FRANCO-NEVADA CORP (FNV.CA) Stock Fundamental Analysis
TSX:FNV - Toronto Stock Exchange - CA3518581051 - Common Stock - Currency: CAD
Taking everything into account, FNV scores 7 out of 10 in our fundamental rating. FNV was compared to 805 industry peers in the Metals & Mining industry. FNV has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. FNV has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year FNV was profitable.
In the past year FNV had a positive cash flow from operations.
Of the past 5 years FNV 4 years were profitable.
In the past 5 years FNV always reported a positive cash flow from operatings.
1.2 Ratios
FNV has a Return On Assets of 9.28%. This is amongst the best in the industry. FNV outperforms 93.29% of its industry peers.
FNV's Return On Equity of 9.81% is amongst the best of the industry. FNV outperforms 91.68% of its industry peers.
The Return On Invested Capital of FNV (8.86%) is better than 94.41% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FNV is below the industry average of 12.37%.
The 3 year average ROIC (8.75%) for FNV is below the current ROIC(8.86%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.28% | ||
| ROE | 9.81% | ||
| ROIC | 8.86% |
ROA(3y)3.84%
ROA(5y)5.83%
ROE(3y)4.01%
ROE(5y)6.04%
ROIC(3y)8.75%
ROIC(5y)8.65%
1.3 Margins
FNV has a better Profit Margin (50.39%) than 98.26% of its industry peers.
FNV's Profit Margin has improved in the last couple of years.
FNV's Operating Margin of 65.97% is amongst the best of the industry. FNV outperforms 99.50% of its industry peers.
In the last couple of years the Operating Margin of FNV has grown nicely.
FNV's Gross Margin of 69.85% is amongst the best of the industry. FNV outperforms 98.63% of its industry peers.
FNV's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 65.97% | ||
| PM (TTM) | 50.39% | ||
| GM | 69.85% |
OM growth 3Y1.96%
OM growth 5Y5.98%
PM growth 3Y-4.23%
PM growth 5Y3.99%
GM growth 3Y2.54%
GM growth 5Y5.71%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FNV is creating some value.
FNV has more shares outstanding than it did 1 year ago.
The number of shares outstanding for FNV has been increased compared to 5 years ago.
FNV has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
FNV has an Altman-Z score of 51.99. This indicates that FNV is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 51.99, FNV belongs to the best of the industry, outperforming 88.20% of the companies in the same industry.
FNV has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 51.99 |
ROIC/WACC1.02
WACC8.68%
2.3 Liquidity
FNV has a Current Ratio of 22.90. This indicates that FNV is financially healthy and has no problem in meeting its short term obligations.
FNV has a better Current ratio (22.90) than 93.42% of its industry peers.
A Quick Ratio of 22.90 indicates that FNV has no problem at all paying its short term obligations.
FNV has a better Quick ratio (22.90) than 93.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 22.9 | ||
| Quick Ratio | 22.9 |
3. Growth
3.1 Past
The earnings per share for FNV have decreased by -8.17% in the last year.
FNV shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.36% yearly.
The Revenue has decreased by -8.65% in the past year.
FNV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.70% yearly.
EPS 1Y (TTM)-8.17%
EPS 3Y-2.62%
EPS 5Y12.36%
EPS Q2Q%0%
Revenue 1Y (TTM)-8.65%
Revenue growth 3Y-5.03%
Revenue growth 5Y5.7%
Sales Q2Q%0%
3.2 Future
FNV is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.00% yearly.
FNV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.13% yearly.
EPS Next Y27.86%
EPS Next 2Y26.33%
EPS Next 3Y16.04%
EPS Next 5Y6%
Revenue Next Year27.23%
Revenue Next 2Y23.08%
Revenue Next 3Y7.48%
Revenue Next 5Y4.13%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 48.85, which means the current valuation is very expensive for FNV.
Based on the Price/Earnings ratio, FNV is valued cheaply inside the industry as 86.96% of the companies are valued more expensively.
FNV is valuated expensively when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 30.64, which means the current valuation is very expensive for FNV.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FNV indicates a rather cheap valuation: FNV is cheaper than 86.96% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of FNV to the average of the S&P500 Index (35.19), we can say FNV is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.85 | ||
| Fwd PE | 30.64 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FNV indicates a rather cheap valuation: FNV is cheaper than 89.32% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FNV indicates a rather cheap valuation: FNV is cheaper than 89.32% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 179.93 | ||
| EV/EBITDA | 28.33 |
4.3 Compensation for Growth
FNV's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of FNV may justify a higher PE ratio.
FNV's earnings are expected to grow with 16.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.75
PEG (5Y)3.95
EPS Next 2Y26.33%
EPS Next 3Y16.04%
5. Dividend
5.1 Amount
FNV has a yearly dividend return of 0.99%, which is pretty low.
Compared to an average industry Dividend Yield of 14.98, FNV pays a better dividend. On top of this FNV pays more dividend than 96.40% of the companies listed in the same industry.
With a Dividend Yield of 0.99, FNV pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
5.2 History
On average, the dividend of FNV grows each year by 11.34%, which is quite nice.
FNV has been paying a dividend for at least 10 years, so it has a reliable track record.
