FRANKLIN RESOURCES INC (BEN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BEN - US3546131018 - Common Stock
23.4 USD
+0.26 (+1.12%)
23.4 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to BEN. BEN was compared to 238 industry peers in the Capital Markets industry. Both the profitability and financial health of BEN have multiple concerns. BEN is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
Each year in the past 5 years BEN has been profitable.
Each year in the past 5 years BEN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of BEN (1.46%) is worse than 60.50% of its industry peers.
The Return On Equity of BEN (3.90%) is worse than 65.55% of its industry peers.
BEN's Return On Invested Capital of 2.90% is in line compared to the rest of the industry. BEN outperforms 41.60% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BEN is below the industry average of 6.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.46% | ||
| ROE | 3.9% | ||
| ROIC | 2.9% |
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
With a Profit Margin value of 5.38%, BEN is not doing good in the industry: 67.23% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of BEN has declined.
BEN has a Operating Margin of 12.54%. This is in the lower half of the industry: BEN underperforms 64.29% of its industry peers.
In the last couple of years the Operating Margin of BEN has declined.
The Gross Margin of BEN (36.61%) is worse than 63.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.54% | ||
| PM (TTM) | 5.38% | ||
| GM | 36.61% |
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. Health
2.1 Basic Checks
BEN has less shares outstanding than it did 1 year ago.
The number of shares outstanding for BEN has been increased compared to 5 years ago.
BEN has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.24, we must say that BEN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.24, BEN is in the better half of the industry, outperforming 60.08% of the companies in the same industry.
The Debt to FCF ratio of BEN is 13.49, which is on the high side as it means it would take BEN, 13.49 years of fcf income to pay off all of its debts.
BEN has a Debt to FCF ratio (13.49) 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.
BEN has a Debt to Equity ratio (0.98) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 13.49 | ||
| Altman-Z | 1.24 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
BEN has a Current Ratio of 1.00. This is a bad value and indicates that BEN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.00, BEN is in line with its industry, outperforming 42.86% of the companies in the same industry.
A Quick Ratio of 1.00 indicates that BEN may have some problems paying its short term obligations.
BEN has a Quick ratio (1.00) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
BEN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.50%.
BEN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.11% yearly.
The Revenue has been growing slightly by 3.45% in the past year.
Measured over the past years, BEN shows a quite strong growth in Revenue. The Revenue has been growing by 9.52% on average per year.
EPS 1Y (TTM)-7.5%
EPS 3Y-15.2%
EPS 5Y2.11%
EPS Q2Q%13.56%
Revenue 1Y (TTM)3.45%
Revenue growth 3Y1.96%
Revenue growth 5Y9.52%
Sales Q2Q%5.74%
3.2 Future
Based on estimates for the next years, BEN will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.18% on average per year.
The Revenue is expected to grow by 5.81% on average over the next years.
EPS Next Y16.94%
EPS Next 2Y13.29%
EPS Next 3Y10.62%
EPS Next 5Y9.18%
Revenue Next Year4.35%
Revenue Next 2Y4.77%
Revenue Next 3Y10.53%
Revenue Next 5Y5.81%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 10.54.
69.75% of the companies in the same industry are more expensive than BEN, based on the Price/Earnings ratio.
BEN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.46.
The Price/Forward Earnings ratio is 9.01, which indicates a very decent valuation of BEN.
BEN's Price/Forward Earnings ratio is rather cheap when compared to the industry. BEN is cheaper than 80.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BEN to the average of the S&P500 Index (36.10), we can say BEN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.54 | ||
| Fwd PE | 9.01 |
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 84.45% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BEN is valued a bit cheaper than 66.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.37 | ||
| EV/EBITDA | 12.74 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.62
PEG (5Y)5
EPS Next 2Y13.29%
EPS Next 3Y10.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.68%, BEN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.39, BEN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, BEN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.68% |
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.
The dividend of BEN decreased recently.
Dividend Growth(5Y)4.06%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
144.97% 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.
