FRANKLIN RESOURCES INC (BEN) Stock Fundamental Analysis
USA - NYSE:BEN - US3546131018 - Common Stock
23.05 USD
+0.23 (+1.01%)
23.05 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to BEN. BEN was compared to 237 industry peers in the Capital Markets industry. BEN may be in some trouble as it scores bad on both profitability and health. BEN is cheap, but on the other hand it scores bad on growth.
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.
Of the past 5 years BEN 4 years were profitable.
Of the past 5 years BEN 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.83%, BEN is doing worse than 67.51% of the companies in the same industry.
The Return On Equity of BEN (2.22%) is worse than 70.46% of its industry peers.
The Return On Invested Capital of BEN (2.87%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for BEN is below the industry average of 7.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.83% | ||
| ROE | 2.22% | ||
| ROIC | 2.87% |
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 has a worse Profit Margin (3.13%) than 69.20% of its industry peers.
BEN's Profit Margin has declined in the last couple of years.
The Operating Margin of BEN (12.20%) is worse than 66.24% of its industry peers.
BEN's Operating Margin has declined in the last couple of years.
BEN has a Gross Margin of 36.69%. This is in the lower half of the industry: BEN underperforms 64.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.2% | ||
| PM (TTM) | 3.13% | ||
| GM | 36.69% |
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
There is no outstanding debt for BEN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
BEN has an Altman-Z score of 1.26. This is a bad value and indicates that BEN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.26, BEN is in line with its industry, outperforming 59.49% of the companies in the same industry.
The Debt to FCF ratio of BEN is 8.43, which is on the high side as it means it would take BEN, 8.43 years of fcf income to pay off all of its debts.
BEN has a Debt to FCF ratio of 8.43. This is comparable to the rest of the industry: BEN outperforms 59.92% of its industry peers.
BEN has a Debt/Equity ratio of 1.00. This is a neutral value indicating BEN is somewhat dependend on debt financing.
BEN has a Debt to Equity ratio (1.00) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 8.43 | ||
| Altman-Z | 1.26 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.21 indicates that BEN should not have too much problems paying its short term obligations.
With a Current ratio value of 1.21, BEN perfoms like the industry average, outperforming 55.70% of the companies in the same industry.
BEN has a Quick Ratio of 1.21. 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 (1.21) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 |
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.
EPS 1Y (TTM)-7.5%
EPS 3Y-15.2%
EPS 5Y2.11%
EPS Q2Q%13.56%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%36.54%
3.2 Future
The Earnings Per Share is expected to grow by 9.18% on average over the next years. This is quite good.
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 3Y10.74%
EPS Next 5Y9.18%
Revenue Next Year4.35%
Revenue Next 2Y4.77%
Revenue Next 3Y10.53%
Revenue Next 5Y5.81%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.38 indicates a reasonable valuation of BEN.
69.62% of the companies in the same industry are more expensive than BEN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of BEN to the average of the S&P500 Index (26.34), we can say BEN is valued rather cheaply.
The Price/Forward Earnings ratio is 8.88, which indicates a very decent valuation of BEN.
Based on the Price/Forward Earnings ratio, BEN is valued a bit cheaper than the industry average as 78.90% of the companies are valued more expensively.
BEN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.38 | ||
| Fwd PE | 8.88 |
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 83.97% of the companies listed in the same industry.
75.11% 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 | 8.24 | ||
| EV/EBITDA | 12.66 |
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)0.61
PEG (5Y)4.92
EPS Next 2Y13.29%
EPS Next 3Y10.74%
5. Dividend
5.1 Amount
BEN has a Yearly Dividend Yield of 5.55%, which is a nice return.
BEN's Dividend Yield is comparable with the industry average which is at 8.43.
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 | 5.55% |
5.2 History
The dividend of BEN has a limited annual growth rate of 4.79%.
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)4.79%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
BEN pays out 251.00% 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.
