FIRST NATIONAL FINANCIAL COR (FN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:FN - CA33564P1036 - Common Stock
47.98 CAD
-0.01 (-0.02%)
Overall FN gets a fundamental rating of 2 out of 10. We evaluated FN against 28 industry peers in the Financial Services industry. FN may be in some trouble as it scores bad on both profitability and health. FN is not valued too expensively and it also shows a decent growth rate.
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.
- Each year in the past 5 years FN has been profitable.
- In the past 5 years FN reported 4 times negative operating cash flow.
1.2 Ratios
- With a Return On Assets value of 0.34%, FN is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
- The Return On Equity of FN (24.60%) is better than 92.86% of its industry peers.
- FN has a worse Return On Invested Capital (0.35%) than 89.29% of its industry peers.
- FN had an Average Return On Invested Capital over the past 3 years of 0.47%. This is significantly below the industry average of 7.80%.
| 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
- FN has a Profit Margin of 7.95%. This is in the lower half of the industry: FN underperforms 67.86% of its industry peers.
- 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 85.71% of the companies in the same industry.
- In the last couple of years the Operating Margin of FN has declined.
- With a Gross Margin value of 25.03%, FN perfoms like the industry average, outperforming 53.57% of the companies in the same industry.
- FN's Gross Margin has declined in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FN is destroying value.
- Compared to 1 year ago, FN has about the same amount of shares outstanding.
- FN has about the same amout of shares outstanding than it did 5 years ago.
- FN has a worse debt/assets ratio than last year.
2.2 Solvency
- FN has an Altman-Z score of -0.01. This is a bad value and indicates that FN is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of -0.01, FN is doing worse than 85.71% of the companies in the same industry.
- 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.
- The Debt to FCF ratio of FN (184.75) is worse than 67.86% of its industry peers.
- FN has a Debt/Equity ratio of 71.28. This is a high value indicating a heavy dependency on external financing.
- FN has a worse Debt to Equity ratio (71.28) than 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 71.28 | ||
| Debt/FCF | 184.75 | ||
| Altman-Z | -0.01 |
ROIC/WACC0.12
WACC2.89%
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.
- The Current ratio of FN (0.05) is worse than 78.57% 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 78.57% 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.
- The Revenue is expected to grow by 5.01% on average over the next years.
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
- 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
- Based on the Price/Earnings ratio of 15.68, the valuation of FN can be described as correct.
- 67.86% of the companies in the same industry are more expensive than FN, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of FN to the average of the S&P500 Index (27.21), we can say FN is valued slightly cheaper.
- The Price/Forward Earnings ratio is 11.83, which indicates a very decent valuation of FN.
- 71.43% of the companies in the same industry are more expensive than FN, based on the Price/Forward Earnings ratio.
- FN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.68 | ||
| Fwd PE | 11.83 |
4.2 Price Multiples
- 71.43% of the companies in the same industry are more expensive than FN, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, FN is valued cheaply inside the industry as 89.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.99 | ||
| EV/EBITDA | 191.17 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FN does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)7.29
PEG (5Y)7.71
EPS Next 2Y10.19%
EPS Next 3Y7.25%
5. Dividend
5.1 Amount
- FN has a Yearly Dividend Yield of 3.24%.
- Compared to an average industry Dividend Yield of 6.56, FN is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.82, FN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
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.
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.
- FN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP99.34%
EPS Next 2Y10.19%
EPS Next 3Y7.25%
FIRST NATIONAL FINANCIAL COR / FN.CA FAQ
Can you provide the ChartMill fundamental rating for FIRST NATIONAL FINANCIAL COR?
ChartMill assigns a fundamental rating of 2 / 10 to FN.CA.
What is the valuation status of FIRST NATIONAL FINANCIAL COR (FN.CA) stock?
ChartMill assigns a valuation rating of 5 / 10 to FIRST NATIONAL FINANCIAL COR (FN.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for FIRST NATIONAL FINANCIAL COR?
FIRST NATIONAL FINANCIAL COR (FN.CA) has a profitability rating of 2 / 10.
How financially healthy is FIRST NATIONAL FINANCIAL COR?
The financial health rating of FIRST NATIONAL FINANCIAL COR (FN.CA) is 0 / 10.
How sustainable is the dividend of FIRST NATIONAL FINANCIAL COR (FN.CA) stock?
The dividend rating of FIRST NATIONAL FINANCIAL COR (FN.CA) is 4 / 10 and the dividend payout ratio is 99.34%.