Franco-Nevada Corporation (TSE:FNV)
NYSE:FNV
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Franco-Nevada
(NYSE:FNV)
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Rating:76Outperform
Price Target:
C$369.00
▲(2.64% Upside)
Action:Reiterated
Date:05/15/26
Score is driven primarily by strong financial quality (high margins and near-zero leverage) and a very positive earnings call highlighting record results, improving volumes through 2026, and ample liquidity. The rating is tempered by recent negative free cash flow, mixed/neutral technical momentum, and a valuation that is not especially cheap with a low dividend yield.
Positive Factors
Conservative balance sheet
Near-zero leverage and large available capital provide durable financial flexibility. With cash, marketable securities and credit capacity, the company can fund acquisitions, cover cyclical commodity swings, and support dividends without relying on external debt, reducing long-term financial risk.
Negative Factors
Free cash flow volatility
Volatile free cash flow reduces available distributable cash despite strong operating inflows. Negative FCF in recent periods implies higher reinvestment, timing mismatches, or transaction-driven outflows, which can constrain buybacks, special distributions, or rapid deal activity over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Near-zero leverage and large available capital provide durable financial flexibility. With cash, marketable securities and credit capacity, the company can fund acquisitions, cover cyclical commodity swings, and support dividends without relying on external debt, reducing long-term financial risk.
Read all positive factors
Franco-Nevada (FNV) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$59.99B
Dividend Yield0.72%
Average Volume (3M)320.31K
Price to Earnings (P/E)32.4
Beta (1Y)1.48
Revenue Growth70.06%
EPS Growth119.01%
CountryCA
Employees38
SectorBasic Materials
Sector Strength58
IndustryGold
Share Statistics
EPS (TTM)7.08
Shares Outstanding192,798,690
10 Day Avg. Volume306,819
30 Day Avg. Volume320,310
Financial Highlights & Ratios
PEG Ratio0.34
Price to Book (P/B)5.24
Price to Sales (P/S)21.54
P/FCF Ratio-55.81
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$415.27Price Target Upside15.51% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)9.1
Revenue Forecast (FY)C$2.76B
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 ...
How the Company Makes Money
Franco-Nevada makes money primarily through royalties and metal streams on mining assets, and through a smaller set of energy-related interests.
1) Mining royalties (core revenue stream)
- Structure: Franco-Nevada acquires royalty interests that ...
Franco-Nevada Earnings Call Summary
Earnings Call Date:May 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call was decisively positive on operating and financial performance: record revenue, EBITDA and adjusted net income driven by a strong commodity price environment, meaningful asset contributions, significant available capital, dividend growth and ESG recognition. Challenges noted were largely operational timing, higher depletion/costs from recent acquisitions, contract-specific uncertainties (e.g., Cobre Panama, NPIs), and some reporting conversion effects, but these were described as manageable and do not overshadow the strong quarter and balance sheet strength.Positive Updates
Record Financial Results
Revenue increased 77% year-over-year to $650.7 million; adjusted EBITDA rose 84% to $591.9 million; adjusted net income was $458.3 million (up 123%) and adjusted net income per share was $2.38 (up 122%).
Negative Updates
Higher Cost of Sales and Depletion
Cost of sales increased to $46.5 million from $38.5 million year-over-year. Depletion rose to $77.9 million versus $68.4 million a year ago due to recent higher per-ounce depletion acquisitions (Yanacocha, Western Limb, Porcupine, Cote).
Read all updates
Q1-2026 Updates
Positive
Negative
Record Financial Results
Revenue increased 77% year-over-year to $650.7 million; adjusted EBITDA rose 84% to $591.9 million; adjusted net income was $458.3 million (up 123%) and adjusted net income per share was $2.38 (up 122%).
