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Franco-NevadaFRA:3FO +0.37%89 3-Year ROIIC % is 15.96 as of Dec. 2025, which is 4% below its 10-year median of 16.65. GuruFocus rates FRA:3FO with a GF Score™ of 89/100 and a GF Value™ of €236.09 (Modestly Undervalued). Among 2,307 Metals & Mining companies, Franco-Nevada ranks better than 71.61% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Franco-Nevada's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 15.96%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Franco-Nevada's 3-Year ROIIC % or its related term are showing as below:
FRA:3FO's 3-Year ROIIC % is ranked better than 71.61% of 2307
companies
in the Metals & Mining industry
Industry Median: -2.53
vs FRA:3FO: 15.96
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Franco-Nevada 3-Year ROIIC % Related Terms
Franco-Nevada 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Franco-Nevada's 3-Year ROIIC % 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.
FRA:3FO vs NEM, AU, RGLD: 3-Year ROIIC % Comparison
For the Gold subindustry, Franco-Nevada's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Franco-Nevada's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Franco-Nevada's 3-Year ROIIC % falls into.
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Franco-Nevada (FRA:3FO) has a 3-Year ROIIC % of 15.96 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Franco-Nevada and its competitors. This is near median its historical median of 16.65. According to the industry distribution chart, Franco-Nevada ranks #655 out of 2307 companies in the Metals & Mining industry, placing it in the top 28.4%.
Is Franco-Nevada's 3-Year ROIIC % too high?
Franco-Nevada's current 3-Year ROIIC % of 15.96 is near median its 10-year median of 16.65. Based on the distribution chart, Franco-Nevada ranks #655 out of 2307 companies in the Metals & Mining industry, which is above the industry midpoint. Overall, Franco-Nevada has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Franco-Nevada's 3-Year ROIIC % compare to NEM and AU?
According to the Metals & Mining industry distribution chart, Franco-Nevada ranks #655 out of 2307 companies for 3-Year ROIIC %. This puts Franco-Nevada in the upper half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Metals & Mining company?
A good 3-Year ROIIC % depends on the Metals & Mining industry context. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Franco-Nevada and its competitors. Franco-Nevada's current 3-Year ROIIC % is 15.96, which is near median its own 10-year median of 16.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Franco-Nevada stock overvalued right now?
Based on GuruFocus' analysis, Franco-Nevada (FRA:3FO) is currently considered Modestly Undervalued. The stock's GF Value™ is €236.09, compared to a current price of €176.65 — trading 25.2% below its estimated fair value. The current 3-Year ROIIC % is 15.96, which is near median its 10-year median of 16.65. Franco-Nevada's overall GF Score™ is 89/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Franco-Nevada (FRA:3FO), the current 3-Year ROIIC % is 15.96 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Franco-Nevada (FRA:3FO) Overvalued in 2026?
Based on GuruFocus' analysis, Franco-Nevada stock appears to be undervalued.
The current stock price of €176.65 is trading 25.2% below its estimated GF Value™ of €236.09.
GuruFocus considers Franco-Nevada to be Modestly Undervalued.
Key valuation signals for FRA:3FO:
3-Year ROIIC %: 15.96 (near median its 10-year median of 16.65)
GF Value™: €236.09 vs. price of €176.65 (25.2% below fair value)
No single metric tells the full story. See the FRA:3FO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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. The company'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.
89GF Score
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