FRANKLIN RESOURCES INC (BEN)
US3546131018 - Common Stock
BEN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 220 industry peers in the Capital Markets industry. BEN may be in some trouble as it scores bad on both profitability and health. A decent growth rate in combination with a cheap valuation! Better keep an eye on BEN.
1. Profitability
1.1 Basic Checks
BEN had positive earnings in the past year.
BEN had a positive operating cash flow in the past year.
BEN had positive earnings in each of the past 5 years.
Each year in the past 5 years BEN had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 2.44%, BEN perfoms like the industry average, outperforming 45.37% of the companies in the same industry.
BEN's Return On Equity of 6.30% is on the low side compared to the rest of the industry. BEN is outperformed by 61.57% of its industry peers.
BEN has a Return On Invested Capital of 3.39%. This is in the lower half of the industry: BEN underperforms 60.65% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BEN is significantly below the industry average of 17.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.44% | ||
| ROE | 6.3% | ||
| ROIC | 3.39% |
ROA(3y)4.82%
ROA(5y)5.25%
ROE(3y)11.17%
ROE(5y)10.64%
ROIC(3y)5.61%
ROIC(5y)6.04%
1.3 Margins
Looking at the Profit Margin, with a value of 9.82%, BEN is doing worse than 63.43% of the companies in the same industry.
In the last couple of years the Profit Margin of BEN has declined.
Looking at the Operating Margin, with a value of 15.31%, BEN is doing worse than 64.81% of the companies in the same industry.
BEN's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.31% | ||
| PM (TTM) | 9.82% | ||
| GM | N/A |
OM growth 3Y-0.96%
OM growth 5Y-10.95%
PM growth 3Y-8.55%
PM growth 5Y-2.21%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The number of shares outstanding for BEN has been reduced compared to 1 year ago.
Compared to 5 years ago, BEN has less shares outstanding
The debt/assets ratio for BEN is higher compared to a year ago.
2.2 Solvency
BEN has an Altman-Z score of 1.25. This is a bad value and indicates that BEN is not financially healthy and even has some risk of bankruptcy.
BEN's Altman-Z score of 1.25 is in line compared to the rest of the industry. BEN outperforms 57.87% of its industry peers.
BEN has a debt to FCF ratio of 12.05. This is a negative value and a sign of low solvency as BEN would need 12.05 years to pay back of all of its debts.
BEN has a Debt to FCF ratio (12.05) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.98 indicates that BEN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.98, BEN perfoms like the industry average, outperforming 50.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 12.05 | ||
| Altman-Z | 1.25 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.30 indicates that BEN should not have too much problems paying its short term obligations.
BEN has a Current ratio (1.30) which is comparable to the rest of the industry.
BEN has a Quick Ratio of 1.30. 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 Quick ratio (1.30) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.74% over the past year.
BEN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.06% yearly.
BEN shows a small growth in Revenue. In the last year, the Revenue has grown by 5.78%.
BEN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.82% yearly.
EPS 1Y (TTM)4.74%
EPS 3Y9%
EPS 5Y-6.06%
EPS Q2Q%-4.76%
Revenue 1Y (TTM)5.78%
Revenue growth 3Y12.14%
Revenue growth 5Y4.82%
Sales Q2Q%5.85%
3.2 Future
The Earnings Per Share is expected to grow by 1.90% on average over the next years.
The Revenue is expected to grow by 5.84% on average over the next years.
EPS Next Y-6.31%
EPS Next 2Y1.96%
EPS Next 3Y4.24%
EPS Next 5Y1.9%
Revenue Next Year8.5%
Revenue Next 2Y7.23%
Revenue Next 3Y6.56%
Revenue Next 5Y5.84%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.49, the valuation of BEN can be described as very cheap.
81.02% of the companies in the same industry are more expensive than BEN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 31.52. BEN is valued rather cheaply when compared to this.
BEN is valuated cheaply with a Price/Forward Earnings ratio of 7.37.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BEN indicates a rather cheap valuation: BEN is cheaper than 87.04% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.55, BEN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.49 | ||
| Fwd PE | 7.37 |
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 84.26% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BEN is valued a bit cheaper than 70.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.87 | ||
| EV/EBITDA | 11.11 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.96%
EPS Next 3Y4.24%
5. Dividend
5.1 Amount
BEN has a Yearly Dividend Yield of 6.14%, which is a nice return.
Compared to an average industry Dividend Yield of 9.19, BEN has a dividend in line with its industry peers.
BEN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.14% |
5.2 History
The dividend of BEN decreases each year by -20.92%.
BEN has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of BEN decreased recently.
Dividend Growth(5Y)-20.92%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
79.22% of the earnings are spent on dividend by BEN. This is not a sustainable payout ratio.
DP79.22%
EPS Next 2Y1.96%
EPS Next 3Y4.24%
FRANKLIN RESOURCES INC
NYSE:BEN (10/14/2024, 9:38:06 AM)
19.85
-0.26 (-1.29%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.38B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.14% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.49 | ||
| Fwd PE | 7.37 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.44% | ||
| ROE | 6.3% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.31% | ||
| PM (TTM) | 9.82% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)4.74%
EPS 3Y9%
EPS 5Y
EPS Q2Q%
EPS Next Y-6.31%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.78%
Revenue growth 3Y12.14%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y