FIRST NATIONAL FINANCIAL COR (FN.CA) Stock Fundamental Analysis
TSX:FN - Toronto Stock Exchange - CA33564P1036 - Common Stock - Currency: CAD
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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year FN was profitable.
FN had a negative operating cash flow in the past year.
In the past 5 years FN has always been profitable.
FN had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.33%, FN is not doing good in the industry: 82.76% of the companies in the same industry are doing better.
FN's Return On Equity of 24.34% is amongst the best of the industry. FN outperforms 93.10% of its industry peers.
With a Return On Invested Capital value of 0.34%, FN is not doing good in the industry: 93.10% of the companies in the same industry are doing better.
FN had an Average Return On Invested Capital over the past 3 years of 0.47%. This 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 has a worse Profit Margin (7.82%) than 65.52% of its industry peers.
In the last couple of years the Profit Margin of FN has declined.
FN's Operating Margin of 10.85% is on the low side compared to the rest of the industry. FN is outperformed by 86.21% of its industry peers.
In the last couple of years the Operating Margin of FN has declined.
FN has a Gross Margin of 25.05%. This is comparable to the rest of the industry: FN outperforms 55.17% of its industry peers.
In the last couple of years the Gross Margin of FN has declined.
| 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
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.
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 0.00, we must say that FN is in the distress zone and has some risk of bankruptcy.
FN's Altman-Z score of 0.00 is on the low side compared to the rest of the industry. FN is outperformed by 86.21% of its industry peers.
A Debt/Equity ratio of 71.34 is on the high side and indicates that FN has dependencies on debt financing.
FN has a Debt to Equity ratio of 71.34. This is amonst the worse of the industry: FN underperforms 93.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 71.34 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0 |
ROIC/WACC0.12
WACC2.74%
2.3 Liquidity
FN has a Current 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.
Looking at the Current ratio, with a value of 0.05, FN is doing worse than 62.07% of the companies in the same industry.
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 62.07% 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 -33.71% 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 small growth in Revenue. The Revenue has grown by 5.57% 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)-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
Based on estimates for the next years, FN will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.01% on average per year.
Based on estimates for the next years, FN will show a quite strong growth in Revenue. The Revenue will grow by 8.40% on average per year.
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
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 13.13.
Based on the Price/Earnings ratio, FN is valued a bit cheaper than the industry average as 72.41% of the companies are valued more expensively.
FN is valuated cheaply when we compare the Price/Earnings ratio to 26.52, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.35, the valuation of FN can be described as very reasonable.
Based on the Price/Forward Earnings ratio, FN is valued cheaply inside the industry as 86.21% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.25. FN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.13 | ||
| Fwd PE | 8.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FN is valued a bit cheaper than the industry average as 68.97% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 192.63 |
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.
A more expensive valuation may be justified as FN's earnings are expected to grow with 17.01% in the coming years.
PEG (NY)0.6
PEG (5Y)6.45
EPS Next 2Y17.01%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FN has a Yearly Dividend Yield of 6.54%, which is a nice return.
FN's Dividend Yield is comparable with the industry average which is at 6.44.
FN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.54% |
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 104.34% of its income as dividend. This is not a sustainable payout ratio.
FN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP104.34%
EPS Next 2Y17.01%
EPS Next 3YN/A
TSX:FN (6/6/2025, 7:00:00 PM)
38.2
-0.04 (-0.1%)
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 Cap2.29B
Analysts76.92
Price Target41.82 (9.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.54% |
Yearly Dividend3.02
Dividend Growth(5Y)4.25%
DP104.34%
Div Incr Years0
Div Non Decr Years0
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)-5.96%
PT rev (3m)-5.96%
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)0%
Revenue NY rev (3m)-4.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.13 | ||
| Fwd PE | 8.35 | ||
| P/S | 1.03 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.2 | ||
| P/tB | 3.34 | ||
| EV/EBITDA | 192.63 |
EPS(TTM)2.91
EY7.62%
EPS(NY)4.57
Fwd EY11.97%
FCF(TTM)-12.62
FCFYN/A
OCF(TTM)-12.56
OCFYN/A
SpS37.15
BVpS11.94
TBVpS11.44
PEG (NY)0.6
PEG (5Y)6.45
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 |
F-Score2
WACC2.74%
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)-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