Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Franco-Nevada as such a stock due to the following factors:
- FNV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $63.3 million.
- FNV is up 4% today from today's close.
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More details on FNV:
Franco-Nevada Corporation operates as a gold-focused royalty and stream company in the United States, Canada, Mexico, Australia, and Africa. The company also has interests in platinum group metal, oil and gas, and other resource properties. The stock currently has a dividend yield of 1.6%. FNV has a PE ratio of 286.5. Currently there are no analysts that rate Franco-Nevada a buy, no analysts rate it a sell, and 6 rate it a hold.
The average volume for Franco-Nevada has been 976,100 shares per day over the past 30 days. Franco-Nevada has a market cap of $7.6 billion and is part of the basic materials sector and metals & mining industry. Shares are up 15% year-to-date as of the close of trading on Monday.
rates Franco-Nevada as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and premium valuation.
Highlights from the ratings report include:
- FNV's revenue growth has slightly outpaced the industry average of 3.6%. Since the same quarter one year prior, revenues slightly increased by 8.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- FNV has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 56.13, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for FRANCO-NEVADA CORP is currently very high, coming in at 82.16%. Regardless of FNV's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, FNV's net profit margin of 30.85% significantly outperformed against the industry.
- FRANCO-NEVADA CORP's earnings per share declined by 8.3% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, FRANCO-NEVADA CORP reported lower earnings of $0.08 versus $0.70 in the prior year.
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Metals & Mining industry average. The net income has decreased by 5.9% when compared to the same quarter one year ago, dropping from $35.30 million to $33.20 million.
- You can view the full Franco-Nevada Ratings Report.