OTCPK:FNLI.F

Stock Analysis Report

First National Financial

Executive Summary

First National Financial Corporation, through its subsidiaries, originates, underwrites, and services residential and commercial mortgages in Canada.

Snowflake

Fundamentals

6 star dividend payer with moderate growth potential.

Share Price & News

How has First National Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

OTCPK:FNLI.F

1.2%

US Mortgage

0.9%

US Market


1 Year Return

n/a

OTCPK:FNLI.F

-0.3%

US Mortgage

0.3%

US Market

No trading data on FNLI.F.

No trading data on FNLI.F.


Share holder returns

FNLI.FIndustryMarket
7 Day0%1.2%0.9%
30 Day6.6%-1.2%-1.9%
90 Day17.4%-0.5%1.6%
1 Yearn/a1.8%-0.3%2.6%0.3%
3 Yearn/a33.8%24.8%41.0%31.8%
5 Yearn/a59.0%42.3%55.2%38.0%

Price Volatility Vs. Market

How volatile is First National Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is First National Financial undervalued based on future cash flows and its price relative to the stock market?

16%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

First National Financial's share price is below the future cash flow value, but not at a moderate discount (< 20%).

First National Financial's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

First National Financial is overvalued based on earnings compared to the US Mortgage industry average.

First National Financial is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

First National Financial is good value based on expected growth next year.


Price Based on Value of Assets

First National Financial is overvalued based on assets compared to the US Mortgage industry average.


Next Steps

Future Growth

How is First National Financial expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

15.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

First National Financial's revenue is expected to grow by 10.7% yearly, however this is not considered high growth (20% yearly).

First National Financial's earnings are expected to grow by 15% yearly, however this is not considered high growth (20% yearly).

First National Financial's revenue growth is expected to exceed the United States of America market average.

First National Financial's earnings growth is expected to exceed the United States of America market average.

First National Financial's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if First National Financial will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has First National Financial performed over the past 5 years?

13.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

First National Financial's year on year earnings growth rate has been positive over the past 5 years.

First National Financial's 1-year earnings growth is negative, it can't be compared to the 5-year average.

First National Financial's 1-year earnings growth is negative, it can't be compared to the US Mortgage industry average.


Return on Equity

Whilst First National Financial has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

First National Financial used its assets less efficiently than the US Mortgage industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if First National Financial improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is First National Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Information is not available.

Information is not available.


Financial Institutions Analysis

Unable to establish if First National Financial has an acceptable proportion of non-loan assets without balance sheet data.

Unable to establish if First National Financial has a sufficient allowance for bad loans without relevant financial data.

Unable to establish if First National Financial's liabilities are primarily made up of low risk funding sources without deposits or liabilities data.

First National Financial's level of assets compared to its equity is very high (i.e. bank has borrowed heavily to fund lending).

First National Financial reports no customer deposits, loans are made up entirely of borrowed funds.

Unable to establish if First National Financial has an acceptable level of bad loans without bad loans data.


Next Steps

Dividend

What is First National Financial's current dividend yield, its reliability and sustainability?

5.77%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase First National Financial before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

First National Financial's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

First National Financial's dividend is above the markets top 25% of dividend payers in United States of America (3.84%).

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

Dividends paid are covered by earnings (1.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.5x coverage).


Next Steps

Management

What is the CEO of First National Financial's salary, the management and board of directors tenure and is there insider trading?

4.5yrs

Average management tenure


CEO

Stephen J. Smith 0

0.0yrs

Tenure

CA$762,956

Compensation

Mr. Stephen J. R. Smith serves as the Chairman at Peloton Capital Management. Mr. Stephen has been a Director of E-L Financial Corporation Limited since May 10, 2018. Mr. Stephen co-founded First National  ...


CEO Compensation Analysis

Stephen J.'s remuneration is lower than average for companies of similar size in United States of America.

