Recent News
Feb 22, 2026 — Franco‑Nevada agreed to an A$220M package with Minerals 260 to buy a A$170M gross royalty and subscribe A$50M of equity for the Bullabulling Gold Project, raising its effective royalty to 2.45% on a defined land package. Feb 12, 2026 — The company announced a $250M net smelter return royalty with i‑80 Gold covering multiple Nevada assets, initially 1.5% rising to 3.0% from 2031. Feb 2, 2026 — Scotiabank trimmed FY2025 EPS estimates for Franco‑Nevada and published a lower target in its note to investors.
Technical Analysis
Directional indicators show an emerging trend: ADX at 22.96 indicates trend strength transitioning from weak to emerging, while DI+ sits at 30.87 with a dip & reversal (bullish) and DI‑ at 19.46 trending decreasing (bullish). Together these point to directional bias to the upside that supports near‑term momentum.
MACD reads 9.36 and trends increasing, with the MACD line above the signal line at 7.18; the cross above the signal line confirms bullish momentum and aligns with recent upside continuation.
MRO registers 12.39 and trends decreasing. A positive MRO implies price sits above the modeled target and tends to compress; the declining MRO reduces the constructive momentum’s runway and raises the probability of a pause or pullback toward fair value.
RSI at 62.1 with a dip & reversal indicates renewed buying interest without extreme overbought readings; momentum holds but space to the upside appears limited relative to valuation.
Price sits at $280.82 above the 20‑day average $257.48, 50‑day $237.67, and 200‑day $197.53, with the 12‑day EMA rising — a bullish alignment of moving averages that supports continued trend while signaling extension. Price trades above the price target mean of $273.33 and approaches the 52‑week high $277.94, leaving the upper Bollinger band region ($288.43 at 2×) as a nearer-term cap.
Volume at 402,604 undercuts 10/50/200‑day averages, suggesting weaker participation on recent moves; that weak volume increases sensitivity to negative flow given the stretched price-multiple backdrop.
Fundamental Analysis
Franco‑Nevada reports strong profitability: EBIT $363.2M and EBITDA $450.2M yield an EBIT margin of 74.47%, above the industry peer mean of 58.67% and industry peer median of 52.29% while sitting below the peer high of 89.78%. Quarter‑over‑quarter EBIT margin compressed by 13.08%, but year‑over‑year margin improved by 4.97%.
Revenue totaled $487.7M with revenue growth at 32.03%; quarter‑over‑quarter revenue rose 117.17% and year‑over‑year revenue growth shows 433.93% (all values expressed as percentages). High top‑line jumps reflect portfolio monetizations and new royalties added in the period.
Cash generation remains solid: operating cash flow $348.0M and free cash flow $55.6M, but free cash flow yield of 0.15% sits below the industry peer mean of 0.41%, signaling limited cash yield relative to peers despite operational strength. Cash on hand $236.7M and a current ratio of 4.64 (above the industry peer mean 3.705) indicate substantial short‑term liquidity and low leverage; interest coverage at 454.0 provides wide buffer for any financing stress.
Return metrics show modest capital efficiency: return on equity 4.11% and return on assets 3.96% sit at or slightly above industry peer means. Earnings growth registered strong year‑over‑year gains (129.83%), and EPS came in at $1.43 versus an estimate of $1.38, an EPS surprise of +3.6%.
