Franco-Nevada (FNV) AI Stock Analysis

• Market Cap: C$58.39B
• Dividend Yield: 0.72%
• Average Volume (3M): 276.58K
• Price to Earnings (P/E): 45.4
• Beta (1Y): 1.01
• Revenue Growth: 44.76%
• EPS Growth: N/A
• Country: CA
• Employees: 38
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): 1.98
• Shares Outstanding: 192,777,100
• 10 Day Avg. Volume: 201,948
• 30 Day Avg. Volume: 276,584
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$338.81
• Price Target Upside: 12.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: C$316.00 ▲(4.82% 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.

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

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	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: 301.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 301.47 is above the 20-day moving average (MA) of 290.29, above the 50-day MA of 280.43, and above the 200-day MA of 252.41, indicating a bullish trend. The MACD of 3.61 indicates Negative momentum. The RSI at 63.48 is Neutral, neither overbought nor oversold. The STOCH value of 81.74 is Negative, 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
K	81 Outperform	C$50.70B	20.95	24.09%	0.43%	36.41%	144.79%
WPM	79 Outperform	C$78.57B	56.18	13.05%	0.55%	54.48%	68.44%
AGI	77 Outperform	$23.54B	31.62	14.27%	0.25%	34.64%	115.75%
EDV	76 Outperform	C$17.97B	26.25	16.65%	2.31%	73.23%	―
OR	75 Outperform	$9.56B	46.48	11.26%	0.55%	37.22%	―
FNV	72 Outperform	C$58.39B	45.44	14.17%	0.72%	44.76%	―
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.

Franco-Nevada to Announce Q3 2025 Financial Results

Franco-Nevada Corporation has announced that it will release its third quarter 2025 financial results on November 3rd, after the market closes, followed by a conference call on November 4th. This announcement is part of the company’s regular financial disclosure practices, providing stakeholders with insights into its financial performance and operational developments.

The most recent analyst rating on (TSE:FNV) stock is a Hold with a C$215.00 price target. To see the full list of analyst forecasts on Franco-Nevada stock, see the TSE:FNV Stock Forecast page.