Is FRANKLIN ELECTRIC CO INC (NASDAQ:FELE) a Suitable Choice 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.

What matters 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 demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 31.9% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• The Debt/Free Cash Flow Ratio of FELE stands at 0.59, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• 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.
• FELE has consistently achieved strong EBIT growth over the past 5 years, with a 13.75% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• FELE has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

How does the complete fundamental picture look for FELE?

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

Overall FELE gets a fundamental rating of 6 out of 10. We evaluated FELE against 129 industry peers in the Machinery industry. Both the health and profitability get an excellent rating, making FELE a very profitable company, without any liquidiy or solvency issues. 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.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.