DP251%
EPS Next 2Y13.29%
EPS Next 3Y10.74%
23.05
+0.23 (+1.01%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners47.64%
Inst Owner Change-0.07%
Ins Owners21.76%
Ins Owner Change0.79%
Market Cap11.97B
Revenue(TTM)N/A
Net Income(TTM)270.80M
Analysts52.63
Price Target25.41 (10.24%)
Short Float %8%
Short Ratio5.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.55% |
Yearly Dividend1.29
Dividend Growth(5Y)4.79%
DP251%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.68%
Min EPS beat(2)-1.74%
Max EPS beat(2)-1.62%
EPS beat(4)1
Avg EPS beat(4)1.02%
Min EPS beat(4)-3.23%
Max EPS beat(4)10.67%
EPS beat(8)4
Avg EPS beat(8)7.34%
EPS beat(12)7
Avg EPS beat(12)6.47%
EPS beat(16)11
Avg EPS beat(16)10.63%
Revenue beat(2)1
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-1.59%
Max Revenue beat(2)0.01%
Revenue beat(4)2
Avg Revenue beat(4)-1.34%
Min Revenue beat(4)-4.17%
Max Revenue beat(4)0.38%
Revenue beat(8)4
Avg Revenue beat(8)-0.96%
Revenue beat(12)7
Avg Revenue beat(12)2.6%
Revenue beat(16)8
Avg Revenue beat(16)1.79%
PT rev (1m)1.44%
PT rev (3m)2.84%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)3.87%
EPS NY rev (1m)0.79%
EPS NY rev (3m)2.51%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)6.11%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.38 | ||
| Fwd PE | 8.88 | ||
| P/S | 1.39 | ||
| P/FCF | 8.24 | ||
| P/OCF | 7.28 | ||
| P/B | 0.98 | ||
| P/tB | 7.71 | ||
| EV/EBITDA | 12.66 |
EPS(TTM)2.22
EY9.63%
EPS(NY)2.6
Fwd EY11.26%
FCF(TTM)2.8
FCFY12.13%
OCF(TTM)3.17
OCFY13.75%
SpS16.64
BVpS23.51
TBVpS2.99
PEG (NY)0.61
PEG (5Y)4.92
Graham Number34.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.83% | ||
| ROE | 2.22% | ||
| ROCE | 3.79% | ||
| ROIC | 2.87% | ||
| ROICexc | 3.35% | ||
| ROICexgc | 6.25% | ||
| OM | 12.2% | ||
| PM (TTM) | 3.13% | ||
| GM | 36.69% | ||
| FCFM | 16.81% |
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%
ROICexgc growth 3Y-30.48%
ROICexgc 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 | 1 | ||
| Debt/FCF | 8.43 | ||
| Debt/EBITDA | 7.62 | ||
| Cap/Depr | 35.41% | ||
| Cap/Sales | 2.24% | ||
| Interest Coverage | 1.2 | ||
| Cash Conversion | 102.85% | ||
| Profit Quality | 536.15% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 1.26 |
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)-7.5%
EPS 3Y-15.2%
EPS 5Y2.11%
EPS Q2Q%13.56%
EPS Next Y16.94%
EPS Next 2Y13.29%
EPS Next 3Y10.74%
EPS Next 5Y9.18%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%36.54%
Revenue Next Year4.35%
Revenue Next 2Y4.77%
Revenue Next 3Y10.53%
Revenue Next 5Y5.81%
EBIT growth 1Y-16.55%
EBIT growth 3Y-14.84%
EBIT growth 5Y-4.62%
EBIT Next Year5.62%
EBIT Next 3Y7.06%
EBIT Next 5Y5.85%
FCF growth 1Y35%
FCF growth 3Y-12.02%
FCF growth 5Y86.93%
OCF growth 1Y33.56%
OCF growth 3Y-7.95%
OCF growth 5Y29.32%
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 251%.