FRANKLIN ELECTRIC CO INC (FELE) Stock Fundamental Analysis
NASDAQ:FELE - Nasdaq - US3535141028 - Common Stock - Currency: USD
Overall FELE gets a fundamental rating of 6 out of 10. We evaluated FELE against 128 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
FELE had positive earnings in the past year.
FELE had a positive operating cash flow in the past year.
Each year in the past 5 years FELE has been profitable.
In the past 5 years FELE always reported a positive cash flow from operatings.
1.2 Ratios
FELE's Return On Assets of 9.21% is fine compared to the rest of the industry. FELE outperforms 76.56% of its industry peers.
FELE has a Return On Equity of 13.69%. This is in the better half of the industry: FELE outperforms 67.19% of its industry peers.
With an excellent Return On Invested Capital value of 13.37%, FELE belongs to the best of the industry, outperforming 81.25% 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 10.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.21% | ||
| ROE | 13.69% | ||
| ROIC | 13.37% |
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
FELE has a better Profit Margin (8.81%) than 65.63% of its industry peers.
FELE's Profit Margin has improved in the last couple of years.
The Operating Margin of FELE (12.08%) is better than 62.50% of its industry peers.
FELE's Operating Margin has improved in the last couple of years.
The Gross Margin of FELE (35.60%) is better than 63.28% of its industry peers.
FELE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.08% | ||
| PM (TTM) | 8.81% | ||
| GM | 35.6% |
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.
FELE has less shares outstanding than it did 1 year ago.
FELE has less shares outstanding than it did 5 years ago.
The debt/assets ratio for FELE is higher compared to a year ago.
2.2 Solvency
FELE has an Altman-Z score of 6.34. This indicates that FELE is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of FELE (6.34) is better than 85.16% of its industry peers.
The Debt to FCF ratio of FELE is 0.81, which is an excellent value as it means it would take FELE, only 0.81 years of fcf income to pay off all of its debts.
FELE's Debt to FCF ratio of 0.81 is amongst the best of the industry. FELE outperforms 89.84% of its industry peers.
FELE has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.01, FELE belongs to the best of the industry, outperforming 80.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.81 | ||
| Altman-Z | 6.34 |
ROIC/WACC1.35
WACC9.89%
2.3 Liquidity
FELE has a Current Ratio of 1.98. This is a normal value and indicates that FELE is financially healthy and should not expect problems in meeting its short term obligations.
FELE has a Current ratio (1.98) which is comparable to the rest of the industry.
A Quick Ratio of 0.82 indicates that FELE may have some problems paying its short term obligations.
With a Quick ratio value of 0.82, FELE is not doing good in the industry: 74.22% of the companies in the same industry are doing better.
The current and quick ratio evaluation for FELE is rather negative, while it does have 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 | 1.98 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The earnings per share for FELE have decreased by -5.45% in the last year.
FELE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.21% yearly.
Looking at the last year, FELE shows a decrease in Revenue. The Revenue has decreased by -1.26% in the last 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)-1.26%
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 11.11% on average per year.
The Revenue is expected to grow by 5.15% on average over the next years.
EPS Next Y9.12%
EPS Next 2Y11.11%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.65%
Revenue Next 2Y5.15%
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 22.62, FELE is valued on the expensive side.
FELE's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of FELE to the average of the S&P500 Index (26.25), we can say FELE is valued inline with the index average.
A Price/Forward Earnings ratio of 18.17 indicates a rather expensive valuation of FELE.
FELE's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.15. FELE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.62 | ||
| Fwd PE | 18.17 |
4.2 Price Multiples
FELE's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, FELE is valued a bit cheaper than 65.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.32 | ||
| EV/EBITDA | 13.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of FELE may justify a higher PE ratio.
PEG (NY)2.48
PEG (5Y)1.71
EPS Next 2Y11.11%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.22%, FELE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.90, FELE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, FELE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
5.2 History
The dividend of FELE is nicely growing with an annual growth rate of 11.32%!
FELE has been paying a dividend for at least 10 years, so it has 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
26.82% of the earnings are spent on dividend by FELE. This is a low number and sustainable payout ratio.
FELE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP26.82%
EPS Next 2Y11.11%
EPS Next 3YN/A
86.39
-0.21 (-0.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners85.09%
Inst Owner Change2.71%
Ins Owners7.22%
Ins Owner Change17.63%
Market Cap3.94B
Analysts78.18
Price Target101.66 (17.68%)
Short Float %1.91%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
Yearly Dividend1.02
Dividend Growth(5Y)11.32%
DP26.82%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.82%
Min EPS beat(2)-10.26%
Max EPS beat(2)6.63%
EPS beat(4)1
Avg EPS beat(4)-4.98%
Min EPS beat(4)-10.26%
Max EPS beat(4)6.63%
EPS beat(8)1
Avg EPS beat(8)-5.22%
EPS beat(12)3
Avg EPS beat(12)-1.26%
EPS beat(16)6
Avg EPS beat(16)1.65%
Revenue beat(2)1
Avg Revenue beat(2)-1.89%
Min Revenue beat(2)-5.28%
Max Revenue beat(2)1.49%
Revenue beat(4)1
Avg Revenue beat(4)-4.15%
Min Revenue beat(4)-6.55%
Max Revenue beat(4)1.49%
Revenue beat(8)1
Avg Revenue beat(8)-5.43%
Revenue beat(12)2
Avg Revenue beat(12)-3.83%
Revenue beat(16)6
Avg Revenue beat(16)-1.13%
PT rev (1m)-8.56%
PT rev (3m)-2.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.13%
EPS NY rev (1m)-2.03%
EPS NY rev (3m)-2.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.71%
Revenue NY rev (1m)-0.88%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.62 | ||
| Fwd PE | 18.17 | ||
| P/S | 1.95 | ||
| P/FCF | 19.32 | ||
| P/OCF | 16.2 | ||
| P/B | 3.04 | ||
| P/tB | 6.11 | ||
| EV/EBITDA | 13.39 |
EPS(TTM)3.82
EY4.42%
EPS(NY)4.75
Fwd EY5.5%
FCF(TTM)4.47
FCFY5.18%
OCF(TTM)5.33
OCFY6.17%
SpS44.2
BVpS28.45
TBVpS14.14
PEG (NY)2.48
PEG (5Y)1.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.21% | ||
| ROE | 13.69% | ||
| ROCE | 16.85% | ||
| ROIC | 13.37% | ||
| ROICexc | 14.2% | ||
| ROICexgc | 27.27% | ||
| OM | 12.08% | ||
| PM (TTM) | 8.81% | ||
| GM | 35.6% | ||
| FCFM | 10.12% |
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 Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.81 | ||
| Debt/EBITDA | 0.05 | ||
| Cap/Depr | 69.36% | ||
| Cap/Sales | 1.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.03% | ||
| Profit Quality | 114.81% | ||
| Current Ratio | 1.98 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 6.34 |
F-Score6
WACC9.89%
ROIC/WACC1.35
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 Y9.12%
EPS Next 2Y11.11%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.26%
Revenue growth 3Y6.74%
Revenue growth 5Y8.99%
Sales Q2Q%-1.23%
Revenue Next Year4.65%
Revenue Next 2Y5.15%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-5.9%
EBIT growth 3Y9.03%
EBIT growth 5Y13.75%
EBIT Next Year30.61%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y87.08%
FCF growth 3Y30.12%
FCF growth 5Y7.11%
OCF growth 1Y61.09%
OCF growth 3Y26.28%
OCF growth 5Y8.02%