FIRST NATIONAL FINANCIAL COR (FN.CA) Stock Fundamental Analysis
Canada - TSX:FN - CA33564P1036 - Common Stock
48.08 CAD
-0.06 (-0.12%)
Overall FN gets a fundamental rating of 3 out of 10. We evaluated FN 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
FN had positive earnings in the past year.
In the past year FN had a positive cash flow from operations.
In the past 5 years FN has always been profitable.
In the past 5 years FN reported 4 times negative operating cash flow.
1.2 Ratios
FN has a worse Return On Assets (0.34%) than 68.97% of its industry peers.
FN has a Return On Equity of 24.60%. This is amongst the best in the industry. FN outperforms 93.10% of its industry peers.
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 significantly below the industry average of 5.60%.
| 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.
In the last couple of years the Profit Margin of FN has declined.
The Operating Margin of FN (11.01%) is worse than 86.21% of its industry peers.
FN's Operating Margin has declined in the last couple of years.
FN has a Gross Margin (25.03%) which is in line with its industry peers.
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.
Compared to 1 year ago, FN has about the same amount of shares outstanding.
Compared to 5 years ago, FN has about the same amount of shares outstanding.
FN 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 is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.01, FN is doing worse than 86.21% of the companies in the same industry.
The Debt to FCF ratio of FN is 184.75, which is on the high side as it means it would take FN, 184.75 years of fcf income to pay off all of its debts.
FN has a Debt to FCF ratio of 184.75. This is in the lower half of the industry: FN underperforms 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.
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.
Looking at the Quick ratio, with a value of 0.05, FN is doing worse than 79.31% of the companies in the same industry.
| 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.
Measured over the past 5 years, FN shows a small growth in Earnings Per Share. The EPS has been growing by 2.03% on average per year.
Looking at the last year, FN shows a quite strong growth in Revenue. The Revenue has grown by 8.85% in the last year.
FN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.82% yearly.
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.
Based on estimates for the next years, FN will show a small growth in Revenue. The Revenue will grow by 5.01% on average per year.
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.
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
FN is valuated correctly with a Price/Earnings ratio of 15.71.
FN's Price/Earnings ratio is a bit cheaper when compared to the industry. FN is cheaper than 68.97% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. FN is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 11.86, the valuation of FN can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FN indicates a somewhat cheap valuation: FN is cheaper than 72.41% of the companies listed in the same industry.
FN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.71 | ||
| Fwd PE | 11.86 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FN indicates a somewhat cheap valuation: FN is cheaper than 68.97% of the companies listed 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 | 10.01 | ||
| EV/EBITDA | 191.21 |
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)7.3
PEG (5Y)7.72
EPS Next 2Y10.19%
EPS Next 3Y7.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.19%, FN is a good candidate for dividend investing.
FN's Dividend Yield is comparable with the industry average which is at 6.67.
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 | 5.19% |
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
99.34% of the earnings are spent on dividend by FN. This is not a sustainable payout ratio.
FN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP99.34%
EPS Next 2Y10.19%
EPS Next 3Y7.25%
TSX:FN (9/22/2025, 7:00:00 PM)
48.08
-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 Cap2.88B
Analysts40
Price Target48.96 (1.83%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.19% |
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)-12.54%
EPS NY rev (1m)0%
EPS NY rev (3m)-16.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.71 | ||
| Fwd PE | 11.86 | ||
| P/S | 1.25 | ||
| P/FCF | 10.01 | ||
| P/OCF | 9.95 | ||
| P/B | 3.86 | ||
| P/tB | 4.02 | ||
| EV/EBITDA | 191.21 |
EPS(TTM)3.06
EY6.36%
EPS(NY)4.06
Fwd EY8.44%
FCF(TTM)4.8
FCFY9.99%
OCF(TTM)4.83
OCFY10.05%
SpS38.53
BVpS12.45
TBVpS11.95
PEG (NY)7.3
PEG (5Y)7.72
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