FRANCO-NEVADA CORP (FNV.CA) Stock Fundamental Analysis
TSX:FNV - Toronto Stock Exchange - CA3518581051 - Common Stock - Currency: CAD
Overall FNV gets a fundamental rating of 6 out of 10. We evaluated FNV against 820 industry peers in the Metals & Mining industry. While FNV has a great health rating, its profitability is only average at the moment. FNV has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
FNV had positive earnings in the past year.
In the past year FNV had a positive cash flow from operations.
Of the past 5 years FNV 4 years were profitable.
FNV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -9.62%, FNV perfoms like the industry average, outperforming 57.84% of the companies in the same industry.
FNV's Return On Equity of -10.12% is fine compared to the rest of the industry. FNV outperforms 61.49% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.27%, FNV belongs to the top of the industry, outperforming 95.41% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FNV is in line with the industry average of 11.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.62% | ||
| ROE | -10.12% | ||
| ROIC | 9.27% |
ROA(3y)4.87%
ROA(5y)5.39%
ROE(3y)5%
ROE(5y)5.56%
ROIC(3y)10.56%
ROIC(5y)9.44%
1.3 Margins
FNV has a Operating Margin of 62.77%. This is amongst the best in the industry. FNV outperforms 99.59% of its industry peers.
FNV's Operating Margin has improved in the last couple of years.
FNV has a Gross Margin of 65.88%. This is amongst the best in the industry. FNV outperforms 98.11% of its industry peers.
FNV's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 62.77% | ||
| PM (TTM) | N/A | ||
| GM | 65.88% |
OM growth 3Y1.43%
OM growth 5Y8.35%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.13%
GM growth 5Y7.41%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FNV is still creating some value.
Compared to 1 year ago, FNV has about the same amount of shares outstanding.
The number of shares outstanding for FNV has been increased compared to 5 years ago.
There is no outstanding debt for FNV. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 52.21 indicates that FNV is not in any danger for bankruptcy at the moment.
FNV's Altman-Z score of 52.21 is amongst the best of the industry. FNV outperforms 89.46% of its industry peers.
There is no outstanding debt for FNV. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 52.21 |
ROIC/WACC0.99
WACC9.37%
2.3 Liquidity
FNV has a Current Ratio of 23.39. This indicates that FNV is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 23.39, FNV belongs to the top of the industry, outperforming 92.57% of the companies in the same industry.
FNV has a Quick Ratio of 23.39. This indicates that FNV is financially healthy and has no problem in meeting its short term obligations.
FNV's Quick ratio of 23.39 is amongst the best of the industry. FNV outperforms 92.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 23.39 | ||
| Quick Ratio | 23.39 |
3. Growth
3.1 Past
The earnings per share for FNV have decreased by -8.55% in the last year.
FNV shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.07% yearly.
Looking at the last year, FNV shows a very negative growth in Revenue. The Revenue has decreased by -11.34% in the last year.
The Revenue has been growing by 13.29% on average over the past years. This is quite good.
EPS 1Y (TTM)-8.55%
EPS 3Y9.42%
EPS 5Y25.07%
EPS Q2Q%-12.09%
Revenue 1Y (TTM)-11.34%
Revenue growth 3Y6.11%
Revenue growth 5Y13.29%
Sales Q2Q%-10.99%
3.2 Future
Based on estimates for the next years, FNV will show a small growth in Earnings Per Share. The EPS will grow by 6.61% on average per year.
FNV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.31% yearly.
EPS Next Y-8.87%
EPS Next 2Y8.38%
EPS Next 3Y11.12%
EPS Next 5Y6.61%
Revenue Next Year-8.95%
Revenue Next 2Y6.56%
Revenue Next 3Y9.93%
Revenue Next 5Y6.31%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 43.26, the valuation of FNV can be described as expensive.
Based on the Price/Earnings ratio, FNV is valued cheaper than 86.89% of the companies in the same industry.
When comparing the Price/Earnings ratio of FNV to the average of the S&P500 Index (29.63), we can say FNV is valued slightly more expensively.
The Price/Forward Earnings ratio is 33.33, which means the current valuation is very expensive for FNV.
Based on the Price/Forward Earnings ratio, FNV is valued cheaper than 87.03% of the companies in the same industry.
FNV's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.26 | ||
| Fwd PE | 33.33 |
4.2 Price Multiples
87.97% of the companies in the same industry are more expensive than FNV, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, FNV is valued cheaper than 90.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 69.98 | ||
| EV/EBITDA | 27.58 |
4.3 Compensation for Growth
FNV has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.73
EPS Next 2Y8.38%
EPS Next 3Y11.12%
5. Dividend
5.1 Amount
FNV has a Yearly Dividend Yield of 1.08%.
Compared to an average industry Dividend Yield of 7.55, FNV pays a better dividend. On top of this FNV pays more dividend than 95.68% of the companies listed in the same industry.
With a Dividend Yield of 1.08, FNV pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
5.2 History
The dividend of FNV is nicely growing with an annual growth rate of 10.68%!
FNV has paid a dividend for at least 10 years, which is a reliable track record.
