By Ketki Saxena
Investing.com– Franco-Nevada Corp . (TSX:FNV), a major Canadian mining and energy company focused exclusively on royalty and streaming, reported fourth-quarter and full fiscal year 2021 earnings today afternoon, after market close.The company’s mining portfolio is managed with a focus on precious metals, including gold, silver, and platinum. Its energy portfolio is focused on Oil, natural gas, and natural gas liquids.
FNV gained 12% in the last full trading week, and added C$4.4B to its C$41.37 market cap after the surge in oil and precious metals, particularly gold and palladium.
Franco-Nevada Earnings Report
FNV posted revenue of $327.7 million this quarter, up 8% from revenue C$304.5 M this time last year, and comfortable surpassing analyst estimates of C$317.5 M. Adjusted net income was reported at 163.7 million. Earnings per share were reported at C $0.86, little changed from EPS C$0.85 this time last year, and just below analyst estimates of C$0.87.
For the full year 2021, FNV posted revenue of C$1.3 billion, 27% higher than this time last year. Adjusted net income was C$673.6 million, or C$3.52 earnings per share, 30% higher than this time last year.
FNV also increased its quarterly dividend increased to 6.7%, or $0.32/share, effective Q1 2022.
Franco-Nevada Stock Fair Price, Financial Upside
As of market close today, FNV shares were trading at C$205.90, down C$2.70 (-1.29%) for the day, and with a 52-week range of C$139.10 - 216.20. Investing Pro models suggest a fair price target of C$181.50, representing an 11.8% potential downside.
Investors should also note the following positive indicators and risk factors for Franco-Nevada Corp.
Positive Indicators:
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No debt and C$1.6 billion in available capital as of December 31, 2021
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Generated C$279.0 million in operating cash flow for the quarter
Risk Factors:
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FNV stock is trading at a high earnings multiple, with a P/E ratio of 44.8x. Franco-Nevada's p/e ratio for fiscal years ending December 2016 to 2020 has averaged 92.6x.
All currencies CAD, unless noted otherwise.
All data from Investing Pro.