FRANKLIN ELECTRIC CO INC (FELE) Stock Fundamental Analysis
NASDAQ:FELE - Nasdaq - US3535141028 - Common Stock - Currency: USD
Taking everything into account, FELE scores 6 out of 10 in our fundamental rating. FELE was compared to 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
FELE had positive earnings in the past year.
In the past year FELE had a positive cash flow from operations.
FELE had positive earnings in each of the past 5 years.
In the past 5 years FELE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of FELE (9.21%) is better than 76.56% of its industry peers.
FELE's Return On Equity of 13.69% is fine compared to the rest of the industry. FELE outperforms 66.41% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.37%, FELE is in the better half of the industry, outperforming 79.69% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FELE is above the industry average of 10.70%.
| 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
With a decent Profit Margin value of 8.81%, FELE is doing good in the industry, outperforming 66.41% of the companies in the same industry.
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.
In the last couple of years the Operating Margin of FELE has grown nicely.
FELE's Gross Margin of 35.60% 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 | 12.08% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FELE is still creating some value.
Compared to 1 year ago, FELE has less shares outstanding
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 6.51. This indicates that FELE is financially healthy and has little risk of bankruptcy at the moment.
FELE's Altman-Z score of 6.51 is amongst the best of the industry. FELE outperforms 85.16% of its industry peers.
FELE has a debt to FCF ratio of 0.81. This is a very positive value and a sign of high solvency as it would only need 0.81 years to pay back of all of its debts.
FELE has a better Debt to FCF ratio (0.81) than 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.
FELE has a Debt to Equity ratio of 0.01. This is amongst the best in the industry. FELE outperforms 80.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.81 | ||
| Altman-Z | 6.51 |
ROIC/WACC1.33
WACC10.08%
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 in line with its industry peers.
FELE has a Quick Ratio of 1.98. This is a bad value and indicates that FELE is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.82, FELE is doing worse than 73.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 0.82 |
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.
FELE shows a decrease in Revenue. In the last year, the revenue decreased by -1.26%.
The Revenue has been growing by 8.99% on average over the past years. This is quite good.
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
FELE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.11% yearly.
Based on estimates for the next years, FELE will show a small growth in Revenue. The Revenue will grow by 5.15% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
The Price/Earnings ratio is 23.64, which indicates a rather expensive current valuation of FELE.
Compared to the rest of the industry, the Price/Earnings ratio of FELE is on the same level as its industry peers.
When comparing the Price/Earnings ratio of FELE to the average of the S&P500 Index (26.98), we can say FELE is valued inline with the index average.
FELE is valuated rather expensively with a Price/Forward Earnings ratio of 19.00.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FELE is on the same level as its industry peers.
FELE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.64 | ||
| Fwd PE | 19 |
4.2 Price Multiples
FELE's Enterprise Value to EBITDA is on the same level as the industry average.
FELE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FELE is cheaper than 64.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.2 | ||
| EV/EBITDA | 13.99 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.59
PEG (5Y)1.79
EPS Next 2Y11.11%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FELE has a Yearly Dividend Yield of 1.16%.
FELE's Dividend Yield is a higher than the industry average which is at 1.88.
With a Dividend Yield of 1.16, FELE pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
5.2 History
On average, the dividend of FELE grows each year by 11.32%, 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 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
26.82% 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.
DP26.82%
EPS Next 2Y11.11%
EPS Next 3YN/A
90.31
-1.46 (-1.59%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners84.95%
Inst Owner Change2.71%
Ins Owners6.18%
Ins Owner Change7.7%
Market Cap4.12B
Analysts78.18
Price Target101.66 (12.57%)
Short Float %2.01%
Short Ratio2.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
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)0%
PT rev (3m)-8.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.13%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.64 | ||
| Fwd PE | 19 | ||
| P/S | 2.04 | ||
| P/FCF | 20.2 | ||
| P/OCF | 16.93 | ||
| P/B | 3.17 | ||
| P/tB | 6.39 | ||
| EV/EBITDA | 13.99 |
EPS(TTM)3.82
EY4.23%
EPS(NY)4.75
Fwd EY5.26%
FCF(TTM)4.47
FCFY4.95%
OCF(TTM)5.33
OCFY5.91%
SpS44.2
BVpS28.45
TBVpS14.14
PEG (NY)2.59
PEG (5Y)1.79
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 | 6.51 |
F-Score6
WACC10.08%
ROIC/WACC1.33
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%