Should you consider FRANKLIN ELECTRIC CO INC (NASDAQ:FELE) for quality investing?

In this article we will dive into FRANKLIN ELECTRIC CO INC (NASDAQ:FELE) as a possible candidate for quality investing. Investors should always do their own research, but we noticed FRANKLIN ELECTRIC CO INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Key Considerations for Quality Investors.

• FELE has shown strong performance in revenue growth over the past 5 years, with a 8.99% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• FELE exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 31.9% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• With a favorable Debt/Free Cash Flow Ratio of 0.59, FELE showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• FELE demonstrates consistent Profit Quality over the past 5 years, with a strong 110.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• With a robust 5-year EBIT growth of 13.75%, FELE showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, FELE showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

What is the full fundamental picture of FELE telling us.

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Taking everything into account, FELE scores 6 out of 10 in our fundamental rating. FELE was compared to 126 industry peers in the Machinery industry. FELE has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. FELE is quite expensive at the moment. It does show a decent growth rate.

Our latest full fundamental report of FELE contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.