Franco-Nevada Corporation
Find Ratings ReportsFRANCO-NEVADA CORP's gross profit margin for the fourth quarter of its fiscal year 2023 has significantly decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its subsector. FRANCO-NEVADA CORP is extremely liquid. Currently, the Quick Ratio is 39.10 which clearly shows the ability to cover any short-term cash needs. FNV managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 10.10% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 304.9 | 320.0 |
EBITDA ($mil) | -918.7 | 262.4 |
EBIT ($mil) | -987.6 | 188.9 |
Net Income ($mil) | -982.5 | 165.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 1421.9 | 1196.5 |
Total Assets ($mil) | 5994.1 | 6626.8 |
Total Debt ($mil) | 0.0 | 0.0 |
Equity ($mil) | 5769.1 | 6417.6 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | -299.61 | 85.69 |
EBITDA Margin | -301.31 | 82.0 |
Operating Margin | -323.91 | 59.03 |
Sales Turnover | 0.2 | 0.2 |
Return on Assets | -7.78 | 10.57 |
Return on Equity | -8.08 | 10.92 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 41.21 | 27.55 |
Debt/Capital | 0.0 | 0.0 |
Interest Expense | 0.8 | 0.7 |
Interest Coverage | -1234.5 | 269.86 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 192.18 | 191.89 |
Div / share | 0.34 | 0.32 |
EPS | -5.11 | 0.86 |
Book value / share | 30.02 | 33.44 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 776799.0 | 717701.0 |
SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. Conducting a second comparison, its price-to-book ratio of 3.81 indicates a discount versus the S&P 500 average of 4.68 and a premium versus the subsector average of 3.54. The price-to-sales ratio is well above both the S&P 500 average and the subsector average, indicating a premium. Upon assessment of these and other key valuation criteria, FRANCO-NEVADA CORP seems to be trading at a premium to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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FNV NM | Peers 49.70 | FNV 22.19 | Peers 29.90 | |||||||||||||||||||||
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. FNV's P/E is negative making this valuation measure meaningless. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. FNV is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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FNV NA | Peers 19.20 | FNV NA | Peers 1.61 | |||||||||||||||||||||
Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential. Ratio not available. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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Price/Book |
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Earnings Growth |
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FNV 3.81 | Peers 3.54 | FNV -166.57 | Peers 71.14 | |||||||||||||||||||||
Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. FNV is trading at a valuation on par with its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, FNV is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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FNV 17.93 | Peers 5.47 | FNV -6.83 | Peers 38.40 | |||||||||||||||||||||
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. FNV is trading at a significant premium to its subsector. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. FNV significantly trails its peers on the basis of sales growth. |
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