Franco Nevada Profitability Analysis
| FNV Stock | CAD 168.84 4.02 2.33% |
Net Loss | First Reported 2008-03-31 | Previous Quarter 79.5 M | Current Value 152.7 M | Quarterly Volatility 149.2 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.69 | 0.6289 |
|
|
For Franco Nevada profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Franco Nevada to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Franco Nevada utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Franco Nevada's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Franco Nevada over time as well as its relative position and ranking within its peers.
Franco |
Franco Nevada Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Franco Nevada's current stock value. Our valuation model uses many indicators to compare Franco Nevada value to that of its competitors to determine the firm's financial worth. Franco Nevada is rated below average in return on equity category among its peers. It also is rated below average in return on asset category among its peers . At this time, Franco Nevada's Return On Equity is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Franco Nevada by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Franco Nevada's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Franco Return On Asset vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Franco Nevada |
| = | -0.095 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Franco Nevada |
| = | -0.0457 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Franco Return On Asset Comparison
Franco Nevada is currently under evaluation in return on asset category among its peers.
Franco Nevada Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Franco Nevada, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Franco Nevada will eventually generate negative long term returns. The profitability progress is the general direction of Franco Nevada's change in net profit over the period of time. It can combine multiple indicators of Franco Nevada, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -191 M | -181.5 M | |
| Operating Income | 750.9 M | 788.5 M | |
| Income Before Tax | -370.9 M | -352.3 M | |
| Total Other Income Expense Net | -1.1 B | -1.1 B | |
| Net Loss | -475 M | -451.2 M | |
| Income Tax Expense | 104.1 M | 52.7 M | |
| Net Loss | -466.4 M | -443.1 M | |
| Net Income Applicable To Common Shares | 805.7 M | 846 M | |
| Interest Income | 52.3 M | 54.9 M | |
| Net Interest Income | 49.4 M | 51.9 M | |
| Change To Netincome | 21.2 M | 13.9 M | |
| Net Loss | (2.43) | (2.31) | |
| Income Quality | (2.16) | (2.06) | |
| Net Income Per E B T | 1.28 | 1.34 |
Franco Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Franco Nevada. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Franco Nevada position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Franco Nevada's important profitability drivers and their relationship over time.
Use Franco Nevada in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Franco Nevada position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Franco Nevada will appreciate offsetting losses from the drop in the long position's value.Franco Nevada Pair Trading
Franco Nevada Pair Trading Analysis
The ability to find closely correlated positions to Franco Nevada could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Franco Nevada when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Franco Nevada - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Franco Nevada to buy it.
The correlation of Franco Nevada is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Franco Nevada moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Franco Nevada moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Franco Nevada can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Franco Nevada position
In addition to having Franco Nevada in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Electronics Thematic Idea Now
Electronics
Companies manufacturing electronic appliances and goods. The Electronics theme has 44 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Electronics Theme or any other thematic opportunities.
| View All Next | Launch |
Check out Investing Opportunities. To learn how to invest in Franco Stock, please use our How to Invest in Franco Nevada guide.You can also try the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
To fully project Franco Nevada's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Franco Nevada at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Franco Nevada's income statement, its balance sheet, and the statement of cash flows.