FRANKLIN ELECTRIC CO INC (FELE)
US3535141028 - Common Stock
Overall FELE gets a fundamental rating of 6 out of 10. We evaluated FELE against 132 industry peers in the Machinery industry. FELE scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, FELE is valued expensive at the moment.
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.
In the past 5 years FELE has always been profitable.
FELE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 11.14%, FELE belongs to the best of the industry, outperforming 84.50% of the companies in the same industry.
FELE has a better Return On Equity (15.96%) than 71.32% of its industry peers.
FELE's Return On Invested Capital of 14.69% is amongst the best of the industry. FELE outperforms 83.72% of its industry peers.
FELE had an Average Return On Invested Capital over the past 3 years of 14.63%. This is above the industry average of 10.72%.
The 3 year average ROIC (14.63%) for FELE is below the current ROIC(14.69%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.14% | ||
| ROE | 15.96% | ||
| ROIC | 14.69% |
ROA(3y)10.62%
ROA(5y)9.53%
ROE(3y)16.53%
ROE(5y)14.65%
ROIC(3y)14.63%
ROIC(5y)12.84%
1.3 Margins
FELE's Profit Margin of 9.32% is fine compared to the rest of the industry. FELE outperforms 70.54% of its industry peers.
FELE's Profit Margin has improved in the last couple of years.
FELE has a Operating Margin of 12.76%. This is in the better half of the industry: FELE outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of FELE has grown nicely.
FELE has a better Gross Margin (33.76%) than 63.57% of its industry peers.
FELE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.76% | ||
| PM (TTM) | 9.32% | ||
| GM | 33.76% |
OM growth 3Y6.21%
OM growth 5Y4.34%
PM growth 3Y5.24%
PM growth 5Y2.87%
GM growth 3Y-0.94%
GM growth 5Y0.26%
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
The number of shares outstanding for FELE has been reduced compared to 5 years ago.
FELE has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.14 indicates that FELE is not in any danger for bankruptcy at the moment.
FELE has a better Altman-Z score (8.14) than 92.25% of its industry peers.
The Debt to FCF ratio of FELE is 0.37, which is an excellent value as it means it would take FELE, only 0.37 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.37, FELE belongs to the top of the industry, outperforming 92.25% of the companies in the same industry.
FELE has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of FELE (0.07) is better than 79.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.37 | ||
| Altman-Z | 8.14 |
ROIC/WACC1.58
WACC9.28%
2.3 Liquidity
A Current Ratio of 2.97 indicates that FELE has no problem at all paying its short term obligations.
FELE has a Current ratio of 2.97. This is in the better half of the industry: FELE outperforms 72.87% of its industry peers.
A Quick Ratio of 1.20 indicates that FELE should not have too much problems paying its short term obligations.
The Quick ratio of FELE (1.20) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.97 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.25% over the past year.
FELE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.82% yearly.
The Revenue has been growing slightly by 1.05% in the past year.
The Revenue has been growing by 9.73% on average over the past years. This is quite good.
EPS 1Y (TTM)3.25%
EPS 3Y23.74%
EPS 5Y12.82%
EPS growth Q2Q-1.19%
Revenue 1Y (TTM)1.05%
Revenue growth 3Y18.3%
Revenue growth 5Y9.73%
Revenue growth Q2Q-3.36%
3.2 Future
Based on estimates for the next years, FELE will show a small growth in Earnings Per Share. The EPS will grow by 7.99% on average per year.
Based on estimates for the next years, FELE will show a small growth in Revenue. The Revenue will grow by 3.25% on average per year.
EPS Next Y6.86%
EPS Next 2Y7.99%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.08%
Revenue Next 2Y3.25%
Revenue Next 3YN/A
Revenue Next 5YN/A
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 decreasing.
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
A Price/Earnings ratio of 23.90 indicates a rather expensive valuation of FELE.
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 (28.06), we can say FELE is valued inline with the index average.
With a Price/Forward Earnings ratio of 22.37, FELE is valued on the expensive side.
FELE's Price/Forward Earnings ratio is in line with the industry average.
FELE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.9 | ||
| Fwd PE | 22.37 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FELE.
FELE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FELE is cheaper than 75.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.59 | ||
| EV/EBITDA | 14.3 |
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.
FELE has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.48
PEG (5Y)1.87
EPS Next 2Y7.99%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FELE has a Yearly Dividend Yield of 1.04%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.73, FELE pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.04, FELE pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
5.2 History
On average, the dividend of FELE grows each year by 13.20%, which is quite nice.
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)13.2%
Div Incr Years18
Div Non Decr Years18
5.3 Sustainability
21.67% of the earnings are spent on dividend by FELE. This is a low number and sustainable payout ratio.
The dividend of FELE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP21.67%
EPS Next 2Y7.99%
EPS Next 3YN/A
FRANKLIN ELECTRIC CO INC
NASDAQ:FELE (5/2/2024, 7:00:00 PM)
After market: 98.72 0 (0%)98.72
+1.12 (+1.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.55B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.9 | ||
| Fwd PE | 22.37 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.48
PEG (5Y)1.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.14% | ||
| ROE | 15.96% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.76% | ||
| PM (TTM) | 9.32% | ||
| GM | 33.76% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.97 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)3.25%
EPS 3Y23.74%
EPS 5Y
EPS growth Q2Q
EPS Next Y6.86%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.05%
Revenue growth 3Y18.3%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y