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Upturn AI SWOT - About
FNV 
Franco-Nevada Corporation (FNV)
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Upturn Advisory Summary
04/01/2025: FNV (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Analysis of Past Performance
Type Stock | Historic Profit 0.57% | Avg. Invested days 37 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 30.24B USD | Price to earnings Ratio 54.71 | 1Y Target Price 159.29 |
Price to earnings Ratio 54.71 | 1Y Target Price 159.29 | ||
Volume (30-day avg) 846836 | Beta 0.66 | 52 Weeks Range 112.08 - 159.38 | Updated Date 04/2/2025 |
52 Weeks Range 112.08 - 159.38 | Updated Date 04/2/2025 | ||
Dividends yield (FY) 0.96% | Basic EPS (TTM) 2.87 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2025-03-03 | When After Market | Estimate 0.8921 | Actual 0.95 |
Profitability
Profit Margin 50.09% | Operating Margin (TTM) 69.61% |
Management Effectiveness
Return on Assets (TTM) 7.34% | Return on Equity (TTM) 9.39% |
Valuation
Trailing PE 54.71 | Forward PE 38.46 | Enterprise Value 28738485221 | Price to Sales(TTM) 27.43 |
Enterprise Value 28738485221 | Price to Sales(TTM) 27.43 | ||
Enterprise Value to Revenue 25.81 | Enterprise Value to EBITDA 29.05 | Shares Outstanding 192584992 | Shares Floating 191075816 |
Shares Outstanding 192584992 | Shares Floating 191075816 | ||
Percent Insiders 0.68 | Percent Institutions 76.32 |
Analyst Ratings
Rating 3.93 | Target Price 148.02 | Buy 3 | Strong Buy 6 |
Buy 3 | Strong Buy 6 | ||
Hold 5 | Sell 1 | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Franco-Nevada Corporation
Company Overview
History and Background
Franco-Nevada Corporation was founded in 2007, though its roots trace back to Franco-Nevada Mining Corporation established in 1983. It focuses on royalty and streaming agreements rather than direct mining operations. A significant milestone was its acquisition by Newmont Mining and subsequent spin-off. It has evolved into a leading gold-focused royalty and streaming company.
Core Business Areas
- Royalty and Streaming: Franco-Nevada provides upfront capital to mining companies in exchange for a percentage of future production (royalties) or the right to purchase metals at a predetermined price (streams). This model reduces exposure to operating costs and capital expenditure risks.
Leadership and Structure
The company is led by Paul Brink (President and CEO). The organizational structure is typical of a publicly traded corporation, with a Board of Directors overseeing management.
Top Products and Market Share
Key Offerings
- Gold Stream & Royalties: Franco-Nevada derives most of its revenue from gold-based royalties and streams. Market share is difficult to precisely determine due to the bespoke nature of each agreement, but Franco-Nevada is a major player in the space. Competitors include Wheaton Precious Metals, Royal Gold, and Osisko Gold Royalties.
- Silver Stream & Royalties: Similar to gold, Franco-Nevada has streaming and royalty agreements for silver production. Market share data is less readily available. Competitors are the same as for gold.
- Platinum Group Metals (PGM) Stream & Royalties: Franco-Nevada also has royalty/streaming agreements related to platinum group metals, but it forms a small portion of overall revenue. Competitors are similar to Gold.
- Oil & Gas Royalties: Franco-Nevada has expanded into the oil and gas sector, acquiring royalties on producing assets. This is the smallest segment of their business. Competitors are diversified royalty companies.
Market Dynamics
Industry Overview
The royalty and streaming industry provides alternative financing solutions to mining and energy companies. It is influenced by commodity prices, production levels at mines, and investor sentiment towards precious metals and energy.
Positioning
Franco-Nevada is a leading player in the royalty and streaming industry, particularly for gold. Its competitive advantage lies in its diversified portfolio of high-quality assets and its strong financial position.