FNV has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.34%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
41.09% of the earnings are spent on dividend by FNV. This is a bit on the high side, but may be sustainable.
The dividend of FNV is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP41.09%
EPS Next 2Y26.33%
EPS Next 3Y16.04%
TSX:FNV (7/11/2025, 7:00:00 PM)
218.38
+1.07 (+0.49%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners77.03%
Inst Owner ChangeN/A
Ins Owners0.71%
Ins Owner ChangeN/A
Market Cap42.06B
Analysts70
Price Target263.09 (20.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
Yearly Dividend1.72
Dividend Growth(5Y)11.34%
DP41.09%
Div Incr Years16
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.87%
Min EPS beat(2)5.49%
Max EPS beat(2)6.24%
EPS beat(4)2
Avg EPS beat(4)-1.03%
Min EPS beat(4)-9.32%
Max EPS beat(4)6.24%
EPS beat(8)6
Avg EPS beat(8)1.43%
EPS beat(12)8
Avg EPS beat(12)0.46%
EPS beat(16)10
Avg EPS beat(16)0.26%
Revenue beat(2)2
Avg Revenue beat(2)10.59%
Min Revenue beat(2)3.91%
Max Revenue beat(2)17.27%
Revenue beat(4)2
Avg Revenue beat(4)3.38%
Min Revenue beat(4)-4.67%
Max Revenue beat(4)17.27%
Revenue beat(8)3
Avg Revenue beat(8)-0.18%
Revenue beat(12)4
Avg Revenue beat(12)-1.18%
Revenue beat(16)5
Avg Revenue beat(16)-1.01%
PT rev (1m)1.19%
PT rev (3m)12.55%
EPS NQ rev (1m)2.91%
EPS NQ rev (3m)14.66%
EPS NY rev (1m)0%
EPS NY rev (3m)2.71%
Revenue NQ rev (1m)2.05%
Revenue NQ rev (3m)19.18%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.85 | ||
| Fwd PE | 30.64 | ||
| P/S | 25.05 | ||
| P/FCF | 179.93 | ||
| P/OCF | 32.66 | ||
| P/B | 4.88 | ||
| P/tB | 4.88 | ||
| EV/EBITDA | 28.33 |
EPS(TTM)4.47
EY2.05%
EPS(NY)7.13
Fwd EY3.26%
FCF(TTM)1.21
FCFY0.56%
OCF(TTM)6.69
OCFY3.06%
SpS8.72
BVpS44.77
TBVpS44.77
PEG (NY)1.75
PEG (5Y)3.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.28% | ||
| ROE | 9.81% | ||
| ROCE | 12.26% | ||
| ROIC | 8.86% | ||
| ROICexc | 10.69% | ||
| ROICexgc | 10.69% | ||
| OM | 65.97% | ||
| PM (TTM) | 50.39% | ||
| GM | 69.85% | ||
| FCFM | 13.92% |
ROA(3y)3.84%
ROA(5y)5.83%
ROE(3y)4.01%
ROE(5y)6.04%
ROIC(3y)8.75%
ROIC(5y)8.65%
ROICexc(3y)11.19%
ROICexc(5y)10.45%
ROICexgc(3y)11.19%
ROICexgc(5y)10.45%
ROCE(3y)12.11%
ROCE(5y)11.97%
ROICexcg growth 3Y2.02%
ROICexcg growth 5Y13.31%
ROICexc growth 3Y2.02%
ROICexc growth 5Y13.31%
OM growth 3Y1.96%
OM growth 5Y5.98%
PM growth 3Y-4.23%
PM growth 5Y3.99%
GM growth 3Y2.54%
GM growth 5Y5.71%
F-Score6
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 326.62% | ||
| Cap/Sales | 62.78% | ||
| Interest Coverage | 299.37 | ||
| Cash Conversion | 90.04% | ||
| Profit Quality | 27.63% | ||
| Current Ratio | 22.9 | ||
| Quick Ratio | 22.9 | ||
| Altman-Z | 51.99 |
F-Score6
WACC8.68%
ROIC/WACC1.02
Cap/Depr(3y)140.51%
Cap/Depr(5y)161.01%
Cap/Sales(3y)30.06%
Cap/Sales(5y)35.86%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.17%
EPS 3Y-2.62%
EPS 5Y12.36%
EPS Q2Q%0%
EPS Next Y27.86%
EPS Next 2Y26.33%
EPS Next 3Y16.04%
EPS Next 5Y6%
Revenue 1Y (TTM)-8.65%
Revenue growth 3Y-5.03%
Revenue growth 5Y5.7%
Sales Q2Q%0%
Revenue Next Year27.23%
Revenue Next 2Y23.08%
Revenue Next 3Y7.48%
Revenue Next 5Y4.13%
EBIT growth 1Y11.26%
EBIT growth 3Y-3.17%
EBIT growth 5Y12.02%
EBIT Next Year76.62%
EBIT Next 3Y28.2%
EBIT Next 5Y12.1%
FCF growth 1Y-76.65%
FCF growth 3Y29.32%
FCF growth 5Y19.56%
OCF growth 1Y-3.97%
OCF growth 3Y-4.6%
OCF growth 5Y6.07%