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FIRST NATIONAL FINANCIAL COR (FN.CA) Stock Fundamental Analysis

TSX:FN - Toronto Stock Exchange - CA33564P1036 - Common Stock - Currency: CAD

40.23  -0.25 (-0.62%)

Fundamental Rating

3

FN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 33 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.


Dividend Valuation Growth Profitability Health

3

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.
The reported operating cash flow has been mixed in the past 5 years: FN reported negative operating cash flow in multiple years.
FN.CA Yearly Net Income VS EBIT VS OCF VS FCFFN.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M -400M

1.2 Ratios

The Return On Assets of FN (0.36%) is worse than 72.73% of its industry peers.
FN's Return On Equity of 24.37% is amongst the best of the industry. FN outperforms 90.91% of its industry peers.
The Return On Invested Capital of FN (0.37%) is worse than 93.94% of its industry peers.
FN had an Average Return On Invested Capital over the past 3 years of 0.49%. This is significantly below the industry average of 5.86%.
Industry RankSector Rank
ROA 0.36%
ROE 24.37%
ROIC 0.37%
ROA(3y)0.48%
ROA(5y)0.48%
ROE(3y)31.61%
ROE(5y)31.73%
ROIC(3y)0.49%
ROIC(5y)0.48%
FN.CA Yearly ROA, ROE, ROICFN.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30

1.3 Margins

FN has a worse Profit Margin (8.52%) than 69.70% of its industry peers.
In the last couple of years the Profit Margin of FN has declined.
FN's Operating Margin of 11.84% is on the low side compared to the rest of the industry. FN is outperformed by 84.85% of its industry peers.
FN's Operating Margin has declined in the last couple of years.
FN has a Gross Margin of 25.94%. This is comparable to the rest of the industry: FN outperforms 57.58% of its industry peers.
FN's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 11.84%
PM (TTM) 8.52%
GM 25.94%
OM growth 3Y-3.22%
OM growth 5Y-2.46%
PM growth 3Y-3.24%
PM growth 5Y-2.33%
GM growth 3Y-3.18%
GM growth 5Y-1.74%
FN.CA Yearly Profit, Operating, Gross MarginsFN.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30 40

1

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.
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.
The debt/assets ratio for FN has remained at the same level compared to a year ago.
FN.CA Yearly Shares OutstandingFN.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M 40M 50M
FN.CA Yearly Total Debt VS Total AssetsFN.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B 40B

2.2 Solvency

Based on the Altman-Z score of 0.02, we must say that FN is in the distress zone and has some risk of bankruptcy.
FN's Altman-Z score of 0.02 is on the low side compared to the rest of the industry. FN is outperformed by 87.88% of its industry peers.
FN has a debt to FCF ratio of 72.90. This is a negative value and a sign of low solvency as FN would need 72.90 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 72.90, FN is doing worse than 87.88% of the companies in the same industry.
FN has a Debt/Equity ratio of 66.52. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of FN (66.52) is worse than 93.94% of its industry peers.
Industry RankSector Rank
Debt/Equity 66.52
Debt/FCF 72.9
Altman-Z 0.02
ROIC/WACC0.14
WACC2.58%
FN.CA Yearly LT Debt VS Equity VS FCFFN.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10B 20B 30B 40B

2.3 Liquidity

FN has a Current Ratio of 0.07. 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 has a Current ratio of 0.07. This is in the lower half of the industry: FN underperforms 75.76% of its industry peers.
FN has a Quick Ratio of 0.07. 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 0.07 is on the low side compared to the rest of the industry. FN is outperformed by 75.76% of its industry peers.
Industry RankSector Rank
Current Ratio 0.07
Quick Ratio 0.07
FN.CA Yearly Current Assets VS Current LiabilitesFN.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