Total Addressable Market (TAM)
The TAM is estimated to be in the tens of billions of dollars, encompassing the global mining and energy sectors. Franco-Nevada is well-positioned to capture a significant portion of this market due to its established reputation and financial strength.
Upturn SWOT Analysis
Strengths
- Diversified portfolio of high-quality assets
- Strong balance sheet and financial flexibility
- Experienced management team
- Reduced exposure to operating costs and capital expenditure risks
- Long-term growth potential
Weaknesses
- Dependence on commodity prices
- Exposure to political and operational risks in mining jurisdictions
- Valuation premium compared to some peers
- Slower growth compared to some direct mining companies
- Limited control over mining operations
Opportunities
- Acquisition of new royalty and streaming assets
- Expansion into new commodities and geographies
- Increasing demand for alternative financing in the mining sector
- Rising commodity prices
- Growth in the oil and gas royalty sector
Threats
- Declining commodity prices
- Political instability and regulatory changes in mining jurisdictions
- Increased competition from other royalty and streaming companies
- Operational problems at mines underlying royalty/streaming agreements
- Environmental regulations limiting mining activity
Competitors and Market Share
Key Competitors
- WPM
- RGLD
- OR
Competitive Landscape
Franco-Nevada is the largest and most diversified company. Wheaton Precious Metals is a strong competitor in silver streaming. Royal Gold focuses on gold royalties.
Major Acquisitions
Various Royalty Packages
- Year: 2023
- Acquisition Price (USD millions): 600
- Strategic Rationale: To add new royalty and streaming assets, diversifying portfolio and increasing exposure to key commodities.
Strategic investment into Labrador Iron Ore Royalty Corporation
- Year: 2022
- Acquisition Price (USD millions): 225
- Strategic Rationale: To enhance and grow the portfolio of royalties.
Growth Trajectory and Initiatives
Historical Growth: Franco-Nevada has experienced consistent revenue and earnings growth over the past decade, driven by acquisitions and increasing production from its underlying assets.
Future Projections: Analysts generally expect continued growth in revenue and earnings, driven by new acquisitions and increasing production from existing assets. However, projections are subject to commodity price volatility.
Recent Initiatives: Recent initiatives include acquisitions of new royalty and streaming packages, expansion into the oil and gas sector, and investments in exploration projects.
Summary
Franco-Nevada is a strong company with a diversified portfolio of high-quality royalty and streaming assets. Its business model reduces exposure to operating risks and provides consistent cash flow. The company's growth is dependent on commodity prices and acquisitions, so management must stay vigilant about market trends and competitor activity.
Similar Companies
OR
Osisko Gold Ro
OR
Osisko Gold Ro
RGLD
Royal Gold Inc
RGLD
Royal Gold Inc
WPM
Wheaton Precious Metals Corp
WPM
Wheaton Precious Metals Corp
Sources and Disclaimers
Data Sources:
- Company filings (SEC)
- Analyst reports
- Industry publications
- Company Investor Presentations
Disclaimers:
This analysis is for informational purposes only and should not be considered investment advice. Market data is subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Franco-Nevada Corporation
Exchange NYSE | Headquaters Toronto, ON, Canada | ||
IPO Launch date 2007-12-03 | CEO - | ||
Sector Basic Materials | Industry Gold | Full time employees - | Website https://www.franco-nevada.com |
Full time employees - | Website https://www.franco-nevada.com | ||
Franco-Nevada Corporation operates as a royalty and stream company focused on precious metals in South America, Central America, Mexico, the United States, Canada, Australia, Europe, and internationally. It operates through Precious Metals, Other Mining and Energy segments. The company manages its portfolio with a focus on precious metals, such as gold, silver, and platinum group metals; and engages in the sale of crude oil, natural gas, and natural gas liquids through a third-party marketing agent. Franco-Nevada Corporation was founded in 1986 and is headquartered in Toronto, Canada.
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