FRANKLIN RESOURCES INC (BEN) Stock Fundamental Analysis
NYSE:BEN - New York Stock Exchange, Inc. - US3546131018 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to BEN. BEN was compared to 233 industry peers in the Capital Markets industry. BEN may be in some trouble as it scores bad on both profitability and health. BEN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year BEN was profitable.
BEN had a positive operating cash flow in the past year.
BEN had positive earnings in each of the past 5 years.
In the past 5 years BEN always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 1.12%, BEN is not doing good in the industry: 64.38% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 2.90%, BEN is doing worse than 68.67% of the companies in the same industry.
The Return On Invested Capital of BEN (2.98%) is worse than 63.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BEN is below the industry average of 7.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.12% | ||
| ROE | 2.9% | ||
| ROIC | 2.98% |
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's Profit Margin of 4.12% is on the low side compared to the rest of the industry. BEN is outperformed by 67.81% of its industry peers.
In the last couple of years the Profit Margin of BEN has declined.
BEN has a Operating Margin of 12.84%. This is in the lower half of the industry: BEN underperforms 67.81% of its industry peers.
BEN's Operating Margin has declined in the last couple of years.
The Gross Margin of BEN (37.13%) is worse than 68.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.84% | ||
| PM (TTM) | 4.12% | ||
| GM | 37.13% |
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.
Compared to 5 years ago, BEN has more shares outstanding
The debt/assets ratio for BEN has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.35, we must say that BEN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of BEN (1.35) is comparable to the rest of the industry.
BEN has a debt to FCF ratio of 18.32. This is a negative value and a sign of low solvency as BEN would need 18.32 years to pay back of all of its debts.
BEN has a Debt to FCF ratio of 18.32. This is comparable to the rest of the industry: BEN outperforms 50.21% of its industry peers.
A Debt/Equity ratio of 0.99 indicates that BEN is somewhat dependend on debt financing.
The Debt to Equity ratio of BEN (0.99) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 18.32 | ||
| Altman-Z | 1.35 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.41 indicates that BEN should not have too much problems paying its short term obligations.
BEN's Current ratio of 1.41 is in line compared to the rest of the industry. BEN outperforms 58.37% of its industry peers.
BEN has a Quick Ratio of 1.41. This is a normal value and indicates that BEN is financially healthy and should not expect problems in meeting its short term obligations.
BEN's Quick ratio of 1.41 is in line compared to the rest of the industry. BEN outperforms 58.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
BEN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.04%.
The Earnings Per Share has been decreasing by -0.97% on average over the past years.
Looking at the last year, BEN shows a small growth in Revenue. The Revenue has grown by 7.38% in the last year.
The Revenue has been growing by 8.38% on average over the past years. This is quite good.
EPS 1Y (TTM)-16.04%
EPS 3Y-13.75%
EPS 5Y-0.97%
EPS Q2Q%-16.07%
Revenue 1Y (TTM)7.38%
Revenue growth 3Y0.21%
Revenue growth 5Y8.38%
Sales Q2Q%-3.3%
3.2 Future
The Earnings Per Share is expected to grow by 1.82% on average over the next years.
The Revenue is expected to grow by 2.82% on average over the next years.
EPS Next Y-12.85%
EPS Next 2Y0.33%
EPS Next 3Y4.97%
EPS Next 5Y1.82%
Revenue Next Year-0.85%
Revenue Next 2Y0.59%
Revenue Next 3Y1.84%
Revenue Next 5Y2.82%
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
BEN is valuated reasonably with a Price/Earnings ratio of 11.04.
67.81% of the companies in the same industry are more expensive than BEN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.51, BEN is valued rather cheaply.
BEN is valuated reasonably with a Price/Forward Earnings ratio of 10.29.
BEN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BEN is cheaper than 71.24% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BEN to the average of the S&P500 Index (35.58), we can say BEN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.04 | ||
| Fwd PE | 10.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BEN is valued cheaper than 82.40% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BEN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.61 | ||
| EV/EBITDA | 13.34 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.33%
EPS Next 3Y4.97%
5. Dividend
5.1 Amount
BEN has a Yearly Dividend Yield of 5.09%, which is a nice return.
BEN's Dividend Yield is comparable with the industry average which is at 7.77.
