FRANKLIN ELECTRIC CO INC (FELE) Stock Fundamental Analysis
NASDAQ:FELE - Nasdaq - US3535141028 - Common Stock - Currency: USD
FELE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. FELE has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. FELE is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year FELE was profitable.
In the past year FELE had a positive cash flow from operations.
Each year in the past 5 years FELE has been profitable.
Each year in the past 5 years FELE had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 9.87%, FELE is doing good in the industry, outperforming 79.69% of the companies in the same industry.
FELE has a Return On Equity of 14.19%. This is in the better half of the industry: FELE outperforms 69.53% of its industry peers.
With an excellent Return On Invested Capital value of 14.14%, FELE belongs to the best of the industry, outperforming 82.03% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FELE is above the industry average of 10.65%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.87% | ||
| ROE | 14.19% | ||
| ROIC | 14.14% |
ROA(3y)10.67%
ROA(5y)9.92%
ROE(3y)15.87%
ROE(5y)15.11%
ROIC(3y)14.89%
ROIC(5y)13.48%
1.3 Margins
Looking at the Profit Margin, with a value of 8.89%, FELE is in the better half of the industry, outperforming 64.84% of the companies in the same industry.
FELE's Profit Margin has improved in the last couple of years.
FELE has a Operating Margin of 12.23%. This is in the better half of the industry: FELE outperforms 62.50% of its industry peers.
In the last couple of years the Operating Margin of FELE has grown nicely.
FELE's Gross Margin of 35.49% is fine compared to the rest of the industry. FELE outperforms 64.06% of its industry peers.
FELE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.23% | ||
| PM (TTM) | 8.89% | ||
| GM | 35.49% |
OM growth 3Y2.14%
OM growth 5Y4.37%
PM growth 3Y-1.17%
PM growth 5Y4.26%
GM growth 3Y0.78%
GM growth 5Y1.73%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FELE is creating some value.
Compared to 1 year ago, FELE has less shares outstanding
FELE has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, FELE has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.14 indicates that FELE is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.14, FELE belongs to the best of the industry, outperforming 88.28% of the companies in the same industry.
The Debt to FCF ratio of FELE is 0.59, which is an excellent value as it means it would take FELE, only 0.59 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of FELE (0.59) is better than 89.06% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that FELE is not too dependend on debt financing.
FELE's Debt to Equity ratio of 0.01 is amongst the best of the industry. FELE outperforms 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.59 | ||
| Altman-Z | 7.14 |
ROIC/WACC1.41
WACC10.06%
2.3 Liquidity
FELE has a Current Ratio of 2.22. This indicates that FELE is financially healthy and has no problem in meeting its short term obligations.
FELE has a Current ratio (2.22) which is in line with its industry peers.
A Quick Ratio of 1.11 indicates that FELE should not have too much problems paying its short term obligations.
The Quick ratio of FELE (1.11) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
FELE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.45%.
FELE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.21% yearly.
The Revenue has decreased by -2.12% in the past year.
FELE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.99% yearly.
EPS 1Y (TTM)-5.45%
EPS 3Y5.7%
EPS 5Y13.21%
EPS Q2Q%-4.29%
Revenue 1Y (TTM)-2.12%
Revenue growth 3Y6.74%
Revenue growth 5Y8.99%
Sales Q2Q%-1.23%
3.2 Future
Based on estimates for the next years, FELE will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.94% on average per year.
FELE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.45% yearly.
EPS Next Y11.38%
EPS Next 2Y11.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.57%
Revenue Next 2Y5.45%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 22.68, FELE is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as FELE.
When comparing the Price/Earnings ratio of FELE to the average of the S&P500 Index (28.10), we can say FELE is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 17.96, the valuation of FELE can be described as rather expensive.
FELE's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of FELE to the average of the S&P500 Index (20.74), we can say FELE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.68 | ||
| Fwd PE | 17.96 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FELE is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, FELE is valued a bit cheaper than the industry average as 66.41% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.06 | ||
| EV/EBITDA | 12.94 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FELE does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of FELE may justify a higher PE ratio.
PEG (NY)1.99
PEG (5Y)1.72
EPS Next 2Y11.94%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.20%, FELE has a reasonable but not impressive dividend return.
FELE's Dividend Yield is a higher than the industry average which is at 2.02.
With a Dividend Yield of 1.20, FELE pays less dividend than the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
5.2 History
On average, the dividend of FELE grows each year by 11.32%, which is quite nice.
FELE has paid a dividend for at least 10 years, which is a reliable track record.
FELE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)11.32%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
FELE pays out 26.10% of its income as dividend. This is a sustainable payout ratio.
