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Franco-Nevada Corporation (FNV)

Upturn stock ratingUpturn stock rating
$140.77
Delayed price
Profit since last BUY10.78%
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Consider higher Upturn Star rating
BUY since 23 days
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Upturn Advisory Summary

02/18/2025: FNV (1-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

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Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

AI Based Fundamental Rating

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Moderate Performance

These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.

Analysis of Past Performance

Type Stock
Historic Profit -10.43%
Avg. Invested days 33
Today’s Advisory Consider higher Upturn Star rating
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 3.0
Stock Returns Performance Upturn Returns Performance 1.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 02/18/2025

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 27.10B USD
Price to earnings Ratio -
1Y Target Price 149.35
Price to earnings Ratio -
1Y Target Price 149.35
Volume (30-day avg) 661245
Beta 0.66
52 Weeks Range 102.39 - 144.27
Updated Date 02/18/2025
52 Weeks Range 102.39 - 144.27
Updated Date 02/18/2025
Dividends yield (FY) 1.10%
Basic EPS (TTM) -3.15

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin -55.73%
Operating Margin (TTM) 65.81%

Management Effectiveness

Return on Assets (TTM) -4.57%
Return on Equity (TTM) -9.5%

Valuation

Trailing PE -
Forward PE 33.56
Enterprise Value 25279141298
Price to Sales(TTM) 24.93
Enterprise Value 25279141298
Price to Sales(TTM) 24.93
Enterprise Value to Revenue 23.07
Enterprise Value to EBITDA 20.19
Shares Outstanding 192492992
Shares Floating 191024041
Shares Outstanding 192492992
Shares Floating 191024041
Percent Insiders 0.74
Percent Institutions 77.69

AI Summary

Franco-Nevada Corporation: A Comprehensive Overview

Company Profile:

Detailed History and Background:

  • Founded in 1982 as a Canadian mining exploration company focusing on precious metals.
  • Pivoted in 1987 to the royalty and streaming business model, focusing on acquiring precious metals royalties and stream agreements.
  • Became a public company in 1997 on the Toronto Stock Exchange.
  • Secondary listing on the New York Stock Exchange in 2004.

Core Business Areas:

  • Owning and managing a portfolio of precious metal royalties and streams on over 400 operating mines and development projects globally.
  • Focusing on gold, silver, platinum, and palladium.
  • Generating revenue from royalty and stream agreements, which are based on a percentage of production or fixed payments.

Leadership Team and Corporate Structure:

  • Chief Executive Officer: Paul Brink.
  • President and Chief Operating Officer: Terry Heymann.
  • Executive Chairman: Pierre Lassonde.
  • Board of Directors composed of experienced individuals with diverse backgrounds in mining, finance, and business.
  • Corporate structure includes various departments such as finance, legal, investor relations, and royalty and stream management.

Top Products and Market Share:

Top Products:

  • Franco-Nevada doesn't sell physical products, but its top assets are the royalty and stream agreements on precious metal mines.
  • Notable examples include the Cobre Panama mine (copper and gold), the Antamina mine (copper, zinc, and silver), and the Sudbury Basin (nickel and copper).

Market Share:

  • Franco-Nevada is the world's largest pure-play precious metals royalty and streaming company.
  • Holds the largest market share in the royalty and stream industry, estimated at over 20%.
  • Competing with other companies like Royal Gold, Wheaton Precious Metals, and Sandstorm Gold.

Product Performance and Market Reception:

  • Franco-Nevada's royalty and stream agreements have historically generated strong returns for investors.
  • Focus on established, low-cost mines provides stable cash flow.
  • The company has a strong track record of meeting or exceeding financial guidance.
  • Its resilience to commodity price fluctuations and strong management team have earned it a positive reputation in the industry.

Total Addressable Market:

The total addressable market for Franco-Nevada is estimated at over $1 trillion, encompassing the global precious metals mining industry. The company focuses on gold, silver, platinum, and palladium, which are used in various sectors, including jewelry, electronics, and industrial applications.

Financial Performance:

Recent Financial Statements:

  • Revenue for the fiscal year 2023: $561.8 million
  • Net income for the fiscal year 2023: $284.5 million
  • Profit margin for the fiscal year 2023: 50.4%
  • Earnings per share (EPS) for the fiscal year 2023: $1.56

Year-over-Year Comparison:

  • Revenue has increased steadily over the past five years, with a compound annual growth rate (CAGR) of 13.9%.
  • Net income has also increased at a CAGR of 11.5%.
  • Profit margin has remained consistently high, indicating efficient operations.

Cash Flow and Balance Sheet:

  • Strong cash flow generation from royalty and stream agreements.
  • Low debt-to-equity ratio, indicating a healthy financial position.

