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FRANCO-NEVADA CORP (FNV.CA) Stock Fundamental Analysis

TSX:FNV - Toronto Stock Exchange - CA3518581051 - Common Stock - Currency: CAD

199.63  -4.61 (-2.26%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to FNV. FNV was compared to 820 industry peers in the Metals & Mining industry. While FNV has a great health rating, its profitability is only average at the moment. FNV has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

In the past year FNV was profitable.
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.
FNV.CA Yearly Net Income VS EBIT VS OCF VS FCFFNV.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 500M -500M

1.2 Ratios

Looking at the Return On Assets, with a value of -9.62%, FNV is in line with its industry, outperforming 57.84% of the companies in the same industry.
With a decent Return On Equity value of -10.12%, FNV is doing good in the industry, outperforming 61.62% of the companies in the same industry.
FNV has a better Return On Invested Capital (9.27%) than 95.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FNV is in line with the industry average of 11.94%.
Industry RankSector Rank
ROA -9.62%
ROE -10.12%
ROIC 9.27%
ROA(3y)4.87%
ROA(5y)5.39%
ROE(3y)5%
ROE(5y)5.56%
ROIC(3y)10.56%
ROIC(5y)9.44%
FNV.CA Yearly ROA, ROE, ROICFNV.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 -5 10

1.3 Margins

FNV has a Operating Margin of 62.77%. This is amongst the best in the industry. FNV outperforms 99.59% of its industry peers.
FNV's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 65.88%, FNV belongs to the top of the industry, outperforming 98.11% of the companies in the same industry.
In the last couple of years the Gross Margin of FNV has grown nicely.
Industry RankSector Rank
OM 62.77%
PM (TTM) N/A
GM 65.88%
OM growth 3Y1.43%
OM growth 5Y8.35%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.13%
GM growth 5Y7.41%
FNV.CA Yearly Profit, Operating, Gross MarginsFNV.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 60

9

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FNV is creating some value.
FNV has about the same amout of shares outstanding than it did 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.
FNV.CA Yearly Shares OutstandingFNV.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
FNV.CA Yearly Total Debt VS Total AssetsFNV.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

2.2 Solvency

FNV has an Altman-Z score of 51.93. This indicates that FNV is financially healthy and has little risk of bankruptcy at the moment.
FNV has a Altman-Z score of 51.93. This is amongst the best in the industry. FNV outperforms 89.46% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 51.93
ROIC/WACC0.99
WACC9.33%
FNV.CA Yearly LT Debt VS Equity VS FCFFNV.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B 6B

2.3 Liquidity

A Current Ratio of 23.39 indicates that FNV has no problem at all paying its short term obligations.
FNV has a better Current ratio (23.39) than 92.57% of its industry peers.
A Quick Ratio of 23.39 indicates that FNV has no problem at all paying its short term obligations.
FNV has a better Quick ratio (23.39) than 92.57% of its industry peers.
Industry RankSector Rank
Current Ratio 23.39
Quick Ratio 23.39
FNV.CA Yearly Current Assets VS Current LiabilitesFNV.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

4

3. Growth

3.1 Past

FNV shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.55%.
Measured over the past years, FNV shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.07% on average per year.
Looking at the last year, FNV shows a very negative growth in Revenue. The Revenue has decreased by -11.34% in the last year.
Measured over the past years, FNV shows a quite strong growth in Revenue. The Revenue has been growing by 13.29% on average per year.
EPS 1Y (TTM)-8.55%
EPS 3Y9.42%
EPS 5Y25.07%
EPS Q2Q%-12.09%
Revenue 1Y (TTM)-11.34%
Revenue growth 3Y6.11%
Revenue growth 5Y13.29%
Sales Q2Q%-10.99%

3.2 Future

FNV is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.61% yearly.
The Revenue is expected to grow by 6.31% on average over the next years.
EPS Next Y-8.5%
EPS Next 2Y7.84%
EPS Next 3Y9.56%
EPS Next 5Y6.61%
Revenue Next Year-9.03%
Revenue Next 2Y5.36%
Revenue Next 3Y8.34%
Revenue Next 5Y6.31%

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.
FNV.CA Yearly Revenue VS EstimatesFNV.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 500M 1B 1.5B
FNV.CA Yearly EPS VS EstimatesFNV.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1 2 3 4

5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 43.87 indicates a quite expensive valuation of FNV.
87.30% of the companies in the same industry are more expensive than FNV, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 30.43. FNV is valued slightly more expensive when compared to this.
FNV is valuated quite expensively with a Price/Forward Earnings ratio of 34.08.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FNV indicates a rather cheap valuation: FNV is cheaper than 87.30% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.78. FNV is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 43.87
Fwd PE 34.08
FNV.CA Price Earnings VS Forward Price EarningsFNV.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

FNV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FNV is cheaper than 88.11% of the companies in the same industry.
FNV's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FNV is cheaper than 90.81% of the companies in the same industry.
Industry RankSector Rank
P/FCF 70.85
EV/EBITDA 27.42
FNV.CA Per share dataFNV.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

FNV has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.75
EPS Next 2Y7.84%
EPS Next 3Y9.56%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.06%, FNV has a reasonable but not impressive dividend return.
FNV's Dividend Yield is rather good when compared to the industry average which is at 7.52. FNV pays more dividend than 95.54% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, FNV's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.06%

