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Franco-Nevada

TSX:FNV
Snowflake Description

Adequate balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FNV
TSX
CA$19B
Market Cap
  1. Home
  2. CA
  3. Materials
Company description

Franco-Nevada Corporation operates as a gold-focused royalty and stream company in the United States, Canada, Mexico, Peru, Chile, Australia, and Africa. The last earnings update was 6 days ago. More info.


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FNV Share Price and Events
7 Day Returns
1%
TSX:FNV
1.7%
CA Metals and Mining
-0%
CA Market
1 Year Returns
12.3%
TSX:FNV
-3.9%
CA Metals and Mining
2.6%
CA Market
FNV Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Franco-Nevada (FNV) 1% 1.1% 6.1% 12.3% 27.2% 100.7%
CA Metals and Mining 1.7% 0.4% 13.7% -3.9% 15% -18.9%
CA Market -0% 0.5% 15.3% 2.6% 16.8% 5.3%
1 Year Return vs Industry and Market
  • FNV outperformed the Metals and Mining industry which returned -3.9% over the past year.
  • FNV outperformed the Market in Canada which returned 2.6% over the past year.
Price Volatility
FNV
Industry
5yr Volatility vs Market

FNV Value

 Is Franco-Nevada undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Franco-Nevada to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Franco-Nevada.

TSX:FNV Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.6%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:FNV
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 1.16
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.164 (1 + (1- 26.5%) (1.46%))
1.118
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.12
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.118 * 5.96%)
8.61%

Discounted Cash Flow Calculation for TSX:FNV using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Franco-Nevada is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:FNV DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.61%)
2019 442.63 Analyst x8 407.53
2020 521.25 Analyst x8 441.87
2021 418.33 Analyst x3 326.51
2022 525.00 Analyst x2 377.28
2023 527.50 Analyst x2 349.02
2024 532.34 Est @ 0.92% 324.29
2025 538.86 Est @ 1.23% 302.24
2026 546.63 Est @ 1.44% 282.29
2027 555.35 Est @ 1.59% 264.05
2028 564.78 Est @ 1.7% 247.25
Present value of next 10 years cash flows $3,322.35
TSX:FNV DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $564.78 × (1 + 1.95%) ÷ (8.61% – 1.95%)
$8,639.98
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $8,639.98 ÷ (1 + 8.61%)10
$3,782.41
TSX:FNV Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $3,322.35 + $3,782.41
$7,104.76
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $7,104.76 / 187.08
$37.98
TSX:FNV Discount to Share Price
Calculation Result
Exchange Rate USD/CAD
(Reporting currency to currency of TSX:FNV)
1.341
Value per Share
(CAD)
= Value per Share in USD x Exchange Rate (USD/CAD)
= $37.98 x 1.341
CA$50.91
Value per share (CAD) From above. CA$50.91
Current discount Discount to share price of CA$101.94
= -1 x (CA$101.94 - CA$50.91) / CA$50.91
-100.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Franco-Nevada is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Franco-Nevada's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Franco-Nevada's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:FNV PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.75
TSX:FNV Share Price ** TSX (2019-03-22) in CAD CA$101.94
TSX:FNV Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.746 $76.04
Canada Metals and Mining Industry PE Ratio Median Figure of 115 Publicly-Listed Metals and Mining Companies 13.35x
Canada Market PE Ratio Median Figure of 555 Publicly-Listed Companies 14.94x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Franco-Nevada.

TSX:FNV PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:FNV Share Price ÷ EPS (both in USD)

= 76.04 ÷ 0.75

101.8x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Franco-Nevada is overvalued based on earnings compared to the CA Metals and Mining industry average.
  • Franco-Nevada is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does Franco-Nevada's expected growth come at a high price?
Raw Data
TSX:FNV PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 101.8x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
11.8%per year
Canada Metals and Mining Industry PEG Ratio Median Figure of 35 Publicly-Listed Metals and Mining Companies 0.65x
Canada Market PEG Ratio Median Figure of 254 Publicly-Listed Companies 1.22x

*Line of best fit is calculated by linear regression .

