Franco-Nevada (FNV) AI Stock Analysis

• Market Cap: $70.04B
• Dividend Yield: 0.72%
• Average Volume (3M): 378.89K
• Price to Earnings (P/E): 54.5
• Beta (1Y): 1.10
• Revenue Growth: 44.76%
• EPS Growth: N/A
• Country: US
• Employees: 38
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): 1.94
• Shares Outstanding: 192,777,100
• 10 Day Avg. Volume: 506,419
• 30 Day Avg. Volume: 378,887
• PEG Ratio: -0.19
• Price to Book (P/B): 3.77
• Price to Sales (P/S): 20.28
• P/FCF Ratio: 53.58
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 29.04
• Enterprise Value/Gross Profit: 40.30
• Enterprise Value/Ebitda: 31.03
• 1Y Price Target: $338.78
• Price Target Upside: -4.17% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: C$403.00 ▲(14.00% Upside)

The score is driven primarily by strong financial quality (especially the debt-light balance sheet and high margins) and a constructive, guidance-raising earnings call. Offsetting factors are premium valuation (high P/E, low yield) and only mixed technical momentum, with cash-flow consistency (negative TTM free cash flow) a key risk to monitor.

Positive Factors

Debt-light balance sheet

Near-zero debt-to-equity gives Franco‑Nevada durable financial flexibility to fund acquisitions, sustain distributions, and weather commodity cycles without reliance on external debt. Low leverage reduces refinancing risk and preserves optionality for multi-year capital allocation and deal-making.

Asset-light royalty/stream model

Royalty and streaming contracts produce high-margin, asset-light revenue that doesn't carry mine operating or sustaining capex. That structure yields recurring cash flows linked to production and prices while limiting operational capital burden, supporting durable margin resilience across cycles.

High margins and growth pipeline

Record quarterly results, very strong gross (~72%) and net (~59%) margins, and an active acquisition pipeline that management says will materially lift GEOs underpin sustainable earnings growth. Continued disciplined deals and organic lifts can drive long-term production-linked cash flow expansion.

Negative Factors

Free cash flow volatility

TTM negative free cash flow despite strong reported earnings signals elevated investment or working-capital outflows. If sustained, weak cash conversion can constrain buybacks/dividends, force equity or other financing for growth, and reduce resilience to extended periods of weaker commodity prices.

Earnings volatility (2023 loss)

A prior-year loss amid otherwise positive gross profit highlights sensitivity to write-downs, one-offs or asset-specific events. Such earnings volatility weakens predictability of distributable cash and ROE over multi-year horizons, complicating long-term planning for income-focused investors.

Operator & mine-specific risks (Cobre Panama)

Royalty exposure depends on third-party operators; unresolved Cobre Panama closure risk and site audits could materially curtail future royalty receipts. Operator actions and asset sales (e.g., Hemlo developments) create single-asset concentration and regulatory/geopolitical downside to long-term cash flows.

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. In a royalty agreement, the company provides upfront capital to mining and energy companies in exchange for a percentage of the revenue or production generated from the projects. In streaming agreements, Franco-Nevada secures the right to purchase a portion of the production, typically precious metals, at a fixed, discounted price. These agreements allow Franco-Nevada to generate revenue based on the production output of its partner companies without bearing the operational risks of mining. Key revenue streams include royalties from gold and other precious metals, as well as streams from energy assets. The company's success is bolstered by strategic partnerships with mining and energy firms and the careful selection of high-quality, long-term assets that ensure a stable and growing income.

Franco-Nevada Financial Statement Overview

Summary

High-margin rebound in the TTM period (revenue up ~29.7%, very strong gross and net margins) and an exceptionally conservative balance sheet with minimal leverage support a strong score. The main offsets are earnings volatility (notably the 2023 loss) and weaker cash conversion, with free cash flow turning sharply negative in TTM despite high net income.

