FIRST NATIONAL FINANCIAL - FNCN 2.895 PERP (FN-PR-A.CA) Stock Fundamental Analysis
TSX:FN-PR-A - Toronto Stock Exchange - CA33564P2026 - Currency: CAD
We assign a fundamental rating of 4 out of 10 to FN-PR-A. FN-PR-A was compared to 29 industry peers in the Financial Services industry. FN-PR-A has a bad profitability rating. Also its financial health evaluation is rather negative. FN-PR-A may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
FN-PR-A had positive earnings in the past year.
In the past year FN-PR-A has reported a negative cash flow from operations.
Each year in the past 5 years FN-PR-A has been profitable.
In the past 5 years FN-PR-A reported 4 times negative operating cash flow.
1.2 Ratios
FN-PR-A has a worse Return On Assets (0.33%) than 75.86% of its industry peers.
The Return On Equity of FN-PR-A (24.34%) is better than 100.00% of its industry peers.
FN-PR-A's Return On Invested Capital of 0.34% is on the low side compared to the rest of the industry. FN-PR-A is outperformed by 86.21% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FN-PR-A is significantly below the industry average of 5.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.33% | ||
| ROE | 24.34% | ||
| ROIC | 0.34% |
ROA(3y)0.46%
ROA(5y)0.46%
ROE(3y)29.54%
ROE(5y)30.93%
ROIC(3y)0.47%
ROIC(5y)0.47%
1.3 Margins
FN-PR-A has a Profit Margin (7.82%) which is in line with its industry peers.
FN-PR-A's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 10.85%, FN-PR-A is doing worse than 79.31% of the companies in the same industry.
In the last couple of years the Operating Margin of FN-PR-A has declined.
The Gross Margin of FN-PR-A (25.05%) is better than 62.07% of its industry peers.
FN-PR-A's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.85% | ||
| PM (TTM) | 7.82% | ||
| GM | 25.05% |
OM growth 3Y-12.95%
OM growth 5Y-7.29%
PM growth 3Y-13.2%
PM growth 5Y-7.28%
GM growth 3Y-10.39%
GM growth 5Y-2.89%
2. Health
2.1 Basic Checks
FN-PR-A has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for FN-PR-A remains at a similar level compared to 1 year ago.
Compared to 5 years ago, FN-PR-A has about the same amount of shares outstanding.
FN-PR-A has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.01, we must say that FN-PR-A is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.01, FN-PR-A is not doing good in the industry: 93.10% of the companies in the same industry are doing better.
FN-PR-A has a Debt/Equity ratio of 71.34. This is a high value indicating a heavy dependency on external financing.
FN-PR-A has a worse Debt to Equity ratio (71.34) than 86.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 71.34 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.01 |
ROIC/WACC0.14
WACC2.41%
2.3 Liquidity
FN-PR-A has a Current Ratio of 0.05. This is a bad value and indicates that FN-PR-A is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.05, FN-PR-A is in line with its industry, outperforming 44.83% of the companies in the same industry.
A Quick Ratio of 0.05 indicates that FN-PR-A may have some problems paying its short term obligations.
FN-PR-A has a Quick ratio (0.05) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 |
3. Growth
3.1 Past
FN-PR-A shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.71%.
The Earnings Per Share has been growing slightly by 2.03% on average over the past years.
FN-PR-A shows a small growth in Revenue. In the last year, the Revenue has grown by 5.57%.
The Revenue has been growing by 10.82% on average over the past years. This is quite good.
EPS 1Y (TTM)-33.71%
EPS 3Y1.44%
EPS 5Y2.03%
EPS Q2Q%-52.44%
Revenue 1Y (TTM)5.57%
Revenue growth 3Y16.71%
Revenue growth 5Y10.82%
Sales Q2Q%-12.86%
3.2 Future
The Earnings Per Share is expected to grow by 17.01% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.40% on average over the next years. This is quite good.
EPS Next Y22.02%
EPS Next 2Y17.01%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.9%
Revenue Next 2Y7.06%
Revenue Next 3Y8.4%
Revenue Next 5YN/A
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 5.44, the valuation of FN-PR-A can be described as very cheap.
Based on the Price/Earnings ratio, FN-PR-A is valued cheaper than 96.55% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.52, FN-PR-A is valued rather cheaply.
A Price/Forward Earnings ratio of 3.46 indicates a rather cheap valuation of FN-PR-A.
FN-PR-A's Price/Forward Earnings ratio is rather cheap when compared to the industry. FN-PR-A is cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.25. FN-PR-A is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.44 | ||
| Fwd PE | 3.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FN-PR-A is valued a bit cheaper than 75.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 187.33 |
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.
FN-PR-A's earnings are expected to grow with 17.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.25
PEG (5Y)2.67
EPS Next 2Y17.01%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.41%, FN-PR-A is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.42, FN-PR-A is paying slightly less dividend.
FN-PR-A's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.41% |
5.2 History
The dividend of FN-PR-A has a limited annual growth rate of 4.25%.