TSX:FNV PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 101.8x ÷ 11.8%

8.59x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Franco-Nevada is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Franco-Nevada's assets?
Raw Data
TSX:FNV PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $24.81
TSX:FNV Share Price * TSX (2019-03-22) in CAD CA$101.94
TSX:FNV Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.746 $76.04
Canada Metals and Mining Industry PB Ratio Median Figure of 1,081 Publicly-Listed Metals and Mining Companies 1.46x
Canada Market PB Ratio Median Figure of 2,355 Publicly-Listed Companies 1.57x
TSX:FNV PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:FNV Share Price ÷ Book Value per Share (both in USD)

= 76.04 ÷ 24.81

3.06x

* Primary Listing of Franco-Nevada.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Franco-Nevada is overvalued based on assets compared to the CA Metals and Mining industry average.
X
Value checks
We assess Franco-Nevada's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. Franco-Nevada has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

FNV Future Performance

 How is Franco-Nevada expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Franco-Nevada expected to grow at an attractive rate?
  • Franco-Nevada's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Franco-Nevada's earnings growth is positive but not above the Canada market average.
  • Franco-Nevada's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:FNV Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:FNV Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 11.8%
TSX:FNV Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 6%
Canada Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 34.3%
Canada Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 6.9%
Canada Market Earnings Growth Rate Market Cap Weighted Average 18.2%
Canada Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:FNV Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:FNV Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 745 618 282 1
2022-12-31 771 615 282 1
2021-12-31 813 603 289 4
2020-12-31 827 603 279 11
2019-12-31 723 534 239 9
TSX:FNV Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 651 475 139
2018-09-30 670 503 214
2018-06-30 671 491 222
2018-03-31 673 506 214
2017-12-31 673 489 195
2017-09-30 663 484 147
2017-06-30 663 490 141
2017-03-31 650 467 138
2016-12-31 610 471 122
2016-09-30 573 434 95
2016-06-30 505 412 56
2016-03-31 464 369 35

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Franco-Nevada's earnings are expected to grow by 11.8% yearly, however this is not considered high growth (20% yearly).
  • Franco-Nevada's revenue is expected to grow by 6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:FNV Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Franco-Nevada Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:FNV Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 1.51 1.51 1.51 1.00
2022-12-31 1.51 1.51 1.51 1.00
2021-12-31 1.55 1.79 1.42 3.00
2020-12-31 1.50 1.61 1.40 6.00
2019-12-31 1.28 1.40 1.14 7.00
TSX:FNV Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.75
2018-09-30 1.15
2018-06-30 1.19
2018-03-31 1.16
2017-12-31 1.06
2017-09-30 0.81
2017-06-30 0.79
2017-03-31 0.77
2016-12-31 0.70
2016-09-30 0.56
2016-06-30 0.34
2016-03-31 0.22

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Franco-Nevada is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Franco-Nevada's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Franco-Nevada has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

FNV Past Performance

  How has Franco-Nevada performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Franco-Nevada's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Franco-Nevada has delivered over 20% year on year earnings growth in the past 5 years.
  • Franco-Nevada's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Franco-Nevada's 1-year earnings growth is negative, it can't be compared to the CA Metals and Mining industry average.
Earnings and Revenue History
Franco-Nevada's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Franco-Nevada Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:FNV Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 650.90 139.00 22.60
2018-09-30 670.00 213.80 24.40
2018-06-30 671.00 221.70 24.40
2018-03-31 673.40 213.70 24.00
2017-12-31 672.70 194.70 24.90
2017-09-30 663.10 146.70 26.00
2017-06-30 663.10 141.10 25.10
2017-03-31 650.10 137.80 24.50
2016-12-31 609.70 122.20 24.10
2016-09-30 573.10 95.30 18.80
2016-06-30 505.10 56.10 19.50
2016-03-31 463.50 35.40 18.90
2015-12-31 441.00 24.60 17.80
2015-09-30 443.50 57.20 19.70
2015-06-30 448.10 75.20 18.60
2015-03-31 447.50 90.50 18.50
2014-12-31 442.40 106.70 18.60
2014-09-30 419.40 24.90 18.70
2014-06-30 410.60 27.00 19.40
2014-03-31 396.20 11.70 18.30
2013-12-31 400.90 11.70 18.20
2013-09-30 415.00 59.20 20.10
2013-06-30 421.40 75.90 20.20
2013-03-31 430.80 91.20 20.60
2012-12-31 427.00 102.60 20.00
2012-09-30 431.40 30.30 20.20
2012-06-30 439.50 22.40 20.40
2012-03-31 443.10 18.80 21.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Franco-Nevada has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Franco-Nevada used its assets less efficiently than the CA Metals and Mining industry average last year based on Return on Assets.
  • Franco-Nevada has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Franco-Nevada's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Franco-Nevada has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

FNV Health

 How is Franco-Nevada's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Franco-Nevada's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Franco-Nevada is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Franco-Nevada's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Franco-Nevada's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Franco-Nevada Company Filings, last reported 2 months ago.

