TSX:FNV

Stock Analysis Report

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

FNVIndustryMarket
7 Day2.2%0.5%0.2%
30 Day-2.4%-8.9%-3.3%
90 Day5.2%-8.0%-1.9%
1 Year51.2%49.3%15.9%15.0%7.3%3.5%
3 Year51.2%45.3%-11.6%-13.2%14.7%4.4%
5 Year133.4%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

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

  • Explore more healthy companies in the Materials industry.

Dividend

What is Franco-Nevada's current dividend yield, its reliability and sustainability?

1.06%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%2.0%markettop25%5.9%industryaverage1.3%forecastin3Years1.1%

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

SellUS$6,623,30005 Sep 19
Lassonde Family Foundation, Endowment Arm
EntityCompany
Shares50,000
Max PriceUS$132.47
SellUS$13,246,60005 Sep 19
Firelight Investments Limited, Asset Management Arm
EntityCompany
Shares100,000
Max PriceUS$132.47
SellUS$1,047,00003 Jun 19
David Harquail
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares10,000
Max PriceUS$104.70
SellUS$3,651,20001 Apr 19
Lassonde Family Foundation, Endowment Arm
EntityCompany
Shares35,000
Max PriceUS$104.32
SellUS$6,669,52001 Apr 19
Firelight Investments Limited, Asset Management Arm
EntityCompany
Shares65,000
Max PriceUS$102.61
SellUS$2,867,88721 Dec 18
David Harquail
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares29,136
Max PriceUS$98.66
SellUS$32,07818 Dec 18
Kerry Sparkes
EntityIndividual
Role
Senior Key Executive
Vice President
Shares329
Max PriceUS$97.50
SellUS$81,13018 Dec 18
Jason O’Connell
EntityIndividual
Role
Other Key Executive
Vice President of Oil & Gas
Shares842
Max PriceUS$96.35
SellUS$38,40014 Dec 18
Eaun Gray
EntityIndividual
Shares400
Max PriceUS$96.00
SellUS$2,671,15321 Nov 18
David Harquail
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares30,000
Max PriceUS$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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FNVTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 2007
3FODB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2007
FNVNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 2007
0QYZLSE (London Stock Exchange)YesCommon SharesGBCADDec 2007
FNV NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNDec 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:55
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.