FRANKLIN ELECTRIC CO INC (FELE) Stock Fundamental Analysis
NASDAQ:FELE - US3535141028 - Common Stock
97.6 USD
-0.28 (-0.29%)
97.6 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to FELE. FELE was compared to 129 industry peers in the Machinery industry. Both the health and profitability get an excellent rating, making FELE a very profitable company, without any liquidiy or solvency issues. FELE is not valued too expensively and it also shows 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.
In the past 5 years FELE has always been profitable.
Each year in the past 5 years FELE had a positive operating cash flow.
1.2 Ratios
FELE's Return On Assets of 8.85% is fine compared to the rest of the industry. FELE outperforms 75.97% of its industry peers.
FELE has a better Return On Equity (14.16%) than 71.32% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.18%, FELE belongs to the top of the industry, outperforming 83.72% of the companies in the same industry.
FELE had an Average Return On Invested Capital over the past 3 years of 14.89%. This is above the industry average of 9.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.85% | ||
| ROE | 14.16% | ||
| ROIC | 14.18% |
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
With a decent Profit Margin value of 8.67%, FELE is doing good in the industry, outperforming 65.89% of the companies in the same industry.
In the last couple of years the Profit Margin of FELE has grown nicely.
FELE's Operating Margin of 12.26% is fine compared to the rest of the industry. FELE outperforms 62.79% of its industry peers.
In the last couple of years the Operating Margin of FELE has grown nicely.
FELE's Gross Margin of 35.42% is fine compared to the rest of the industry. FELE outperforms 64.34% of its industry peers.
In the last couple of years the Gross Margin of FELE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.26% | ||
| PM (TTM) | 8.67% | ||
| GM | 35.42% |
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
FELE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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 5.89 indicates that FELE is not in any danger for bankruptcy at the moment.
FELE has a better Altman-Z score (5.89) than 84.50% of its industry peers.
FELE has a debt to FCF ratio of 1.31. This is a very positive value and a sign of high solvency as it would only need 1.31 years to pay back of all of its debts.
The Debt to FCF ratio of FELE (1.31) is better than 82.95% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that FELE is not too dependend on debt financing.
FELE has a Debt to Equity ratio of 0.01. This is amongst the best in the industry. FELE outperforms 81.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 5.89 |
ROIC/WACC1.39
WACC10.17%
2.3 Liquidity
A Current Ratio of 1.72 indicates that FELE should not have too much problems paying its short term obligations.
FELE has a worse Current ratio (1.72) than 61.24% of its industry peers.
A Quick Ratio of 0.77 indicates that FELE may have some problems paying its short term obligations.
With a Quick ratio value of 0.77, FELE is not doing good in the industry: 78.29% of the companies in the same industry are doing better.
FELE does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The earnings per share for FELE have decreased by -3.97% in the last year.
The Earnings Per Share has been growing by 13.21% on average over the past years. This is quite good.
Looking at the last year, FELE shows a small growth in Revenue. The Revenue has grown by 2.20% in the last year.
Measured over the past years, FELE shows a quite strong growth in Revenue. The Revenue has been growing by 8.99% on average per year.
EPS 1Y (TTM)-3.97%
EPS 3Y5.7%
EPS 5Y13.21%
EPS Q2Q%3.97%
Revenue 1Y (TTM)2.2%
Revenue growth 3Y6.74%
Revenue growth 5Y8.99%
Sales Q2Q%8.13%
3.2 Future
The Earnings Per Share is expected to grow by 12.40% on average over the next years. This is quite good.
Based on estimates for the next years, FELE will show a small growth in Revenue. The Revenue will grow by 5.52% on average per year.
EPS Next Y10.06%
EPS Next 2Y12.4%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.67%
Revenue Next 2Y5.52%
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.
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
FELE is valuated quite expensively with a Price/Earnings ratio of 25.22.
FELE's Price/Earnings ratio is in line with the industry average.
FELE is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.06, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 20.07 indicates a rather expensive valuation of FELE.
FELE's Price/Forward Earnings ratio is in line with the industry average.
FELE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.22 | ||
| Fwd PE | 20.07 |
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.
