Executive Summary
First National Financial Corporation, through its subsidiaries, originates, underwrites, and services residential and commercial mortgages in Canada.
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with moderate growth potential.
Share Price & News
How has First National Financial's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: FN's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
15.2%
FN
9.7%
CA Mortgage
4.5%
CA Market
1 Year Return
-20.1%
FN
-24.1%
CA Mortgage
-24.5%
CA Market
Return vs Industry: FN exceeded the Canadian Mortgage industry which returned -24.1% over the past year.
Return vs Market: FN exceeded the Canadian Market which returned -24.5% over the past year.
Shareholder returns
| FN | Industry | Market | |
|---|---|---|---|
| 7 Day | 15.2% | 9.7% | 4.5% |
| 30 Day | -28.4% | -39.2% | -20.1% |
| 90 Day | -35.4% | -45.3% | -24.9% |
| 1 Year | -14.5%-20.1% | -15.3%-24.1% | -22.0%-24.5% |
| 3 Year | 21.4%-8.2% | -11.7%-25.8% | -14.2%-22.2% |
| 5 Year | 77.4%17.3% | -11.9%-29.3% | -1.9%-16.5% |
Price Volatility Vs. Market
How volatile is First National Financial's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall St
First National Financial Corporation (TSE:FN) Looks Interesting, And It's About To Pay A Dividend1 week ago | Simply Wall St
Is There Now An Opportunity In First National Financial Corporation (TSE:FN)?1 month ago | Simply Wall St
Can You Imagine How First National Financial's (TSE:FN) Shareholders Feel About The 73% Share Price Increase?Valuation
Is First National Financial undervalued compared to its fair value and its price relative to the market?
4.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FN (CA$24.59) is trading below our estimate of fair value (CA$25.61)
Significantly Below Fair Value: FN is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: FN is poor value based on its PE Ratio (8.5x) compared to the Mortgage industry average (6.7x).
PE vs Market: FN is good value based on its PE Ratio (8.5x) compared to the Canadian market (10.3x).
Price to Earnings Growth Ratio
PEG Ratio: FN is poor value based on its PEG Ratio (2.8x)
Price to Book Ratio
PB vs Industry: FN is overvalued based on its PB Ratio (3.2x) compared to the CA Mortgage industry average (0.7x).
Next Steps
Future Growth
How is First National Financial forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
3.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FN's forecast earnings growth (3% per year) is above the savings rate (1.4%).
Earnings vs Market: FN's earnings (3% per year) are forecast to grow slower than the Canadian market (7.4% per year).
High Growth Earnings: FN's earnings are forecast to grow, but not significantly.
Revenue vs Market: FN's revenue (9% per year) is forecast to grow faster than the Canadian market (3.8% per year).
High Growth Revenue: FN's revenue (9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: FN's Return on Equity is forecast to be high in 3 years time (33.6%)
Next Steps
Past Performance
How has First National Financial performed over the past 5 years?
11.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FN has high quality earnings.
Growing Profit Margin: FN's current net profit margins (34.2%) are lower than last year (35.1%).
Past Earnings Growth Analysis
Earnings Trend: FN's earnings have grown by 11.4% per year over the past 5 years.
Accelerating Growth: FN's earnings growth over the past year (6.5%) is below its 5-year average (11.4% per year).
Earnings vs Industry: FN earnings growth over the past year (6.5%) underperformed the Mortgage industry 12.7%.
Return on Equity
High ROE: Whilst FN's Return on Equity (31.55%) is high, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is First National Financial's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: FN has a low level of unsold assets or inventory.
Debt Coverage by Assets: FN's debt is covered by short term assets (assets are 1x debt).
Financial Institutions Analysis
Asset Level: FN's level of assets compared to its equity is very high.
Allowance for Bad Loans: Insufficient data to determine if FN has a sufficient allowance for bad loans.
Low Risk Liabilities: FN reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if FN has an acceptable proportion of non-loan assets held.
Low Risk Deposits: FN has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if FN has an appropriate level of bad loans.
Next Steps
Dividend
What is First National Financial's current dividend yield, its reliability and sustainability?
7.93%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FN's dividend (7.93%) is higher than the bottom 25% of dividend payers in the Canadian market (2.71%).
High Dividend: FN's dividend (7.93%) is low compared to the top 25% of dividend payers in the Canadian market (8.69%).
Stability and Growth of Payments
Stable Dividend: FN's dividends per share have been stable in the past 10 years.
Growing Dividend: FN's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (65.7%), FN's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: FN's dividends in 3 years are forecast to be covered by earnings (70% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
7.2yrs
Average management tenure
CEO
Stephen J. Smith
no data
Tenure
CA$762,956
Compensation
Mr. Stephen J. R. Smith serves as the Chairman at Peloton Capital Management. Mr. Stephen has been a Director of E-L Financial Corporation Limited since May 10, 2018. Mr. Stephen co-founded First National ...
CEO Compensation Analysis
Compensation vs Market: Stephen J.'s total compensation ($USD539.60K) is below average for companies of similar size in the Canadian market ($USD1.71M).
Compensation vs Earnings: Stephen J.'s compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | no data | CA$762.96k | 12.18% CA$179.6m | |
| President & COO | 0.25yr | CA$833.82k | no data | |
| Co-Founder | 13.83yrs | CA$763.08k | 0.96% CA$14.1m | |
| Chief Financial Officer | 11.25yrs | CA$660.49k | no data | |
| Senior Vice President of Commercial Mortgages | no data | CA$770.58k | no data | |
| Senior VP & General Counsel | 7.17yrs | no data | 0.00050% CA$7.4k | |
| Senior Vice President of Residential Mortgages | no data | CA$598.54k | no data | |
| President of Fundamental | no data | no data | no data |
7.2yrs
Average Tenure
Experienced Management: FN's management team is seasoned and experienced (7.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | no data | CA$762.96k | 12.18% CA$179.6m | |
| Co-Founder | 13.83yrs | CA$763.08k | 0.96% CA$14.1m | |
| Independent Director | 2.67yrs | CA$53.00k | 0.013% CA$184.5k | |
| Lead Independent Director | no data | CA$77.00k | no data | |
| Independent Director | 13.67yrs | CA$47.00k | 0.011% CA$163.2k | |
| Independent Director | 13.67yrs | CA$47.00k | 0.018% CA$270.4k | |
| Independent Director | 7yrs | CA$57.00k | 0.0050% CA$73.7k |
13.7yrs
Average Tenure
64yo
Average Age
Experienced Board: FN's board of directors are seasoned and experienced ( 13.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: FN insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
First National Financial Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: First National Financial Corporation
- Ticker: FN
- Exchange: TSX
- Founded: 1988
- Industry: Thrifts and Mortgage Finance
- Sector: Banks
- Market Cap: CA$1.475b
- Shares outstanding: 59.97m
- Website: https://www.firstnational.ca
Number of Employees
Location
- First National Financial Corporation
- North Tower
- Suite 1200
- Toronto
- Ontario
- M5J 1V6
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| FN | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Jun 2006 |
| FNLI.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Jun 2006 |
| FN.PRA | TSX (The Toronto Stock Exchange) | PFD CL A SER 1 | CA | CAD | Jan 2011 |
Biography
First National Financial Corporation, through its subsidiaries, originates, underwrites, and services residential and commercial mortgages in Canada. It offers single family residential, and multi-unit residential and commercial mortgages. The company provides its services through mortgage broker distribution channel, as well as through online. The company was founded in 1988 and is headquartered in Toronto, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 03:51 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.