Compared to an average S&P500 Dividend Yield of 2.35, BEN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.09% |
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.
The dividend of BEN decreased recently.
Dividend Growth(5Y)4.79%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
BEN pays out 188.22% of its income as dividend. This is not a sustainable payout ratio.
BEN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP188.22%
EPS Next 2Y0.33%
EPS Next 3Y4.97%
24.85
-0.02 (-0.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners48.72%
Inst Owner Change0%
Ins Owners21.44%
Ins Owner Change0.38%
Market Cap13.06B
Analysts51.58
Price Target21.11 (-15.05%)
Short Float %7.55%
Short Ratio4.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.09% |
Yearly Dividend1.29
Dividend Growth(5Y)4.79%
DP188.22%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.53%
Min EPS beat(2)-1.62%
Max EPS beat(2)10.67%
EPS beat(4)2
Avg EPS beat(4)2.52%
Min EPS beat(4)-3.23%
Max EPS beat(4)10.67%
EPS beat(8)5
Avg EPS beat(8)7.98%
EPS beat(12)8
Avg EPS beat(12)7.51%
EPS beat(16)12
Avg EPS beat(16)12.24%
Revenue beat(2)1
Avg Revenue beat(2)-2.08%
Min Revenue beat(2)-4.17%
Max Revenue beat(2)0.01%
Revenue beat(4)2
Avg Revenue beat(4)-1.33%
Min Revenue beat(4)-4.17%
Max Revenue beat(4)0.38%
Revenue beat(8)5
Avg Revenue beat(8)-0.38%
Revenue beat(12)7
Avg Revenue beat(12)2.52%
Revenue beat(16)9
Avg Revenue beat(16)1.99%
PT rev (1m)1.47%
PT rev (3m)-1.55%
EPS NQ rev (1m)1.97%
EPS NQ rev (3m)-2.76%
EPS NY rev (1m)2.46%
EPS NY rev (3m)-2.9%
Revenue NQ rev (1m)0.57%
Revenue NQ rev (3m)-1.05%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.04 | ||
| Fwd PE | 10.29 | ||
| P/S | 1.5 | ||
| P/FCF | 19.61 | ||
| P/OCF | 14.65 | ||
| P/B | 1.06 | ||
| P/tB | 8.14 | ||
| EV/EBITDA | 13.34 |
EPS(TTM)2.25
EY9.05%
EPS(NY)2.42
Fwd EY9.72%
FCF(TTM)1.27
FCFY5.1%
OCF(TTM)1.7
OCFY6.83%
SpS16.55
BVpS23.49
TBVpS3.05
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.12% | ||
| ROE | 2.9% | ||
| ROCE | 3.93% | ||
| ROIC | 2.98% | ||
| ROICexc | 3.4% | ||
| ROICexgc | 6.16% | ||
| OM | 12.84% | ||
| PM (TTM) | 4.12% | ||
| GM | 37.13% | ||
| FCFM | 7.66% |
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 | 0.99 | ||
| Debt/FCF | 18.32 | ||
| Debt/EBITDA | 7.49 | ||
| Cap/Depr | 43.93% | ||
| Cap/Sales | 2.59% | ||
| Interest Coverage | 1.29 | ||
| Cash Conversion | 54.72% | ||
| Profit Quality | 185.91% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 1.35 |
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)-16.04%
EPS 3Y-13.75%
EPS 5Y-0.97%
EPS Q2Q%-16.07%
EPS Next Y-12.85%
EPS Next 2Y0.33%
EPS Next 3Y4.97%
EPS Next 5Y1.82%
Revenue 1Y (TTM)7.38%
Revenue growth 3Y0.21%
Revenue growth 5Y8.38%
Sales Q2Q%-3.3%
Revenue Next Year-0.85%
Revenue Next 2Y0.59%
Revenue Next 3Y1.84%
Revenue Next 5Y2.82%
EBIT growth 1Y-17%
EBIT growth 3Y-14.84%
EBIT growth 5Y-4.62%
EBIT Next Year-2.2%
EBIT Next 3Y7.46%
EBIT Next 5Y2.89%
FCF growth 1Y-48.99%
FCF growth 3Y-12.02%
FCF growth 5Y86.93%
OCF growth 1Y-36.18%
OCF growth 3Y-7.95%
OCF growth 5Y29.32%