FRANCO-NEVADA CORP (FNV) Stock Fundamental Analysis
NYSE:FNV - New York Stock Exchange, Inc. - CA3518581051 - Common Stock - Currency: USD
Overall FNV gets a fundamental rating of 6 out of 10. We evaluated FNV 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 is valued expensive and it does not seem to be growing.
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.
Each year in the past 5 years FNV had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.28%, FNV belongs to the top of the industry, outperforming 89.61% of the companies in the same industry.
The Return On Equity of FNV (9.81%) is better than 77.27% of its industry peers.
FNV has a Return On Invested Capital of 8.86%. This is amongst the best in the industry. FNV outperforms 80.52% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FNV is below the industry average of 11.67%.
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
Looking at the Profit Margin, with a value of 50.39%, FNV belongs to the top of the industry, outperforming 98.05% of the companies in the same industry.
In the last couple of years the Profit Margin of FNV has grown nicely.
FNV has a Operating Margin of 65.97%. This is amongst the best in the industry. FNV outperforms 98.05% of its industry peers.
FNV's Operating Margin has improved in the last couple of years.
The Gross Margin of FNV (69.85%) is better than 97.40% 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.
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.
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
FNV has an Altman-Z score of 50.45. This indicates that FNV is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 50.45, FNV belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
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 | 50.45 |
ROIC/WACC1.02
WACC8.71%
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's Current ratio of 22.90 is amongst the best of the industry. FNV outperforms 96.10% 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 has a Quick ratio of 22.90. This is amongst the best in 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.
The Earnings Per Share has been growing by 12.36% on average over the past years. This is quite good.
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.
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
The Price/Earnings ratio is 47.36, which means the current valuation is very expensive for FNV.
The rest of the industry has a similar Price/Earnings ratio as FNV.
FNV's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.50.
Based on the Price/Forward Earnings ratio of 29.68, the valuation of FNV can be described as expensive.
FNV's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.44. FNV is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.36 | ||
| Fwd PE | 29.68 |
4.2 Price Multiples
FNV's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FNV is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 174.3 | ||
| EV/EBITDA | 27.44 |
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.
FNV's earnings are expected to grow with 16.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.7
PEG (5Y)3.83
EPS Next 2Y26.33%
EPS Next 3Y16.04%
5. Dividend
5.1 Amount
FNV has a Yearly Dividend Yield of 1.02%.
Compared to an average industry Dividend Yield of 2.91, FNV pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.02, FNV pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
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%
154.4
-0.18 (-0.12%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners77.03%
Inst Owner Change0%
Ins Owners0.71%
Ins Owner ChangeN/A
Market Cap29.74B
Analysts70
Price Target184.53 (19.51%)
Short Float %1.57%
Short Ratio3.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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)1.16%
PT rev (3m)18.01%
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 | 47.36 | ||
| Fwd PE | 29.68 | ||
| P/S | 24.27 | ||
| P/FCF | 174.3 | ||
| P/OCF | 31.64 | ||
| P/B | 4.73 | ||
| P/tB | 4.73 | ||
| EV/EBITDA | 27.44 |
EPS(TTM)3.26
EY2.11%
EPS(NY)5.2
Fwd EY3.37%
FCF(TTM)0.89
FCFY0.57%
OCF(TTM)4.88
OCFY3.16%
SpS6.36
BVpS32.67
TBVpS32.67
PEG (NY)1.7
PEG (5Y)3.83
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 | 50.45 |
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%