67.44% of the companies in the same industry are more expensive than FELE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.94 | ||
| EV/EBITDA | 14.53 |
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.
FELE's earnings are expected to grow with 12.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.51
PEG (5Y)1.91
EPS Next 2Y12.4%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.08%, FELE has a reasonable but not impressive dividend return.
FELE's Dividend Yield is a higher than the industry average which is at 1.78.
Compared to an average S&P500 Dividend Yield of 2.41, FELE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.32%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
FELE pays out 26.99% 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.
DP26.99%
EPS Next 2Y12.4%
EPS Next 3YN/A
97.6
-0.28 (-0.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners86.12%
Inst Owner Change-0.43%
Ins Owners6.17%
Ins Owner Change3.68%
Market Cap4.34B
Analysts78.18
Price Target110.16 (12.87%)
Short Float %1.85%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
Yearly Dividend1.02
Dividend Growth(5Y)11.32%
DP26.99%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.2%
Min EPS beat(2)-10.26%
Max EPS beat(2)-0.13%
EPS beat(4)1
Avg EPS beat(4)-3.4%
Min EPS beat(4)-10.26%
Max EPS beat(4)6.63%
EPS beat(8)1
Avg EPS beat(8)-4.42%
EPS beat(12)2
Avg EPS beat(12)-2.67%
EPS beat(16)5
Avg EPS beat(16)1.55%
Revenue beat(2)1
Avg Revenue beat(2)-1.82%
Min Revenue beat(2)-5.28%
Max Revenue beat(2)1.63%
Revenue beat(4)2
Avg Revenue beat(4)-2.11%
Min Revenue beat(4)-6.27%
Max Revenue beat(4)1.63%
Revenue beat(8)2
Avg Revenue beat(8)-4.38%
Revenue beat(12)3
Avg Revenue beat(12)-3.63%
Revenue beat(16)6
Avg Revenue beat(16)-1.66%
PT rev (1m)0%
PT rev (3m)8.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.58%
EPS NY rev (1m)0.72%
EPS NY rev (3m)0.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)0.98%
Revenue NY rev (3m)0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.22 | ||
| Fwd PE | 20.07 | ||
| P/S | 2.11 | ||
| P/FCF | 19.94 | ||
| P/OCF | 16.8 | ||
| P/B | 3.44 | ||
| P/tB | 7.14 | ||
| EV/EBITDA | 14.53 |
EPS(TTM)3.87
EY3.97%
EPS(NY)4.86
Fwd EY4.98%
FCF(TTM)4.89
FCFY5.01%
OCF(TTM)5.81
OCFY5.95%
SpS46.31
BVpS28.37
TBVpS13.68
PEG (NY)2.51
PEG (5Y)1.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.85% | ||
| ROE | 14.16% | ||
| ROCE | 17.87% | ||
| ROIC | 14.18% | ||
| ROICexc | 15.31% | ||
| ROICexgc | 30.58% | ||
| OM | 12.26% | ||
| PM (TTM) | 8.67% | ||
| GM | 35.42% | ||
| FCFM | 10.57% |
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 Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 1.31 | ||
| Debt/EBITDA | 0.05 | ||
| Cap/Depr | 69.39% | ||
| Cap/Sales | 1.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.01% | ||
| Profit Quality | 121.85% | ||
| Current Ratio | 1.72 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 5.89 |
F-Score6
WACC10.17%
ROIC/WACC1.39
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)-3.97%
EPS 3Y5.7%
EPS 5Y13.21%
EPS Q2Q%3.97%
EPS Next Y10.06%
EPS Next 2Y12.4%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.2%
Revenue growth 3Y6.74%
Revenue growth 5Y8.99%
Sales Q2Q%8.13%
Revenue Next Year5.67%
Revenue Next 2Y5.52%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-1.65%
EBIT growth 3Y9.03%
EBIT growth 5Y13.75%
EBIT Next Year34.85%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y31.78%
FCF growth 3Y30.12%
FCF growth 5Y7.11%
OCF growth 1Y24.68%
OCF growth 3Y26.28%
OCF growth 5Y8.02%