Franco-Nevada (MEX:FNV N) Beneish M-Score : -2.27 (As of Mar. 29, 2025)

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What is Franco-Nevada Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.27 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MEX:FNV N' s Beneish M-Score Range Over the Past 10 Years
Min: -8.98 Med: -2.56 Max: -2.06
Current: -2.27

During the past 13 years, the highest Beneish M-Score of Franco-Nevada was -2.06. The lowest was -8.98. And the median was -2.56.

Franco-Nevada Beneish M-Score Historical Data

The historical data trend for Franco-Nevada's Beneish M-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 Beneish M-Score Chart

Franco-Nevada Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-2.37

-2.06

-2.84

-2.75

-2.27

Franco-Nevada Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-2.75	-2.73	-2.58	-2.66	-2.27

Competitive Comparison of Franco-Nevada's Beneish M-Score

For the Gold subindustry, Franco-Nevada's Beneish M-Score, along with its competitors' market caps and Beneish M-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's Beneish M-Score Distribution in the Metals & Mining Industry

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

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

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Franco-Nevada Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Franco-Nevada for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.7477

0.528 * 0.92

0.404 * 1.3837

0.892 * 0.9988

0.115 * 1.37

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.3001

4.679 * -0.037049

0.327 * 1.6304

-2.07

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was MXN3,289 Mil.
Revenue was 6694.68 + 5428.616 + 4765.059 + 4261.918 = MXN21,150 Mil.
Gross Profit was 4725.902 + 3733.281 + 3262.81 + 2738.382 = MXN14,460 Mil.
Total Current Assets was MXN35,805 Mil.
Total Assets was MXN132,025 Mil.
Property, Plant and Equipment(Net PPE) was MXN85,702 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN4,254 Mil.
Selling, General, & Admin. Expense(SGA) was MXN633 Mil.
Total Current Liabilities was MXN1,408 Mil.
Long-Term Debt & Capital Lease Obligation was MXN0 Mil.
Net Income was 3658.09 + 3006.709 + 1456.448 + 2398.159 = MXN10,519 Mil.
Non Operating Income was -239.841 + 25.597 + -174.041 + 1.66 = MXN-387 Mil.
Cash Flow from Operations was 5067.935 + 4205.848 + 3559.596 + 2964.091 = MXN15,797 Mil.

Total Receivables was MXN1,884 Mil.
Revenue was 5148.289 + 5391.149 + 5655.773 + 4980.307 = MXN21,176 Mil.
Gross Profit was 3213.225 + 3353.138 + 3560.788 + 3192.227 = MXN13,319 Mil.
Total Current Assets was MXN27,419 Mil.
Total Assets was MXN101,745 Mil.
Property, Plant and Equipment(Net PPE) was MXN68,469 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN4,743 Mil.
Selling, General, & Admin. Expense(SGA) was MXN487 Mil.
Total Current Liabilities was MXN665 Mil.
Long-Term Debt & Capital Lease Obligation was MXN0 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(3288.944 / 21150.273)	/	(1884.142 / 21175.518)
	=	0.155504	/	0.088977
	=	1.7477

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(13319.378 / 21175.518)	/	(14460.375 / 21150.273)
	=	0.628999	/	0.683697
	=	0.92

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (35805.066 + 85702.328) / 132024.923)	/	(1 - (27418.503 + 68469.024) / 101745.34)
	=	0.079663	/	0.057573
	=	1.3837

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	21150.273	/	21175.518
	=	0.9988

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(4742.785 / (4742.785 + 68469.024))	/	(4253.591 / (4253.591 + 85702.328))
	=	0.064782	/	0.047285
	=	1.37

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(632.995 / 21150.273)	/	(487.453 / 21175.518)
	=	0.029928	/	0.02302
	=	1.3001

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((0 + 1407.76) / 132024.923)	/	((0 + 665.391) / 101745.34)
	=	0.010663	/	0.00654
	=	1.6304

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(10519.406 - -386.625	-	15797.47)	/	132024.923
	=	-0.037049

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Franco-Nevada has a M-score of -2.07 suggests that the company is unlikely to be a manipulator.

Franco-Nevada Beneish M-Score Related Terms

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Franco-Nevada Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Franco-Nevada Corp (MEX:FNV N) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

FNV:USA 0QYZ:UK 3FO:Germany FNV:Canada F2NV34:Brazil

Address

199 Bay Street, Suite 2000, Commerce Court West, Toronto, ON, CAN, M5L 1G9

Website

https://www.franco-nevada.com

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, located in the U.S, Canada, and Australia.

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