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 32 industry peers in the Financial Services industry. FN has a bad profitability rating. Also its financial health evaluation is rather negative. FN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
FN had positive earnings in the past year.
In the past year FN has reported a negative cash flow from operations.
FN had positive earnings in each of the past 5 years.
FN had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of FN (0.39%) is worse than 71.88% of its industry peers.
Looking at the Return On Equity, with a value of 27.02%, FN belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
With a Return On Invested Capital value of 0.40%, FN is not doing good in the industry: 93.75% of the companies in the same industry are doing better.
FN had an Average Return On Invested Capital over the past 3 years of 0.47%. This is significantly below the industry average of 5.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.39% | ||
| ROE | 27.02% | ||
| ROIC | 0.4% |
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
Looking at the Profit Margin, with a value of 9.00%, FN is doing worse than 65.63% of the companies in the same industry.
FN's Profit Margin has declined in the last couple of years.
FN has a worse Operating Margin (12.48%) than 84.38% of its industry peers.
In the last couple of years the Operating Margin of FN has declined.
FN has a Gross Margin of 26.50%. This is comparable to the rest of the industry: FN outperforms 56.25% of its industry peers.
In the last couple of years the Gross Margin of FN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.48% | ||
| PM (TTM) | 9% | ||
| GM | 26.5% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FN 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
FN has an Altman-Z score of 0.00. This is a bad value and indicates that FN is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.00, FN is not doing good in the industry: 87.50% of the companies in the same industry are doing better.
A Debt/Equity ratio of 67.74 is on the high side and indicates that FN has dependencies on debt financing.
FN's Debt to Equity ratio of 67.74 is on the low side compared to the rest of the industry. FN is outperformed by 93.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 67.74 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0 |
ROIC/WACC0.14
WACC2.79%
2.3 Liquidity
A Current Ratio of 0.05 indicates that FN may have some problems paying its short term obligations.
FN has a worse Current ratio (0.05) than 78.13% 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's Quick ratio of 0.05 is on the low side compared to the rest of the industry. FN is outperformed by 78.13% 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 -19.87% in the last year.
The Earnings Per Share has been growing slightly by 2.78% on average over the past years.
Looking at the last year, FN shows a quite strong growth in Revenue. The Revenue has grown by 9.52% in the last year.
The Revenue has been growing by 10.82% on average over the past years. This is quite good.
EPS 1Y (TTM)-19.87%
EPS 3Y1.31%
EPS 5Y2.78%
EPS Q2Q%43.56%
Revenue 1Y (TTM)9.52%
Revenue growth 3Y16.71%
Revenue growth 5Y10.82%
Sales Q2Q%19.21%
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 15.38% yearly.
Based on estimates for the next years, FN will show a small growth in Revenue. The Revenue will grow by 7.21% on average per year.
EPS Next Y23.52%
EPS Next 2Y15.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.18%
Revenue Next 2Y7.21%
Revenue Next 3YN/A
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 12.24, which indicates a correct valuation of FN.
Based on the Price/Earnings ratio, FN is valued a bit cheaper than 71.88% of the companies in the same industry.
FN is valuated cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
FN is valuated reasonably with a Price/Forward Earnings ratio of 9.95.
Based on the Price/Forward Earnings ratio, FN is valued cheaper than 81.25% of the companies in the same industry.
FN is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.24 | ||
| Fwd PE | 9.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FN is valued a bit cheaper than 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 164.07 |
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.
FN's earnings are expected to grow with 15.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.52
PEG (5Y)4.4
EPS Next 2Y15.38%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FN has a Yearly Dividend Yield of 6.16%, which is a nice return.
Compared to an average industry Dividend Yield of 8.05, FN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, FN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.16% |
5.2 History
The dividend of FN has a limited annual growth rate of 4.25%.
FN has been paying a dividend for at least 10 years, so it has a reliable track record.
FN has decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.25%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
90.79% of the earnings are spent on dividend by FN. This is not a sustainable payout ratio.
FN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP90.79%
EPS Next 2Y15.38%
EPS Next 3YN/A
TSX:FN (3/7/2025, 7:00:00 PM)
40.75
+0.16 (+0.39%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners4.08%
Inst Owner ChangeN/A
Ins Owners71.45%
Ins Owner ChangeN/A
Market Cap2.44B
Analysts76.92
Price Target44.47 (9.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.16% |
Yearly Dividend3.02
Dividend Growth(5Y)4.25%
DP90.79%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)69.63%
Min Revenue beat(2)-16.35%
Max Revenue beat(2)155.61%
Revenue beat(4)1
Avg Revenue beat(4)30.28%
Min Revenue beat(4)-16.35%
Max Revenue beat(4)155.61%
Revenue beat(8)5
Avg Revenue beat(8)56.23%
Revenue beat(12)9
Avg Revenue beat(12)70.85%
Revenue beat(16)13
Avg Revenue beat(16)73.42%
PT rev (1m)0.46%
PT rev (3m)0.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.31%
EPS NY rev (3m)-0.31%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.51%
Revenue NY rev (3m)-0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.24 | ||
| Fwd PE | 9.95 | ||
| P/S | 1.1 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.31 | ||
| P/tB | 3.45 | ||
| EV/EBITDA | 164.07 |
EPS(TTM)3.33
EY8.17%
EPS(NY)4.1
Fwd EY10.05%
FCF(TTM)-12.81
FCFYN/A
OCF(TTM)-12.73
OCFYN/A
SpS36.97
BVpS12.31
TBVpS11.81
PEG (NY)0.52
PEG (5Y)4.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.39% | ||
| ROE | 27.02% | ||
| ROCE | 0.6% | ||
| ROIC | 0.4% | ||
| ROICexc | 0.4% | ||
| ROICexgc | 0.4% | ||
| OM | 12.48% | ||
| PM (TTM) | 9% | ||
| GM | 26.5% | ||
| 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 | 67.74 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 171.5 | ||
| Cap/Depr | 29.29% | ||
| Cap/Sales | 0.2% | ||
| Interest Coverage | 0.2 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 | ||
| Altman-Z | 0 |
F-Score2
WACC2.79%
ROIC/WACC0.14
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)-19.87%
EPS 3Y1.31%
EPS 5Y2.78%
EPS Q2Q%43.56%
EPS Next Y23.52%
EPS Next 2Y15.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)9.52%
Revenue growth 3Y16.71%
Revenue growth 5Y10.82%
Sales Q2Q%19.21%
Revenue Next Year9.18%
Revenue Next 2Y7.21%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-19.56%
EBIT growth 3Y1.6%
EBIT growth 5Y2.74%
EBIT Next Year-97.91%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-600.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-637.85%
OCF growth 3YN/A
OCF growth 5YN/A