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%)
We assign a fundamental rating of 7 out of 10 to FNV. FNV was compared to 156 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 has a decent growth rate and is not valued too expensively. This makes FNV very considerable for quality investing!
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.
- FNV had positive earnings in 4 of the past 5 years.
- FNV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of FNV (12.24%) is better than 92.31% 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 82.69% of the companies in the same industry.
- FNV has a Return On Invested Capital of 10.39%. This is amongst the best in the industry. FNV outperforms 80.77% of its industry peers.
- FNV had an Average Return On Invested Capital over the past 3 years of 8.75%. This is in line with the industry average of 10.34%.
- The last Return On Invested Capital (10.39%) for FNV is above the 3 year average (8.75%), which is a sign of increasing profitability.
| 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
- The Profit Margin of FNV (59.48%) is better than 98.72% of its industry peers.
- FNV's Profit Margin has improved in the last couple of years.
- FNV has a Operating Margin of 68.77%. This is amongst the best in the industry. FNV outperforms 98.72% 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 96.15% 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
- FNV has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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 58.67. This indicates that FNV is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of FNV (58.67) is better than 87.82% of its industry peers.
- 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 | 58.67 |
ROIC/WACC1.08
WACC9.59%
2.3 Liquidity
- A Current Ratio of 4.64 indicates that FNV has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 4.64, FNV belongs to the top of the industry, outperforming 80.13% 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.
- Looking at the Quick ratio, with a value of 4.55, FNV is in the better half of the industry, outperforming 79.49% 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.
- The Earnings Per Share has been growing by 12.36% on average over the past years. This is quite good.
- Looking at the last year, FNV shows a decrease in Revenue. The Revenue has decreased by -8.65% in the last year.
- The Revenue has been growing slightly by 5.70% on average over the past years.
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
- Based on estimates for the next years, FNV will show a very strong growth in Earnings Per Share. The EPS will grow by 24.15% on average per year.
- Based on estimates for the next years, FNV will show a quite strong growth in Revenue. The Revenue will grow by 18.77% on average per year.
EPS Next Y64%
EPS Next 2Y48.45%
EPS Next 3Y35.11%
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
- Based on the Price/Earnings ratio of 54.53, the valuation of FNV can be described as expensive.
- FNV's Price/Earnings ratio is a bit cheaper when compared to the industry. FNV is cheaper than 61.54% of the companies in the same industry.
- FNV is valuated expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 35.60, FNV can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of FNV is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, FNV is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.53 | ||
| Fwd PE | 35.6 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as FNV.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 36.91 |
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.
- A more expensive valuation may be justified as FNV's earnings are expected to grow with 35.11% in the coming years.
PEG (NY)0.85
PEG (5Y)4.41
EPS Next 2Y48.45%
EPS Next 3Y35.11%
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 0.96, FNV pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.61, FNV pays less dividend than the S&P500 average, which is at 1.82.
| 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 paid a dividend for at least 10 years, which is 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.
- The dividend of FNV is growing, but earnings are growing more, so the dividend growth is sustainable.
DP28.98%
EPS Next 2Y48.45%
EPS Next 3Y35.11%
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%.