FRANKLIN RESOURCES INC (BEN) Stock Fundamental Analysis
NYSE:BEN - US3546131018 - Common Stock
25.625 USD
-0.02 (-0.06%)
Overall BEN gets a fundamental rating of 4 out of 10. We evaluated BEN against 238 industry peers in the Capital Markets industry. BEN may be in some trouble as it scores bad on both profitability and health. BEN is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years BEN has been profitable.
In the past 5 years BEN always reported a positive cash flow from operatings.
1.2 Ratios
BEN's Return On Assets of 0.83% is on the low side compared to the rest of the industry. BEN is outperformed by 66.81% of its industry peers.
BEN has a worse Return On Equity (2.22%) than 68.91% of its industry peers.
With a Return On Invested Capital value of 2.87%, BEN is not doing good in the industry: 62.60% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for BEN is below the industry average of 7.60%.
| 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's Profit Margin of 3.13% is on the low side compared to the rest of the industry. BEN is outperformed by 68.91% 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 68.07% of its industry peers.
In the last couple of years the Operating Margin of BEN has declined.
With a Gross Margin value of 36.69%, BEN is not doing good in the industry: 67.65% of the companies in the same industry are doing better.
| 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
Compared to 1 year ago, BEN has more shares outstanding
BEN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BEN has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.30, we must say that BEN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of BEN (1.30) is better than 61.76% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 8.43, BEN is in line with its industry, outperforming 57.14% of the companies in the same industry.
A Debt/Equity ratio of 1.00 indicates that 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 | 1.3 |
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.
BEN has a Current ratio (1.21) which is in line with its industry peers.
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's Quick ratio of 1.21 is in line compared to the rest of the industry. BEN outperforms 54.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The earnings per share for BEN have decreased strongly by -19.25% 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.
BEN shows a small growth in Revenue. In the last year, the Revenue has grown by 4.67%.
The Revenue has been growing by 8.38% on average over the past years. This is quite good.
EPS 1Y (TTM)-19.25%
EPS 3Y-13.75%
EPS 5Y-0.97%
EPS Q2Q%-18.33%
Revenue 1Y (TTM)4.67%
Revenue growth 3Y0.21%
Revenue growth 5Y8.38%
Sales Q2Q%-3.68%
3.2 Future
The Earnings Per Share is expected to grow by 6.07% 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 6.06% on average per year.
EPS Next Y-11.36%
EPS Next 2Y2.78%
EPS Next 3Y5.77%
EPS Next 5Y6.07%
Revenue Next Year1.5%
Revenue Next 2Y2.92%
Revenue Next 3Y3.31%
Revenue Next 5Y6.06%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.97, the valuation of BEN can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of BEN indicates a somewhat cheap valuation: BEN is cheaper than 65.13% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of BEN to the average of the S&P500 Index (27.14), we can say BEN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.11, the valuation of BEN can be described as reasonable.
72.27% of the companies in the same industry are more expensive than BEN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.80. BEN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.97 | ||
| Fwd PE | 10.11 |
4.2 Price Multiples
83.61% of the companies in the same industry are more expensive than BEN, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BEN indicates a somewhat cheap valuation: BEN is cheaper than 75.21% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.16 | ||
| EV/EBITDA | 13.5 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.78%
EPS Next 3Y5.77%
5. Dividend
5.1 Amount
BEN has a Yearly Dividend Yield of 5.22%, which is a nice return.
BEN's Dividend Yield is comparable with the industry average which is at 8.00.
Compared to an average S&P500 Dividend Yield of 2.34, BEN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.22% |
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
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 2Y2.78%
EPS Next 3Y5.77%
NYSE:BEN (8/28/2025, 10:10:06 AM)
25.625
-0.02 (-0.06%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners48.37%
Inst Owner Change-0.12%
Ins Owners21.52%
Ins Owner Change0.37%
Market Cap13.30B
Analysts51.11
Price Target24.93 (-2.71%)
Short Float %7.41%
Short Ratio5.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.22% |
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)2.71%
PT rev (3m)25.68%
EPS NQ rev (1m)1.85%
EPS NQ rev (3m)1.94%
EPS NY rev (1m)1.7%
EPS NY rev (3m)4.2%
Revenue NQ rev (1m)4.22%
Revenue NQ rev (3m)2.83%
Revenue NY rev (1m)2.37%
Revenue NY rev (3m)2.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.97 | ||
| Fwd PE | 10.11 | ||
| P/S | 1.54 | ||
| P/FCF | 9.16 | ||
| P/OCF | 8.09 | ||
| P/B | 1.09 | ||
| P/tB | 8.57 | ||
| EV/EBITDA | 13.5 |
EPS(TTM)2.14
EY8.35%
EPS(NY)2.54
Fwd EY9.89%
FCF(TTM)2.8
FCFY10.91%
OCF(TTM)3.17
OCFY12.36%
SpS16.64
BVpS23.51
TBVpS2.99
PEG (NY)N/A
PEG (5Y)N/A
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%
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 | 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 | 1.3 |
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)-19.25%
EPS 3Y-13.75%
EPS 5Y-0.97%
EPS Q2Q%-18.33%
EPS Next Y-11.36%
EPS Next 2Y2.78%
EPS Next 3Y5.77%
EPS Next 5Y6.07%
Revenue 1Y (TTM)4.67%
Revenue growth 3Y0.21%
Revenue growth 5Y8.38%
Sales Q2Q%-3.68%
Revenue Next Year1.5%
Revenue Next 2Y2.92%
Revenue Next 3Y3.31%
Revenue Next 5Y6.06%
EBIT growth 1Y-16.55%
EBIT growth 3Y-14.84%
EBIT growth 5Y-4.62%
EBIT Next Year4.46%
EBIT Next 3Y9.27%
EBIT Next 5Y6.75%
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%