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 805 industry peers in the Metals & Mining industry. FNV scores excellent points on both the profitability and health parts. This is a solid base for a good stock. FNV has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year FNV was profitable.
In the past year FNV had a positive cash flow from operations.
FNV had positive earnings in 4 of the past 5 years.
FNV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FNV's Return On Assets of 9.28% is amongst the best of the industry. FNV outperforms 93.29% of its industry peers.
FNV's Return On Equity of 9.81% is amongst the best of the industry. FNV outperforms 91.68% of its industry peers.
FNV has a better Return On Invested Capital (8.86%) than 94.41% 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 12.37%.
The 3 year average ROIC (8.75%) for FNV is below the current ROIC(8.86%), indicating increased profibility in the last year.
| 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
The Profit Margin of FNV (50.39%) is better than 98.26% of its industry peers.
In the last couple of years the Profit Margin of FNV has grown nicely.
FNV's Operating Margin of 65.97% is amongst the best of the industry. FNV outperforms 99.50% of its industry peers.
FNV's Operating Margin has improved in the last couple of years.
FNV has a Gross Margin of 69.85%. This is amongst the best in the industry. FNV outperforms 98.63% 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
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 51.80. This indicates that FNV is financially healthy and has little risk of bankruptcy at the moment.
FNV has a better Altman-Z score (51.80) than 88.32% 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 | 51.8 |
ROIC/WACC1.02
WACC8.71%
2.3 Liquidity
A Current Ratio of 22.90 indicates that FNV has no problem at all paying its short term obligations.
FNV's Current ratio of 22.90 is amongst the best of the industry. FNV outperforms 93.42% of its industry peers.
FNV has a Quick Ratio of 22.90. This indicates that FNV is financially healthy and has no problem in meeting its short term obligations.
FNV's Quick ratio of 22.90 is amongst the best of the industry. FNV outperforms 93.42% of its industry peers.
| 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%.
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.
The Revenue has been growing slightly by 5.70% on average over the past years.
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 6.00% yearly.
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.
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
FNV is valuated quite expensively with a Price/Earnings ratio of 48.68.
87.08% of the companies in the same industry are more expensive than FNV, based on the Price/Earnings ratio.
FNV's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.51.
With a Price/Forward Earnings ratio of 30.52, FNV can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FNV indicates a rather cheap valuation: FNV is cheaper than 86.96% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of FNV to the average of the S&P500 Index (35.58), we can say FNV is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.68 | ||
| Fwd PE | 30.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FNV is valued cheaper than 89.32% 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 89.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 179.27 | ||
| EV/EBITDA | 28.22 |
4.3 Compensation for Growth
FNV's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
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)1.75
PEG (5Y)3.94
EPS Next 2Y26.33%
EPS Next 3Y16.04%
5. Dividend
5.1 Amount
FNV has a yearly dividend return of 0.99%, which is pretty low.
FNV's Dividend Yield is rather good when compared to the industry average which is at 14.98. FNV pays more dividend than 96.40% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, FNV's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
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.
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 (7/14/2025, 7:00:00 PM)
217.13
-1.25 (-0.57%)
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 Cap41.82B
Analysts70
Price Target263.09 (21.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
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)1.19%
PT rev (3m)12.55%
EPS NQ rev (1m)2.91%
EPS NQ rev (3m)14.66%
EPS NY rev (1m)0%
EPS NY rev (3m)2.71%
Revenue NQ rev (1m)2.05%
Revenue NQ rev (3m)19.18%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.68 | ||
| Fwd PE | 30.52 | ||
| P/S | 24.96 | ||
| P/FCF | 179.27 | ||
| P/OCF | 32.54 | ||
| P/B | 4.86 | ||
| P/tB | 4.86 | ||
| EV/EBITDA | 28.22 |
EPS(TTM)4.46
EY2.05%
EPS(NY)7.11
Fwd EY3.28%
FCF(TTM)1.21
FCFY0.56%
OCF(TTM)6.67
OCFY3.07%
SpS8.7
BVpS44.67
TBVpS44.67
PEG (NY)1.75
PEG (5Y)3.94
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 | 51.8 |
F-Score6
WACC8.71%
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%
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%