Executive Summary
Franco-Nevada Corporation operates as a gold-focused royalty and stream company in the United States, Canada, Latin America, Australia, and Africa.
Snowflake
Fundamentals
Excellent balance sheet with reasonable growth potential.
Similar Companies
Share Price & News
How has Franco-Nevada's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
2.2%
FNV
0.5%
CA Metals and Mining
0.2%
CA Market
1 Year Return
49.3%
FNV
15.0%
CA Metals and Mining
3.5%
CA Market
Return vs Industry: FNV exceeded the Canadian Metals and Mining industry which returned 15% over the past year.
Return vs Market: FNV exceeded the Canadian Market which returned 3.5% over the past year.
Shareholder returns
| FNV | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.2% | 0.5% | 0.2% |
| 30 Day | -2.4% | -8.9% | -3.3% |
| 90 Day | 5.2% | -8.0% | -1.9% |
| 1 Year | 51.2%49.3% | 15.9%15.0% | 7.3%3.5% |
| 3 Year | 51.2%45.3% | -11.6%-13.2% | 14.7%4.4% |
| 5 Year | 133.4%117.5% | 15.4%11.6% | 26.2%7.7% |
Price Volatility Vs. Market
How volatile is Franco-Nevada's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall St
Is Franco-Nevada (TSE:FNV) Using Too Much Debt?3 weeks ago | Simply Wall St
Is Franco-Nevada Corporation (TSE:FNV) Overpaying Its CEO?1 month ago | Simply Wall St
Is Franco-Nevada's (TSE:FNV) 122% Share Price Increase Well Justified?Valuation
Is Franco-Nevada undervalued compared to its fair value and its price relative to the market?
117.51x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: FNV (CA$123.62) is trading above our estimate of fair value (CA$77.73)
Significantly Below Fair Value: FNV is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: FNV is poor value based on its PE Ratio (117.5x) compared to the Metals and Mining industry average (13.4x).
PE vs Market: FNV is poor value based on its PE Ratio (117.5x) compared to the Canadian market (13.7x).
Price to Earnings Growth Ratio
PEG Ratio: FNV is poor value based on its PEG Ratio (4.4x)
Price to Book Ratio
PB vs Industry: FNV is overvalued based on its PB Ratio (3.7x) compared to the CA Metals and Mining industry average (1.3x).
Next Steps
Future Growth
How is Franco-Nevada forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
26.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FNV's forecast earnings growth (26.9% per year) is above the savings rate (1.9%).
Earnings vs Market: FNV's earnings (26.9% per year) are forecast to grow faster than the Canadian market (13% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: FNV's revenue (14.2% per year) is forecast to grow faster than the Canadian market (5.5% per year).
High Growth Revenue: FNV's revenue (14.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: FNV's Return on Equity is forecast to be low in 3 years time (8.1%).
Next Steps
Past Performance
How has Franco-Nevada performed over the past 5 years?
28.4%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: FNV's earnings have grown significantly by 28.4% per year over the past 5 years.
Accelerating Growth: FNV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: FNV had negative earnings growth (-32.3%) over the past year, making it difficult to compare to the Metals and Mining industry average (-11.9%).
Return on Equity
High ROE: FNV's Return on Equity (3.1%) is considered low.
Return on Assets
ROA vs Industry: FNV's Return on Assets is below or equal to the Metals and Mining industry average last year.
Return on Capital Employed
ROCE Improving: FNV has significantly improved its Return on Capital Employed over the past 3 years.
Next Steps
Financial Health
How is Franco-Nevada's financial position?
Financial Position Analysis
Short Term Liabilities: FNV's short term assets ($540.2M) exceeds its short term liabilities ($202.0M)
Long Term Liabilities: FNV's short term assets (540.2M) exceeds its long term liabilities (356.4M)
Debt to Equity History and Analysis
Debt Level: FNV's debt to equity ratio (9%) is considered satisfactory
Reducing Debt: Insufficient data to determine if FNV's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: FNV's debt is well covered by operating cash flow (113.1%).
Interest Coverage: FNV's interest payments on its debt are well covered by EBIT (73.4x coverage).
Balance Sheet
Inventory Level: FNV has a high level of physical assets or inventory.
Debt Coverage by Assets: FNV's debt is covered by short term assets (assets are 1.2x debt).
Next Steps
Dividend
What is Franco-Nevada's current dividend yield, its reliability and sustainability?
1.06%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: FNV's dividend (1.06%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.98%).
High Dividend: FNV's dividend (1.06%) is low compared to the top 25% of dividend payers in the Canadian market (5.92%).
Stable Dividend: FNV is not paying a notable dividend for the Canadian market, therefore no need to check if payments are stable.
Growing Dividend: FNV is not paying a notable dividend for the Canadian market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: FNV is not paying a notable dividend for the Canadian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of FNV's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.
Next Steps
Management
What is the CEO of Franco-Nevada's salary, the management and board of directors tenure and is there insider trading?
