FRANCO-NEVADA CORP (FNV.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:FNV - CA3518581051 - Common Stock
355.71 CAD
+5.1 (+1.45%)
Taking everything into account, FNV scores 7 out of 10 in our fundamental rating. FNV was compared to 820 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 decent growth rate and is not valued too expensively. Finally FNV also has an excellent dividend rating. This makes FNV very considerable for dividend and quality investing!
1. Profitability
1.1 Basic Checks
- In the past year FNV was profitable.
- FNV had a positive operating cash flow in the past year.
- 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
- FNV has a Return On Assets of 12.24%. This is amongst the best in the industry. FNV outperforms 94.63% of its industry peers.
- Looking at the Return On Equity, with a value of 13.14%, FNV belongs to the top of the industry, outperforming 92.32% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 10.39%, FNV belongs to the top of the industry, outperforming 94.27% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for FNV is below the industry average of 12.04%.
- The 3 year average ROIC (8.75%) for FNV is below the current ROIC(10.39%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.24% | ||
| ROE | 13.14% | ||
| ROIC | 10.39% |
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
- With an excellent Profit Margin value of 59.48%, FNV belongs to the best of the industry, outperforming 99.02% of the companies in the same industry.
- FNV's Profit Margin has improved in the last couple of years.
- FNV has a better Operating Margin (68.77%) than 99.63% of its industry peers.
- FNV's Operating Margin has improved in the last couple of years.
- FNV has a Gross Margin of 72.00%. This is amongst the best in the industry. FNV outperforms 98.29% of its industry peers.
- In the last couple of years the Gross Margin of FNV has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 68.77% | ||
| PM (TTM) | 59.48% | ||
| GM | 72% |
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
- 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 more shares outstanding
- Compared to 5 years ago, FNV has more shares outstanding
- 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
- FNV has an Altman-Z score of 57.87. This indicates that FNV is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of FNV (57.87) is better than 82.56% 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 | N/A | ||
| Altman-Z | 57.87 |
ROIC/WACC1.06
WACC9.76%
2.3 Liquidity
- FNV has a Current Ratio of 4.64. 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 4.64, FNV is in the better half of the industry, outperforming 72.44% of the companies in the same industry.
- A Quick Ratio of 4.55 indicates that FNV has no problem at all paying its short term obligations.
- With a decent Quick ratio value of 4.55, FNV is doing good in the industry, outperforming 72.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.64 | ||
| Quick Ratio | 4.55 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 43.87% over the past 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)43.87%
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
- The Earnings Per Share is expected to grow by 24.15% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 18.77% on average over the next years. This is quite good.
EPS Next Y65.48%
EPS Next 2Y50.2%
EPS Next 3Y37.56%
EPS Next 5Y24.15%
Revenue Next Year57.98%
Revenue Next 2Y42.18%
Revenue Next 3Y29.46%
Revenue Next 5Y18.77%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 55.06, which means the current valuation is very expensive for FNV.
- 87.80% of the companies in the same industry are more expensive than FNV, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of FNV to the average of the S&P500 Index (27.25), we can say FNV is valued expensively.
- A Price/Forward Earnings ratio of 35.14 indicates a quite expensive valuation of FNV.
- FNV's Price/Forward Earnings ratio is rather cheap when compared to the industry. FNV is cheaper than 87.80% 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 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.06 | ||
| Fwd PE | 35.14 |
4.2 Price Multiples
- 90.37% of the companies in the same industry are more expensive than FNV, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 36.39 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- FNV has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as FNV's earnings are expected to grow with 37.56% in the coming years.
PEG (NY)0.84
PEG (5Y)4.45
EPS Next 2Y50.2%
EPS Next 3Y37.56%
5. Dividend
5.1 Amount
- FNV has a yearly dividend return of 0.61%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.56, FNV pays a better dividend. On top of this FNV pays more dividend than 96.22% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, FNV's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
5.2 History
- The dividend of FNV is nicely growing with an annual growth rate of 11.34%!
- 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
- 28.98% of the earnings are spent on dividend by FNV. This is a low number and sustainable payout ratio.
- The dividend of FNV is growing, but earnings are growing more, so the dividend growth is sustainable.
DP28.98%
EPS Next 2Y50.2%
EPS Next 3Y37.56%
FRANCO-NEVADA CORP / FNV.CA FAQ
Can you provide the ChartMill fundamental rating for FRANCO-NEVADA CORP?
ChartMill assigns a fundamental rating of 7 / 10 to FNV.CA.
Can you provide the valuation status for FRANCO-NEVADA CORP?
ChartMill assigns a valuation rating of 5 / 10 to FRANCO-NEVADA CORP (FNV.CA). This can be considered as Fairly Valued.
What is the profitability of FNV stock?
FRANCO-NEVADA CORP (FNV.CA) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for FNV stock?
The Price/Earnings (PE) ratio for FRANCO-NEVADA CORP (FNV.CA) is 55.06 and the Price/Book (PB) ratio is 7.12.
How sustainable is the dividend of FRANCO-NEVADA CORP (FNV.CA) stock?
The dividend rating of FRANCO-NEVADA CORP (FNV.CA) is 7 / 10 and the dividend payout ratio is 28.98%.