Franco-Nevada Corp. (FNV) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Barrick Gold Corp.

Alamos Gold, Inc.

Pan American Silver Corp.

SSR Mining, Inc.

Agnico Eagle Mines Ltd.

Lundin Gold, Inc.

Wheaton Precious Metals Corp.

B2Gold Corp.

Franco-Nevada Corp.

Kinross Gold Corp.

Endeavour Mining Plc

Why is Franco-Nevada Corp. ?

Company has very low debt and has enough cash to service the debt requirements

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 10.73%

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at CAD 1,643.24 MM
ROCE(HY) Highest at 12.9%
DIVIDEND PER SHARE(HY) Highest at CAD 8.57

With ROE of 12.25%, it has a expensive valuation with a 5.89 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 70.52%, its profits have risen by 38.3% ; the PEG ratio of the company is 1.3

High Institutional Holdings at 76.02%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 0.97% over the previous quarter.

Market Beating performance in long term as well as near term

Along with generating 70.52% returns in the last 1 year, the stock has outperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Franco-Nevada Corp. should be less than 10%
Overall Portfolio exposure to Gems, Jewellery And Watches should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Gems, Jewellery And Watches)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Franco-Nevada Corp. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Franco-Nevada Corp.

64.64%

7.61

27.50%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.39%

EBIT Growth (5y)

14.65%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.18

Sales to Capital Employed (avg)

0.19

Tax Ratio

28.21%

Dividend Payout Ratio

50.24%

Pledged Shares

Institutional Holding

76.54%

ROCE (avg)

14.85%

ROE (avg)

10.73%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.29

EV to EBIT

44.34

EV to EBITDA

34.89

EV to Capital Employed

6.42

EV to Sales

30.26

PEG Ratio

1.35

Dividend Yield

ROCE (Latest)

14.47%

ROE (Latest)

12.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

27What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 1,643.24 MM

ROCE(HY)

Highest at 12.9%

DIVIDEND PER SHARE(HY)

Highest at CAD 8.57

OPERATING PROFIT(Q)

Highest at CAD 452.95 MM

PRE-TAX PROFIT(Q)

Highest at CAD 436.48 MM

NET PROFIT(Q)

Highest at CAD 341.64 MM

RAW MATERIAL COST(Y)

Fallen by -7.62% (YoY

NET SALES(Q)

At CAD 511.08 MM has Grown at 43.66%

OPERATING PROFIT MARGIN(Q)

Highest at 88.63 %

EPS(Q)

Highest at CAD 1.77

-12What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 29.15%

DEBT-EQUITY RATIO (HY)

Highest at -2.28 %

INTEREST(Q)

Highest at CAD 1.11 MM

Here's what is working for Franco-Nevada Corp.

Operating Profit

Highest at CAD 452.95 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (CAD MM)

Pre-Tax Profit

Highest at CAD 436.48 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Net Profit

Highest at CAD 341.64 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Net Profit

At CAD 341.64 MM has Grown at 214.25%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Dividend per share

Highest at CAD 8.57 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Operating Cash Flow

Highest at CAD 1,643.24 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Net Sales

At CAD 511.08 MM has Grown at 43.66%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Profit Margin

Highest at 88.63 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At CAD 436.48 MM has Grown at 82.6%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

EPS

Highest at CAD 1.77

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Raw Material Cost

Fallen by -7.62% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Franco-Nevada Corp.

Interest

At CAD 1.11 MM has Grown at 10.23%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Interest

Highest at CAD 1.11 MM

in the last five periods and Increased by 10.23% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Debt-Equity Ratio

Highest at -2.28 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Dividend Payout Ratio

Lowest at 29.15%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Non Operating Income

Highest at CAD 0.17 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income