MeritValue

FRANCO NEVADA Corp

FNVdata completeness 88%10 fiscal years on file

Data notes: no data for concept 'interestExpense'

The thesis, from the filings

FRANCO NEVADA Corp earns about 10% on invested capital, with a roughly flat share count. The applicable estimate puts fair value near $37.66 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$1.3B1$1.32B2$1.22B3$1.11B4$1.82B4
Net income$733.7M5$700.6M6−$466.4M7$552.1M8$1.11B8
Operating cash flow$955.4M9$999.5M10$991.2M11$829.5M12$1.49B12
Capital expenditure———$200,00013$2.4M13
Free cash flow (derived)———$829.3M12$1.49B12
Total debt—————
Cash & equivalents$539.3M14$1.2B15$1.42B16$1.45B16$670.9M16
Diluted shares191.3M191.9M192.2M192.6M192.8M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$396.02
your share of equity
Profit it earned you last year
$57.68
Free cash flow it threw off
$77.35
Debt you’d be carrying
—

10 shares is a claim on $396.02 of net worth that earned you $57.68 and generated $77.35 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
10% avg · 5y
FY21 13%FY22 13%FY23 -7%FY24 12%FY25 16%

It earned an average 10% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+1% shares · 5y

Share count is roughly flat over 5 years — little dilution, little buyback.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 2 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 2 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$37.66
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$700.6M
  • growthAssumed0.0%
Graham Number
$71.64
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 40-F · period ending 2021-12-31 · accession 0001558370-23-004112 (RevenueFromContractsWithCustomers)
  2. 40-F · period ending 2022-12-31 · accession 0001558370-24-003443 (RevenueFromContractsWithCustomers)
  3. 40-F · period ending 2023-12-31 · accession 0001558370-25-003388 (RevenueFromContractsWithCustomers)
  4. 40-F · period ending 2024-12-31 · accession 0001104659-26-032133 (RevenueFromContractsWithCustomers)
  5. 40-F · period ending 2021-12-31 · accession 0001558370-23-004112 (ProfitLoss)
  6. 40-F · period ending 2022-12-31 · accession 0001558370-24-003443 (ProfitLoss)
  7. 40-F · period ending 2023-12-31 · accession 0001558370-25-003388 (ProfitLoss)
  8. 40-F · period ending 2024-12-31 · accession 0001104659-26-032133 (ProfitLoss)
  9. 40-F · period ending 2021-12-31 · accession 0001558370-23-004112 (CashFlowsFromUsedInOperatingActivities)
  10. 40-F · period ending 2022-12-31 · accession 0001558370-24-003443 (CashFlowsFromUsedInOperatingActivities)
  11. 40-F · period ending 2023-12-31 · accession 0001558370-25-003388 (CashFlowsFromUsedInOperatingActivities)
  12. 40-F · period ending 2024-12-31 · accession 0001104659-26-032133 (CashFlowsFromUsedInOperatingActivities)
  13. 40-F · period ending 2024-12-31 · accession 0001104659-26-032133 (PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities)
  14. 40-F · period ending 2021-12-31 · accession 0001558370-24-003443 (CashAndCashEquivalents)
  15. 40-F · period ending 2022-12-31 · accession 0001558370-25-003388 (CashAndCashEquivalents)
  16. 40-F · period ending 2023-12-31 · accession 0001104659-26-032133 (CashAndCashEquivalents)