FRANCO-NEVADA CORP (FNV.CA) Stock Fundamental Analysis
TSX:FNV - Toronto Stock Exchange - CA3518581051 - Common Stock - Currency: CAD
FNV gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 796 industry peers in the Metals & Mining industry. Both the health and profitability get an excellent rating, making FNV a very profitable company, without any liquidiy or solvency issues. FNV has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
FNV had positive earnings in the past year.
FNV had a positive operating cash flow in the past year.
Of the past 5 years FNV 4 years were profitable.
In the past 5 years FNV always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.28%, FNV belongs to the top of the industry, outperforming 93.22% of the companies in the same industry.
FNV's Return On Equity of 9.81% is amongst the best of the industry. FNV outperforms 91.58% of its industry peers.
With an excellent Return On Invested Capital value of 8.86%, FNV belongs to the best of the industry, outperforming 94.35% of the companies in the same industry.
FNV had an Average Return On Invested Capital over the past 3 years of 8.75%. This is significantly below the industry average of 24.80%.
The last Return On Invested Capital (8.86%) for FNV is above the 3 year average (8.75%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.28% | ||
| ROE | 9.81% | ||
| ROIC | 8.86% |
ROA(3y)3.84%
ROA(5y)5.83%
ROE(3y)4.01%
ROE(5y)6.04%
ROIC(3y)8.75%
ROIC(5y)8.65%
1.3 Margins
Looking at the Profit Margin, with a value of 50.39%, FNV belongs to the top of the industry, outperforming 98.37% of the companies in the same industry.
FNV's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 65.97%, FNV belongs to the best of the industry, outperforming 99.62% of the companies in the same industry.
FNV's Operating Margin has improved in the last couple of years.
FNV's Gross Margin of 69.85% is amongst the best of the industry. FNV outperforms 98.62% of its industry peers.
In the last couple of years the Gross Margin of FNV has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 65.97% | ||
| PM (TTM) | 50.39% | ||
| GM | 69.85% |
OM growth 3Y1.96%
OM growth 5Y5.98%
PM growth 3Y-4.23%
PM growth 5Y3.99%
GM growth 3Y2.54%
GM growth 5Y5.71%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FNV is still creating some value.
The number of shares outstanding for FNV has been increased compared to 1 year ago.
Compared to 5 years ago, FNV has more shares outstanding
FNV has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 54.56 indicates that FNV is not in any danger for bankruptcy at the moment.
FNV's Altman-Z score of 54.56 is amongst the best of the industry. FNV outperforms 89.70% of its industry peers.
FNV has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 54.56 |
ROIC/WACC1.02
WACC8.68%
2.3 Liquidity
A Current Ratio of 22.90 indicates that FNV has no problem at all paying its short term obligations.
FNV has a Current ratio of 22.90. This is amongst the best in the industry. FNV outperforms 92.96% of its industry peers.
A Quick Ratio of 22.90 indicates that FNV has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 22.90, FNV belongs to the best of the industry, outperforming 92.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 22.9 | ||
| Quick Ratio | 22.9 |
3. Growth
3.1 Past
FNV shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.17%.
Measured over the past years, FNV shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.36% on average per year.
The Revenue has decreased by -8.65% in the past year.
FNV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.70% yearly.
EPS 1Y (TTM)-8.17%
EPS 3Y-2.62%
EPS 5Y12.36%
EPS Q2Q%0%
Revenue 1Y (TTM)-8.65%
Revenue growth 3Y-5.03%
Revenue growth 5Y5.7%
Sales Q2Q%0%
3.2 Future
FNV is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.68% yearly.
FNV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.13% yearly.
EPS Next Y27.86%
EPS Next 2Y26.33%
EPS Next 3Y16.04%
EPS Next 5Y6.68%
Revenue Next Year27.23%
Revenue Next 2Y23.08%
Revenue Next 3Y7.48%
Revenue Next 5Y4.13%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 51.37, the valuation of FNV can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of FNV indicates a rather cheap valuation: FNV is cheaper than 86.68% of the companies listed in the same industry.
FNV's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.25.
The Price/Forward Earnings ratio is 32.18, which means the current valuation is very expensive for FNV.
Based on the Price/Forward Earnings ratio, FNV is valued cheaply inside the industry as 86.93% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.15. FNV is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.37 | ||
| Fwd PE | 32.18 |
4.2 Price Multiples
88.94% of the companies in the same industry are more expensive than FNV, based on the Enterprise Value to EBITDA ratio.
FNV's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FNV is cheaper than 89.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 189.01 | ||
| EV/EBITDA | 29.81 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FNV does not grow enough to justify the current Price/Earnings ratio.
FNV has an outstanding profitability rating, which may justify a higher PE ratio.
FNV's earnings are expected to grow with 16.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.84
PEG (5Y)4.15
EPS Next 2Y26.33%
EPS Next 3Y16.04%
5. Dividend
5.1 Amount
FNV has a yearly dividend return of 0.93%, which is pretty low.
Compared to an average industry Dividend Yield of 2.67, FNV pays a better dividend. On top of this FNV pays more dividend than 96.11% of the companies listed in the same industry.