Stephen J.'s compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.5yrs

Average Tenure

The tenure for the First National Financial management team is about average.


Board Age and Tenure

13.2yrs

Average Tenure

64yo

Average Age

The average tenure for the First National Financial board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

More shares have been bought than sold by First National Financial individual insiders in the past 3 months.


Recent Insider Transactions

BuyCA$263,25406 Jun 19
Stephen J. Smith
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares11,602
Max PriceCA$22.69
BuyCA$37,55913 May 19
Stephen J. Smith
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares1,700
Max PriceCA$22.09
BuyCA$278,01226 Apr 19
Stephen J. Smith
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares11,669
Max PriceCA$23.82
BuyCA$757,83231 Jan 19
Stephen J. Smith
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares35,064
Max PriceCA$21.61
BuyCA$604,24325 Jan 19
Stephen J. Smith
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares27,934
Max PriceCA$21.63
BuyCA$8,16713 Dec 18
Robert Mitchell
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares410
Max PriceCA$19.92
SellCA$8,14813 Dec 18
Robert Mitchell
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares410
Max PriceCA$19.87

Ownership Breakdown


Management Team

  • Stephen J. Smith

    Co-Founder

    • Tenure: 0.0yrs
    • Compensation: CA$762.96k
  • Moray Tawse (62yo)

    Co-Founder

    • Tenure: 13.3yrs
    • Compensation: CA$763.08k
  • Jeremy Wedgbury

    Senior Vice President of Commercial Mortgages

    • Tenure: 0.0yrs
    • Compensation: CA$770.58k
  • Scott McKenzie

    Senior Vice President of Residential Mortgages

    • Tenure: 0.0yrs
    • Compensation: CA$598.54k
  • Rob Inglis

    Chief Financial Officer

    • Tenure: 10.7yrs
    • Compensation: CA$660.49k
  • Ernie Stapleton

    President of Fundamental

    • Tenure: 0.0yrs
  • Jason Ellis

    Chief Operating Officer

    • Tenure: 0.8yrs
    • Compensation: CA$833.82k
  • Lisa White

    Senior Vice President of Mortgage Operations

    • Tenure: 2.5yrs
  • Hilda Wong

    Senior VP & General Counsel

    • Tenure: 6.6yrs

Board Members

  • Rob Pearce (64yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: CA$53.00k
  • John Brough (72yo)

    Lead Independent Director

    • Tenure: 0.0yrs
    • Compensation: CA$77.00k
  • Robert Mitchell

    Independent Director

    • Tenure: 13.2yrs
    • Compensation: CA$47.00k
  • Duncan Newton Jackman (52yo)

    Independent Director

    • Tenure: 13.2yrs
    • Compensation: CA$47.00k
  • Stephen J. Smith

    Co-Founder

    • Tenure: 0.0yrs
    • Compensation: CA$762.96k
  • Barb Palk (67yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: CA$57.00k
  • Moray Tawse (62yo)

    Co-Founder

    • Tenure: 13.3yrs
    • Compensation: CA$763.08k

Company Information

First National Financial Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: First National Financial Corporation
  • Ticker: FNLI.F
  • Exchange: OTCPK
  • Founded: 1988
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: CA$2.092b
  • Listing Market Cap: CA$1.574b
  • Shares outstanding: 59.97m
  • Website: https://www.firstnational.ca

Number of Employees


Location

  • First National Financial Corporation
  • North Tower
  • Suite 1200
  • Toronto
  • Ontario
  • M5J 1V6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FNTSX (The Toronto Stock Exchange)YesCommon SharesCACADJun 2006
FNLI.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 2006
FN.PRATSX (The Toronto Stock Exchange)PFD CL A SER 1CACADJan 2011

Biography

First National Financial Corporation, through its subsidiaries, originates, underwrites, and services residential and commercial mortgages in Canada. It offers single family residential, and multi-unit res ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 00:33
End of Day Share Price2019/08/13 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.