FRANKLIN RESOURCES INC (BEN) Stock Fundamental Analysis
USA - NYSE:BEN - US3546131018 - Common Stock
22.375 USD
+0.09 (+0.43%)
We assign a fundamental rating of 4 out of 10 to BEN. BEN was compared to 236 industry peers in the Capital Markets industry. BEN has a bad profitability rating. Also its financial health evaluation is rather negative. BEN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BEN was profitable.
In the past year BEN had a positive cash flow from operations.
BEN had positive earnings in each of the past 5 years.
BEN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.83%, BEN is not doing good in the industry: 68.64% of the companies in the same industry are doing better.
With a Return On Equity value of 2.22%, BEN is not doing good in the industry: 70.76% of the companies in the same industry are doing better.
BEN's Return On Invested Capital of 2.87% is in line compared to the rest of the industry. BEN outperforms 40.25% of its industry peers.
BEN had an Average Return On Invested Capital over the past 3 years of 4.25%. This is below the industry average of 7.56%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.83% | ||
| ROE | 2.22% | ||
| ROIC | 2.87% |
ROA(3y)2.85%
ROA(5y)3.88%
ROE(3y)7.11%
ROE(5y)8.94%
ROIC(3y)4.25%
ROIC(5y)4.8%
1.3 Margins
BEN has a worse Profit Margin (3.13%) than 69.92% of its industry peers.
BEN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 12.20%, BEN is doing worse than 67.37% of the companies in the same industry.
In the last couple of years the Operating Margin of BEN has declined.
The Gross Margin of BEN (36.69%) is worse than 66.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.2% | ||
| PM (TTM) | 3.13% | ||
| GM | 36.69% |
OM growth 3Y-15.02%
OM growth 5Y-12%
PM growth 3Y-37.43%
PM growth 5Y-24.59%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The number of shares outstanding for BEN has been increased compared to 1 year ago.
BEN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for BEN has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.25, we must say that BEN is in the distress zone and has some risk of bankruptcy.
BEN has a Altman-Z score (1.25) which is comparable to the rest of the industry.
BEN has a debt to FCF ratio of 8.43. This is a slightly negative value and a sign of low solvency as BEN would need 8.43 years to pay back of all of its debts.
BEN has a Debt to FCF ratio of 8.43. This is in the better half of the industry: BEN outperforms 60.17% of its industry peers.
BEN has a Debt/Equity ratio of 1.00. This is a neutral value indicating BEN is somewhat dependend on debt financing.
BEN has a Debt to Equity ratio (1.00) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 8.43 | ||
| Altman-Z | 1.25 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
BEN has a Current Ratio of 1.21. This is a normal value and indicates that BEN is financially healthy and should not expect problems in meeting its short term obligations.
BEN has a Current ratio (1.21) which is in line with its industry peers.
A Quick Ratio of 1.21 indicates that BEN should not have too much problems paying its short term obligations.
BEN has a Quick ratio of 1.21. This is comparable to the rest of the industry: BEN outperforms 55.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The earnings per share for BEN have decreased strongly by -19.25% in the last year.
BEN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.97% yearly.
Looking at the last year, BEN shows a small growth in Revenue. The Revenue has grown by 4.67% in the last year.
Measured over the past years, BEN shows a quite strong growth in Revenue. The Revenue has been growing by 8.38% on average per year.
EPS 1Y (TTM)-19.25%
EPS 3Y-13.75%
EPS 5Y-0.97%
EPS Q2Q%-18.33%
Revenue 1Y (TTM)4.67%
Revenue growth 3Y0.21%
Revenue growth 5Y8.38%
Sales Q2Q%-3.68%
3.2 Future
Based on estimates for the next years, BEN will show a small growth in Earnings Per Share. The EPS will grow by 6.27% on average per year.
Based on estimates for the next years, BEN will show a small growth in Revenue. The Revenue will grow by 5.94% on average per year.
EPS Next Y-11.36%
EPS Next 2Y2.92%
EPS Next 3Y5.82%
EPS Next 5Y6.27%
Revenue Next Year1.53%
Revenue Next 2Y3.15%
Revenue Next 3Y3.46%
Revenue Next 5Y5.94%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.46, which indicates a very decent valuation of BEN.
BEN's Price/Earnings ratio is a bit cheaper when compared to the industry. BEN is cheaper than 69.49% of the companies in the same industry.
When comparing the Price/Earnings ratio of BEN to the average of the S&P500 Index (27.42), we can say BEN is valued rather cheaply.
A Price/Forward Earnings ratio of 8.80 indicates a reasonable valuation of BEN.
BEN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BEN is cheaper than 75.42% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BEN to the average of the S&P500 Index (22.94), we can say BEN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.46 | ||
| Fwd PE | 8.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BEN indicates a rather cheap valuation: BEN is cheaper than 83.90% of the companies listed in the same industry.
76.69% of the companies in the same industry are more expensive than BEN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8 | ||
| EV/EBITDA | 12.41 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.92%
EPS Next 3Y5.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.79%, BEN is a good candidate for dividend investing.
BEN's Dividend Yield is comparable with the industry average which is at 8.51.