Read all positive updates
Company Guidance
Management's forward guidance noted a WTI assumption of $70/barrel (and that a $10/bbl uplift to about $100 would raise oil revenue by ~12%), signaling a stronger Q2 and a generally stronger remainder of 2026 as energy prices and ramping contributors (Cote, Porcupine, Casa Berardi and Condestable) increase volumes; Condestable deliveries now follow a one‑quarter lag after switching to variable production in Q1. They reiterated the GEO conversion basis of $4,500/oz, said top‑line GEOs should grow through the year (Q1 GEOs were 136,353 with 117,980 precious‑metal GEOs), and noted margins per GEO remain elevated despite cash cost/Q1 rising to $341/GEO (from $304) while margin/Q1 rose to $4,534/GEO (from $2,559). Available capital to execute the pipeline was $3.4 billion at March 31 (cash $715M, parent credit capacity $1.5B incl. accordion, marketable securities $1.2B) plus a subsequent $500M subsidiary facility with a $250M accordion, and the company reaffirmed its progressive dividend of $0.44/quarter ($1.76 annualized) with $84.4M paid in Q1.Franco-Nevada Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
96
Very Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.10B | 1.85B | 1.11B | 1.22B | 1.32B | 1.30B |
| Gross Profit | 1.61B | 1.37B | 759.30M | 766.60M | 852.60M | 822.10M |
| EBITDA | 1.96B | 1.63B | 989.30M | -91.00M | 1.12B | 1.09B |
| Net Income | 1.37B | 1.13B | 552.10M | -466.40M | 700.60M | 733.70M |
Balance Sheet | ||||||
| Total Assets | 8.80B | 8.23B | 6.33B | 5.99B | 6.63B | 6.21B |
| Cash, Cash Equivalents and Short-Term Investments | 715.21M | 669.68M | 1.45B | 1.42B | 1.20B | 539.30M |
| Total Debt | 0.00 | 8.58M | 0.00 | 0.00 | 6.00M | 6.09M |
| Total Liabilities | 691.39M | 605.00M | 333.80M | 225.00M | 209.20M | 184.70M |
| Stockholders Equity | 8.11B | 7.62B | 6.00B | 5.77B | 6.42B | 6.03B |
Cash Flow | ||||||
| Free Cash Flow | -371.84M | -715.31M | 421.50M | 469.60M | 858.00M | 194.90M |
| Operating Cash Flow | 1.85B | 1.52B | 829.50M | 991.20M | 999.50M | 955.40M |
| Investing Cash Flow | -1.93B | -2.07B | -537.30M | -541.10M | -145.50M | -765.00M |
| Financing Cash Flow | -305.29M | -272.08M | -240.40M | -230.10M | -189.00M | -180.20M |
Franco-Nevada Technical Analysis
Negative
359.51
Price Trends
329.40
Negative
336.84
Negative
306.97
Positive
Market Momentum
-5.35
Negative
43.33
Neutral
34.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FNV, the sentiment is Negative. The current price of 359.51 is above the 20-day moving average (MA) of 314.90, above the 50-day MA of 329.40, and above the 200-day MA of 306.97, indicating a neutral trend. The MACD of -5.35 indicates Negative momentum. The RSI at 43.33 is Neutral, neither overbought nor oversold. The STOCH value of 34.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:FNV.
Franco-Nevada Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | C$59.99B | 32.45 | 18.68% | 0.72% | 70.06% | 119.01% | |
74 Outperform | C$19.89B | 17.37 | 27.75% | 2.31% | 38.40% | ― | |
73 Outperform | C$48.17B | 12.66 | 34.46% | 0.43% | 41.92% | 138.48% | |
73 Outperform | C$9.27B | 27.51 | 16.55% | 0.55% | 60.37% | 695.19% | |
72 Outperform | C$81.50B | 33.44 | 21.33% | 0.55% | 86.33% | 186.98% | |
72 Outperform | C$22.91B | 16.12 | 25.24% | 0.25% | 46.83% | 306.46% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
TSE:FNV
Franco-Nevada
319.36
89.97
39.22%
TSE:K
Kinross Gold
41.88
21.73
107.86%
TSE:WPM
Wheaton Precious Metals
185.36
67.21
56.89%
TSE:AGI
Alamos Gold
56.56
21.13
59.65%
TSE:EDV
Endeavour Mining
86.39
45.52
111.37%
TSE:OR
OR Royalties
51.38
16.55
47.50%
Franco-Nevada Corporate Events
Financial DisclosuresRegulatory Filings and Compliance
Franco-Nevada Files 2025 Year-End Disclosure with Canadian and U.S. Regulators
Positive
Mar 19, 2026
Franco-Nevada Corporation is a leading gold-focused royalty and streaming company with a diversified portfolio of cash-flow-generating assets that provide investors with gold price and exploration optionality. The business is debt-free, reinvestin...
Business Operations and StrategyDividendsFinancial Disclosures
Franco-Nevada Posts Record 2025 Results on Strong Precious Metal Prices
Positive
Mar 10, 2026
Franco-Nevada reported record 2025 results, driven by higher precious metal prices, increased production and a growing royalty portfolio that is heavily weighted to gold and silver. The company highlighted that Precious Metal assets accounted for ...
Business Operations and StrategyPrivate Placements and Financing
Franco-Nevada Commits A$220 Million to Advance Bullabulling Gold Project
Positive
Feb 22, 2026
Franco-Nevada has agreed a A$220 million financing package with Minerals 260 for the Bullabulling Gold Project in Western Australia, comprising a A$170 million gross royalty and a A$50 million equity subscription. This deal effectively lifts Franc...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.