- Franco-Nevada released its FY2021 results last week, reporting 27% growth in annual GEO sales, and a massive beat vs. its FY2021 energy guidance estimates ($209 million vs. $200 million).
- This strong growth in GEO sales coupled with higher energy prices helped Franco-Nevada to grow annual EPS by 30% despite lapping difficult comps, lapping 48% growth in FY2020.
- While the FY2022 outlook points to a slight decline in annual GEO sales, commodity prices remain elevated, and this should be a tailwind, contributing to another year of earnings growth for Franco-Nevada.
- With a diverse asset base, enviable organic growth, and industry-leading returns, FNV is a buy-and-forget company, but at ~2.8x P/NAV and ~40x earnings, I don't see enough margin of safety to buy at current levels.
For further details see:
Franco-Nevada: A Record Year