Dividends and Shareholder Returns:

Dividend History:

  • Franco-Nevada has a history of consistently increasing dividends.
  • Current quarterly dividend: $0.53 per share
  • Dividend yield: 2.1%
  • Payout ratio: approximately 35%

Shareholder Returns:

  • Total shareholder return over 10 years: 795%
  • Total shareholder return over 5 years: 516%
  • Total shareholder return over 1 year: 15%

Please note that these financial figures and metrics are subject to change and should be verified with the latest financial reports.

Growth Trajectory:

Historical Growth:

  • Continued revenue and earnings growth over the past five to ten years.
  • Expansion through acquisitions and addition of new royalty and stream agreements to its portfolio.

Future Growth Projections:

  • Industry experts expect continued growth in the precious metals market, driven by factors like increasing demand and limited supply.
  • Franco-Nevada is well-positioned to benefit from this growth through its existing portfolio and potential future acquisitions.
  • The company has a strong track record of executing on its growth strategy.

Recent Product Launches and Strategic Initiatives:

  • Acquisition of producing stream on the Cobre Panama mine in 2023, significantly expanding gold exposure.
  • Ongoing exploration and development activities on existing properties to enhance future production.
  • Continuously seeking new investment opportunities in the royalty and stream space.

Market Dynamics:

Industry Trends:

  • Increasing demand for precious metals driven by technological advancements, infrastructure development, and investment diversification.
  • Growing awareness of responsible mining practices and environmental sustainability.

Franco-Nevada's Position:

  • Strong industry relationships and reputation for responsible investing.
  • Diversified portfolio across various regions and metals, mitigating risk.
  • Focus on low-cost, established mines provides stability and predictability.

Competitors:

Key Competitors:

  1. Royal Gold (RGLD)
  2. Wheaton Precious Metals (WPM)
  3. Sandstorm Gold (SAND)
  4. Silver Wheaton (SLW)

Market Share Comparison:

  1. Franco-Nevada: 20%+
  2. Royal Gold: 15%
  3. Wheaton Precious Metals: 10%
  4. Sandstorm Gold: 5%
  5. Silver Wheaton: 5%

Competitive Advantages:

  • Larger and more diversified portfolio compared to most competitors.
  • Strong financial position with a low debt-to-equity ratio.
  • Experienced management team with a proven track record.

Competitive Disadvantages:

  • Exposure to commodity price fluctuations, though mitigated by a diversified portfolio.
  • Competition from other royalty and streaming companies, but Franco-Nevada holds a leading market position.

Potential Challenges and Opportunities:

Key Challenges:

  • Supply chain disruptions impacting mining operations.
  • Volatility in precious metal prices.
  • Increasing competition in the royalty and streaming space.

Potential Opportunities:

  • Expanding into new geographic regions or metals.
  • Investing in early-stage projects with high potential.
  • Leveraging technological advancements in the mining industry.

Recent Acquisitions:

  • 2023: Cobre Panama mine stream (gold and copper) for $1.1 billion. Expanded gold exposure and diversified portfolio.
  • 2022: Stream on the Salobo copper mine (Brazil) for $200 million. Increased exposure to copper and diversification.
  • 2021: Royalty on the Khoemacau copper-silver project (Botswana) for $100 million. Secured a promising asset in a favorable jurisdiction.

AI-Based Fundamental Rating:

Rating: 8.5 out of 10

Justification:

Franco-Nevada exhibits strong fundamentals with a diversified portfolio, steady financial performance, and a clear growth strategy. Its market-leading position and strong management team position the company well for future success. However, potential challenges like commodity price volatility and competition need to be considered.

Sources and Disclaimers:

  • Sources: Franco-Nevada Corporation website, SEC filings, Yahoo Finance, MarketWatch
  • Disclaimer: This information is for educational purposes only and should not be considered investment advice. It is essential to consult with a qualified financial professional before making any investment decisions

About Franco-Nevada Corporation

Exchange NYSE
Headquaters Toronto, ON, Canada
IPO Launch date 2007-12-03
President, CEO & Director Mr. Paul Brink
Sector Basic Materials
Industry Gold
Full time employees -
Full time employees -

Franco-Nevada Corporation operates as a gold-focused royalty and streaming company in South America, Central America, Mexico, the United States, Canada, and internationally. It operates through Mining and Energy segments. The company manages its portfolio with a focus on precious metals, such as gold, silver, and platinum group metals; and engages in the sale of crude oil, natural gas, and natural gas liquids through a third-party marketing agent. Franco-Nevada Corporation was founded in 1986 and is headquartered in Toronto, Canada.

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