Franco-Nevada (FNV) AI Stock Analysis

• Market Cap: $42.36B
• Dividend Yield: 0.88%
• Average Volume (3M): 427.83K
• Price to Earnings (P/E): 55.9
• Beta (1Y): 0.67
• Revenue Growth: -7.22%
• EPS Growth: N/A
• Country: CA
• Employees: 38
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): 3.94
• Shares Outstanding: 192,585,300
• 10 Day Avg. Volume: 499,486
• 30 Day Avg. Volume: 427,833
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 26.76
• Price to Cash Flow (P/CF): 30.70
• P/FCF Ratio: 29.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$233.63
• Price Target Upside: 1.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

Franco-Nevada exhibits strong financial health with a robust balance sheet and solid profitability, critical strengths in the mining industry. Despite high valuation metrics, the company's strategic acquisitions and positive earnings guidance for 2025 provide a favorable outlook. The technical analysis indicates strong momentum, though caution is warranted due to overbought signals. Overall, the stock is positioned well for growth, but the high P/E ratio suggests a premium for investors.

Positive Factors

Asset Growth

Franco-Nevada's acquisition strategy focuses on long-lives and optionality, allowing for value capture through commodity cycles.

Financial Performance

Franco-Nevada reported Q4’24 financial results with adjusted EBITDA and adjusted EPS better than consensus.

Strategic Diversification

Franco-Nevada's agreement with Discovery Silver on the Porcupine Complex offers a 4.25% Net Smelter Return royalty and a $100.0M senior secured term loan, providing potential long-term upside.

Negative Factors

Future Output Projections

The 2029 GEO volume guidance is lower compared to 2028.

Revenue Guidance

The mid-point of the 2025 sales guidance range is below consensus expectations.

Stock Valuation

Franco-Nevada offers more modest growth while trading at a premium compared to its peers.

Franco-Nevada Business Overview & Revenue Model

Company Description

Franco-Nevada Corporation operates as a gold-focused royalty and streaming company in Latin America, the United States, Canada, and internationally. It operates in two segments, 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. The company was founded in 1983 and is headquartered in Toronto, Canada.

How the Company Makes Money

Franco-Nevada makes money primarily through a royalty and streaming business model. Royalties involve the company receiving a percentage of the revenue or production from a mine, while streaming agreements allow Franco-Nevada to purchase a portion of the production at a predetermined price. These models provide Franco-Nevada with a consistent cash flow and exposure to commodity prices without the need for direct investment in mining operations. The company's revenue streams are diversified across numerous projects and commodities, reducing risk and enhancing financial stability. Significant partnerships with mining operators and strategic acquisitions further contribute to its revenue growth, enabling Franco-Nevada to maintain a robust financial performance.

Franco-Nevada Financial Statement Overview

Summary

Franco-Nevada showcases a strong financial position with excellent profitability and a solid balance sheet. The company's minimal debt and high equity ratio underscore its financial soundness. Despite a dip in revenue and free cash flow growth, the firm remains well-positioned within the mining industry, thanks to its robust cash generation and efficient capital management.

Income Statement

Franco-Nevada has maintained strong profitability, evidenced by a high gross profit margin and net profit margin in the latest year. The company showed resilience with a substantial recovery in EBIT and EBITDA margins in 2024 compared to the previous year. Revenue growth was negative over the past two years, which is a concern but offset by strong profitability metrics.

Balance Sheet

The company has an exceptionally strong balance sheet with zero debt and a high equity ratio, indicating financial stability and low leverage. The return on equity is robust, reflecting effective use of shareholders' capital. Overall, the balance sheet demonstrates strength with minimal liabilities and substantial equity.

