Franco-Nevada Corporation (FNV)

FairStock Score: 63/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I view Franco-Nevada as a high-quality royalty and streaming business, not a miner. It puts capital into precious-metals and energy projects and collects a share of production, which typically avoids direct mining operating costs. In the latest reported quarter, fiscal Q2 2026, revenue was $580.9 million, net income was $354.0 million, and the net margin was 60.94%. Those are wonderful economics. Trailing free cash flow is $891.4 million, though against a $47.3 billion market cap the FCF yield is only 1.9%. Return on equity is 19.91% and return on capital employed is 13.73%. The Altman Z-Score of 42.35 suggests a fortress-like balance sheet, while the dividend yield is modest at 0.72%. The competitive advantage comes from hard-to-replicate royalty contracts across precious metals and energy. The supplied growth rates point to strong momentum, though I would want the exact filing periods to confirm durability. Valuation is the main Graham-style problem. At the 2026-10-13 close of $243.85, the P/E is 32.00 and P/B is 5.71. The Graham Number is $85.59, producing a margin of safety of -184.90%, meaning price is far above asset-based value. The PEG of 0.74 offers some support if growth persists, but a Piotroski F-Score of 4/9 and 1.9% FCF yield counsel patience. FairStock score is 63/100. I would call this a fine business, but not a bargain at this price.

In plain English: Franco-Nevada makes money by providing upfront money to mining and energy projects and then collecting a share of the revenue, rather than running the mines itself. The business looks very strong: in its latest reported quarter, fiscal Q2 2026, it earned $354.0 million on $580.9 million of revenue, a 60.94% profit margin. But the stock at $243.85 on 2026-10-13 looks expensive compared with its accounting value and cash flow, so the price is high relative to the numbers shown.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer