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FRANKLIN RESOURCES INC (BEN)

US3546131018 - Common Stock

25.57  -0.11 (-0.43%)

After market: 25.57 0 (0%)

Fundamental Rating

4

BEN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 208 industry peers in the Capital Markets industry. While BEN seems to be doing ok healthwise, there are quite some concerns on its profitability. BEN has a valuation in line with the averages, but on the other hand it scores bad on growth.



3

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.
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

The Return On Assets of BEN (2.81%) is comparable to the rest of the industry.
BEN has a Return On Equity (7.09%) which is in line with its industry peers.
BEN has a Return On Invested Capital (4.19%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for BEN is below the industry average of 9.53%.
Industry RankSector Rank
ROA 2.81%
ROE 7.09%
ROIC 4.19%
ROA(3y)4.82%
ROA(5y)5.25%
ROE(3y)11.17%
ROE(5y)10.64%
ROIC(3y)5.61%
ROIC(5y)6.04%

1.3 Margins

BEN has a Profit Margin (10.76%) which is comparable to the rest of the industry.
BEN's Profit Margin has declined in the last couple of years.
BEN has a worse Operating Margin (18.31%) than 64.39% of its industry peers.
In the last couple of years the Operating Margin of BEN has declined.
Industry RankSector Rank
OM 18.31%
PM (TTM) 10.76%
GM N/A
OM growth 3Y-0.96%
OM growth 5Y-10.95%
PM growth 3Y-8.55%
PM growth 5Y-2.21%
GM growth 3YN/A
GM growth 5YN/A

4

2. Health

2.1 Basic Checks

The number of shares outstanding for BEN has been reduced compared to 1 year ago.
The number of shares outstanding for BEN has been reduced 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 1.50, 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 1.50, BEN is in the better half of the industry, outperforming 61.46% of the companies in the same industry.
The Debt to FCF ratio of BEN is 11.40, which is on the high side as it means it would take BEN, 11.40 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.40, BEN is in line with its industry, outperforming 51.22% of the companies in the same industry.
BEN has a Debt/Equity ratio of 0.95. This is a neutral value indicating BEN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.95, BEN is in line with its industry, outperforming 48.78% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.95
Debt/FCF 11.4
Altman-Z 1.5
ROIC/WACCN/A
WACCN/A

2.3 Liquidity

BEN has a Current Ratio of 1.63. This is a normal value and indicates that BEN is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.63, BEN is doing good in the industry, outperforming 61.95% of the companies in the same industry.
BEN has a Quick Ratio of 1.63. This is a normal value and indicates that BEN is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of BEN (1.63) is better than 62.44% of its industry peers.
Industry RankSector Rank
Current Ratio 1.63
Quick Ratio 1.63

3

3. Growth

3.1 Past

BEN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -28.85%.
Measured over the past years, BEN shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.06% on average per year.
Looking at the last year, BEN shows a decrease in Revenue. The Revenue has decreased by -5.15% in the last year.
BEN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.82% yearly.
EPS 1Y (TTM)-28.85%
EPS 3Y9%
EPS 5Y-6.06%
EPS growth Q2Q7.69%
Revenue 1Y (TTM)-5.15%
Revenue growth 3Y12.14%
Revenue growth 5Y4.82%
Revenue growth Q2Q2.43%

3.2 Future

BEN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.60% yearly.
The Revenue is expected to grow by 3.28% on average over the next years.
EPS Next Y-9.64%
EPS Next 2Y2.72%
EPS Next 3Y5.07%
EPS Next 5Y2.6%
Revenue Next Year4.19%
Revenue Next 2Y5.47%
Revenue Next 3Y9.25%
Revenue Next 5Y3.28%

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.

5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 9.87 indicates a reasonable valuation of BEN.
Compared to the rest of the industry, the Price/Earnings ratio of BEN indicates a somewhat cheap valuation: BEN is cheaper than 65.85% of the companies listed in the same industry.
BEN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.97.
BEN is valuated reasonably with a Price/Forward Earnings ratio of 10.93.
BEN's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of BEN to the average of the S&P500 Index (20.05), we can say BEN is valued slightly cheaper.
Industry RankSector Rank
PE 9.87
Fwd PE 10.93

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, BEN is valued a bit cheaper than 79.02% of the companies in the same industry.
65.85% of the companies in the same industry are more expensive than BEN, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 12.78
EV/EBITDA 10.38

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.72%
EPS Next 3Y5.07%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.67%, BEN is a good candidate for dividend investing.
BEN's Dividend Yield is comparable with the industry average which is at 8.01.
BEN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.56.
Industry RankSector Rank
Dividend Yield 4.67%

5.2 History

The dividend of BEN decreases each year by -20.92%.
BEN has been paying a dividend for at least 10 years, so it has a reliable track record.
BEN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-20.92%
Div Incr Years3
Div Non Decr Years3

5.3 Sustainability

71.88% of the earnings are spent on dividend by BEN. This is not a sustainable payout ratio.
DP71.88%
EPS Next 2Y2.72%
EPS Next 3Y5.07%

FRANKLIN RESOURCES INC

NYSE:BEN (12/8/2023, 7:04:00 PM)

After market: 25.57 0 (0%)

25.57

-0.11 (-0.43%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap12.65B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 4.67%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 9.87
Fwd PE 10.93
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.81%
ROE 7.09%
ROCE
ROIC
ROICexc
ROICexgc
OM 18.31%
PM (TTM) 10.76%
GM N/A
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.26
Health
Industry RankSector Rank
Debt/Equity 0.95
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.63
Quick Ratio 1.63
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-28.85%
EPS 3Y9%
EPS 5Y
EPS growth Q2Q
EPS Next Y-9.64%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.15%
Revenue growth 3Y12.14%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y