TSX:FNV

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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

Earnings are forecast to grow 28.79% per year

Earnings have grown 26% per year over the past 5 years

Risk Analysis

No risks detected for FNV from our risk checks.


Snowflake Analysis

Flawless 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

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

1.5%

FNV

-0.6%

CA Metals and Mining

2.8%

CA Market


1 Year Return

29.5%

FNV

37.9%

CA Metals and Mining

-0.3%

CA Market

Return vs Industry: FNV underperformed the Canadian Metals and Mining industry which returned 37% over the past year.

Return vs Market: FNV exceeded the Canadian Market which returned -0.5% over the past year.


Shareholder returns

FNVIndustryMarket
7 Day1.5%-0.6%2.8%
30 Day-7.0%-7.3%10.0%
90 Day-13.5%-11.6%5.7%
1 Year30.7%29.5%39.1%37.9%3.3%-0.3%
3 Year66.7%61.0%41.7%38.7%12.2%1.3%
5 Year178.0%162.4%140.9%133.6%49.1%26.2%

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

Valuation

Is Franco-Nevada undervalued compared to its fair value and its price relative to the market?

93.83x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FNV (CA$169.25) is trading above our estimate of fair value (CA$89.42)

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 (93.8x) compared to the CA Metals and Mining industry average (21.1x).

PE vs Market: FNV is poor value based on its PE Ratio (93.8x) compared to the Canadian market (15.3x).


Price to Earnings Growth Ratio

PEG Ratio: FNV is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: FNV is overvalued based on its PB Ratio (4.7x) compared to the CA Metals and Mining industry average (2.6x).


Next Steps

Future Growth

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

28.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FNV's forecast earnings growth (28.8% per year) is above the savings rate (1.7%).

Earnings vs Market: FNV's earnings (28.8% per year) are forecast to grow faster than the Canadian market (27.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FNV's revenue (6.6% per year) is forecast to grow faster than the Canadian market (6.1% per year).

High Growth Revenue: FNV's revenue (6.6% 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 (10.1%).


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 93.2%.


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?

0.80%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: FNV's dividend (0.8%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.61%).

High Dividend: FNV's dividend (0.8%) is low compared to the top 25% of dividend payers in the Canadian market (5.26%).


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average board tenure


CEO

Paul Brink

0.50

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 ($USD2.05M) is below average for companies of similar size in the Canadian market ($USD7.03M).

Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Paul Brink
President0.50yrUS$3.45m0.11%
$ 35.3m
Pierre Lassonde
Co-Founder & Chair Emeritus0.50yrUS$389.29kno data
Elliott Pew
Independent Director1.17yrsUS$97.25kno data
Randall Oliphant
Independent Director13yrsUS$314.93k0.026%
$ 8.5m
Louis-Pierre Gignac
Independent Director13yrsUS$306.58k0.0052%
$ 1.7m
David Peterson
Independent Director13yrsUS$324.10k0.0082%
$ 2.7m
David Harquail
Non-Executive Chair0.50yrUS$4.14m0.50%
$ 163.3m
Derek Evans
Lead Independent Director0.50yrUS$311.82k0.0076%
$ 2.5m
Thomas Albanese
Independent Director7.25yrsUS$304.58k0.0059%
$ 1.9m
Maureen Jensen
Director0.50yrno datano data
Catharine E. Farrow
Independent Director5.5yrsUS$295.59k0.00016%
$ 51.8k
Jennifer Maki
Independent Director1.5yrsUS$193.48kno data

1.3yrs

Average Tenure

63yo

Average Age

Experienced Board: FNV's board of directors are not considered experienced ( 1.3 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: Insufficient data to determine if 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

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$32.375b
  • 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

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, Europe, and Africa, and internationally. It operates through two segm...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 00:16
End of Day Share Price2020/11/26 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.