TSX:FNV Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 4,631.90 207.60 69.70
2018-09-30 4,744.90 0.00 76.90
2018-06-30 4,700.20 0.00 72.10
2018-03-31 4,687.10 0.00 87.70
2017-12-31 4,705.50 0.00 511.10
2017-09-30 4,663.90 0.00 546.00
2017-06-30 4,573.20 0.00 614.30
2017-03-31 4,174.90 0.00 283.00
2016-12-31 4,146.50 0.00 253.00
2016-09-30 4,188.10 0.00 277.60
2016-06-30 4,157.90 0.00 225.80
2016-03-31 4,134.20 0.00 186.90
2015-12-31 3,163.00 457.30 168.00
2015-09-30 3,246.90 0.00 613.90
2015-06-30 3,322.90 0.00 610.80
2015-03-31 3,306.60 0.00 598.50
2014-12-31 3,405.50 0.00 592.50
2014-09-30 3,465.30 0.00 1,221.90
2014-06-30 3,034.90 0.00 716.00
2014-03-31 2,972.60 0.00 680.20
2013-12-31 2,963.80 0.00 788.00
2013-09-30 3,111.30 0.00 841.60
2013-06-30 3,070.20 0.00 797.00
2013-03-31 3,130.80 0.00 825.80
2012-12-31 3,149.10 0.00 779.90
2012-09-30 3,221.20 0.00 1,130.60
2012-06-30 3,055.70 0.00 987.10
2012-03-31 3,068.30 0.00 952.80
  • Franco-Nevada's level of debt (4.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 4.5% today).
  • Debt is well covered by operating cash flow (228.7%, greater than 20% of total debt).
  • Franco-Nevada earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Franco-Nevada's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Franco-Nevada has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

FNV Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.26%
Current annual income from Franco-Nevada dividends. Estimated to be 1.3% next year.
If you bought CA$2,000 of Franco-Nevada shares you are expected to receive CA$25 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Franco-Nevada's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (2.05%).
  • Franco-Nevada's dividend is below the markets top 25% of dividend payers in Canada (5.67%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:FNV Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
Canada Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 28 Stocks 1.1%
Canada Market Average Dividend Yield Market Cap Weighted Average of 331 Stocks 3.6%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2%
Canada Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:FNV Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.96 1.00
2020-12-31 0.99 5.00
2019-12-31 0.98 4.00
TSX:FNV Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-07 0.960 1.269
2018-08-08 0.960 1.429
2018-05-09 0.960 1.335
2018-02-08 0.920 1.304
2017-11-06 0.920 1.164
2017-08-08 0.920 1.154
2017-05-09 0.920 1.270
2017-02-09 0.880 1.334
2016-11-08 0.880 1.455
2016-08-08 0.880 1.257
2016-02-11 0.840 1.263
2015-11-12 0.840 1.795
2015-11-11 0.840 1.787
2015-08-10 0.840 1.832
2015-02-18 0.800 1.653
2014-11-05 0.800 1.536
2014-08-07 0.800 1.513
2014-03-19 0.800 1.588
2013-11-05 0.720 1.613
2013-08-07 0.720 1.626
2013-05-08 0.720 1.842
2013-03-19 0.720 1.717
2012-11-06 0.720 1.341
2012-08-08 0.600 1.097
2012-05-08 0.600 1.338
2012-03-22 0.480 1.129
2011-11-08 0.480 1.155
2011-08-09 0.480 1.180
2011-05-12 0.480 1.247
2011-03-24 0.480 1.277
2010-08-11 0.282 0.923
2010-05-12 0.278 0.945
2009-11-09 0.260 0.999
2009-05-11 0.238 0.997
2009-04-14 0.196 0.923
2009-03-26 0.196 0.935

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Franco-Nevada's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.6x coverage).
X
Income/ dividend checks
We assess Franco-Nevada's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Franco-Nevada afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Franco-Nevada has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

FNV Management

 What is the CEO of Franco-Nevada's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
David Harquail
COMPENSATION $4,517,178
AGE 61
CEO Bio

