Franco-Nevada Corporation Fundamental Analysis
Franco-Nevada Corporation (FNV.TO) shows moderate financial fundamentals with a PE ratio of 29.63, profit margin of 65.14%, and ROE of 18.67%. The company generates $2.1B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 76.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze FNV.TO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentFNV.TO demonstrates superior asset utilization.
Valuation Score
ModerateFNV.TO shows balanced valuation metrics.
Growth Score
ModerateFNV.TO shows steady but slowing expansion.
Financial Health Score
ExcellentFNV.TO maintains a strong and stable balance sheet.
Profitability Score
ModerateFNV.TO maintains healthy but balanced margins.
Key Financial Metrics
Is FNV.TO Expensive or Cheap?
P/E Ratio
FNV.TO trades at 29.63 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, FNV.TO's PEG of 0.34 indicates potential undervaluation.
Price to Book
The market values Franco-Nevada Corporation at 5.00 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 20.95 times EBITDA. This signals the market has high growth expectations.
How Well Does FNV.TO Make Money?
Net Profit Margin
For every $100 in sales, Franco-Nevada Corporation keeps $65.14 as profit after all expenses.
Operating Margin
Core operations generate 76.05 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.67 in profit for every $100 of shareholder equity.
ROA
Franco-Nevada Corporation generates $15.55 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Franco-Nevada Corporation generates strong operating cash flow of $1.85B, reflecting robust business health.
Free Cash Flow
Franco-Nevada Corporation generates weak or negative free cash flow of $-371.95M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.93 in free cash annually.
FCF Yield
FNV.TO converts -0.92% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.63
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.001
vs 25 benchmark
P/S Ratio
Price to sales ratio
19.31
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.15
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.16
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How FNV.TO Stacks Against Its Sector Peers
| Metric | FNV.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.63 | 25.27 | Worse (Expensive) |
| ROE | 18.67% | 1030.00% | Weak |
| Net Margin | 65.14% | -16616.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.50 | Strong (Low Leverage) |
| Current Ratio | 6.15 | 7.10 | Strong Liquidity |
| ROA | 15.55% | -5145.00% (disorted) | Strong |
FNV.TO outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Franco-Nevada Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Commodity, Value
EPS CAGR
N/A
Industry Style: Cyclical, Commodity, Value
FCF CAGR
N/A
Industry Style: Cyclical, Commodity, Value