GURUFOCUS.COM » STOCK LIST » USA » NYSE » Franco-Nevada Corp (NYSE:FNV) » Definitions » Piotroski F-Score
Switch to:

Franco-Nevada Piotroski F-Score

: 8 (As of Today)
View and export this data going back to 2011. Start your Free Trial

Good Sign:

Piotroski F-Score is 8, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Franco-Nevada has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Franco-Nevada's Piotroski F-Score or its related term are showing as below:

FNV' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 6   Max: 9
Current: 8

During the past 13 years, the highest Piotroski F-Score of Franco-Nevada was 9. The lowest was 4. And the median was 6.


Franco-Nevada Piotroski F-Score Historical Data

The historical data trend for Franco-Nevada's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Franco-Nevada Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 5.00 7.00 7.00 9.00

Franco-Nevada Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.00 7.00 7.00 9.00 8.00

Competitive Comparison

For the Gold subindustry, Franco-Nevada's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Franco-Nevada Piotroski F-Score Distribution

For the Metals & Mining industry and Basic Materials sector, Franco-Nevada's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Franco-Nevada's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar22) TTM:Last Year (Mar21) TTM:
Net Income was 175.3 + 166 + 220.9 + 182 = $744 Mil.
Cash Flow from Operations was 245.2 + 206.9 + 279 + 230.6 = $962 Mil.
Revenue was 347.1 + 316.3 + 327.7 + 338.8 = $1,330 Mil.
Gross Profit was 222.6 + 201.3 + 201.1 + 220.6 = $846 Mil.
Average Total Assets from the begining of this year (Mar21)
to the end of this year (Mar22) was
(5747.2 + 5955.1 + 5984.7 + 6209.9 + 6400.4) / 5 = $6059.46 Mil.
Total Assets at the begining of this year (Mar21) was $5,747 Mil.
Long-Term Debt & Capital Lease Obligation was $0 Mil.
Total Current Assets was $950 Mil.
Total Current Liabilities was $44 Mil.
Net Income was 94.4 + 153.9 + 176.7 + 171.5 = $597 Mil.

Revenue was 195.4 + 279.8 + 304.5 + 308.9 = $1,089 Mil.
Gross Profit was 115.1 + 182.5 + 190.3 + 197.1 = $685 Mil.
Average Total Assets from the begining of last year (Mar20)
to the end of last year (Mar21) was
(4981.7 + 5182.2 + 5357.5 + 5592.9 + 5747.2) / 5 = $5372.3 Mil.
Total Assets at the begining of last year (Mar20) was $4,982 Mil.
Long-Term Debt & Capital Lease Obligation was $0 Mil.
Total Current Assets was $677 Mil.
Total Current Liabilities was $41 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Franco-Nevada's current Net Income (TTM) was 744. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Franco-Nevada's current Cash Flow from Operations (TTM) was 962. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Mar21)
=744.2/5747.2
=0.12948914

ROA (Last Year)=Net Income/Total Assets (Mar20)
=596.5/4981.7
=0.11973824

Franco-Nevada's return on assets of this year was 0.12948914. Franco-Nevada's return on assets of last year was 0.11973824. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Franco-Nevada's current Net Income (TTM) was 744. Franco-Nevada's current Cash Flow from Operations (TTM) was 962. ==> 962 > 744 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Mar22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar21 to Mar22
=0/6059.46
=0

Gearing (Last Year: Mar21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar20 to Mar21
=0/5372.3
=0

Franco-Nevada's gearing of this year was 0. Franco-Nevada's gearing of last year was 0. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Mar22)=Total Current Assets/Total Current Liabilities
=949.6/43.7
=21.72997712

Current Ratio (Last Year: Mar21)=Total Current Assets/Total Current Liabilities
=677/41.3
=16.39225182

Franco-Nevada's current ratio of this year was 21.72997712. Franco-Nevada's current ratio of last year was 16.39225182. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Franco-Nevada's number of shares in issue this year was 191.7. Franco-Nevada's number of shares in issue last year was 191.3. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=845.6/1329.9
=0.63583728

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=685/1088.6
=0.62924858

Franco-Nevada's gross margin of this year was 0.63583728. Franco-Nevada's gross margin of last year was 0.62924858. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Mar21)
=1329.9/5747.2
=0.23139964

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar20)
=1088.6/4981.7
=0.21851978

Franco-Nevada's asset turnover of this year was 0.23139964. Franco-Nevada's asset turnover of last year was 0.21851978. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+1+0+1+1
=8

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Franco-Nevada has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

Franco-Nevada  (NYSE:FNV) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Franco-Nevada Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Franco-Nevada's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Franco-Nevada Business Description

Franco-Nevada logo
Address
199 Bay Street, Suite 2000, P.O. Box 285, Commerce Court Postal Station, Toronto, ON, CAN, M5L 1G9
Franco-Nevada Corp is a precious-metals-focused royalty and investment company. The company owns a diversified portfolio of precious metals and royalty streams, which is actively managed to generate the bulk of its revenue from gold, silver, and platinum. The company does not operate mines, develop projects, or conduct exploration. Franco-Nevada's short-term financial performance is linked to the price of commodities and the amount of production from its portfolio of producing assets. Its long-term performance is affected by the availability of exploration and development capital. The company holds a portfolio of assets, diversified by commodity, revenue type, and stage of a project, primarily located in the United States, Canada, and Australia.

Franco-Nevada Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)