Valuation multiples reflect a premium: P/E 135.85 sits above the industry peer mean P/E of 86.67 and peer median of 73.27; price‑to‑book 5.35 exceeds the peer mean 3.67; price‑to‑sales 76.79 remains well above the peer mean 44.37. The forward P/E at 183.51 amplifies near‑term valuation stretch. WMDST values the stock as over‑valued given elevated multiples combined with a muted free cash flow yield.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-03 |
| NEXT REPORT DATE: | 2026-02-02 |
| CASH FLOW | Begin Period Cash Flow | $ 160.3 M |
| Operating Cash Flow | $ 348.0 M | |
| Capital Expenditures | $ -292.40 M | |
| Change In Working Capital | $ -44.70 M | |
| Dividends Paid | $ -67.30 M | |
| Cash Flow Delta | $ 76.4 M | |
| End Period Cash Flow | $ 236.7 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 487.7 M | |
| Forward Revenue | $ 169.9 M | |
| COSTS | ||
| Cost Of Revenue | $ 134.2 M | |
| Depreciation | — | |
| Depreciation and Amortization | — | |
| Research and Development | — | |
| Total Operating Expenses | $ 150.5 M | |
| PROFITABILITY | ||
| Gross Profit | $ 353.5 M | |
| EBITDA | $ 450.2 M | |
| EBIT | $ 363.2 M | |
| Operating Income | $ 337.2 M | |
| Interest Income | $ 8.0 M | |
| Interest Expense | $ 800.0 K | |
| Net Interest Income | $ 7.2 M | |
| Income Before Tax | $ 362.4 M | |
| Tax Provision | $ 74.9 M | |
| Tax Rate | 20.668 % | |
| Net Income | $ 287.5 M | |
| Net Income From Continuing Operations | $ 287.5 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.38 | |
| EPS Actual | $ 1.43 | |
| EPS Difference | $ 0.05 | |
| EPS Surprise | 3.623 % | |
| Forward EPS | $ 2.08 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 7.5 B | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 7.0 B | |
| Total Current Assets | $ 542.5 M | |
| Cash and Short-Term Investments | $ 236.7 M | |
| Cash | $ 236.7 M | |
| Net Receivables | $ 190.7 M | |
| Inventory | $ 10.3 M | |
| Long-Term Investments | $ 12.1 M | |
| LIABILITIES | ||
| Accounts Payable | $ 66.1 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 116.9 M | |
| Net Debt | — | |
| Total Debt | — | |
| Total Liabilities | $ 517.6 M | |
| EQUITY | ||
| Total Equity | $ 7.0 B | |
| Retained Earnings | $ 1.1 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 36.31 | |
| Shares Outstanding | 192.777 M | |
| Revenue Per-Share | $ 2.53 | |
| VALUATION | Market Capitalization | $ 37.4 B |
| Enterprise Value | — | |
| Enterprise Multiple | — | |
| Enterprise Multiple QoQ | — | |
| Enterprise Multiple YoY | — | |
| Enterprise Multiple IPRWA | — | |
| EV/R | — | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.074 | |
| Asset To Liability | 14.523 | |
| Debt To Capital | — | |
| Debt To Assets | — | |
| Debt To Assets QoQ | — | |
| Debt To Assets YoY | — | |
| Debt To Assets IPRWA | — | |
| Debt To Equity | — | |
| Debt To Equity QoQ | — | |
| Debt To Equity YoY | — | |
| Debt To Equity IPRWA | — | |
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 5.35 | |
| Price To Book QoQ | 7.645 % | |
| Price To Book YoY | 31.015 % | |
| Price To Book IPRWA | high: 7.0 FNV: 5.35 mean: 3.674 median: 3.286 low: 0.013 |
|
| Price To Earnings (P/E) | 135.847 | |
| Price To Earnings QoQ | 3.514 % | |
| Price To Earnings YoY | -14.435 % | |
| Price To Earnings IPRWA | high: 157.789 FNV: 135.847 mean: 86.675 median: 73.268 low: -21.388 |
|
| PE/G Ratio | 8.866 | |
| Price To Sales (P/S) | 76.787 | |
| Price To Sales QoQ | -13.559 % | |
| Price To Sales YoY | -13.41 % | |
| Price To Sales IPRWA | high: 95.733 FNV: 76.787 mean: 44.369 median: 25.248 low: 4.984 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 183.51 | |
| Forward PE/G | 11.976 | |
| Forward P/S | 451.299 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 0.461 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.067 | |
| Asset Turnover Ratio QoQ | 24.19 % | |
| Asset Turnover Ratio YoY | 51.399 % | |
| Asset Turnover Ratio IPRWA | high: 0.205 median: 0.095 mean: 0.084 FNV: 0.067 low: 0.005 |
|
| Receivables Turnover | 2.891 | |
| Receivables Turnover Ratio QoQ | 20.09 % | |
| Receivables Turnover Ratio YoY | 33.589 % | |
| Receivables Turnover Ratio IPRWA | high: 33.336 median: 33.103 mean: 22.942 FNV: 2.891 low: 0.868 |
|
| Inventory Turnover | 15.514 | |