FELE's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP26.1%
EPS Next 2Y11.94%
EPS Next 3YN/A
NASDAQ:FELE (5/6/2025, 2:57:42 PM)
86.65
-1.03 (-1.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners85.09%
Inst Owner Change-1.82%
Ins Owners7.22%
Ins Owner Change18.9%
Market Cap3.97B
Analysts78.18
Price Target111.18 (28.31%)
Short Float %1.97%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
Yearly Dividend1.02
Dividend Growth(5Y)11.32%
DP26.1%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.6%
Min EPS beat(2)-9.82%
Max EPS beat(2)6.63%
EPS beat(4)1
Avg EPS beat(4)-4.08%
Min EPS beat(4)-9.82%
Max EPS beat(4)6.63%
EPS beat(8)2
Avg EPS beat(8)-1.13%
EPS beat(12)3
Avg EPS beat(12)-0.43%
EPS beat(16)7
Avg EPS beat(16)5.94%
Revenue beat(2)1
Avg Revenue beat(2)-2.39%
Min Revenue beat(2)-6.27%
Max Revenue beat(2)1.49%
Revenue beat(4)1
Avg Revenue beat(4)-4.18%
Min Revenue beat(4)-6.55%
Max Revenue beat(4)1.49%
Revenue beat(8)1
Avg Revenue beat(8)-4.8%
Revenue beat(12)3
Avg Revenue beat(12)-3.04%
Revenue beat(16)7
Avg Revenue beat(16)-0.28%
PT rev (1m)0%
PT rev (3m)6.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.57%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.68 | ||
| Fwd PE | 17.96 | ||
| P/S | 1.96 | ||
| P/FCF | 18.06 | ||
| P/OCF | 15.18 | ||
| P/B | 3.13 | ||
| P/tB | 5.55 | ||
| EV/EBITDA | 12.94 |
EPS(TTM)3.82
EY4.41%
EPS(NY)4.82
Fwd EY5.57%
FCF(TTM)4.8
FCFY5.54%
OCF(TTM)5.71
OCFY6.59%
SpS44.15
BVpS27.66
TBVpS15.61
PEG (NY)1.99
PEG (5Y)1.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.87% | ||
| ROE | 14.19% | ||
| ROCE | 17.82% | ||
| ROIC | 14.14% | ||
| ROICexc | 16.82% | ||
| ROICexgc | 31.9% | ||
| OM | 12.23% | ||
| PM (TTM) | 8.89% | ||
| GM | 35.49% | ||
| FCFM | 10.87% |
ROA(3y)10.67%
ROA(5y)9.92%
ROE(3y)15.87%
ROE(5y)15.11%
ROIC(3y)14.89%
ROIC(5y)13.48%
ROICexc(3y)16.28%
ROICexc(5y)14.68%
ROICexgc(3y)29.59%
ROICexgc(5y)27.09%
ROCE(3y)18.76%
ROCE(5y)16.98%
ROICexcg growth 3Y5.64%
ROICexcg growth 5Y11.53%
ROICexc growth 3Y8.16%
ROICexc growth 5Y9.05%
OM growth 3Y2.14%
OM growth 5Y4.37%
PM growth 3Y-1.17%
PM growth 5Y4.26%
GM growth 3Y0.78%
GM growth 5Y1.73%
F-Score6
Asset Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.59 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 74.34% | ||
| Cap/Sales | 2.06% | ||
| Interest Coverage | 38.48 | ||
| Cash Conversion | 86.19% | ||
| Profit Quality | 122.31% | ||
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 7.14 |
F-Score6
WACC10.06%
ROIC/WACC1.41
Cap/Depr(3y)78.91%
Cap/Depr(5y)73.39%
Cap/Sales(3y)2.04%
Cap/Sales(5y)1.95%
Profit Quality(3y)98.93%
Profit Quality(5y)110.27%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.45%
EPS 3Y5.7%
EPS 5Y13.21%
EPS Q2Q%-4.29%
EPS Next Y11.38%
EPS Next 2Y11.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-2.12%
Revenue growth 3Y6.74%
Revenue growth 5Y8.99%
Sales Q2Q%-1.23%
Revenue Next Year5.57%
Revenue Next 2Y5.45%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-6.2%
EBIT growth 3Y9.03%
EBIT growth 5Y13.75%
EBIT Next Year32.48%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-19.91%
FCF growth 3Y30.12%
FCF growth 5Y7.11%
OCF growth 1Y-17.22%
OCF growth 3Y26.28%
OCF growth 5Y8.02%