FRANCO-NEVADA CORP (FNV.CA) Stock Fundamental Analysis
TSX:FNV - Toronto Stock Exchange - CA3518581051 - Common Stock - Currency: CAD
Taking everything into account, FNV scores 7 out of 10 in our fundamental rating. FNV was compared to 809 industry peers in the Metals & Mining industry. FNV gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
In the past year FNV had a positive cash flow from operations.
Of the past 5 years FNV 4 years were profitable.
FNV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of FNV (9.28%) is better than 93.32% of its industry peers.
Looking at the Return On Equity, with a value of 9.81%, FNV belongs to the top of the industry, outperforming 91.83% of the companies in the same industry.
FNV has a Return On Invested Capital of 8.86%. This is amongst the best in the industry. FNV outperforms 94.18% of its industry peers.
FNV had an Average Return On Invested Capital over the past 3 years of 8.75%. This is below the industry average of 12.32%.
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
FNV has a Profit Margin of 50.39%. This is amongst the best in the industry. FNV outperforms 98.27% of its industry peers.
In the last couple of years the Profit Margin of FNV has grown nicely.
Looking at the Operating Margin, with a value of 65.97%, FNV belongs to the top of the industry, outperforming 99.63% of the companies in the same industry.
FNV's Operating Margin has improved in the last couple of years.
FNV has a better Gross Margin (69.85%) than 98.51% of its industry peers.
FNV's Gross Margin has improved in the last couple of years.
| 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
FNV has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, FNV has more shares outstanding
FNV has more shares outstanding than it did 5 years ago.
There is no outstanding debt for FNV. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
FNV has an Altman-Z score of 54.22. This indicates that FNV is financially healthy and has little risk of bankruptcy at the moment.
FNV has a Altman-Z score of 54.22. This is amongst the best in the industry. FNV outperforms 89.36% of its industry peers.
There is no outstanding debt for FNV. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 54.22 |
ROIC/WACC1.14
WACC7.75%
2.3 Liquidity
FNV has a Current Ratio of 22.90. This indicates that FNV is financially healthy and has no problem in meeting its short term obligations.
FNV has a Current ratio of 22.90. This is amongst the best in the industry. FNV outperforms 93.32% of its industry peers.
A Quick Ratio of 22.90 indicates that FNV has no problem at all paying its short term obligations.
FNV has a Quick ratio of 22.90. This is amongst the best in the industry. FNV outperforms 93.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 22.9 | ||
| Quick Ratio | 22.9 |
3. Growth
3.1 Past
The earnings per share for FNV have decreased by -8.17% in the last year.
FNV shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.36% yearly.
Looking at the last year, FNV shows a decrease in Revenue. The Revenue has decreased by -8.65% in the last year.
Measured over the past years, FNV shows a small growth in Revenue. The Revenue has been growing by 5.70% on average per year.
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
The Earnings Per Share is expected to grow by 6.00% on average over the next years.
Based on estimates for the next years, FNV will show a small growth in Revenue. The Revenue will grow by 4.13% on average per year.
EPS Next Y27.86%
EPS Next 2Y26.33%
EPS Next 3Y16.04%
EPS Next 5Y6%
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.
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
A Price/Earnings ratio of 51.04 indicates a quite expensive valuation of FNV.
Based on the Price/Earnings ratio, FNV is valued cheaply inside the industry as 87.13% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of FNV to the average of the S&P500 Index (26.35), we can say FNV is valued expensively.
Based on the Price/Forward Earnings ratio of 31.98, the valuation of FNV can be described as expensive.
86.76% of the companies in the same industry are more expensive than FNV, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.19. FNV is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.04 | ||
| Fwd PE | 31.98 |
4.2 Price Multiples
89.36% of the companies in the same industry are more expensive than FNV, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, FNV is valued cheaply inside the industry as 89.23% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 187.81 | ||
| EV/EBITDA | 29.61 |
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.
The excellent profitability rating of FNV may justify a higher PE ratio.
A more expensive valuation may be justified as FNV's earnings are expected to grow with 16.04% in the coming years.
PEG (NY)1.83
PEG (5Y)4.13
EPS Next 2Y26.33%
EPS Next 3Y16.04%
5. Dividend
5.1 Amount
With a yearly dividend of 0.94%, FNV is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.52, FNV pays a better dividend. On top of this FNV pays more dividend than 96.16% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, FNV's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
The dividend of FNV is nicely growing with an annual growth rate of 11.34%!
FNV has paid a dividend for at least 10 years, which is 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.
FNV's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP41.09%
EPS Next 2Y26.33%
EPS Next 3Y16.04%
TSX:FNV (6/20/2025, 7:00:00 PM)
228.17
-2.06 (-0.89%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners77.03%
Inst Owner ChangeN/A
Ins Owners0.71%
Ins Owner ChangeN/A
Market Cap43.94B
Analysts70
Price Target263.09 (15.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
Yearly Dividend1.72
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)6.8%
PT rev (3m)18.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.92%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)20.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.04 | ||
| Fwd PE | 31.98 | ||
| P/S | 26.15 | ||
| P/FCF | 187.81 | ||
| P/OCF | 34.09 | ||
| P/B | 5.09 | ||
| P/tB | 5.09 | ||
| EV/EBITDA | 29.61 |
EPS(TTM)4.47
EY1.96%
EPS(NY)7.14
Fwd EY3.13%
FCF(TTM)1.21
FCFY0.53%
OCF(TTM)6.69
OCFY2.93%
SpS8.73
BVpS44.81
TBVpS44.81
PEG (NY)1.83
PEG (5Y)4.13
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 | 54.22 |
F-Score6
WACC7.75%
ROIC/WACC1.14
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%
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 5Y12.1%
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%