FRANKLIN RESOURCES INC (BEN) Stock Fundamental Analysis
NYSE:BEN - New York Stock Exchange, Inc. - US3546131018 - Common Stock - Currency: USD
Taking everything into account, BEN scores 4 out of 10 in our fundamental rating. BEN was compared to 230 industry peers in the Capital Markets industry. While BEN seems to be doing ok healthwise, there are quite some concerns on its profitability. BEN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
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.
Each year in the past 5 years BEN had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.12%, BEN is not doing good in the industry: 63.91% of the companies in the same industry are doing better.
BEN's Return On Equity of 2.90% is on the low side compared to the rest of the industry. BEN is outperformed by 67.83% of its industry peers.
BEN has a Return On Invested Capital of 2.98%. This is in the lower half of the industry: BEN underperforms 62.61% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BEN is below the industry average of 7.27%.
| 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
With a Profit Margin value of 4.12%, BEN is not doing good in the industry: 69.57% of the companies in the same industry are doing better.
BEN's Profit Margin has declined in the last couple of years.
BEN's Operating Margin of 12.84% is on the low side compared to the rest of the industry. BEN is outperformed by 68.26% of its industry peers.
BEN's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 37.13%, BEN is doing worse than 66.96% of the companies in the same industry.
| 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
BEN has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, BEN has more shares outstanding
Compared to 1 year ago, BEN has an improved debt to assets ratio.
2.2 Solvency
BEN has an Altman-Z score of 1.30. This is a bad value and indicates that BEN is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.30, BEN is doing good in the industry, outperforming 60.87% of the companies in the same 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.
With a Debt to FCF ratio value of 18.32, BEN perfoms like the industry average, outperforming 47.39% of the companies in the same industry.
BEN has a Debt/Equity ratio of 0.99. This is a neutral value indicating BEN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.99, BEN perfoms like the industry average, outperforming 55.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 18.32 | ||
| Altman-Z | 1.3 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
BEN has a Current 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.
The Current ratio of BEN (1.41) is better than 63.04% 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 fine compared to the rest of the industry. BEN outperforms 63.04% 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.
BEN shows a small growth in Revenue. In the last year, the Revenue has grown by 7.38%.
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.
Based on estimates for the next years, BEN will show a small growth in Revenue. The Revenue will grow by 2.82% on average per year.
EPS Next Y-14.94%
EPS Next 2Y-2.77%
EPS Next 3Y3.77%
EPS Next 5Y1.82%
Revenue Next Year-1.35%
Revenue Next 2Y-0.39%
Revenue Next 3Y1.43%
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.
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. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.60, the valuation of BEN can be described as very reasonable.
73.48% 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 25.91.
BEN is valuated reasonably with a Price/Forward Earnings ratio of 9.52.
BEN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BEN is cheaper than 74.35% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.85. BEN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 9.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BEN is valued cheaper than 85.22% of the companies in the same industry.
63.04% 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 | 17.05 | ||
| EV/EBITDA | 12.29 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.77%
EPS Next 3Y3.77%
5. Dividend
5.1 Amount
BEN has a Yearly Dividend Yield of 5.77%, which is a nice return.
BEN's Dividend Yield is comparable with the industry average which is at 8.11.
BEN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.77% |
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
188.22% of the earnings are spent on dividend by BEN. This is not a sustainable payout ratio.
The dividend of BEN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP188.22%
EPS Next 2Y-2.77%
EPS Next 3Y3.77%
21.61
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners47.32%
Inst Owner Change2.85%
Ins Owners21.44%
Ins Owner Change0.03%
Market Cap11.35B
Analysts49.47
Price Target19.84 (-8.19%)
Short Float %9.7%
Short Ratio5.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.77% |
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)-7.49%
PT rev (3m)-0.79%
EPS NQ rev (1m)-9.46%
EPS NQ rev (3m)-11.12%
EPS NY rev (1m)-2.03%
EPS NY rev (3m)-5.91%
Revenue NQ rev (1m)-1.61%
Revenue NQ rev (3m)-2.69%
Revenue NY rev (1m)-0.73%
Revenue NY rev (3m)-6.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 9.52 | ||
| P/S | 1.31 | ||
| P/FCF | 17.05 | ||
| P/OCF | 12.74 | ||
| P/B | 0.92 | ||
| P/tB | 7.08 | ||
| EV/EBITDA | 12.29 |
EPS(TTM)2.25
EY10.41%
EPS(NY)2.27
Fwd EY10.5%
FCF(TTM)1.27
FCFY5.87%
OCF(TTM)1.7
OCFY7.85%
SpS16.55
BVpS23.5
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 | 1.3 |
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-14.94%
EPS Next 2Y-2.77%
EPS Next 3Y3.77%
EPS Next 5Y1.82%
Revenue 1Y (TTM)7.38%
Revenue growth 3Y0.21%
Revenue growth 5Y8.38%
Sales Q2Q%-3.3%
Revenue Next Year-1.35%
Revenue Next 2Y-0.39%
Revenue Next 3Y1.43%
Revenue Next 5Y2.82%
EBIT growth 1Y-17%
EBIT growth 3Y-14.84%
EBIT growth 5Y-4.62%
EBIT Next Year4.75%
EBIT Next 3Y9.69%
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%