FIRST NATIONAL FINANCIAL COR (FN.CA) Stock Fundamental Analysis
TSX:FN - CA33564P1036 - Common Stock
48.22 CAD
-0.06 (-0.12%)
FN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 29 industry peers in the Financial Services industry. Both the profitability and financial health of FN have multiple concerns. FN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year FN was profitable.
In the past year FN had a positive cash flow from operations.
FN had positive earnings in each of the past 5 years.
FN had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.34%, FN is not doing good in the industry: 68.97% of the companies in the same industry are doing better.
FN has a better Return On Equity (24.60%) than 93.10% of its industry peers.
FN's Return On Invested Capital of 0.35% is on the low side compared to the rest of the industry. FN is outperformed by 89.66% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FN is significantly below the industry average of 5.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.34% | ||
| ROE | 24.6% | ||
| ROIC | 0.35% |
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
The Profit Margin of FN (7.95%) is worse than 65.52% of its industry peers.
In the last couple of years the Profit Margin of FN has declined.
FN has a Operating Margin of 11.01%. This is amonst the worse of the industry: FN underperforms 86.21% of its industry peers.
In the last couple of years the Operating Margin of FN has declined.
Looking at the Gross Margin, with a value of 25.03%, FN is in line with its industry, outperforming 55.17% of the companies in the same industry.
In the last couple of years the Gross Margin of FN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.01% | ||
| PM (TTM) | 7.95% | ||
| GM | 25.03% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FN is destroying value.
FN has about the same amout of shares outstanding than it did 1 year ago.
FN has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, FN has a worse debt to assets ratio.
2.2 Solvency
FN has an Altman-Z score of -0.01. This is a bad value and indicates that FN is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of FN (-0.01) is worse than 86.21% of its industry peers.
FN has a debt to FCF ratio of 184.75. This is a negative value and a sign of low solvency as FN would need 184.75 years to pay back of all of its debts.
FN's Debt to FCF ratio of 184.75 is on the low side compared to the rest of the industry. FN is outperformed by 72.41% of its industry peers.
A Debt/Equity ratio of 71.28 is on the high side and indicates that FN has dependencies on debt financing.
FN has a worse Debt to Equity ratio (71.28) than 93.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 71.28 | ||
| Debt/FCF | 184.75 | ||
| Altman-Z | -0.01 |
ROIC/WACC0.12
WACC2.9%
2.3 Liquidity
A Current Ratio of 0.05 indicates that FN may have some problems paying its short term obligations.
FN's Current ratio of 0.05 is on the low side compared to the rest of the industry. FN is outperformed by 79.31% of its industry peers.
FN has a Quick Ratio of 0.05. This is a bad value and indicates that FN is not financially healthy enough and could expect problems in meeting its short term obligations.
FN's Quick ratio of 0.05 is on the low side compared to the rest of the industry. FN is outperformed by 79.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 |
3. Growth
3.1 Past
The earnings per share for FN have decreased strongly by -19.69% in the last year.
FN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.03% yearly.
FN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.85%.
The Revenue has been growing by 10.82% on average over the past years. This is quite good.
EPS 1Y (TTM)-19.69%
EPS 3Y1.44%
EPS 5Y2.03%
EPS Q2Q%16.85%
Revenue 1Y (TTM)8.85%
Revenue growth 3Y16.71%
Revenue growth 5Y10.82%
Sales Q2Q%23.39%
3.2 Future
Based on estimates for the next years, FN will show a small growth in Earnings Per Share. The EPS will grow by 7.25% on average per year.
The Revenue is expected to grow by 5.01% on average over the next years.
EPS Next Y2.15%
EPS Next 2Y10.19%
EPS Next 3Y7.25%
EPS Next 5YN/A
Revenue Next Year6.11%
Revenue Next 2Y7.29%
Revenue Next 3Y5.01%
Revenue Next 5YN/A
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.76 indicates a correct valuation of FN.
Based on the Price/Earnings ratio, FN is valued a bit cheaper than 68.97% of the companies in the same industry.
FN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.13.
A Price/Forward Earnings ratio of 11.89 indicates a reasonable valuation of FN.
Based on the Price/Forward Earnings ratio, FN is valued a bit cheaper than the industry average as 72.41% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of FN to the average of the S&P500 Index (22.76), we can say FN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.76 | ||
| Fwd PE | 11.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FN is valued a bit cheaper than 68.97% of the companies in the same industry.