FN-PR-A has been paying a dividend for at least 10 years, so it has a reliable track record.
FN-PR-A has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.25%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
FN-PR-A pays out 104.34% of its income as dividend. This is not a sustainable payout ratio.
The dividend of FN-PR-A is growing, but earnings are growing more, so the dividend growth is sustainable.
DP104.34%
EPS Next 2Y17.01%
EPS Next 3YN/A
FIRST NATIONAL FINANCIAL - FNCN 2.895 PERP
TSX:FN-PR-A (6/6/2025, 7:00:00 PM)
15.82
+0.19 (+1.22%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners4.08%
Inst Owner ChangeN/A
Ins Owners71.45%
Ins Owner ChangeN/A
Market Cap948.73M
Analysts76.92
Price Target16.96 (7.21%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.41% |
Yearly Dividend3.02
Dividend Growth(5Y)4.25%
DP104.34%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-22.02%
Min EPS beat(2)-51.46%
Max EPS beat(2)7.42%
EPS beat(4)1
Avg EPS beat(4)-22.68%
Min EPS beat(4)-51.46%
Max EPS beat(4)7.42%
EPS beat(8)3
Avg EPS beat(8)3.62%
EPS beat(12)5
Avg EPS beat(12)3.49%
EPS beat(16)6
Avg EPS beat(16)-0.02%
Revenue beat(2)1
Avg Revenue beat(2)-7.9%
Min Revenue beat(2)-18.02%
Max Revenue beat(2)2.22%
Revenue beat(4)1
Avg Revenue beat(4)-11.56%
Min Revenue beat(4)-18.02%
Max Revenue beat(4)2.22%
Revenue beat(8)4
Avg Revenue beat(8)17.08%
Revenue beat(12)8
Avg Revenue beat(12)47.66%
Revenue beat(16)12
Avg Revenue beat(16)56.65%
PT rev (1m)0%
PT rev (3m)5.07%
EPS NQ rev (1m)-6.51%
EPS NQ rev (3m)-14.69%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.52%
Revenue NQ rev (1m)-1.09%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-5.92%
Revenue NY rev (3m)-4.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.44 | ||
| Fwd PE | 3.46 | ||
| P/S | 0.43 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.33 | ||
| P/tB | 1.38 | ||
| EV/EBITDA | 187.33 |
EPS(TTM)2.91
EY18.39%
EPS(NY)4.57
Fwd EY28.91%
FCF(TTM)-12.62
FCFYN/A
OCF(TTM)-12.56
OCFYN/A
SpS37.15
BVpS11.94
TBVpS11.44
PEG (NY)0.25
PEG (5Y)2.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.33% | ||
| ROE | 24.34% | ||
| ROCE | 0.51% | ||
| ROIC | 0.34% | ||
| ROICexc | 0.34% | ||
| ROICexgc | 0.34% | ||
| OM | 10.85% | ||
| PM (TTM) | 7.82% | ||
| GM | 25.05% | ||
| FCFM | N/A |
ROA(3y)0.46%
ROA(5y)0.46%
ROE(3y)29.54%
ROE(5y)30.93%
ROIC(3y)0.47%
ROIC(5y)0.47%
ROICexc(3y)0.47%
ROICexc(5y)0.47%
ROICexgc(3y)0.47%
ROICexgc(5y)0.47%
ROCE(3y)0.7%
ROCE(5y)0.71%
ROICexcg growth 3Y-4.65%
ROICexcg growth 5Y-3.34%
ROICexc growth 3Y-4.64%
ROICexc growth 5Y-3.34%
OM growth 3Y-12.95%
OM growth 5Y-7.29%
PM growth 3Y-13.2%
PM growth 5Y-7.28%
GM growth 3Y-10.39%
GM growth 5Y-2.89%
F-Score2
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 71.34 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 200 | ||
| Cap/Depr | 25.15% | ||
| Cap/Sales | 0.15% | ||
| Interest Coverage | 0.17 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 | ||
| Altman-Z | -0.01 |
F-Score2
WACC2.41%
ROIC/WACC0.14
Cap/Depr(3y)54.65%
Cap/Depr(5y)111.75%
Cap/Sales(3y)0.43%
Cap/Sales(5y)0.77%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-33.71%
EPS 3Y1.44%
EPS 5Y2.03%
EPS Q2Q%-52.44%
EPS Next Y22.02%
EPS Next 2Y17.01%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.57%
Revenue growth 3Y16.71%
Revenue growth 5Y10.82%
Sales Q2Q%-12.86%
Revenue Next Year3.9%
Revenue Next 2Y7.06%
Revenue Next 3Y8.4%
Revenue Next 5YN/A
EBIT growth 1Y-33.42%
EBIT growth 3Y1.6%
EBIT growth 5Y2.74%
EBIT Next Year-98.05%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-161.79%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-161.01%
OCF growth 3YN/A
OCF growth 5YN/A