The timing appears opportune to go long in shares of Franco-Nevada Corporation as we anticipate another pick-up in the underlying trend. Investors have an opportunity to buy the stock and target the CAD 240.
The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
Before interest, taxes, depreciation and amortization, the company's margins are particularly high.
Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
Thanks to a sound financial situation, the firm has significant leeway for investment.
Over the past year, analysts have regularly revised upwards their sales forecast for the company.
Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.
Consensus analysts have strongly revised their opinion of the company over the past 12 months.
Considering the small differences between the analysts' various estimates, the group's business visibility is good.
The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 53.31 times its estimated earnings per share for the ongoing year.
The company's "enterprise value to sales" ratio is among the highest in the world.
In relation to the value of its tangible assets, the company's valuation appears relatively high.
The valuation of the company is particularly high given the cash flows generated by its activity.
The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
The average consensus view of analysts covering the stock has deteriorated over the past four months.
The price targets of various analysts who make up the consensus differ significantly. This reflects different assessments and/or a difficulty in valuing the company.
ę MarketScreener.com 2021
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