FRANCO-NEVADA CORP (FNV) Stock Fundamental Analysis
NYSE:FNV - New York Stock Exchange, Inc. - CA3518581051 - Common Stock - Currency: USD
Taking everything into account, FNV scores 6 out of 10 in our fundamental rating. FNV was compared to 150 industry peers in the Metals & Mining industry. FNV is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. FNV is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year FNV was profitable.
FNV had a positive operating cash flow in the past year.
FNV had positive earnings in 4 of the past 5 years.
In the past 5 years FNV always reported a positive cash flow from operatings.
1.2 Ratios
FNV has a worse Return On Assets (-9.62%) than 68.53% of its industry peers.
FNV's Return On Equity of -10.12% is on the low side compared to the rest of the industry. FNV is outperformed by 64.34% of its industry peers.
The Return On Invested Capital of FNV (9.27%) is better than 83.22% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FNV is in line with the industry average of 8.84%.
| 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
The Operating Margin of FNV (62.77%) is better than 98.60% of its industry peers.
In the last couple of years the Operating Margin of FNV has grown nicely.
FNV's Gross Margin of 65.88% is amongst the best of the industry. FNV outperforms 95.10% of its industry peers.
In the last couple of years the Gross Margin of FNV has grown nicely.
| 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
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 about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, FNV has more shares outstanding
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
An Altman-Z score of 53.23 indicates that FNV is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 53.23, FNV belongs to the best of the industry, outperforming 93.01% 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 | 53.23 |
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.
FNV has a Current ratio of 23.39. This is amongst the best in the industry. FNV outperforms 95.80% of its industry peers.
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 95.80% 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.
The Revenue for FNV has decreased by -11.34% in the past year. This is quite bad
Measured over the past years, FNV shows a quite strong growth in Revenue. The Revenue has been growing by 13.29% on average per year.
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
The Earnings Per Share is expected to grow by 6.61% on average over the next years.
Based on estimates for the next years, FNV will show a small growth in Revenue. The Revenue will grow by 6.31% on average per year.
EPS Next Y-8.5%
EPS Next 2Y7.84%
EPS Next 3Y9.56%
EPS Next 5Y6.61%
Revenue Next Year-9.03%
Revenue Next 2Y5.36%
Revenue Next 3Y8.34%
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.
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 43.21, which means the current valuation is very expensive for FNV.
FNV's Price/Earnings is on the same level as the industry average.
FNV is valuated rather expensively when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 33.59, which means the current valuation is very expensive for FNV.
The rest of the industry has a similar Price/Forward Earnings ratio as FNV.
When comparing the Price/Forward Earnings ratio of FNV to the average of the S&P500 Index (22.68), we can say FNV is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.21 | ||
| Fwd PE | 33.59 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FNV is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, FNV is valued a bit cheaper than 60.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 69.85 | ||
| EV/EBITDA | 28.16 |
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)1.72
EPS Next 2Y7.84%
EPS Next 3Y9.56%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.06%, FNV has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.16, FNV pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.06, FNV pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
5.2 History
On average, the dividend of FNV grows each year by 10.68%, which is quite nice.
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)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.
The dividend of FNV is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-39.63%
EPS Next 2Y7.84%
EPS Next 3Y9.56%
138.69
-3.04 (-2.14%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners77.7%
Inst Owner Change1.11%
Ins Owners0.7%
Ins Owner ChangeN/A
Market Cap26.70B
Analysts72.94
Price Target150.52 (8.53%)
Short Float %0.92%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
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)1.21%
PT rev (3m)2.07%
EPS NQ rev (1m)2.18%
EPS NQ rev (3m)20.32%
EPS NY rev (1m)0.54%
EPS NY rev (3m)-3.1%
Revenue NQ rev (1m)0.43%
Revenue NQ rev (3m)14.02%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-2.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.21 | ||
| Fwd PE | 33.59 | ||
| P/S | 24.36 | ||
| P/FCF | 69.85 | ||
| P/OCF | 30.69 | ||
| P/B | 4.46 | ||
| P/tB | 4.46 | ||
| EV/EBITDA | 28.16 |
EPS(TTM)3.21
EY2.31%
EPS(NY)4.13
Fwd EY2.98%
FCF(TTM)1.99
FCFY1.43%
OCF(TTM)4.52
OCFY3.26%
SpS5.69
BVpS31.1
TBVpS31.1
PEG (NY)N/A
PEG (5Y)1.72
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 | 53.23 |
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-8.5%
EPS Next 2Y7.84%
EPS Next 3Y9.56%
EPS Next 5Y6.61%
Revenue 1Y (TTM)-11.34%
Revenue growth 3Y6.11%
Revenue growth 5Y13.29%
Sales Q2Q%-10.99%
Revenue Next Year-9.03%
Revenue Next 2Y5.36%
Revenue Next 3Y8.34%
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%