FNV has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.68%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
The earnings of FNV are negative and hence is the payout ratio. FNV will probably not be able to sustain this dividend level.
FNV's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-39.63%
EPS Next 2Y8.38%
EPS Next 3Y11.12%
TSX:FNV (2/21/2025, 7:00:00 PM)
197.26
-3.65 (-1.82%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners77.78%
Inst Owner ChangeN/A
Ins Owners0.71%
Ins Owner ChangeN/A
Market Cap37.97B
Analysts72.94
Price Target221.94 (12.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
Yearly Dividend1.21
Dividend Growth(5Y)10.68%
DP-39.63%
Div Incr Years16
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.93%
Min EPS beat(2)-9.32%
Max EPS beat(2)-6.54%
EPS beat(4)2
Avg EPS beat(4)-1.06%
Min EPS beat(4)-9.32%
Max EPS beat(4)6.46%
EPS beat(8)5
Avg EPS beat(8)-0.5%
EPS beat(12)6
Avg EPS beat(12)-0.97%
EPS beat(16)10
Avg EPS beat(16)1.13%
Revenue beat(2)0
Avg Revenue beat(2)-3.84%
Min Revenue beat(2)-4.67%
Max Revenue beat(2)-3.01%
Revenue beat(4)1
Avg Revenue beat(4)-3.9%
Min Revenue beat(4)-8.88%
Max Revenue beat(4)0.97%
Revenue beat(8)2
Avg Revenue beat(8)-3.14%
Revenue beat(12)2
Avg Revenue beat(12)-3.05%
Revenue beat(16)5
Avg Revenue beat(16)-1.36%
PT rev (1m)3.9%
PT rev (3m)5.16%
EPS NQ rev (1m)2.18%
EPS NQ rev (3m)2.18%
EPS NY rev (1m)0.13%
EPS NY rev (3m)-3.49%
Revenue NQ rev (1m)0.43%
Revenue NQ rev (3m)6.88%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.26 | ||
| Fwd PE | 33.33 | ||
| P/S | 24.41 | ||
| P/FCF | 69.98 | ||
| P/OCF | 30.74 | ||
| P/B | 4.47 | ||
| P/tB | 4.47 | ||
| EV/EBITDA | 27.58 |
EPS(TTM)4.56
EY2.31%
EPS(NY)5.92
Fwd EY3%
FCF(TTM)2.82
FCFY1.43%
OCF(TTM)6.42
OCFY3.25%
SpS8.08
BVpS44.15
TBVpS44.15
PEG (NY)N/A
PEG (5Y)1.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.62% | ||
| ROE | -10.12% | ||
| ROCE | 11.04% | ||
| ROIC | 9.27% | ||
| ROICexc | 11.76% | ||
| ROICexgc | 11.76% | ||
| OM | 62.77% | ||
| PM (TTM) | N/A | ||
| GM | 65.88% | ||
| FCFM | 34.88% |
ROA(3y)4.87%
ROA(5y)5.39%
ROE(3y)5%
ROE(5y)5.56%
ROIC(3y)10.56%
ROIC(5y)9.44%
ROICexc(3y)12.77%
ROICexc(5y)10.99%
ROICexgc(3y)12.77%
ROICexgc(5y)10.99%
ROCE(3y)12.56%
ROCE(5y)11.23%
ROICexcg growth 3Y11.25%
ROICexcg growth 5Y24.36%
ROICexc growth 3Y11.25%
ROICexc growth 5Y24.36%
OM growth 3Y1.43%
OM growth 5Y8.35%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.13%
GM growth 5Y7.41%
F-Score4
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 208.28% | ||
| Cap/Sales | 44.51% | ||
| Interest Coverage | 343.95 | ||
| Cash Conversion | 94.35% | ||
| Profit Quality | N/A | ||
| Current Ratio | 23.39 | ||
| Quick Ratio | 23.39 | ||
| Altman-Z | 52.21 |
F-Score4
WACC9.37%
ROIC/WACC0.99
Cap/Depr(3y)164.76%
Cap/Depr(5y)158.63%
Cap/Sales(3y)37.35%
Cap/Sales(5y)39.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.55%
EPS 3Y9.42%
EPS 5Y25.07%
EPS Q2Q%-12.09%
EPS Next Y-8.87%
EPS Next 2Y8.38%
EPS Next 3Y11.12%
EPS Next 5Y6.61%
Revenue 1Y (TTM)-11.34%
Revenue growth 3Y6.11%
Revenue growth 5Y13.29%
Sales Q2Q%-10.99%
Revenue Next Year-8.95%
Revenue Next 2Y6.56%
Revenue Next 3Y9.93%
Revenue Next 5Y6.31%
EBIT growth 1Y-7.4%
EBIT growth 3Y7.63%
EBIT growth 5Y22.75%
EBIT Next Year19.14%
EBIT Next 3Y18.65%
EBIT Next 5Y11.92%
FCF growth 1Y-60.33%
FCF growth 3Y-1.49%
FCF growth 5YN/A
OCF growth 1Y-12.93%
OCF growth 3Y7.23%
OCF growth 5Y15.86%