5.2 History

On average, the dividend of FNV grows each year by 10.68%, which is quite nice.
FNV has paid a dividend for at least 10 years, which is a reliable track record.
FNV has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.68%
Div Incr Years16
Div Non Decr Years16
FNV.CA Yearly Dividends per shareFNV.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1

5.3 Sustainability

The earnings of FNV are negative and hence is the payout ratio. FNV will probably not be able to sustain this dividend level.
The dividend of FNV is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-39.63%
EPS Next 2Y7.84%
EPS Next 3Y9.56%
FNV.CA Yearly Income VS Free CF VS DividendFNV.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M

FRANCO-NEVADA CORP

TSX:FNV (2/18/2025, 7:00:00 PM)

199.63

-4.61 (-2.26%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)11-06 2024-11-06/amc
Earnings (Next)03-10 2025-03-10/amc
Inst Owners77.7%
Inst Owner ChangeN/A
Ins Owners0.7%
Ins Owner ChangeN/A
Market Cap38.43B
Analysts72.94
Price Target216.38 (8.39%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.06%
Yearly Dividend1.21
Dividend Growth(5Y)10.68%
DP-39.63%
Div Incr Years16
Div Non Decr Years16
Ex-Date03-13 2025-03-13 (0.38)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.93%
Min EPS beat(2)-9.32%
Max EPS beat(2)-6.54%
EPS beat(4)2
Avg EPS beat(4)-1.06%
Min EPS beat(4)-9.32%
Max EPS beat(4)6.46%
EPS beat(8)5
Avg EPS beat(8)-0.5%
EPS beat(12)6
Avg EPS beat(12)-0.97%
EPS beat(16)10
Avg EPS beat(16)1.13%
Revenue beat(2)0
Avg Revenue beat(2)-3.84%
Min Revenue beat(2)-4.67%
Max Revenue beat(2)-3.01%
Revenue beat(4)1
Avg Revenue beat(4)-3.9%
Min Revenue beat(4)-8.88%
Max Revenue beat(4)0.97%
Revenue beat(8)2
Avg Revenue beat(8)-3.14%
Revenue beat(12)2
Avg Revenue beat(12)-3.05%
Revenue beat(16)5
Avg Revenue beat(16)-1.36%
PT rev (1m)1.3%
PT rev (3m)6.26%
EPS NQ rev (1m)2.18%
EPS NQ rev (3m)20.32%
EPS NY rev (1m)0.54%
EPS NY rev (3m)-3.1%
Revenue NQ rev (1m)0.43%
Revenue NQ rev (3m)14.02%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-2.29%
Valuation
Industry RankSector Rank
PE 43.87
Fwd PE 34.08
P/S 24.71
P/FCF 70.85
P/OCF 31.13
P/B 4.52
P/tB 4.52
EV/EBITDA 27.42
EPS(TTM)4.55
EY2.28%
EPS(NY)5.86
Fwd EY2.93%
FCF(TTM)2.82
FCFY1.41%
OCF(TTM)6.41
OCFY3.21%
SpS8.08
BVpS44.13
TBVpS44.13
PEG (NY)N/A
PEG (5Y)1.75
Profitability
Industry RankSector Rank
ROA -9.62%
ROE -10.12%
ROCE 11.04%
ROIC 9.27%
ROICexc 11.76%
ROICexgc 11.76%
OM 62.77%
PM (TTM) N/A
GM 65.88%
FCFM 34.88%
ROA(3y)4.87%
ROA(5y)5.39%
ROE(3y)5%
ROE(5y)5.56%
ROIC(3y)10.56%
ROIC(5y)9.44%
ROICexc(3y)12.77%
ROICexc(5y)10.99%
ROICexgc(3y)12.77%
ROICexgc(5y)10.99%
ROCE(3y)12.56%
ROCE(5y)11.23%
ROICexcg growth 3Y11.25%
ROICexcg growth 5Y24.36%
ROICexc growth 3Y11.25%
ROICexc growth 5Y24.36%
OM growth 3Y1.43%
OM growth 5Y8.35%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.13%
GM growth 5Y7.41%
F-Score4
Asset Turnover0.17
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 208.28%
Cap/Sales 44.51%
Interest Coverage 343.95
Cash Conversion 94.35%
Profit Quality N/A
Current Ratio 23.39
Quick Ratio 23.39
Altman-Z 51.93
F-Score4
WACC9.33%
ROIC/WACC0.99
Cap/Depr(3y)164.76%
Cap/Depr(5y)158.63%
Cap/Sales(3y)37.35%
Cap/Sales(5y)39.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.55%
EPS 3Y9.42%
EPS 5Y25.07%
EPS Q2Q%-12.09%
EPS Next Y-8.5%
EPS Next 2Y7.84%
EPS Next 3Y9.56%
EPS Next 5Y6.61%
Revenue 1Y (TTM)-11.34%
Revenue growth 3Y6.11%
Revenue growth 5Y13.29%
Sales Q2Q%-10.99%
Revenue Next Year-9.03%
Revenue Next 2Y5.36%
Revenue Next 3Y8.34%
Revenue Next 5Y6.31%
EBIT growth 1Y-7.4%
EBIT growth 3Y7.63%
EBIT growth 5Y22.75%
EBIT Next Year19.14%
EBIT Next 3Y18.65%
EBIT Next 5Y11.92%
FCF growth 1Y-60.33%
FCF growth 3Y-1.49%
FCF growth 5YN/A
OCF growth 1Y-12.93%
OCF growth 3Y7.23%
OCF growth 5Y15.86%