11.2yrs
Average board tenure
CEO
David Harquail (62yo)
0yrs
Tenure
US$4,078,816
Compensation
Mr. David Harquail serves as the Chief Executive Officer of Franco-Nevada Corporation and served as President until May 2018. Mr. Harquail serves as Director of Bank of Montreal since April 5, 2018. Mr. Ha ...
CEO Compensation Analysis
Compensation vs. Market: David's total compensation ($USD3.12M) is below average for companies of similar size in the Canadian market ($USD7.07M).
Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.
Board Age and Tenure
11.2yrs
Average Tenure
62yo
Average Age
Experienced Board: FNV's board of directors are seasoned and experienced ( 11.2 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Company |
| Shares | 50,000 |
| Max Price | US$132.47 |
| Entity | Company |
| Shares | 100,000 |
| Max Price | US$132.47 |
| Entity | Individual |
| Role | Chief Executive Officer CEO & Director |
| Shares | 10,000 |
| Max Price | US$104.70 |
| Entity | Company |
| Shares | 35,000 |
| Max Price | US$104.32 |
| Entity | Company |
| Shares | 65,000 |
| Max Price | US$102.61 |
| Entity | Individual |
| Role | Chief Executive Officer CEO & Director |
| Shares | 29,136 |
| Max Price | US$98.66 |
| Entity | Individual |
| Role | Senior Key Executive Vice President |
| Shares | 329 |
| Max Price | US$97.50 |
| Entity | Individual |
| Role | Other Key Executive Vice President of Oil & Gas |
| Shares | 842 |
| Max Price | US$96.35 |
| Entity | Individual |
| Shares | 400 |
| Max Price | US$96.00 |
| Entity | Individual |
| Role | Chief Executive Officer CEO & Director |
| Shares | 30,000 |
| Max Price | US$89.18 |
Ownership Breakdown
Management Team
Pierre Lassonde (71yo)
Chairman of the Board & Co-Founder
- Tenure: 0yrs
- Compensation: US$331.05k
David Harquail (62yo)
CEO & Director
- Tenure: 0yrs
- Compensation: US$4.08m
Kerry Sparkes (55yo)
Vice President
- Tenure: 0yrs
Sandip Rana
Chief Financial Officer
- Tenure: 9.5yrs
- Compensation: US$1.71m
Paul Brink
President & COO
- Tenure: 1.4yrs
- Compensation: US$3.33m
Kevin McElligott
Managing Director of Australia
- Tenure: 0yrs
Lloyd Hong
Chief Legal Officer & Corporate Secretary
- Tenure: 0yrs
- Compensation: US$1.56m
Jason O’Connell
Vice President of Oil & Gas
- Tenure: 0yrs
- Compensation: US$1.02m
Candida Hayden
IR Contact
- Tenure: 0yrs
Board Members
Elliott Pew (64yo)
Director
- Tenure: 0.08yrs
Randall Oliphant (59yo)
Independent Director
- Tenure: 11.9yrs
- Compensation: US$260.05k
Louis-Pierre Gignac (68yo)
Independent Director
- Tenure: 11.9yrs
- Compensation: US$247.98k
David Peterson (75yo)
Independent Director
- Tenure: 11.9yrs
- Compensation: US$264.54k
Pierre Lassonde (71yo)
Chairman of the Board & Co-Founder
- Tenure: 0yrs
- Compensation: US$331.05k
David Harquail (62yo)
CEO & Director
- Tenure: 0yrs
- Compensation: US$4.08m
Derek Evans (62yo)
Independent Director
- Tenure: 11.2yrs
- Compensation: US$252.64k
Tom Albanese (62yo)
Independent Director
- Tenure: 6.2yrs
- Compensation: US$245.97k
Catharine E. Farrow (54yo)
Independent Director
- Tenure: 4.4yrs
- Compensation: US$237.18k
Jennifer Maki (49yo)
Independent Director
- Tenure: 0.4yrs
Company Information
Franco-Nevada Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Franco-Nevada Corporation
- Ticker: FNV
- Exchange: TSX
- Founded: 2007
- Industry: Gold
- Sector: Materials
- Market Cap: CA$23.167b
- Shares outstanding: 187.41m
- Website: https://www.franco-nevada.com
Number of Employees
Location
- Franco-Nevada Corporation
- 199 Bay Street
- Suite 2000
- Toronto
- Ontario
- M5L 1G9
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| FNV | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Dec 2007 |
| 3FO | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Dec 2007 |
| FNV | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Dec 2007 |
| 0QYZ | LSE (London Stock Exchange) | Yes | Common Shares | GB | CAD | Dec 2007 |
| FNV N | BMV (Bolsa Mexicana de Valores) | Yes | Common Shares | MX | MXN | Dec 2007 |
Biography
Franco-Nevada Corporation operates as a gold-focused royalty and stream company in the United States, Canada, Latin America, Australia, and Africa. It also holds interests in silver and platinum group meta ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/23 23:55 |
| End of Day Share Price | 2019/10/23 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.