Income Statement

TTM (Trailing-Twelve-Months) shows a strong rebound with revenue up ~29.7% and exceptionally high profitability (gross margin ~72% and net margin ~59%). Prior-year annual results were solid (2024 profitable), but 2023 included a sharp earnings drop into a loss despite still-positive gross profit, highlighting some volatility in bottom-line performance across cycles.

Balance Sheet

Balance sheet strength is a standout: debt is effectively minimal relative to equity (debt-to-equity ~0.00–0.001 across periods), providing substantial financial flexibility. Equity and assets are consistently large, and returns on equity are healthy in profitable years (TTM ~14%), though the 2023 loss drove ROE negative, showing earnings-driven variability rather than leverage risk.

Cash Flow

Operating cash flow is consistently strong and comfortably covers obligations, but free cash flow is less stable: positive in most annual periods, then turning sharply negative in TTM (Trailing-Twelve-Months) despite high net income. That divergence suggests elevated outflows (e.g., investment or working-capital uses) and makes cash conversion a key watch item even with solid underlying operating generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.73B	1.11B	1.22B	1.32B	1.30B	1.02B
Gross Profit	1.25B	759.30M	766.60M	852.60M	822.10M	620.40M
EBITDA	1.62B	989.30M	-91.00M	1.12B	1.09B	833.50M
Net Income	919.80M	552.10M	-466.40M	700.60M	733.70M	326.20M
Balance Sheet
Total Assets	7.51B	6.33B	5.99B	6.63B	6.21B	5.59B
Cash, Cash Equivalents and Short-Term Investments	236.47M	1.45B	1.42B	1.20B	539.30M	534.20M
Total Debt	8.49M	0.00	0.00	6.00M	6.09M	4.40M
Total Liabilities	517.10M	333.80M	225.00M	209.20M	184.70M	149.10M
Stockholders Equity	6.99B	6.00B	5.77B	6.42B	6.03B	5.44B
Cash Flow
Free Cash Flow	-821.63M	421.50M	469.60M	858.00M	194.90M	491.30M
Operating Cash Flow	1.44B	829.50M	991.20M	999.50M	955.40M	803.90M
Investing Cash Flow	-2.19B	-537.30M	-541.10M	-145.50M	-765.00M	-309.00M
Financing Cash Flow	-283.22M	-240.40M	-230.10M	-189.00M	-180.20M	-91.80M

Franco-Nevada Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 353.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 353.52 is above the 20-day moving average (MA) of 332.49, above the 50-day MA of 304.27, and above the 200-day MA of 262.26, indicating a bullish trend. The MACD of 16.98 indicates Negative momentum. The RSI at 69.73 is Neutral, neither overbought nor oversold. The STOCH value of 71.88 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
AGI	77 Outperform	$25.31B	34.00	14.27%	0.25%	34.64%	115.75%
WPM	76 Outperform	C$96.07B	68.69	13.05%	0.55%	54.48%	68.44%
OR	76 Outperform	C$11.93B	58.00	11.26%	0.55%	37.22%	―
K	73 Outperform	$62.24B	25.71	24.09%	0.43%	36.41%	144.79%
FNV	72 Outperform	$70.04B	54.50	14.17%	0.72%	44.76%	―
EDV	71 Outperform	C$20.64B	30.16	16.65%	2.31%	73.23%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Franco-Nevada Corporate Events

Franco-Nevada Achieves Record Q3 2025 Results and Returns to Debt-Free Status

Franco-Nevada reported record financial results for the third quarter of 2025, driven by higher gold prices, strategic acquisitions, and the sale of copper concentrate stockpiles from Cobre Panama. The company achieved a 77% increase in revenue compared to the same period last year, with a significant portion of its income derived from precious metals. Franco-Nevada has also successfully returned to a debt-free status after funding the Arthur Gold royalty acquisition. The positive financial performance and strategic acquisitions have positioned the company for continued growth, particularly in a favorable gold price environment.

The most recent analyst rating on (TSE:FNV) stock is a Hold with a C$225.00 price target. To see the full list of analyst forecasts on Franco-Nevada stock, see the TSE:FNV Stock Forecast page.