4

3. Growth

3.1 Past

The earnings per share for FN have decreased strongly by -26.88% in the last year.
Measured over the past years, FN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.22% on average per year.
Looking at the last year, FN shows a quite strong growth in Revenue. The Revenue has grown by 9.54% in the last year.
Measured over the past years, FN shows a quite strong growth in Revenue. The Revenue has been growing by 11.37% on average per year.
EPS 1Y (TTM)-26.88%
EPS 3Y0.32%
EPS 5Y9.22%
EPS Q2Q%-57.25%
Revenue 1Y (TTM)9.54%
Revenue growth 3Y13.61%
Revenue growth 5Y11.37%
Sales Q2Q%-26%

3.2 Future

FN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.85% yearly.
The Revenue is expected to grow by 2.28% on average over the next years.
EPS Next Y-21.49%
EPS Next 2Y-0.49%
EPS Next 3Y1.85%
EPS Next 5YN/A
Revenue Next Year-7.41%
Revenue Next 2Y1.02%
Revenue Next 3Y2.28%
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
FN.CA Yearly Revenue VS EstimatesFN.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B 2B
FN.CA Yearly EPS VS EstimatesFN.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4

6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 13.32 indicates a correct valuation of FN.
69.70% of the companies in the same industry are more expensive than FN, based on the Price/Earnings ratio.
FN is valuated cheaply when we compare the Price/Earnings ratio to 29.39, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.79, which indicates a very decent valuation of FN.
Based on the Price/Forward Earnings ratio, FN is valued cheaper than 81.82% of the companies in the same industry.
FN is valuated cheaply when we compare the Price/Forward Earnings ratio to 94.38, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 13.32
Fwd PE 9.79
FN.CA Price Earnings VS Forward Price EarningsFN.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 100 200 300 400

4.2 Price Multiples

69.70% of the companies in the same industry are more expensive than FN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, FN is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 3.57
EV/EBITDA 181.25
FN.CA Per share dataFN.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)1.44
EPS Next 2Y-0.49%
EPS Next 3Y1.85%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 6.20%, FN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.91, FN has a dividend in line with its industry peers.
FN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
Industry RankSector Rank
Dividend Yield 6.2%

5.2 History

The dividend of FN has a limited annual growth rate of 2.09%.
FN has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of FN decreased in the last 3 years.
Dividend Growth(5Y)2.09%
Div Incr Years2
Div Non Decr Years2
FN.CA Yearly Dividends per shareFN.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3

5.3 Sustainability

FN pays out 108.13% of its income as dividend. This is not a sustainable payout ratio.
The dividend of FN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP108.13%
EPS Next 2Y-0.49%
EPS Next 3Y1.85%
FN.CA Yearly Income VS Free CF VS DividendFN.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M -400M
FN.CA Dividend Payout.FN.CA Dividend Payout, showing the Payout Ratio.FN.CA Dividend Payout.PayoutRetained Earnings

FIRST NATIONAL FINANCIAL COR

TSX:FN (2/11/2025, 7:00:00 PM)