Compared to an average S&P500 Dividend Yield of 2.36, BEN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.79% |
5.2 History
The dividend of BEN has a limited annual growth rate of 4.79%.
BEN has paid a dividend for at least 10 years, which is a reliable track record.
BEN has decreased its dividend recently.
Dividend Growth(5Y)4.79%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
251.00% of the earnings are spent on dividend by BEN. This is not a sustainable payout ratio.
BEN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP251%
EPS Next 2Y2.92%
EPS Next 3Y5.82%
NYSE:BEN (10/20/2025, 12:30:59 PM)
22.375
+0.09 (+0.43%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners47.64%
Inst Owner Change0.51%
Ins Owners21.76%
Ins Owner Change0.41%
Market Cap11.62B
Analysts51.11
Price Target25.05 (11.96%)
Short Float %5.72%
Short Ratio4.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.79% |
Yearly Dividend1.29
Dividend Growth(5Y)4.79%
DP251%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.68%
Min EPS beat(2)-1.74%
Max EPS beat(2)-1.62%
EPS beat(4)1
Avg EPS beat(4)1.02%
Min EPS beat(4)-3.23%
Max EPS beat(4)10.67%
EPS beat(8)4
Avg EPS beat(8)7.34%
EPS beat(12)7
Avg EPS beat(12)6.47%
EPS beat(16)11
Avg EPS beat(16)10.63%
Revenue beat(2)1
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-1.59%
Max Revenue beat(2)0.01%
Revenue beat(4)2
Avg Revenue beat(4)-1.34%
Min Revenue beat(4)-4.17%
Max Revenue beat(4)0.38%
Revenue beat(8)4
Avg Revenue beat(8)-0.96%
Revenue beat(12)7
Avg Revenue beat(12)2.6%
Revenue beat(16)8
Avg Revenue beat(16)1.79%
PT rev (1m)0%
PT rev (3m)3.17%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)3.68%
EPS NY rev (1m)0%
EPS NY rev (3m)1.7%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)5.88%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)2.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.46 | ||
| Fwd PE | 8.8 | ||
| P/S | 1.34 | ||
| P/FCF | 8 | ||
| P/OCF | 7.06 | ||
| P/B | 0.95 | ||
| P/tB | 7.49 | ||
| EV/EBITDA | 12.41 |
EPS(TTM)2.14
EY9.56%
EPS(NY)2.54
Fwd EY11.36%
FCF(TTM)2.8
FCFY12.5%
OCF(TTM)3.17
OCFY14.16%
SpS16.64
BVpS23.51
TBVpS2.99
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.83% | ||
| ROE | 2.22% | ||
| ROCE | 3.79% | ||
| ROIC | 2.87% | ||
| ROICexc | 3.35% | ||
| ROICexgc | 6.25% | ||
| OM | 12.2% | ||
| PM (TTM) | 3.13% | ||
| GM | 36.69% | ||
| FCFM | 16.81% |
ROA(3y)2.85%
ROA(5y)3.88%
ROE(3y)7.11%
ROE(5y)8.94%
ROIC(3y)4.25%
ROIC(5y)4.8%
ROICexc(3y)5.17%
ROICexc(5y)5.99%
ROICexgc(3y)11.12%
ROICexgc(5y)14.53%
ROCE(3y)5.61%
ROCE(5y)6.32%
ROICexcg growth 3Y-30.48%
ROICexcg growth 5Y-25.02%
ROICexc growth 3Y-24.91%
ROICexc growth 5Y-25.54%
OM growth 3Y-15.02%
OM growth 5Y-12%
PM growth 3Y-37.43%
PM growth 5Y-24.59%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 8.43 | ||
| Debt/EBITDA | 7.62 | ||
| Cap/Depr | 35.41% | ||
| Cap/Sales | 2.24% | ||
| Interest Coverage | 1.2 | ||
| Cash Conversion | 102.85% | ||
| Profit Quality | 536.15% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 1.25 |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)32.09%
Cap/Depr(5y)40.5%
Cap/Sales(3y)1.69%
Cap/Sales(5y)1.58%
Profit Quality(3y)150.56%
Profit Quality(5y)128.64%
High Growth Momentum
Growth
EPS 1Y (TTM)-19.25%
EPS 3Y-13.75%
EPS 5Y-0.97%
EPS Q2Q%-18.33%
EPS Next Y-11.36%
EPS Next 2Y2.92%
EPS Next 3Y5.82%
EPS Next 5Y6.27%
Revenue 1Y (TTM)4.67%
Revenue growth 3Y0.21%
Revenue growth 5Y8.38%
Sales Q2Q%-3.68%
Revenue Next Year1.53%
Revenue Next 2Y3.15%
Revenue Next 3Y3.46%
Revenue Next 5Y5.94%
EBIT growth 1Y-16.55%
EBIT growth 3Y-14.84%
EBIT growth 5Y-4.62%
EBIT Next Year5.62%
EBIT Next 3Y7.06%
EBIT Next 5Y5.85%
FCF growth 1Y35%
FCF growth 3Y-12.02%
FCF growth 5Y86.93%
OCF growth 1Y33.56%
OCF growth 3Y-7.95%
OCF growth 5Y29.32%