FRANKLIN ELECTRIC CO INC (FELE) Stock Fundamental Analysis
USA - NASDAQ:FELE - US3535141028 - Common Stock
93.63 USD
+0.48 (+0.52%)
93.63 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to FELE. FELE was compared to 130 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. 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.
FELE had positive earnings in each of the past 5 years.
Each year in the past 5 years FELE had a positive operating cash flow.
1.2 Ratios
FELE has a Return On Assets of 8.85%. This is in the better half of the industry: FELE outperforms 74.62% of its industry peers.
FELE has a better Return On Equity (14.16%) than 73.08% of its industry peers.
FELE has a better Return On Invested Capital (14.18%) than 85.38% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FELE is above the industry average of 10.24%.
| 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
Looking at the Profit Margin, with a value of 8.67%, FELE is in the better half of the industry, outperforming 64.62% of the companies in the same industry.
In the last couple of years the Profit Margin of FELE has grown nicely.
FELE has a better Operating Margin (12.26%) than 63.85% 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 63.85% of its industry peers.
FELE's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for FELE has been reduced compared to 1 year ago.
Compared to 5 years ago, FELE has less shares outstanding
Compared to 1 year ago, FELE has a worse debt to assets ratio.
2.2 Solvency
FELE has an Altman-Z score of 5.73. This indicates that FELE is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of FELE (5.73) is better than 81.54% 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.
FELE has a better Debt to FCF ratio (1.31) than 83.08% 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.
Looking at the Debt to Equity ratio, with a value of 0.01, FELE belongs to the top of the industry, outperforming 83.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 5.73 |
ROIC/WACC1.48
WACC9.56%
2.3 Liquidity
A Current Ratio of 1.72 indicates that FELE should not have too much problems paying its short term obligations.
FELE's Current ratio of 1.72 is on the low side compared to the rest of the industry. FELE is outperformed by 61.54% of its industry peers.
FELE has a Quick Ratio of 1.72. This is a bad value and indicates that FELE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of FELE (0.77) is worse than 76.15% of its industry peers.
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 has been growing slightly by 1.01% over the past year.
The Earnings Per Share has been growing by 13.21% on average over the past years. This is quite good.
The Revenue has decreased by -2.12% in the past year.
The Revenue has been growing by 8.99% on average over the past years. This is quite good.
EPS 1Y (TTM)1.01%
EPS 3Y5.7%
EPS 5Y13.21%
EPS Q2Q%11.11%
Revenue 1Y (TTM)-2.12%
Revenue growth 3Y6.74%
Revenue growth 5Y8.99%
Sales Q2Q%9.46%
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 11.91% on average per year.
FELE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.42% yearly.
EPS Next Y10.26%
EPS Next 2Y12.31%
EPS Next 3Y11.91%
EPS Next 5YN/A
Revenue Next Year6.55%
Revenue Next 2Y5.66%
Revenue Next 3Y5.42%
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
FELE is valuated rather expensively with a Price/Earnings ratio of 23.41.
The rest of the industry has a similar Price/Earnings ratio as FELE.
FELE's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.03.
A Price/Forward Earnings ratio of 19.28 indicates a rather expensive valuation of FELE.
FELE's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.27. FELE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.41 | ||
| Fwd PE | 19.28 |
4.2 Price Multiples
FELE's Enterprise Value to EBITDA ratio is in line with the industry average.
FELE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FELE is cheaper than 70.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.13 | ||
| EV/EBITDA | 13.89 |
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)2.28
PEG (5Y)1.77
EPS Next 2Y12.31%
EPS Next 3Y11.91%
5. Dividend
5.1 Amount
FELE has a Yearly Dividend Yield of 1.14%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.82, FELE pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.14, FELE pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
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 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
26.99% of the earnings are spent on dividend by FELE. This is a low number and 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 2Y12.31%
EPS Next 3Y11.91%
93.63
+0.48 (+0.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners88.49%
Inst Owner Change0.14%
Ins Owners6.36%
Ins Owner Change-11.58%
Market Cap4.16B
Revenue(TTM)2.02B
Net Income(TTM)178.65M
Analysts78.18
Price Target110.16 (17.65%)
Short Float %1.58%
Short Ratio2.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
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)3.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.31%
EPS NY rev (1m)0%
EPS NY rev (3m)0.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.41 | ||
| Fwd PE | 19.28 | ||
| P/S | 2.02 | ||
| P/FCF | 19.13 | ||
| P/OCF | 16.12 | ||
| P/B | 3.3 | ||
| P/tB | 6.85 | ||
| EV/EBITDA | 13.89 |
EPS(TTM)4
EY4.27%
EPS(NY)4.86
Fwd EY5.19%
FCF(TTM)4.89
FCFY5.23%
OCF(TTM)5.81
OCFY6.2%
SpS46.31
BVpS28.37
TBVpS13.68
PEG (NY)2.28
PEG (5Y)1.77
Graham Number50.53
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%
ROICexgc growth 3Y5.64%
ROICexgc 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 | 5.73 |
F-Score6
WACC9.56%
ROIC/WACC1.48
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)1.01%
EPS 3Y5.7%
EPS 5Y13.21%
EPS Q2Q%11.11%
EPS Next Y10.26%
EPS Next 2Y12.31%
EPS Next 3Y11.91%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.12%
Revenue growth 3Y6.74%
Revenue growth 5Y8.99%
Sales Q2Q%9.46%
Revenue Next Year6.55%
Revenue Next 2Y5.66%
Revenue Next 3Y5.42%
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%
FRANKLIN ELECTRIC CO INC / FELE FAQ
What is the fundamental rating for FELE stock?
ChartMill assigns a fundamental rating of 6 / 10 to FELE.
What is the valuation status for FELE stock?
ChartMill assigns a valuation rating of 3 / 10 to FRANKLIN ELECTRIC CO INC (FELE). This can be considered as Overvalued.
How profitable is FRANKLIN ELECTRIC CO INC (FELE) stock?
FRANKLIN ELECTRIC CO INC (FELE) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for FELE stock?
The Price/Earnings (PE) ratio for FRANKLIN ELECTRIC CO INC (FELE) is 23.41 and the Price/Book (PB) ratio is 3.3.
Is the dividend of FRANKLIN ELECTRIC CO INC sustainable?
The dividend rating of FRANKLIN ELECTRIC CO INC (FELE) is 6 / 10 and the dividend payout ratio is 26.99%.