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Earnings Analysis

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Summary

Franco-Nevada (FNV) remains a fundamentally strong, asset-light gold royalty business with no debt and high margins, but valuation is currently unattractive.

Despite gold’s surge and FNV’s 90%+ EBITDA margins, the stock underperformed physical gold and broader indices due to high P/E and investor preference for higher-beta miners.

FNV’s diversified exposure, including oil and gas, and its premium multiple limit upside; annualized RoR since 2020 is under 8%.

I rate FNV a 'HOLD' with an attractive entry point near $130/share, emphasizing valuation discipline over macro gold trends.

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Gold investments have always been a tricky thing for me. I wrote an article on Franco-Nevada ( FNV ) about 2 years ago when gold was still trading at what I consider to be somewhat conservative valuations.…