Executive Summary
Franco-Nevada Corporation operates as a gold-focused royalty and stream company in the United States, Canada, Latin America, Australia, Europe, and Africa, and internationally. More Details
Rewards
Risk Analysis
FNV passed our risk checks.
Snowflake Analysis
Flawless balance sheet average dividend payer.
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
Stable Share Price: FNV is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: FNV's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
-5.3%
FNV
-5.8%
CA Metals and Mining
-0.5%
CA Market
1 Year Return
11.8%
FNV
33.4%
CA Metals and Mining
1.6%
CA Market
Return vs Industry: FNV underperformed the Canadian Metals and Mining industry which returned 33.4% over the past year.
Return vs Market: FNV exceeded the Canadian Market which returned 1.6% over the past year.
Shareholder returns
| FNV | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.3% | -5.8% | -0.5% |
| 30 Day | -9.0% | -2.1% | 3.4% |
| 90 Day | -14.9% | -4.0% | 13.2% |
| 1 Year | 12.7%11.8% | 34.5%33.4% | 5.3%1.6% |
| 3 Year | 63.1%57.6% | 36.0%33.1% | 13.1%2.3% |
| 5 Year | 172.2%156.5% | 175.5%166.8% | 66.0%40.5% |
Long-Term 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
4 weeks ago | Simply Wall St
Shareholders Are Thrilled That The Franco-Nevada (TSE:FNV) Share Price Increased 155%1 month ago | Simply Wall St
Is Franco-Nevada Corporation (TSE:FNV) Popular Amongst Institutions?2 months ago | Simply Wall St
Franco-Nevada's (TSE:FNV) Earnings Are Growing But Is There More To The Story?Valuation
Is Franco-Nevada undervalued compared to its fair value and its price relative to the market?
87.41x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: FNV (CA$154.26) is trading above our estimate of fair value (CA$95.55)
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 (87.4x) compared to the CA Metals and Mining industry average (17.2x).
PE vs Market: FNV is poor value based on its PE Ratio (87.4x) compared to the Canadian market (16.6x).
Price to Earnings Growth Ratio
PEG Ratio: FNV is poor value based on its PEG Ratio (3.2x)
Price to Book Ratio
PB vs Industry: FNV is overvalued based on its PB Ratio (4.4x) compared to the CA Metals and Mining industry average (2.9x).
Next Steps
Future Growth
How is Franco-Nevada forecast to perform in the next 1 to 3 years based on estimates from 8 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 (1.5%).
Earnings vs Market: FNV's earnings (26.9% per year) are forecast to grow faster than the Canadian market (25.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: FNV's revenue (7% per year) is forecast to grow slower than the Canadian market (7.9% per year).
High Growth Revenue: FNV's revenue (7% 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 (10.6%).
Next Steps
Past Performance
How has Franco-Nevada performed over the past 5 years?
26.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FNV has high quality earnings.
Growing Profit Margin: FNV's current net profit margins (27.1%) are lower than last year (27.4%).
Past Earnings Growth Analysis
Earnings Trend: FNV's earnings have grown significantly by 26% per year over the past 5 years.
Accelerating Growth: FNV's earnings growth over the past year (30.7%) exceeds its 5-year average (26% per year).
Earnings vs Industry: FNV earnings growth over the past year (30.7%) underperformed the Metals and Mining industry 71.8%.
Return on Equity
High ROE: FNV's Return on Equity (5%) is considered low.
Next Steps
Financial Health
How is Franco-Nevada's financial position?
Financial Position Analysis
Short Term Liabilities: FNV's short term assets ($601.0M) exceed its short term liabilities ($41.8M).
Long Term Liabilities: FNV's short term assets ($601.0M) exceed its long term liabilities ($85.2M).
Debt to Equity History and Analysis
Debt Level: FNV is debt free.
Reducing Debt: FNV has no debt compared to 5 years ago when its debt to equity ratio was 0.3%.
Debt Coverage: FNV has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: FNV has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Franco-Nevada current dividend yield, its reliability and sustainability?
0.86%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FNV's dividend (0.86%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.54%).
High Dividend: FNV's dividend (0.86%) is low compared to the top 25% of dividend payers in the Canadian market (5.03%).
Stability and Growth of Payments
Stable Dividend: FNV's dividends per share have been stable in the past 10 years.
Growing Dividend: FNV's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (73.6%), FNV's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: FNV's dividends in 3 years are forecast to be well covered by earnings (30.5% payout ratio).
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Management
How experienced are the management team and are they aligned to shareholders interests?
1.5yrs
Average board tenure
CEO
Paul Brink
0.67
Tenure
US$3,453,027
Compensation
Mr. Paul Brink serves as Chief Executive Officer and Director of Franco-Nevada Corporation since May 6, 2020 and serves as its President since May 2018. Mr. Brink served as Chief Operating Officer of Franc...
CEO Compensation Analysis
Compensation vs Market: Paul's total compensation ($USD2.09M) is below average for companies of similar size in the Canadian market ($USD6.58M).
Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 0.67yr | US$3.45m | 0.11% $ 32.7m | |
| Co-Founder & Chair Emeritus | 0.67yr | US$389.29k | no data | |
| Independent Director | 1.33yrs | US$97.25k | no data | |
| Independent Director | 13.17yrs | US$314.93k | 0.026% $ 7.7m | |
| Independent Director | 13.17yrs | US$306.58k | 0.0052% $ 1.5m | |
| Independent Director | 13.17yrs | US$324.10k | 0.0082% $ 2.4m | |
| Non-Executive Chair | 0.67yr | US$4.14m | 0.51% $ 149.6m | |
| Lead Independent Director | 0.67yr | US$311.82k | 0.0076% $ 2.2m | |
| Independent Director | 7.42yrs | US$304.58k | 0.0059% $ 1.7m | |
| Director | 0.67yr | no data | no data | |
| Independent Director | 5.67yrs | US$295.59k | 0.00016% $ 47.1k | |
| Independent Director | 1.67yrs | US$193.48k | no data |
1.5yrs
Average Tenure
63yo
Average Age
Experienced Board: FNV's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: FNV insiders have only sold shares 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
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$29.438b
- Shares outstanding: 190.83m
- 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, Europe, and Africa, and internationally. It operates through two segm...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/18 00:51 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/09/30 |
| 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.