FRANKLIN RESOURCES INC (BEN) Fundamental Analysis & Valuation
NYSE:BEN • US3546131018
Current stock price
27.12 USD
+0.3 (+1.12%)
At close:
27.12 USD
0 (0%)
After Hours:
This BEN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. BEN Profitability Analysis
1.1 Basic Checks
- BEN had positive earnings in the past year.
- In the past year BEN had a positive cash flow from operations.
- Each year in the past 5 years BEN has been profitable.
- BEN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- BEN has a Return On Assets (1.73%) which is in line with its industry peers.
- BEN's Return On Equity of 4.64% is on the low side compared to the rest of the industry. BEN is outperformed by 62.08% of its industry peers.
- BEN has a Return On Invested Capital of 2.82%. This is comparable to the rest of the industry: BEN outperforms 41.25% of its industry peers.
- BEN had an Average Return On Invested Capital over the past 3 years of 3.25%. This is below the industry average of 7.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.73% | ||
| ROE | 4.64% | ||
| ROIC | 2.82% |
ROA(3y)1.86%
ROA(5y)3.45%
ROE(3y)4.82%
ROE(5y)8.17%
ROIC(3y)3.25%
ROIC(5y)4.29%
1.3 Margins
- The Profit Margin of BEN (6.36%) is worse than 62.92% of its industry peers.
- In the last couple of years the Profit Margin of BEN has declined.
- BEN has a Operating Margin of 12.82%. This is in the lower half of the industry: BEN underperforms 64.58% of its industry peers.
- BEN's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 36.07%, BEN is not doing good in the industry: 64.17% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.82% | ||
| PM (TTM) | 6.36% | ||
| GM | 36.07% |
OM growth 3Y-16.37%
OM growth 5Y-7.82%
PM growth 3Y-28.89%
PM growth 5Y-17.51%
GM growth 3YN/A
GM growth 5YN/A
2. BEN Health Analysis
2.1 Basic Checks
- BEN has less shares outstanding than it did 1 year ago.
- BEN has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for BEN is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.34, we must say that BEN is in the distress zone and has some risk of bankruptcy.
- BEN has a Altman-Z score of 1.34. This is in the better half of the industry: BEN outperforms 63.75% of its industry peers.
- The Debt to FCF ratio of BEN is 15.13, which is on the high side as it means it would take BEN, 15.13 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of BEN (15.13) is comparable to the rest of the industry.
- A Debt/Equity ratio of 1.09 is on the high side and indicates that BEN has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.09, BEN is in line with its industry, outperforming 46.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 15.13 | ||
| Altman-Z | 1.34 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- A Current Ratio of 1.35 indicates that BEN should not have too much problems paying its short term obligations.
- BEN's Current ratio of 1.35 is fine compared to the rest of the industry. BEN outperforms 62.50% of its industry peers.
- BEN has a Quick Ratio of 1.35. This is a normal value and indicates that BEN is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Quick ratio value of 1.35, BEN is doing good in the industry, outperforming 62.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 |
3. BEN Growth Analysis
3.1 Past
- BEN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.43%.
- The Earnings Per Share has been growing slightly by 2.11% on average over the past years.
- Looking at the last year, BEN shows a small growth in Revenue. The Revenue has grown by 1.23% in the last year.
- BEN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.52% yearly.
EPS 1Y (TTM)-0.43%
EPS 3Y-15.2%
EPS 5Y2.11%
EPS Q2Q%18.64%
Revenue 1Y (TTM)1.23%
Revenue growth 3Y1.96%
Revenue growth 5Y9.52%
Sales Q2Q%3.83%
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 7.53% on average per year.
- BEN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.62% yearly.
EPS Next Y18.86%
EPS Next 2Y14.46%
EPS Next 3Y12.46%
EPS Next 5Y7.53%
Revenue Next Year5.62%
Revenue Next 2Y5.84%
Revenue Next 3Y5.81%
Revenue Next 5Y5.62%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. BEN Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 11.64 indicates a reasonable valuation of BEN.
- The rest of the industry has a similar Price/Earnings ratio as BEN.
- BEN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.42.
- BEN is valuated reasonably with a Price/Forward Earnings ratio of 9.32.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of BEN indicates a somewhat cheap valuation: BEN is cheaper than 74.17% of the companies listed in the same industry.
- BEN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.64 | ||
| Fwd PE | 9.32 |
4.2 Price Multiples
- BEN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BEN is cheaper than 78.33% of the companies in the same industry.
- 66.25% 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 | 16.17 | ||
| EV/EBITDA | 14.75 |
4.3 Compensation for Growth
- BEN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as BEN's earnings are expected to grow with 12.46% in the coming years.
PEG (NY)0.62
PEG (5Y)5.52
EPS Next 2Y14.46%
EPS Next 3Y12.46%
5. BEN Dividend Analysis
5.1 Amount
- BEN has a Yearly Dividend Yield of 4.97%, which is a nice return.
- BEN's Dividend Yield is comparable with the industry average which is at 6.46.
- Compared to an average S&P500 Dividend Yield of 1.81, BEN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.97% |
5.2 History
- The dividend of BEN has a limited annual growth rate of 4.06%.