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. Harquail served as the President and Managing Director of Newmont Capital Limited, a subsidiary of Newmont Mining Corp. since May 15, 2002 until 2006. He served as an Executive Vice President of Franco-Nevada since 2006 and served as President and Managing Director of Franco-Nevada Capital of Franco-Nevada, since 2002. Mr. Harquail served as an Executive Vice President of Business Development and Exploration at Newmont Mining Corp. since November 1, 2006 until 2007. He served as senior executive of the original Franco-Nevada group of companies since 1987. Mr. Harquail served as an Executive Vice President of Newmont Mining Corp., until November 13, 2007 and its Vice President since September 2003 and Vice President of Merchant Banking since April 2004. He was responsible for overseeing the activities of Newmont Capital, as well as the exploration and technical services functions. He served as an Executive Vice President of Business Development & Exploration of Newmont Mining Corp. of Canada Ltd. until November 2007. Mr. Harquail served as the Senior Vice President of Newmont Mining Corporation of Canada Limited (formerly Franco-Nevada Mining Corporation Limited) from May 1998 to February 2002. He served as the President and Chief Executive Officer of Redstone Resources Inc. He was with Franco-Nevada for 15 years as a Senior Executive. He has been a Director of Franco-Nevada Corporation since November 13, 2007. He is Chair of the World Gold Council. He served as a Director of Kinross Gold Corporation of Echo Bay Mines Ltd. since January 31, 2003. He served as a Director of Inco Limited. He served on the board of the Prospectors and Developers Association of Canada. He is a Professional Engineer designation with the Professional Engineers of Ontario. Mr. Harquail holds a B.A.Sc. in Geological Engineering from the University of Toronto, a Master of Business Administration from McGill University. He is also a major benefactor of the School of Earth Sciences and its Mineral Exploration Research Centre (MERC) at Laurentian University in Sudbury as well as the Centre for Neuromodulation at Sunnybrook Health Sciences in Toronto. He was a Task Force Advisor to the Toronto Stock Exchange.

CEO Compensation
  • David's compensation has been consistent with company performance over the past year.
  • David's remuneration is lower than average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the Franco-Nevada management team in years:

2.8
Average Tenure
  • The tenure for the Franco-Nevada management team is about average.
Management Team

David Harquail

TITLE
CEO & Director
COMPENSATION
$5M
AGE
61

Paul Brink

TITLE
President & COO
COMPENSATION
$2M
TENURE
0.8 yrs

Sandip Rana

TITLE
Chief Financial Officer
COMPENSATION
$2M
TENURE
8.9 yrs

Lloyd Hong

TITLE
Chief Legal Officer & Corporate Secretary
COMPENSATION
$2M

Jason O’Connell

TITLE
Vice President of Oil & Gas
COMPENSATION
$1M
TENURE
2.8 yrs

Kevin McElligott

TITLE
Managing Director of Australia

Kerry Sparkes

TITLE
Vice President
AGE
54

Candida Hayden

TITLE
IR Contact
Board of Directors Tenure

Average tenure and age of the Franco-Nevada board of directors in years:

11.3
Average Tenure
61
Average Age
  • The average tenure for the Franco-Nevada board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Pierre Lassonde

TITLE
Chairman of the Board
COMPENSATION
$339K
AGE
70

David Harquail

TITLE
CEO & Director
COMPENSATION
$5M
AGE
61
TENURE
11.3 yrs

Randall Oliphant

TITLE
Independent Director
COMPENSATION
$268K
AGE
58
TENURE
11.3 yrs

David Peterson

TITLE
Independent Director
COMPENSATION
$271K
AGE
73
TENURE
11.3 yrs

Louis-Pierre Gignac

TITLE
Independent Director
COMPENSATION
$255K
AGE
67
TENURE
11.3 yrs

Derek Evans

TITLE
Independent Director
COMPENSATION
$262K
AGE
61
TENURE
10.6 yrs

Tom Albanese

TITLE
Independent Director
COMPENSATION
$253K
AGE
61
TENURE
5.6 yrs

Catharine E. Farrow

TITLE
Independent Director
COMPENSATION
$244K
AGE
53
TENURE
3.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
21. Dec 18 Sell David Harquail Individual 18. Dec 18 19. Dec 18 -29,136 CA$98.66 CA$-2,867,887
18. Dec 18 Sell Jason O’Connell Individual 18. Dec 18 18. Dec 18 -842 CA$96.35 CA$-81,130
18. Dec 18 Sell Kerry Sparkes Individual 18. Dec 18 18. Dec 18 -329 CA$97.50 CA$-32,078
14. Dec 18 Sell Eaun Gray Individual 11. Dec 18 11. Dec 18 -400 CA$96.00 CA$-38,400
21. Nov 18 Sell David Harquail Individual 19. Nov 18 19. Nov 18 -30,000 CA$89.18 CA$-2,671,153
27. Sep 18 Buy Catharine E. Farrow Individual 24. Sep 18 24. Sep 18 300 CA$82.23 CA$24,669
X
Management checks
We assess Franco-Nevada's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Franco-Nevada has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

FNV News

Simply Wall St News

Is Franco-Nevada Corporation's (TSE:FNV) CEO Being Overpaid?