With a Dividend Yield of 0.93, FNV pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
5.2 History
On average, the dividend of FNV grows each year by 11.34%, which is quite nice.
FNV has been paying a dividend for at least 10 years, so it has a reliable track record.
FNV has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.34%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
FNV pays out 41.09% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of FNV is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP41.09%
EPS Next 2Y26.33%
EPS Next 3Y16.04%
TSX:FNV (5/30/2025, 7:00:00 PM)
231.17
-1.34 (-0.58%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners77.78%
Inst Owner ChangeN/A
Ins Owners0.71%
Ins Owner ChangeN/A
Market Cap44.52B
Analysts70
Price Target246.34 (6.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
Yearly Dividend1.74
Dividend Growth(5Y)11.34%
DP41.09%
Div Incr Years16
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.87%
Min EPS beat(2)5.49%
Max EPS beat(2)6.24%
EPS beat(4)2
Avg EPS beat(4)-1.03%
Min EPS beat(4)-9.32%
Max EPS beat(4)6.24%
EPS beat(8)6
Avg EPS beat(8)1.43%
EPS beat(12)8
Avg EPS beat(12)0.46%
EPS beat(16)10
Avg EPS beat(16)0.26%
Revenue beat(2)2
Avg Revenue beat(2)10.59%
Min Revenue beat(2)3.91%
Max Revenue beat(2)17.27%
Revenue beat(4)2
Avg Revenue beat(4)3.38%
Min Revenue beat(4)-4.67%
Max Revenue beat(4)17.27%
Revenue beat(8)3
Avg Revenue beat(8)-0.18%
Revenue beat(12)4
Avg Revenue beat(12)-1.18%
Revenue beat(16)5
Avg Revenue beat(16)-1.01%
PT rev (1m)2.88%
PT rev (3m)10.99%
EPS NQ rev (1m)11.41%
EPS NQ rev (3m)12.89%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.03%
Revenue NQ rev (1m)16.78%
Revenue NQ rev (3m)20.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.37 | ||
| Fwd PE | 32.18 | ||
| P/S | 26.32 | ||
| P/FCF | 189.01 | ||
| P/OCF | 34.31 | ||
| P/B | 5.12 | ||
| P/tB | 5.12 | ||
| EV/EBITDA | 29.81 |
EPS(TTM)4.5
EY1.95%
EPS(NY)7.18
Fwd EY3.11%
FCF(TTM)1.22
FCFY0.53%
OCF(TTM)6.74
OCFY2.91%
SpS8.78
BVpS45.11
TBVpS45.11
PEG (NY)1.84
PEG (5Y)4.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.28% | ||
| ROE | 9.81% | ||
| ROCE | 12.26% | ||
| ROIC | 8.86% | ||
| ROICexc | 10.69% | ||
| ROICexgc | 10.69% | ||
| OM | 65.97% | ||
| PM (TTM) | 50.39% | ||
| GM | 69.85% | ||
| FCFM | 13.92% |
ROA(3y)3.84%
ROA(5y)5.83%
ROE(3y)4.01%
ROE(5y)6.04%
ROIC(3y)8.75%
ROIC(5y)8.65%
ROICexc(3y)11.19%
ROICexc(5y)10.45%
ROICexgc(3y)11.19%
ROICexgc(5y)10.45%
ROCE(3y)12.11%
ROCE(5y)11.97%
ROICexcg growth 3Y2.02%
ROICexcg growth 5Y13.31%
ROICexc growth 3Y2.02%
ROICexc growth 5Y13.31%
OM growth 3Y1.96%
OM growth 5Y5.98%
PM growth 3Y-4.23%
PM growth 5Y3.99%
GM growth 3Y2.54%
GM growth 5Y5.71%
F-Score6
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 326.62% | ||
| Cap/Sales | 62.78% | ||
| Interest Coverage | 299.37 | ||
| Cash Conversion | 90.04% | ||
| Profit Quality | 27.63% | ||
| Current Ratio | 22.9 | ||
| Quick Ratio | 22.9 | ||
| Altman-Z | 54.56 |
F-Score6
WACC8.68%
ROIC/WACC1.02
Cap/Depr(3y)140.51%
Cap/Depr(5y)161.01%
Cap/Sales(3y)30.06%
Cap/Sales(5y)35.86%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.17%
EPS 3Y-2.62%
EPS 5Y12.36%
EPS Q2Q%0%
EPS Next Y27.86%
EPS Next 2Y26.33%
EPS Next 3Y16.04%
EPS Next 5Y6.68%
Revenue 1Y (TTM)-8.65%
Revenue growth 3Y-5.03%
Revenue growth 5Y5.7%
Sales Q2Q%0%
Revenue Next Year27.23%
Revenue Next 2Y23.08%
Revenue Next 3Y7.48%
Revenue Next 5Y4.13%
EBIT growth 1Y11.26%
EBIT growth 3Y-3.17%
EBIT growth 5Y12.02%
EBIT Next Year76.62%
EBIT Next 3Y28.2%
EBIT Next 5Y10.92%
FCF growth 1Y-76.65%
FCF growth 3Y29.32%
FCF growth 5Y19.56%
OCF growth 1Y-3.97%
OCF growth 3Y-4.6%
OCF growth 5Y6.07%