FRANKLIN RESOURCES INC (BEN) Stock Fundamental Analysis
USA - NYSE:BEN - US3546131018 - Common Stock
21.56 USD
-0.61 (-2.75%)
21.56 USD
0 (0%)
Taking everything into account, BEN scores 4 out of 10 in our fundamental rating. BEN was compared to 237 industry peers in the Capital Markets industry. The financial health of BEN is average, but there are quite some concerns on its profitability. BEN is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BEN was profitable.
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
BEN has a Return On Assets of 0.83%. This is in the lower half of the industry: BEN underperforms 68.78% of its industry peers.
BEN's Return On Equity of 2.22% is on the low side compared to the rest of the industry. BEN is outperformed by 70.89% of its industry peers.
With a Return On Invested Capital value of 2.87%, BEN perfoms like the industry average, outperforming 41.35% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BEN is below the industry average of 7.11%.
| 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
With a Profit Margin value of 3.13%, BEN is not doing good in the industry: 69.20% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of BEN has declined.
BEN's Operating Margin of 12.20% is on the low side compared to the rest of the industry. BEN is outperformed by 65.40% of its industry peers.
In the last couple of years the Operating Margin of BEN has declined.
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
Based on the Altman-Z score of 1.25, we must say that BEN is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.25, BEN is doing good in the industry, outperforming 60.34% of the companies in the same industry.
BEN has a debt to FCF ratio of 8.43. This is a slightly negative value and a sign of low solvency as BEN would need 8.43 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.43, BEN is in the better half of the industry, outperforming 60.34% of the companies in the same industry.
BEN has a Debt/Equity ratio of 1.00. This is a neutral value indicating BEN is somewhat dependend on debt financing.
The Debt to Equity ratio of BEN (1.00) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 8.43 | ||
| Altman-Z | 1.25 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
BEN has a Current 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.
The Current ratio of BEN (1.21) is comparable to the rest of the industry.
A Quick Ratio of 1.21 indicates that BEN should not have too much problems paying its short term obligations.
BEN has a Quick ratio of 1.21. This is comparable to the rest of the industry: BEN outperforms 56.96% of its industry peers.
| 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%.
Measured over the past 5 years, BEN shows a small growth in Earnings Per Share. The EPS has been growing by 2.11% on average per year.
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
BEN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.18% yearly.
BEN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.81% yearly.
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
The EPS 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
The Price/Earnings ratio is 9.71, which indicates a very decent valuation of BEN.
BEN's Price/Earnings ratio is a bit cheaper when compared to the industry. BEN is cheaper than 70.04% of the companies in the same industry.
BEN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.56.
With a Price/Forward Earnings ratio of 8.30, the valuation of BEN can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BEN indicates a rather cheap valuation: BEN is cheaper than 81.01% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of BEN to the average of the S&P500 Index (34.62), we can say BEN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.71 | ||
| Fwd PE | 8.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BEN is valued cheaply inside the industry as 84.81% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, BEN is valued a bit cheaper than the industry average as 75.53% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.71 | ||
| EV/EBITDA | 12.38 |
4.3 Compensation for Growth
BEN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.57
PEG (5Y)4.6
EPS Next 2Y13.29%
EPS Next 3Y10.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.74%, BEN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.48, BEN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, BEN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.74% |
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
251.00% of the earnings are spent on dividend by BEN. 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%
21.56
-0.61 (-2.75%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners47.64%
Inst Owner Change-2.22%
Ins Owners21.76%
Ins Owner Change1.62%
Market Cap11.19B
Revenue(TTM)N/A
Net Income(TTM)270.80M
Analysts52.63
Price Target25.41 (17.86%)
Short Float %8%
Short Ratio5.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.74% |
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)0.11%
EPS NQ rev (3m)4.7%
EPS NY rev (1m)0.79%
EPS NY rev (3m)2.51%
Revenue NQ rev (1m)0.35%
Revenue NQ rev (3m)1.82%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.71 | ||
| Fwd PE | 8.3 | ||
| P/S | 1.3 | ||
| P/FCF | 7.71 | ||
| P/OCF | 6.8 | ||
| P/B | 0.92 | ||
| P/tB | 7.21 | ||
| EV/EBITDA | 12.38 |
EPS(TTM)2.22
EY10.3%
EPS(NY)2.6
Fwd EY12.04%
FCF(TTM)2.8
FCFY12.97%
OCF(TTM)3.17
OCFY14.7%
SpS16.64
BVpS23.51
TBVpS2.99
PEG (NY)0.57
PEG (5Y)4.6
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 | 1.25 |
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 4 / 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%.