FRANCO-NEVADA CORP (FNV) Stock Fundamental Analysis
NYSE:FNV - New York Stock Exchange, Inc. - CA3518581051 - Common Stock - Currency: USD
FNV gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 154 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 does not seem to be growing, but still is valued expensively.
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.
In the past 5 years FNV always reported a positive cash flow from operatings.
1.2 Ratios
FNV has a Return On Assets of 9.28%. This is amongst the best in the industry. FNV outperforms 89.61% of its industry peers.
The Return On Equity of FNV (9.81%) is better than 76.62% of its industry peers.
The Return On Invested Capital of FNV (8.86%) is better than 80.52% 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 11.16%.
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
FNV's Profit Margin of 50.39% is amongst the best of the industry. FNV outperforms 98.70% of its industry peers.
In the last couple of years the Profit Margin of FNV has grown nicely.
With an excellent Operating Margin value of 65.97%, FNV belongs to the best of the industry, outperforming 98.70% 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 97.40% 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.
FNV has more shares outstanding than it did 1 year ago.
The number of shares outstanding for FNV has been increased compared to 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
An Altman-Z score of 54.82 indicates that FNV is not in any danger for bankruptcy at the moment.
FNV's Altman-Z score of 54.82 is amongst the best of the industry. FNV outperforms 93.51% 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 | 54.82 |
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 96.10% of its industry peers.
A Quick Ratio of 22.90 indicates that FNV has no problem at all paying its short term obligations.
FNV's Quick ratio of 22.90 is amongst the best of the industry. FNV outperforms 96.75% 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.
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.
FNV shows a decrease in Revenue. In the last year, the revenue decreased by -8.65%.
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.
The Revenue is expected to grow by 4.13% on average over the next years.
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
Based on the Price/Earnings ratio of 51.60, the valuation of FNV can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of FNV is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.34. FNV is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 32.33, the valuation of FNV can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as FNV.
FNV's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.6 | ||
| Fwd PE | 32.33 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FNV is on the same level as its industry peers.
FNV's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 189.89 | ||
| EV/EBITDA | 29.96 |
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.
FNV's earnings are expected to grow with 16.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.85
PEG (5Y)4.17
EPS Next 2Y26.33%
EPS Next 3Y16.04%
5. Dividend
5.1 Amount
With a yearly dividend of 0.95%, FNV is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.99, FNV pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, FNV's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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
41.09% of the earnings are spent on dividend by FNV. 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%
168.21
-0.74 (-0.44%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners77.03%
Inst Owner Change0.29%
Ins Owners0.71%
Ins Owner ChangeN/A
Market Cap32.40B
Analysts70
Price Target189.85 (12.86%)
Short Float %1.29%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Yearly Dividend1.26
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)6.46%
PT rev (3m)23.58%
EPS NQ rev (1m)11.41%
EPS NQ rev (3m)9.92%
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 | 51.6 | ||
| Fwd PE | 32.33 | ||
| P/S | 26.44 | ||
| P/FCF | 189.89 | ||
| P/OCF | 34.47 | ||
| P/B | 5.15 | ||
| P/tB | 5.15 | ||
| EV/EBITDA | 29.96 |
EPS(TTM)3.26
EY1.94%
EPS(NY)5.2
Fwd EY3.09%
FCF(TTM)0.89
FCFY0.53%
OCF(TTM)4.88
OCFY2.9%
SpS6.36
BVpS32.67
TBVpS32.67
PEG (NY)1.85
PEG (5Y)4.17
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 | 54.82 |
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%