FN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FN is cheaper than 86.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.04 | ||
| EV/EBITDA | 191.23 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FN does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)7.32
PEG (5Y)7.74
EPS Next 2Y10.19%
EPS Next 3Y7.25%
5. Dividend
5.1 Amount
FN has a Yearly Dividend Yield of 5.18%, which is a nice return.
FN's Dividend Yield is comparable with the industry average which is at 6.12.
Compared to an average S&P500 Dividend Yield of 2.32, FN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.18% |
5.2 History
The dividend of FN has a limited annual growth rate of 4.25%.
FN has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)4.25%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
FN pays out 99.34% of its income as dividend. This is not a sustainable payout ratio.
The dividend of FN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP99.34%
EPS Next 2Y10.19%
EPS Next 3Y7.25%
TSX:FN (8/29/2025, 7:00:00 PM)
48.22
-0.06 (-0.12%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners3.88%
Inst Owner ChangeN/A
Ins Owners71.46%
Ins Owner ChangeN/A
Market Cap2.89B
Analysts40
Price Target48.96 (1.53%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.18% |
Yearly Dividend3.02
Dividend Growth(5Y)4.25%
DP99.34%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-21.25%
Min EPS beat(2)-51.46%
Max EPS beat(2)8.96%
EPS beat(4)2
Avg EPS beat(4)-19.04%
Min EPS beat(4)-51.46%
Max EPS beat(4)8.96%
EPS beat(8)3
Avg EPS beat(8)-5.78%
EPS beat(12)5
Avg EPS beat(12)2.58%
EPS beat(16)7
Avg EPS beat(16)2.11%
Revenue beat(2)1
Avg Revenue beat(2)-4.35%
Min Revenue beat(2)-18.02%
Max Revenue beat(2)9.31%
Revenue beat(4)2
Avg Revenue beat(4)-5.71%
Min Revenue beat(4)-18.02%
Max Revenue beat(4)9.31%
Revenue beat(8)4
Avg Revenue beat(8)16%
Revenue beat(12)8
Avg Revenue beat(12)40.65%
Revenue beat(16)12
Avg Revenue beat(16)52.39%
PT rev (1m)17.07%
PT rev (3m)17.07%
EPS NQ rev (1m)-5.28%
EPS NQ rev (3m)-12.54%
EPS NY rev (1m)-16.28%
EPS NY rev (3m)-16.28%
Revenue NQ rev (1m)3.7%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)2.32%
Revenue NY rev (3m)2.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.76 | ||
| Fwd PE | 11.89 | ||
| P/S | 1.25 | ||
| P/FCF | 10.04 | ||
| P/OCF | 9.98 | ||
| P/B | 3.87 | ||
| P/tB | 4.03 | ||
| EV/EBITDA | 191.23 |
EPS(TTM)3.06
EY6.35%
EPS(NY)4.06
Fwd EY8.41%
FCF(TTM)4.8
FCFY9.96%
OCF(TTM)4.83
OCFY10.02%
SpS38.53
BVpS12.45
TBVpS11.95
PEG (NY)7.32
PEG (5Y)7.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.34% | ||
| ROE | 24.6% | ||
| ROCE | 0.52% | ||
| ROIC | 0.35% | ||
| ROICexc | 0.35% | ||
| ROICexgc | 0.35% | ||
| OM | 11.01% | ||
| PM (TTM) | 7.95% | ||
| GM | 25.03% | ||
| FCFM | 12.47% |
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-Score5
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 71.28 | ||
| Debt/FCF | 184.75 | ||
| Debt/EBITDA | 199.55 | ||
| Cap/Depr | 13.55% | ||
| Cap/Sales | 0.07% | ||
| Interest Coverage | 0.17 | ||
| Cash Conversion | 108.63% | ||
| Profit Quality | 156.82% | ||
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 | ||
| Altman-Z | -0.01 |
F-Score5
WACC2.9%
ROIC/WACC0.12
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)-19.69%
EPS 3Y1.44%
EPS 5Y2.03%
EPS Q2Q%16.85%
EPS Next Y2.15%
EPS Next 2Y10.19%
EPS Next 3Y7.25%
EPS Next 5YN/A
Revenue 1Y (TTM)8.85%
Revenue growth 3Y16.71%
Revenue growth 5Y10.82%
Sales Q2Q%23.39%
Revenue Next Year6.11%
Revenue Next 2Y7.29%
Revenue Next 3Y5.01%
Revenue Next 5YN/A
EBIT growth 1Y-19.24%
EBIT growth 3Y1.6%
EBIT growth 5Y2.74%
EBIT Next Year-98.05%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y12.08%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y8.58%
OCF growth 3YN/A
OCF growth 5YN/A