FRANCO-NEVADA CORP (FNV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FNV - CA3518581051 - Common Stock
255.75 USD
-2.57 (-0.99%)
258 USD
+2.25 (+0.88%)
FNV gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 154 industry peers in the Metals & Mining industry. FNV gets an excellent profitability rating and is at the same time showing great financial health properties. FNV is not valued too expensively and it also shows a decent growth rate. This makes FNV very considerable for quality investing!
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.
- Each year in the past 5 years FNV had a positive operating cash flow.
1.2 Ratios
- FNV has a Return On Assets of 12.24%. This is amongst the best in the industry. FNV outperforms 92.21% of its industry peers.
- FNV has a better Return On Equity (13.14%) than 82.47% of its industry peers.
- With an excellent Return On Invested Capital value of 10.39%, FNV belongs to the best of the industry, outperforming 80.52% 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 10.34%.
- 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
- FNV has a better Profit Margin (59.48%) than 98.70% of its industry peers.
- In the last couple of years the Profit Margin of FNV has grown nicely.
- FNV has a better Operating Margin (68.77%) than 98.70% of its industry peers.
- In the last couple of years the Operating Margin of FNV has grown nicely.
- The Gross Margin of FNV (72.00%) is better than 96.10% 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FNV is creating some value.
- The number of shares outstanding for FNV has been increased compared to 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 58.09. This indicates that FNV is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 58.09, FNV belongs to the top of the industry, outperforming 87.66% 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 | N/A | ||
| Altman-Z | 58.09 |
ROIC/WACC1.08
WACC9.59%
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.
- FNV has a Current ratio of 4.64. This is amongst the best in the industry. FNV outperforms 80.52% of its industry peers.
- FNV has a Quick Ratio of 4.55. This indicates that FNV is financially healthy and has no problem in meeting its short term obligations.
- FNV's Quick ratio of 4.55 is fine compared to the rest of the industry. FNV outperforms 79.87% of its industry peers.
| 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.
- The Earnings Per Share has been growing by 12.36% on average over the past years. This is quite good.
- The Revenue has decreased by -8.65% in the past year.
- Measured over the past years, FNV shows a small growth in Revenue. The Revenue has been growing by 5.70% on average per year.
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
- FNV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.77% yearly.
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
- 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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 54.53, the valuation of FNV can be described as expensive.
- 61.04% of the companies in the same industry are more expensive than FNV, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, FNV is valued quite expensively.
- The Price/Forward Earnings ratio is 34.77, which means the current valuation is very expensive for FNV.
- The rest of the industry has a similar Price/Forward Earnings ratio as FNV.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. FNV is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.53 | ||
| Fwd PE | 34.77 |
4.2 Price Multiples
- FNV's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 36.54 |
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.
- The excellent profitability rating of FNV may justify a higher PE ratio.
- FNV's earnings are expected to grow with 37.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.83
PEG (5Y)4.41
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 1.02, FNV pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, FNV's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
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
- FNV pays out 28.98% of its income as dividend. This is a sustainable payout ratio.
- FNV's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP28.98%
EPS Next 2Y50.2%
EPS Next 3Y37.56%
FRANCO-NEVADA CORP / FNV FAQ
Can you provide the ChartMill fundamental rating for FRANCO-NEVADA CORP?
ChartMill assigns a fundamental rating of 7 / 10 to FNV.
Can you provide the valuation status for FRANCO-NEVADA CORP?
ChartMill assigns a valuation rating of 4 / 10 to FRANCO-NEVADA CORP (FNV). This can be considered as Fairly Valued.
What is the profitability of FNV stock?
FRANCO-NEVADA CORP (FNV) 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) is 54.53 and the Price/Book (PB) ratio is 7.04.
How sustainable is the dividend of FRANCO-NEVADA CORP (FNV) stock?
The dividend rating of FRANCO-NEVADA CORP (FNV) is 6 / 10 and the dividend payout ratio is 28.98%.