This analysis aims first to contrast CEO compensation with other large companies. … According to our data, Franco-Nevada Corporation has a market capitalization of CA$19b, and pays its CEO total annual compensation worth US$4.5m. … We looked at a group of companies with market capitalizations over CA$11b and the median CEO total compensation was CA$8.6m

Simply Wall St -

How Much Are Franco-Nevada Corporation (TSE:FNV) Insiders Taking Off The Table?

So shareholders might well want to know whether insiders have been buying or selling shares in Franco-Nevada Corporation (TSE:FNV). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … All up, insiders sold more shares in Franco-Nevada than they bought, over the last year

Simply Wall St -

Is Franco-Nevada Corporation's (TSE:FNV) High P/E Ratio A Problem For Investors?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS) … P/E of 66.27 = $76.16 (Note: this is the share price in the reporting currency, namely, USD ) ÷ $1.15

Simply Wall St -

Here's What Franco-Nevada Corporation's (TSE:FNV) ROCE Can Tell Us

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

A Holistic Look At Franco-Nevada Corporation (TSE:FNV)

Franco-Nevada Corporation (TSE:FNV) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of FNV, it

Simply Wall St -

Is Franco-Nevada Corporation's (TSE:FNV) Liquidity Good Enough?

Investors looking for stocks with high market liquidity and zero debt on the balance sheet should consider Franco-Nevada Corporation (TSE:FNV). … With a market valuation of CA$17b, FNV is a safe haven in times of market uncertainty due to its strong balance sheet. … These companies are resilient in times of low liquidity and are not as strongly impacted by interest rate hikes as companies with lots of debt.

Simply Wall St -

With A 4.5% Return On Equity, Is Franco-Nevada Corporation (TSE:FNV) A Quality Stock?

Franco-Nevada has a ROE of 4.5%, based on the last twelve months. … One way to conceptualize this, is that for each CA$1 of shareholders' equity it has, the company made CA$0.045 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Need To Know: Franco-Nevada Corporation (TSE:FNV) Insiders Have Been Selling Shares

So shareholders might well want to know whether insiders have been buying or selling shares in Franco-Nevada Corporation (TSE:FNV). … That means that an insider was selling shares at below the current price (CA$91.18). … We generally consider it a negative if insiders have been selling on market, especially if they did so below the current price

Simply Wall St -

Why Franco-Nevada Corporation's (TSE:FNV) High P/E Ratio Isn't Necessarily A Bad Thing

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … Price to Earnings Ratio = Price per Share (in the reporting currency) ÷ Earnings per Share (EPS) … P/E of 54.66 = $65.2 (Note: this is the share price in the reporting currency, namely, USD ) ÷ $1.19

Simply Wall St -

Should Franco-Nevada Corporation (TSE:FNV) Be Part Of Your Dividend Portfolio?

Dividends play an important role in compounding returns in the long run and end up forming a sizeable part of investment returns. … Historically, Franco-Nevada Corporation (TSE:FNV) has paid a dividend to shareholders. … Let's take a look at Franco-Nevada in more detail.

Simply Wall St -

FNV Company Info

Description

Franco-Nevada Corporation operates as a gold-focused royalty and stream company in the United States, Canada, Mexico, Peru, Chile, Australia, and Africa. The company also holds interests in silver, platinum group metals, oil and gas, and other resource assets. As of December 31, 2017, it had a portfolio of 341 assets. The company was incorporated in 2007 and is headquartered in Toronto, Canada.

Details
Name: Franco-Nevada Corporation
FNV
Exchange: TSX
Founded: 2007
CA$19,070,916,952
187,079,821
Website: http://www.franco-nevada.com
Address: Franco-Nevada Corporation
199 Bay Street,
Suite 2000,
Toronto,
Ontario, M5L 1G9,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX FNV Common Shares The Toronto Stock Exchange CA CAD 03. Dec 2007
NYSE FNV Common Shares New York Stock Exchange US USD 03. Dec 2007
DB 3FO Common Shares Deutsche Boerse AG DE EUR 03. Dec 2007
LSE 0QYZ Common Shares London Stock Exchange GB CAD 03. Dec 2007
BMV FNV N Common Shares Bolsa Mexicana de Valores MX MXN 03. Dec 2007
Number of employees
Current staff
Staff numbers
32
Franco-Nevada employees.
Industry
Gold
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/25 00:06
End of day share price update: 2019/03/22 00:00
Last estimates confirmation: 2019/03/23
Last earnings filing: 2019/03/19
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.