FRANKLIN RESOURCES INC (BEN) Stock Fundamental Analysis
NYSE:BEN - New York Stock Exchange, Inc. - US3546131018 - Common Stock - Currency: USD
BEN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 232 industry peers in the Capital Markets industry. Both the profitability and financial health of BEN have multiple concerns. BEN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year BEN was profitable.
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 1.12%, BEN is not doing good in the industry: 64.66% of the companies in the same industry are doing better.
With a Return On Equity value of 2.90%, BEN is not doing good in the industry: 68.53% of the companies in the same industry are doing better.
BEN has a worse Return On Invested Capital (2.98%) than 63.36% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BEN is below the industry average of 7.88%.
| 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
BEN's Profit Margin of 4.12% is on the low side compared to the rest of the industry. BEN is outperformed by 67.67% of its industry peers.
In the last couple of years the Profit Margin of BEN has declined.
With a Operating Margin value of 12.84%, BEN is not doing good in the industry: 67.67% of the companies in the same industry are doing better.
BEN's Operating Margin has declined in the last couple of years.
BEN has a worse Gross Margin (37.13%) than 68.10% of its industry peers.
| 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
The number of shares outstanding for BEN has been increased compared to 1 year ago.
BEN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for BEN has been reduced compared to a year ago.
2.2 Solvency
BEN has an Altman-Z score of 1.31. This is a bad value and indicates that BEN is not financially healthy and even has some risk of bankruptcy.
BEN has a Altman-Z score of 1.31. This is comparable to the rest of the industry: BEN outperforms 59.91% of its industry peers.
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.
BEN has a Debt to FCF ratio (18.32) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.99 indicates that BEN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.99, BEN perfoms like the industry average, outperforming 49.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 18.32 | ||
| Altman-Z | 1.31 |
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 comparable to the rest of the industry.
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 has a Quick ratio of 1.41. This is comparable to the rest of the industry: BEN outperforms 58.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
The earnings per share for BEN have decreased strongly by -16.04% in the last year.
BEN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.97% yearly.
Looking at the last year, BEN shows a small growth in Revenue. The Revenue has grown by 7.38% in the last year.
Measured over the past years, BEN shows a quite strong growth in Revenue. The Revenue has been growing by 8.38% on average per year.
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
Based on estimates for the next years, BEN will show a small growth in Earnings Per Share. The EPS will grow by 1.82% on average per year.
BEN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.82% yearly.
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.
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
With a Price/Earnings ratio of 10.02, the valuation of BEN can be described as very reasonable.
BEN's Price/Earnings ratio is a bit cheaper when compared to the industry. BEN is cheaper than 74.57% 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 26.55.
BEN is valuated reasonably with a Price/Forward Earnings ratio of 9.93.
74.14% of the companies in the same industry are more expensive than BEN, based on the Price/Forward Earnings ratio.
BEN is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.02 | ||
| Fwd PE | 9.93 |
4.2 Price Multiples
BEN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BEN is cheaper than 84.05% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BEN indicates a somewhat cheap valuation: BEN is cheaper than 60.34% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.78 | ||
| EV/EBITDA | 12.37 |
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
With a Yearly Dividend Yield of 5.89%, BEN is a good candidate for dividend investing.
BEN's Dividend Yield is comparable with the industry average which is at 8.22.
Compared to an average S&P500 Dividend Yield of 2.39, BEN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.89% |
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.
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.
BEN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP188.22%
EPS Next 2Y-2.77%
EPS Next 3Y3.77%
22.54
+0.68 (+3.11%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners47.32%
Inst Owner Change2.93%
Ins Owners21.44%
Ins Owner Change0.04%
Market Cap11.85B
Analysts50.53
Price Target20.81 (-7.68%)
Short Float %8.74%
Short Ratio4.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.89% |
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)4.88%
PT rev (3m)-5.02%
EPS NQ rev (1m)4.81%
EPS NQ rev (3m)-7.85%
EPS NY rev (1m)-2.03%
EPS NY rev (3m)-5.91%
Revenue NQ rev (1m)-0.5%
Revenue NQ rev (3m)-2.69%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-4.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.02 | ||
| Fwd PE | 9.93 | ||
| P/S | 1.36 | ||
| P/FCF | 17.78 | ||
| P/OCF | 13.29 | ||
| P/B | 0.96 | ||
| P/tB | 7.38 | ||
| EV/EBITDA | 12.37 |
EPS(TTM)2.25
EY9.98%
EPS(NY)2.27
Fwd EY10.07%
FCF(TTM)1.27
FCFY5.62%
OCF(TTM)1.7
OCFY7.52%
SpS16.55
BVpS23.49
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 | 1.31 |
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 Year-2.2%
EBIT Next 3Y7.46%
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%