FIRST NATIONAL FINANCIAL COR (FN.CA) Stock Fundamental Analysis
Canada - TSX:FN - CA33564P1036 - Common Stock
48.03 CAD
+0.04 (+0.08%)
Taking everything into account, FN scores 3 out of 10 in our fundamental rating. FN was compared to 29 industry peers in the Financial Services industry. FN may be in some trouble as it scores bad on both profitability and health. FN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year FN was profitable.
FN had a positive operating cash flow in the past year.
Each year in the past 5 years FN has been profitable.
FN had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
FN has a Return On Assets of 0.34%. This is in the lower half of the industry: FN underperforms 68.97% of its industry peers.
Looking at the Return On Equity, with a value of 24.60%, FN belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
FN has a Return On Invested Capital of 0.35%. This is amonst the worse of the industry: FN underperforms 89.66% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FN is below the industry average of 5.38%.
| 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
FN has a Profit Margin of 7.95%. This is in the lower half of the industry: FN underperforms 65.52% of its industry peers.
FN's Profit Margin has declined in the last couple of years.
The Operating Margin of FN (11.01%) is worse than 86.21% of its industry peers.
In the last couple of years the Operating Margin of FN has declined.
The Gross Margin of FN (25.03%) is comparable to the rest of the 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
FN 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 remains at a similar level compared to 1 year ago.
FN has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for FN is higher compared to a year ago.
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 has a worse Debt to FCF ratio (184.75) than 65.52% 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.
With a Debt to Equity ratio value of 71.28, FN is not doing good in the industry: 93.10% of the companies in the same industry are doing better.
| 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.
The Current ratio of FN (0.05) is worse than 79.31% of its industry peers.
A Quick Ratio of 0.05 indicates that FN may have some problems paying 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
FN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.69%.
The Earnings Per Share has been growing slightly by 2.03% on average over the past years.
The Revenue has grown by 8.85% in the past year. This is quite good.
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
The Earnings Per Share is expected to grow by 7.25% on average over the next years.
FN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.01% yearly.
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
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.
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
FN is valuated correctly with a Price/Earnings ratio of 15.70.
72.41% of the companies in the same industry are more expensive than FN, based on the Price/Earnings ratio.
FN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.84, which indicates a very decent valuation of FN.
Based on the Price/Forward Earnings ratio, FN is valued a bit cheaper than 72.41% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.85. FN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.7 | ||
| Fwd PE | 11.84 |
4.2 Price Multiples
68.97% of the companies in the same industry are more expensive than FN, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FN indicates a rather cheap valuation: FN is cheaper than 89.66% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10 | ||
| EV/EBITDA | 191.18 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)7.29
PEG (5Y)7.71
EPS Next 2Y10.19%
EPS Next 3Y7.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.21%, FN is a good candidate for dividend investing.
FN's Dividend Yield is slightly below the industry average, which is at 7.85.
FN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.21% |
5.2 History
The dividend of FN has a limited annual growth rate of 4.25%.
FN has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.25%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
99.34% of the earnings are spent on dividend by FN. 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 (10/16/2025, 7:00:00 PM)
48.03
+0.04 (+0.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners3.8%
Inst Owner ChangeN/A
Ins Owners59.79%
Ins Owner ChangeN/A
Market Cap2.88B
Analysts40
Price Target48.96 (1.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.21% |
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)0%
PT rev (3m)17.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.18%
EPS NY rev (1m)0%
EPS NY rev (3m)-16.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.7 | ||
| Fwd PE | 11.84 | ||
| P/S | 1.25 | ||
| P/FCF | 10 | ||
| P/OCF | 9.94 | ||
| P/B | 3.86 | ||
| P/tB | 4.02 | ||
| EV/EBITDA | 191.18 |
EPS(TTM)3.06
EY6.37%
EPS(NY)4.06
Fwd EY8.44%
FCF(TTM)4.8
FCFY10%
OCF(TTM)4.83
OCFY10.06%
SpS38.53
BVpS12.45
TBVpS11.95
PEG (NY)7.29
PEG (5Y)7.71
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-98.27%
EBIT Next 3Y-72.17%
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