| Inventory Turnover Ratio QoQ | 666.971 % | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | FNV: 15.514 high: 4.1 mean: 1.204 median: 0.789 low: 0.401 |
|
| Days Sales Outstanding (DSO) | 31.564 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -6.995 | |
| Cash Conversion Cycle Days QoQ | -113.554 % | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 270.657 median: 49.851 mean: 43.721 FNV: -6.995 low: -63.08 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.146 | |
| CapEx To Revenue | -0.6 | |
| CapEx To Depreciation | — | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 7.0 B | |
| Net Invested Capital | $ 7.0 B | |
| Invested Capital | $ 7.0 B | |
| Net Tangible Assets | $ 7.0 B | |
| Net Working Capital | $ 425.6 M | |
| LIQUIDITY | ||
| Cash Ratio | 2.025 | |
| Current Ratio | 4.641 | |
| Current Ratio QoQ | 9.102 % | |
| Current Ratio YoY | -80.162 % | |
| Current Ratio IPRWA | high: 19.039 FNV: 4.641 mean: 3.705 median: 2.12 low: 0.978 |
|
| Quick Ratio | 4.553 | |
| Quick Ratio QoQ | 9.169 % | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | high: 8.339 FNV: 4.553 mean: 1.444 median: 1.306 low: 0.456 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | — | |
| Cost Of Debt | — | |
| Interest Coverage Ratio | 454.0 | |
| Interest Coverage Ratio QoQ | 14.755 % | |
| Interest Coverage Ratio YoY | 62.474 % | |
| Interest Coverage Ratio IPRWA | FNV: 454.0 high: 118.727 median: 66.23 mean: 49.567 low: -34.479 |
|
| Operating Cash Flow Ratio | 2.977 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 46.654 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 4.272 | |
| Dividend Payout Ratio | 0.234 | |
| Dividend Rate | $ 0.35 | |
| Dividend Yield | 0.002 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 7.069 % | |
| Revenue Growth | 32.025 % | |
| Revenue Growth QoQ | 11717.343 % | |
| Revenue Growth YoY | 433.928 % | |
| Revenue Growth IPRWA | high: 88.424 % FNV: 32.025 % mean: 9.506 % median: 8.644 % low: -35.719 % |
|
| Earnings Growth | 15.323 % | |
| Earnings Growth QoQ | -3.556 % | |
| Earnings Growth YoY | 129.834 % | |
| Earnings Growth IPRWA | high: 72.727 % FNV: 15.323 % median: 13.812 % mean: 12.976 % low: -112.5 % |
|
| MARGINS | ||
| Gross Margin | 72.483 % | |
| Gross Margin QoQ | -1.526 % | |
| Gross Margin YoY | 5.399 % | |
| Gross Margin IPRWA | high: 73.534 % FNV: 72.483 % mean: 59.856 % median: 58.514 % low: 9.738 % |
|
| EBIT Margin | 74.472 % | |
| EBIT Margin QoQ | -13.08 % | |
| EBIT Margin YoY | 4.968 % | |
| EBIT Margin IPRWA | high: 89.775 % FNV: 74.472 % mean: 58.667 % median: 52.287 % low: -109.663 % |
|
| Return On Sales (ROS) | 69.141 % | |
| Return On Sales QoQ | -3.035 % | |
| Return On Sales YoY | -2.546 % | |
| Return On Sales IPRWA | high: 69.482 % FNV: 69.141 % mean: 54.107 % median: 53.767 % low: -86.72 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 55.6 M | |
| Free Cash Flow Yield | 0.148 % | |
| Free Cash Flow Yield QoQ | -105.219 % | |
| Free Cash Flow Yield YoY | -240.952 % | |
| Free Cash Flow Yield IPRWA | high: 6.951 % median: 1.218 % mean: 0.411 % FNV: 0.148 % low: -6.782 % |
|
| Free Cash Growth | -105.975 % | |
| Free Cash Growth QoQ | -132.712 % | |
| Free Cash Growth YoY | -7.415 % | |
| Free Cash Growth IPRWA | high: 177.998 % mean: 7.399 % median: -8.527 % FNV: -105.975 % low: -485.652 % |
|
| Free Cash To Net Income | 0.193 | |
| Cash Flow Margin | 55.916 % | |
| Cash Flow To Earnings | 1.21 | |
| VALUE & RETURNS | ||
| Economic Value Added | — | |
| Return On Assets (ROA) | 3.955 % | |
| Return On Assets QoQ | 9.436 % | |
| Return On Assets YoY | 61.1 % | |
| Return On Assets IPRWA | high: 11.671 % FNV: 3.955 % median: 3.277 % mean: 3.189 % low: -15.435 % |
|
| Return On Capital Employed (ROCE) | 4.908 % | |
| Return On Equity (ROE) | 0.041 | |
| Return On Equity QoQ | 9.752 % | |
| Return On Equity YoY | 61.035 % | |
| Return On Equity IPRWA | high: 0.151 median: 0.045 FNV: 0.041 mean: 0.038 low: -0.275 |
|
| DuPont ROE | 4.228 % | |
| Return On Invested Capital (ROIC) | 4.117 % | |
| Return On Invested Capital QoQ | 9.728 % | |
| Return On Invested Capital YoY | -135.388 % | |
| Return On Invested Capital IPRWA | high: 12.873 % median: 4.522 % FNV: 4.117 % mean: 4.091 % low: -4.106 % |
|