FCFYN/A
OCF(TTM)-12.56
OCFYN/A
SpS37.15
BVpS11.94
TBVpS11.44
PEG (NY)0.65
PEG (5Y)7.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.33% | ||
| ROE | 24.34% | ||
| ROCE | 0.51% | ||
| ROIC | 0.34% | ||
| ROICexc | 0.34% | ||
| ROICexgc | 0.34% | ||
| OM | 10.85% | ||
| PM (TTM) | 7.82% | ||
| GM | 25.05% | ||
| FCFM | N/A |
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-Score2
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 71.34 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 200 | ||
| Cap/Depr | 25.15% | ||
| Cap/Sales | 0.15% | ||
| Interest Coverage | 0.17 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 | ||
| Altman-Z | 0 |
F-Score2
WACC2.8%
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)-33.71%
EPS 3Y1.44%
EPS 5Y2.03%
EPS Q2Q%-52.44%
EPS Next Y22.02%
EPS Next 2Y17.01%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.57%
Revenue growth 3Y16.71%
Revenue growth 5Y10.82%
Sales Q2Q%-12.86%
Revenue Next Year3.9%
Revenue Next 2Y7.06%
Revenue Next 3Y8.4%
Revenue Next 5YN/A
EBIT growth 1Y-33.42%
EBIT growth 3Y1.6%
EBIT growth 5Y2.74%
EBIT Next Year-98.05%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-161.79%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-161.01%
OCF growth 3YN/A
OCF growth 5YN/A