Cash Flow

While operating cash flow remains strong, free cash flow has declined, indicating higher capital expenditures. The operating cash flow to net income ratio is favorable, suggesting efficient cash generation relative to net income. However, the decrease in free cash flow growth rate is a potential area for improvement.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.11B	1.22B	1.32B	1.30B	1.02B
	Gross Profit
759.30M	766.60M	852.60M	822.10M	620.40M
	EBIT
726.60M	-428.00M	820.70M	860.70M	592.50M
	EBITDA
989.30M	-91.00M	1.11B	1.16B	833.50M
	Net Income Common Stockholders
552.10M	-466.40M	700.60M	733.70M	326.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.45B	1.42B	1.20B	539.30M	534.20M
	Total Assets
6.33B	5.99B	6.63B	6.21B	5.59B
	Total Debt
0.00	0.00	6.00M	6.09M	4.40M
	Net Debt
-1.45B	-1.42B	-1.19B	-533.21M	-529.80M
	Total Liabilities
333.80M	225.00M	209.20M	184.70M	149.10M
	Stockholders Equity
6.00B	5.77B	6.42B	6.03B	5.44B
Cash Flow		Free Cash Flow
421.50M	469.60M	858.00M	194.90M	491.30M
	Operating Cash Flow
829.50M	991.20M	999.50M	955.40M	803.90M
	Investing Cash Flow
-537.30M	-541.10M	-145.50M	-765.00M	-309.00M
	Financing Cash Flow
-240.40M	-230.10M	-189.00M	-180.20M	-91.80M

Franco-Nevada Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 230.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FNV, the sentiment is Positive. The current price of 230.96 is above the 20-day moving average (MA) of 220.05, above the 50-day MA of 210.10, and above the 200-day MA of 181.22, indicating a bullish trend. The MACD of 6.19 indicates Positive momentum. The RSI at 69.61 is Neutral, neither overbought nor oversold. The STOCH value of 72.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:FNV.

Franco-Nevada Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FNV	74 Outperform	$42.36B	55.95	9.38%	0.88%	-7.22%	―
Sector *	47 Neutral	$2.49B	-2.97	-22.82%	3.51%	4.13%	-28.53%

Franco-Nevada Corporate Events

Franco-Nevada Files Year-End Disclosure Documents for 2024

Franco-Nevada Corporation has filed its year-end disclosure documents, including the Annual Information Form, Consolidated Annual Financial Statements, and Management’s Discussion and Analysis for 2024, with Canadian and U.S. regulatory authorities. This filing reflects the company’s ongoing commitment to transparency and regulatory compliance, potentially reinforcing its strong market position and providing stakeholders with critical financial insights.

Franco-Nevada Achieves Strong Q4 2024 Results Amid Strategic Growth

Franco-Nevada reported strong fourth-quarter results for 2024, driven by elevated gold prices and strategic acquisitions. The company completed over $1.3 billion in acquisitions and commitments, enhancing its medium-term production profile. Despite challenges with Cobre Panama, Franco-Nevada remains debt-free and well-capitalized, with a strong deal pipeline and a commitment to increasing dividends for the 18th consecutive year. The company also maintains a sector-leading ESG rating, highlighting its commitment to responsible mining practices.

Franco-Nevada Announces Investor Day for March 2025

Franco-Nevada has announced it will host an Investor Day on March 25, 2025, both in person and virtually, providing an opportunity for investors and analysts to engage with the management team. This event underscores Franco-Nevada’s commitment to transparency and stakeholder engagement, potentially strengthening its market position and investor relations.

Franco-Nevada Increases Dividend and Prepares Year-End Results Release

Franco-Nevada Corporation has announced an increase in its quarterly dividend to US$0.38 per share, marking an 18th consecutive annual increase, which reflects its ongoing commitment to shareholder returns. The company also detailed the release schedule for its year-end 2024 results, and provided information about its Dividend Reinvestment Plan, which offers shareholders the opportunity to purchase additional shares at a discount, further enhancing shareholder value.

Franco-Nevada Bolsters Gold Portfolio with Discovery Silver Partnership

Franco-Nevada announced a financing package with Discovery Silver Corporation to aid in the acquisition of the Porcupine Complex from Newmont Corporation. This transaction includes a net smelter return royalty, a senior secured term loan, and equity participation, which will help Discovery Silver acquire and enhance the Porcupine Complex’s production capabilities. The Porcupine Complex, with a rich history of gold production and extensive infrastructure, presents a significant opportunity for both companies. The collaboration is expected to revitalize the mining operations, offering substantial exploration potential and value creation for stakeholders, as well as reinforcing Franco-Nevada’s leading position in royalty coverage of major gold mines in Ontario.