DP144.97%
EPS Next 2Y13.29%
EPS Next 3Y10.62%
23.4
+0.26 (+1.12%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners47.64%
Inst Owner Change-2.66%
Ins Owners21.76%
Ins Owner Change0.84%
Market Cap12.19B
Revenue(TTM)8.77B
Net Income(TTM)471.60M
Analysts52.63
Price Target25.31 (8.16%)
Short Float %9.07%
Short Ratio5.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.68% |
Yearly Dividend1.31
Dividend Growth(5Y)4.06%
DP144.97%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.65%
Min EPS beat(2)-1.74%
Max EPS beat(2)15.04%
EPS beat(4)2
Avg EPS beat(4)5.59%
Min EPS beat(4)-1.74%
Max EPS beat(4)15.04%
EPS beat(8)4
Avg EPS beat(8)4.04%
EPS beat(12)7
Avg EPS beat(12)6.52%
EPS beat(16)11
Avg EPS beat(16)8.76%
Revenue beat(2)1
Avg Revenue beat(2)1.48%
Min Revenue beat(2)-1.59%
Max Revenue beat(2)4.55%
Revenue beat(4)2
Avg Revenue beat(4)-0.3%
Min Revenue beat(4)-4.17%
Max Revenue beat(4)4.55%
Revenue beat(8)4
Avg Revenue beat(8)-0.42%
Revenue beat(12)8
Avg Revenue beat(12)2.98%
Revenue beat(16)9
Avg Revenue beat(16)2.09%
PT rev (1m)1.07%
PT rev (3m)1.53%
EPS NQ rev (1m)-5.18%
EPS NQ rev (3m)-2.08%
EPS NY rev (1m)0%
EPS NY rev (3m)2.4%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.54 | ||
| Fwd PE | 9.01 | ||
| P/S | 1.39 | ||
| P/FCF | 13.37 | ||
| P/OCF | 11.43 | ||
| P/B | 1.01 | ||
| P/tB | 7.15 | ||
| EV/EBITDA | 12.74 |
EPS(TTM)2.22
EY9.49%
EPS(NY)2.6
Fwd EY11.09%
FCF(TTM)1.75
FCFY7.48%
OCF(TTM)2.05
OCFY8.75%
SpS16.84
BVpS23.18
TBVpS3.27
PEG (NY)0.62
PEG (5Y)5
Graham Number34.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.46% | ||
| ROE | 3.9% | ||
| ROCE | 4.04% | ||
| ROIC | 2.9% | ||
| ROICexc | 3.34% | ||
| ROICexgc | 6.18% | ||
| OM | 12.54% | ||
| PM (TTM) | 5.38% | ||
| GM | 36.61% | ||
| FCFM | 10.39% |
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 | 0.98 | ||
| Debt/FCF | 13.49 | ||
| Debt/EBITDA | 7.25 | ||
| Cap/Depr | 29.05% | ||
| Cap/Sales | 1.76% | ||
| Interest Coverage | 1.28 | ||
| Cash Conversion | 65.34% | ||
| Profit Quality | 193.3% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 1.24 |
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)-7.5%
EPS 3Y-15.2%
EPS 5Y2.11%
EPS Q2Q%13.56%
EPS Next Y16.94%
EPS Next 2Y13.29%
EPS Next 3Y10.62%
EPS Next 5Y9.18%
Revenue 1Y (TTM)3.45%
Revenue growth 3Y1.96%
Revenue growth 5Y9.52%
Sales Q2Q%5.74%
Revenue Next Year4.35%
Revenue Next 2Y4.77%
Revenue Next 3Y10.53%
Revenue Next 5Y5.81%
EBIT growth 1Y-5.02%
EBIT growth 3Y-14.73%
EBIT growth 5Y0.95%
EBIT Next Year31.43%
EBIT Next 3Y15.89%
EBIT Next 5Y7.75%
FCF growth 1Y14.78%
FCF growth 3Y-21.25%
FCF growth 5Y-1.43%
OCF growth 1Y9.76%
OCF growth 3Y-18.32%
OCF growth 5Y-0.32%
FRANKLIN RESOURCES INC / BEN FAQ
What is the ChartMill fundamental rating of FRANKLIN RESOURCES INC (BEN) stock?
ChartMill assigns a fundamental rating of 3 / 10 to BEN.
What is the valuation status of FRANKLIN RESOURCES INC (BEN) stock?
ChartMill assigns a valuation rating of 7 / 10 to FRANKLIN RESOURCES INC (BEN). This can be considered as Undervalued.
How profitable is FRANKLIN RESOURCES INC (BEN) stock?
FRANKLIN RESOURCES INC (BEN) has a profitability rating of 2 / 10.
What is the expected EPS growth for FRANKLIN RESOURCES INC (BEN) stock?
The Earnings per Share (EPS) of FRANKLIN RESOURCES INC (BEN) is expected to grow by 16.94% in the next year.
Is the dividend of FRANKLIN RESOURCES INC sustainable?
The dividend rating of FRANKLIN RESOURCES INC (BEN) is 5 / 10 and the dividend payout ratio is 144.97%.