- BEN has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)4.06%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- BEN pays out 122.21% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of BEN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP122.21%
EPS Next 2Y14.46%
EPS Next 3Y12.46%
BEN Fundamentals: All Metrics, Ratios and Statistics
27.12
+0.3 (+1.12%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)01-30 2026-01-30/bmo
Earnings (Next)04-28 2026-04-28/bmo
Inst Owners48.26%
Inst Owner Change1.75%
Ins Owners21.82%
Ins Owner Change0.36%
Market Cap14.12B
Revenue(TTM)8.85B
Net Income(TTM)562.70M
Analysts52.63
Price Target27.31 (0.7%)
Short Float %9.92%
Short Ratio4.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.97% |
Yearly Dividend1.31
Dividend Growth(5Y)4.06%
DP122.21%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-31 2026-03-31 (0.33)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.14%
Min EPS beat(2)15.04%
Max EPS beat(2)25.24%
EPS beat(4)2
Avg EPS beat(4)9.23%
Min EPS beat(4)-1.74%
Max EPS beat(4)25.24%
EPS beat(8)4
Avg EPS beat(8)5.69%
EPS beat(12)8
Avg EPS beat(12)9.12%
EPS beat(16)11
Avg EPS beat(16)9.06%
Revenue beat(2)2
Avg Revenue beat(2)2.77%
Min Revenue beat(2)0.99%
Max Revenue beat(2)4.55%
Revenue beat(4)3
Avg Revenue beat(4)0.99%
Min Revenue beat(4)-1.59%
Max Revenue beat(4)4.55%
Revenue beat(8)4
Avg Revenue beat(8)-0.3%
Revenue beat(12)8
Avg Revenue beat(12)0.35%
Revenue beat(16)9
Avg Revenue beat(16)2.08%
PT rev (1m)-2.43%
PT rev (3m)7.9%
EPS NQ rev (1m)-1.35%
EPS NQ rev (3m)-10.86%
EPS NY rev (1m)-0.96%
EPS NY rev (3m)4.31%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.64 | ||
| Fwd PE | 9.32 | ||
| P/S | 1.6 | ||
| P/FCF | 16.17 | ||
| P/OCF | 14.77 | ||
| P/B | 1.16 | ||
| P/tB | 8.36 | ||
| EV/EBITDA | 14.75 |
EPS(TTM)2.33
EY8.59%
EPS(NY)2.91
Fwd EY10.72%
FCF(TTM)1.68
FCFY6.18%
OCF(TTM)1.84
OCFY6.77%
SpS16.99
BVpS23.3
TBVpS3.24
PEG (NY)0.62
PEG (5Y)5.52
Graham Number34.9517 (28.88%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.73% | ||
| ROE | 4.64% | ||
| ROCE | 3.93% | ||
| ROIC | 2.82% | ||
| ROICexc | 3.21% | ||
| ROICexgc | 5.67% | ||
| OM | 12.82% | ||
| PM (TTM) | 6.36% | ||
| GM | 36.07% | ||
| FCFM | 9.87% |
ROA(3y)1.86%
ROA(5y)3.45%
ROE(3y)4.82%
ROE(5y)8.17%
ROIC(3y)3.25%
ROIC(5y)4.29%
ROICexc(3y)3.84%
ROICexc(5y)5.28%
ROICexgc(3y)7.52%
ROICexgc(5y)11.66%
ROCE(3y)4.53%
ROCE(5y)5.98%
ROICexgc growth 3Y-25.89%
ROICexgc growth 5Y-17.95%
ROICexc growth 3Y-19.86%
ROICexc growth 5Y-8.77%
OM growth 3Y-16.37%
OM growth 5Y-7.82%
PM growth 3Y-28.89%
PM growth 5Y-17.51%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 15.13 | ||
| Debt/EBITDA | 8.21 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.36 | ||
| Cash Conversion | 59.49% | ||
| Profit Quality | 155.23% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 1.34 |
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)33.8%
Cap/Depr(5y)30.17%
Cap/Sales(3y)1.92%
Cap/Sales(5y)1.56%
Profit Quality(3y)164.72%
Profit Quality(5y)142.29%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.43%
EPS 3Y-15.2%
EPS 5Y2.11%
EPS Q2Q%18.64%
EPS Next Y18.86%
EPS Next 2Y14.46%
EPS Next 3Y12.46%
EPS Next 5Y7.53%
Revenue 1Y (TTM)1.23%
Revenue growth 3Y1.96%
Revenue growth 5Y9.52%
Sales Q2Q%3.83%
Revenue Next Year5.62%
Revenue Next 2Y5.84%
Revenue Next 3Y5.81%
Revenue Next 5Y5.62%
EBIT growth 1Y-0.8%
EBIT growth 3Y-14.73%
EBIT growth 5Y0.95%
EBIT Next Year55.33%
EBIT Next 3Y20.46%
EBIT Next 5Y8.26%
FCF growth 1Y-12.84%
FCF growth 3Y-21.25%
FCF growth 5Y-1.43%
OCF growth 1Y-16.35%
OCF growth 3Y-18.32%
OCF growth 5Y-0.32%
FRANKLIN RESOURCES INC / BEN Fundamental Analysis FAQ
What is the ChartMill fundamental rating of FRANKLIN RESOURCES INC (BEN) stock?
ChartMill assigns a fundamental rating of 4 / 10 to BEN.
Can you provide the valuation status for FRANKLIN RESOURCES INC?
ChartMill assigns a valuation rating of 6 / 10 to FRANKLIN RESOURCES INC (BEN). This can be considered as Fairly Valued.
Can you provide the profitability details for FRANKLIN RESOURCES INC?
FRANKLIN RESOURCES INC (BEN) has a profitability rating of 3 / 10.
What is the earnings growth outlook for FRANKLIN RESOURCES INC?
The Earnings per Share (EPS) of FRANKLIN RESOURCES INC (BEN) is expected to grow by 18.86% in the next year.
Can you provide the dividend sustainability for BEN stock?
The dividend rating of FRANKLIN RESOURCES INC (BEN) is 5 / 10 and the dividend payout ratio is 122.21%.