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. BEN has a bad profitability rating. Also its financial health evaluation is rather negative. BEN is not valued too expensively and it also shows a decent growth rate.
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
BEN has a worse Return On Assets (1.04%) than 66.09% of its industry peers.
BEN has a Return On Equity of 2.71%. This is in the lower half of the industry: BEN underperforms 69.13% of its industry peers.
BEN has a worse Return On Invested Capital (3.07%) than 61.30% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BEN is below the industry average of 7.09%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.04% | ||
| ROE | 2.71% | ||
| ROIC | 3.07% |
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 3.87%, BEN is not doing good in the industry: 70.87% of the companies in the same industry are doing better.
BEN's Profit Margin has declined in the last couple of years.
BEN has a Operating Margin of 13.09%. This is in the lower half of the industry: BEN underperforms 68.26% of its industry peers.
In the last couple of years the Operating Margin of BEN has declined.
The Gross Margin of BEN (37.12%) is worse than 66.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.09% | ||
| PM (TTM) | 3.87% | ||
| GM | 37.12% |
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
Compared to 1 year ago, BEN has more shares outstanding
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
Based on the Altman-Z score of 1.23, we must say that BEN is in the distress zone and has some risk of bankruptcy.
BEN's Altman-Z score of 1.23 is fine compared to the rest of the industry. BEN outperforms 61.30% of its industry peers.
The Debt to FCF ratio of BEN is 13.94, which is on the high side as it means it would take BEN, 13.94 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 13.94, BEN is in line with its industry, outperforming 49.13% of the companies in the same industry.
BEN has a Debt/Equity ratio of 0.94. This is a neutral value indicating BEN is somewhat dependend on debt financing.
BEN has a Debt to Equity ratio of 0.94. This is comparable to the rest of the industry: BEN outperforms 54.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 13.94 | ||
| Altman-Z | 1.23 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
BEN has a Current Ratio of 1.23. 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 (1.23) is comparable to the rest of the industry.
BEN has a Quick Ratio of 1.23. 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 Quick ratio value of 1.23, BEN perfoms like the industry average, outperforming 56.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
BEN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.29%.
The Earnings Per Share has been decreasing by -0.97% on average over the past years.
BEN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.99%.
The Revenue has been growing by 8.38% on average over the past years. This is quite good.
EPS 1Y (TTM)-14.29%
EPS 3Y-13.75%
EPS 5Y-0.97%
EPS Q2Q%-9.23%
Revenue 1Y (TTM)10.99%
Revenue growth 3Y0.21%
Revenue growth 5Y8.38%
Sales Q2Q%10.05%
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-13.18%
EPS Next 2Y-2.92%
EPS Next 3Y2.88%
EPS Next 5Y1.82%
Revenue Next Year-1.23%
Revenue Next 2Y-0.32%
Revenue Next 3Y1.33%
Revenue Next 5Y2.82%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
BEN is valuated reasonably with a Price/Earnings ratio of 8.01.
Based on the Price/Earnings ratio, BEN is valued a bit cheaper than 80.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.85, BEN is valued rather cheaply.
BEN is valuated reasonably with a Price/Forward Earnings ratio of 8.29.
Based on the Price/Forward Earnings ratio, BEN is valued a bit cheaper than 78.26% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.77, BEN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.01 | ||
| Fwd PE | 8.29 |
4.2 Price Multiples
BEN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BEN is cheaper than 85.22% of the companies in the same industry.
69.57% 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 | 11.6 | ||
| EV/EBITDA | 11.07 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.92%
EPS Next 3Y2.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.83%, BEN is a good candidate for dividend investing.
BEN's Dividend Yield is comparable with the industry average which is at 8.31.
Compared to an average S&P500 Dividend Yield of 2.45, BEN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.83% |
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
197.19% 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.
DP197.19%
EPS Next 2Y-2.92%
EPS Next 3Y2.88%
18.74
-0.02 (-0.11%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners47.32%
Inst Owner Change-0.16%
Ins Owners21.44%
Ins Owner Change0.41%
Market Cap9.85B
Analysts49.47
Price Target18.51 (-1.23%)
Short Float %9.25%
Short Ratio5.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.83% |
Yearly Dividend1.29
Dividend Growth(5Y)4.79%
DP197.19%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.72%
Min EPS beat(2)-3.23%
Max EPS beat(2)10.67%
EPS beat(4)2
Avg EPS beat(4)2.15%
Min EPS beat(4)-3.23%
Max EPS beat(4)10.67%
EPS beat(8)6
Avg EPS beat(8)9.07%
EPS beat(12)9
Avg EPS beat(12)9.01%
EPS beat(16)13
Avg EPS beat(16)12.66%
Revenue beat(2)1
Avg Revenue beat(2)-1.9%
Min Revenue beat(2)-4.17%
Max Revenue beat(2)0.38%
Revenue beat(4)1
Avg Revenue beat(4)-1.59%
Min Revenue beat(4)-4.17%
Max Revenue beat(4)0.38%
Revenue beat(8)5
Avg Revenue beat(8)0.04%
Revenue beat(12)6
Avg Revenue beat(12)2.44%
Revenue beat(16)9
Avg Revenue beat(16)2.13%
PT rev (1m)-15.5%
PT rev (3m)-9.94%
EPS NQ rev (1m)-2.03%
EPS NQ rev (3m)-16.63%
EPS NY rev (1m)-3.27%
EPS NY rev (3m)-14.71%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)-8.26%
Revenue NY rev (1m)-4.45%
Revenue NY rev (3m)-5.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.01 | ||
| Fwd PE | 8.29 | ||
| P/S | 1.13 | ||
| P/FCF | 11.6 | ||
| P/OCF | 9.13 | ||
| P/B | 0.79 | ||
| P/tB | 6.19 | ||
| EV/EBITDA | 11.07 |
EPS(TTM)2.34
EY12.49%
EPS(NY)2.26
Fwd EY12.07%
FCF(TTM)1.62
FCFY8.62%
OCF(TTM)2.05
OCFY10.95%
SpS16.63
BVpS23.72
TBVpS3.03
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.04% | ||
| ROE | 2.71% | ||
| ROCE | 4.04% | ||
| ROIC | 3.07% | ||
| ROICexc | 3.52% | ||
| ROICexgc | 6.5% | ||
| OM | 13.09% | ||
| PM (TTM) | 3.87% | ||
| GM | 37.12% | ||
| FCFM | 9.71% |
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 | 0.94 | ||
| Debt/FCF | 13.94 | ||
| Debt/EBITDA | 7.19 | ||
| Cap/Depr | 47.2% | ||
| Cap/Sales | 2.63% | ||
| Interest Coverage | 1.35 | ||
| Cash Conversion | 66.15% | ||
| Profit Quality | 250.92% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 1.23 |
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)-14.29%
EPS 3Y-13.75%
EPS 5Y-0.97%
EPS Q2Q%-9.23%
EPS Next Y-13.18%
EPS Next 2Y-2.92%
EPS Next 3Y2.88%
EPS Next 5Y1.82%
Revenue 1Y (TTM)10.99%
Revenue growth 3Y0.21%
Revenue growth 5Y8.38%
Sales Q2Q%10.05%
Revenue Next Year-1.23%
Revenue Next 2Y-0.32%
Revenue Next 3Y1.33%
Revenue Next 5Y2.82%
EBIT growth 1Y-17.31%
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-40.78%
FCF growth 3Y-12.02%
FCF growth 5Y86.93%
OCF growth 1Y-29.73%
OCF growth 3Y-7.95%
OCF growth 5Y29.32%