FNV Stock Overview
Franco-Nevada Corporation operates as a gold-focused royalty and stream company in the United States, Latin America, Canada, Australia, Europe, and Africa, and internationally.
Price History & Performance
|Historical stock prices|
|Current Share Price||CA$130.04|
|52 Week High||CA$163.79|
|52 Week Low||CA$105.62|
|1 Month Change||-2.65%|
|3 Month Change||-7.56%|
|1 Year Change||7.29%|
|3 Year Change||88.74%|
|5 Year Change||103.57%|
|Change since IPO||172.62%|
Recent News & Updates
Franco-Nevada: Trading At A Significant Premium To Net Asset Value
Franco-Nevada is one of the best-performing precious metals stocks this year, up 7% vs. a 13% decline in the Gold Miners Index. The company just came off another incredible quarter, with revenue up 13% year-over-year despite lapping a record gold price, with energy revenue picking up the slack. However, with the stock trading at 35x FY2023 earnings estimates, I still don't see enough of a margin of safety here to jump into the stock at current levels. So, while Franco-Nevada is a staple for any precious metals portfolio, I think there are a few better ways to play the royalty/streaming space currently.
Franco-Nevada: A Stock Split Could Do Wonders With A Higher Dividend Yield
During the third quarter of 2021, the company generated $316.3 million, up from $279.8 million the same quarter a year ago and up 13.05% sequentially. Franco-Nevada stated that it sold 146,495 gold equivalent ounces in 3Q21, up from 134,817 GEOs in the same quarter a year ago. I recommend buying cautiously below $140. However, depending on the FED, it is perhaps wiser to wait for below $135.
|FNV||US Metals and Mining||US Market|
Return vs Industry: FNV underperformed the US Metals and Mining industry which returned 21.8% over the past year.
Return vs Market: FNV underperformed the US Market which returned 13.7% over the past year.
|FNV Average Weekly Movement||3.4%|
|Metals and Mining Industry Average Movement||9.0%|
|Market Average Movement||6.6%|
|10% most volatile stocks in US Market||15.9%|
|10% least volatile stocks in US Market||2.4%|
Stable Share Price: FNV is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: FNV's weekly volatility (3%) has been stable over the past year.
About the Company
Franco-Nevada Corporation operates as a gold-focused royalty and stream company in the United States, Latin America, Canada, Australia, Europe, and Africa, and internationally. It operates through two segment, Mining and Energy. The company manages its portfolio with a focus on precious metals, such as gold, silver, and platinum group metals; and energy comprising oil, gas, and natural gas liquids.
Franco-Nevada Fundamentals Summary
|FNV fundamental statistics|
Is FNV overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|FNV income statement (TTM)|
|Cost of Revenue||US$174.20m|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
|Earnings per share (EPS)||3.61|
|Net Profit Margin||54.10%|
How did FNV perform over the long term?See historical performance and comparison
0.9%Current Dividend Yield
Is Franco-Nevada undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: FNV ($130.04) is trading above our estimate of fair value ($107.22)
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 (36.1x) compared to the US Metals and Mining industry average (8.9x).
PE vs Market: FNV is poor value based on its PE Ratio (36.1x) compared to the US market (17.4x).
Price to Earnings Growth Ratio
PEG Ratio: FNV is poor value based on its PEG Ratio (17.1x)
Price to Book Ratio
PB vs Industry: FNV is overvalued based on its PB Ratio (4.3x) compared to the US Metals and Mining industry average (2.2x).
How is Franco-Nevada forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FNV's forecast earnings growth (2.1% per year) is above the savings rate (2%).
Earnings vs Market: FNV's earnings (2.1% per year) are forecast to grow slower than the US market (13% per year).
High Growth Earnings: FNV's earnings are forecast to grow, but not significantly.
Revenue vs Market: FNV's revenue (0.9% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: FNV's revenue (0.9% 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%).
How has Franco-Nevada performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FNV has high quality earnings.
Growing Profit Margin: FNV's current net profit margins (54.1%) are higher than last year (27.1%).
Past Earnings Growth Analysis
Earnings Trend: FNV's earnings have grown significantly by 34.1% per year over the past 5 years.
Accelerating Growth: FNV's earnings growth over the past year (162.4%) exceeds its 5-year average (34.1% per year).
Earnings vs Industry: FNV earnings growth over the past year (162.4%) exceeded the Metals and Mining industry 125.5%.
Return on Equity
High ROE: FNV's Return on Equity (11.8%) is considered low.
How is Franco-Nevada's financial position?
Financial Position Analysis
Short Term Liabilities: FNV's short term assets ($584.9M) exceed its short term liabilities ($43.1M).
Long Term Liabilities: FNV's short term assets ($584.9M) exceed its long term liabilities ($112.4M).
Debt to Equity History and Analysis
Debt Level: FNV is debt free.
Reducing Debt: FNV had no debt 5 years ago.
Debt Coverage: FNV has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: FNV has no debt, therefore coverage of interest payments is not a concern.
What is Franco-Nevada current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FNV's dividend (0.92%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.32%).
High Dividend: FNV's dividend (0.92%) is low compared to the top 25% of dividend payers in the US market (3.44%).
Stability and Growth of Payments
Stable Dividend: FNV's dividends per share have been stable in the past 10 years.
Growing Dividend: FNV's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (31%), FNV's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: FNV's dividends in 3 years are forecast to be well covered by earnings (32.1% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Paul Brink (53 yo)
Mr. Paul Brink serves as Chief Executive Officer and Director of Franco-Nevada Corporation since May 6, 2020 and its President since May 2018. Mr. Brink served as Chief Operating Officer of Franco-Nevada C...
CEO Compensation Analysis
Compensation vs Market: Paul's total compensation ($USD2.74M) is below average for companies of similar size in the US market ($USD11.18M).
Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.
Experienced Management: FNV's management team is not considered experienced ( 1 years average tenure), which suggests a new team.
Experienced Board: FNV's board of directors are considered experienced (6.7 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Franco-Nevada Corporation's employee growth, exchange listings and data sources
- Name: Franco-Nevada Corporation
- Ticker: FNV
- Exchange: NYSE
- Founded: 2007
- Industry: Gold
- Sector: Materials
- Implied Market Cap: CA$31.208b
- Listing Market Cap: CA$24.874b
- Shares outstanding: 191.19m
- Website: https://www.franco-nevada.com
Number of Employees
- Franco-Nevada Corporation
- 199 Bay Street
- Suite 2000
- M5L 1G9
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/01/16 23:10|
|End of Day Share Price||2022/01/14 00:00|
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.