40.23

-0.25 (-0.62%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)10-29 2024-10-29/amc
Earnings (Next)03-04 2025-03-04/amc
Inst Owners4.02%
Inst Owner ChangeN/A
Ins Owners71.45%
Ins Owner ChangeN/A
Market Cap2.41B
Analysts76.92
Price Target44.27 (10.04%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 6.2%
Yearly Dividend3.22
Dividend Growth(5Y)2.09%
DP108.13%
Div Incr Years2
Div Non Decr Years2
Ex-Date01-31 2025-01-31 (0.208334)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-23.33%
Min EPS beat(2)-41.1%
Max EPS beat(2)-5.57%
EPS beat(4)0
Avg EPS beat(4)-15.63%
Min EPS beat(4)-41.1%
Max EPS beat(4)-3.5%
EPS beat(8)3
Avg EPS beat(8)9.21%
EPS beat(12)5
Avg EPS beat(12)7.71%
EPS beat(16)6
Avg EPS beat(16)2.29%
Revenue beat(2)0
Avg Revenue beat(2)-15.23%
Min Revenue beat(2)-16.35%
Max Revenue beat(2)-14.11%
Revenue beat(4)1
Avg Revenue beat(4)28.18%
Min Revenue beat(4)-16.35%
Max Revenue beat(4)147.21%
Revenue beat(8)5
Avg Revenue beat(8)50.22%
Revenue beat(12)9
Avg Revenue beat(12)64.69%
Revenue beat(16)13
Avg Revenue beat(16)69.76%
PT rev (1m)0%
PT rev (3m)5.34%
EPS NQ rev (1m)4.74%
EPS NQ rev (3m)-4.08%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)2.1%
Revenue NQ rev (3m)1.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.67%
Valuation
Industry RankSector Rank
PE 13.32
Fwd PE 9.79
P/S 1.14
P/FCF 3.57
P/OCF 3.52
P/B 3.26
P/tB 3.39
EV/EBITDA 181.25
EPS(TTM)3.02
EY7.51%
EPS(NY)4.11
Fwd EY10.22%
FCF(TTM)11.28
FCFY28.03%
OCF(TTM)11.42
OCFY28.38%
SpS35.36
BVpS12.36
TBVpS11.86
PEG (NY)N/A
PEG (5Y)1.44
Profitability
Industry RankSector Rank
ROA 0.36%
ROE 24.37%
ROCE 0.54%
ROIC 0.37%
ROICexc 0.37%
ROICexgc 0.37%
OM 11.84%
PM (TTM) 8.52%
GM 25.94%
FCFM 31.89%
ROA(3y)0.48%
ROA(5y)0.48%
ROE(3y)31.61%
ROE(5y)31.73%
ROIC(3y)0.49%
ROIC(5y)0.48%
ROICexc(3y)0.49%
ROICexc(5y)0.48%
ROICexgc(3y)0.49%
ROICexgc(5y)0.49%
ROCE(3y)0.74%
ROCE(5y)0.73%
ROICexcg growth 3Y4.59%
ROICexcg growth 5Y3.52%
ROICexc growth 3Y4.59%
ROICexc growth 5Y3.52%
OM growth 3Y-3.22%
OM growth 5Y-2.46%
PM growth 3Y-3.24%
PM growth 5Y-2.33%
GM growth 3Y-3.18%
GM growth 5Y-1.74%
F-Score4
Asset Turnover0.04
Health
Industry RankSector Rank
Debt/Equity 66.52
Debt/FCF 72.9
Debt/EBITDA 185.23
Cap/Depr 55.52%
Cap/Sales 0.4%
Interest Coverage 0.18
Cash Conversion 257.24%
Profit Quality 374.34%
Current Ratio 0.07
Quick Ratio 0.07
Altman-Z 0.02
F-Score4
WACC2.58%
ROIC/WACC0.14
Cap/Depr(3y)160.9%
Cap/Depr(5y)121.02%
Cap/Sales(3y)1.13%
Cap/Sales(5y)0.82%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-26.88%
EPS 3Y0.32%
EPS 5Y9.22%
EPS Q2Q%-57.25%
EPS Next Y-21.49%
EPS Next 2Y-0.49%
EPS Next 3Y1.85%
EPS Next 5YN/A
Revenue 1Y (TTM)9.54%
Revenue growth 3Y13.61%
Revenue growth 5Y11.37%
Sales Q2Q%-26%
Revenue Next Year-7.41%
Revenue Next 2Y1.02%
Revenue Next 3Y2.28%
Revenue Next 5YN/A
EBIT growth 1Y-26.68%
EBIT growth 3Y9.95%
EBIT growth 5Y8.63%
EBIT Next Year-98.51%
EBIT Next 3Y-74.37%
EBIT Next 5YN/A
FCF growth 1Y194.24%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y198.14%
OCF growth 3YN/A
OCF growth 5YN/A