FRANKLIN ELECTRIC CO INC (FELE) Stock Fundamental Analysis
USA - NASDAQ:FELE - US3535141028 - Common Stock
95.15 USD
-0.56 (-0.59%)
95.15 USD
0 (0%)
Overall FELE gets a fundamental rating of 6 out of 10. We evaluated FELE against 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 has a decent growth rate and is not valued too expensively.
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
FELE's Return On Assets of 8.85% is fine compared to the rest of the industry. FELE outperforms 74.62% of its industry peers.
With a decent Return On Equity value of 14.16%, FELE is doing good in the industry, outperforming 73.08% of the companies in the same industry.
The Return On Invested Capital of FELE (14.18%) is better than 85.38% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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
FELE's Profit Margin of 8.67% is fine compared to the rest of the industry. FELE outperforms 64.62% of its industry peers.
FELE's Profit Margin has improved in the last couple of years.
FELE's Operating Margin of 12.26% is fine compared to the rest of the industry. FELE outperforms 63.85% of its industry peers.
FELE's Operating Margin has improved in the last couple of years.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FELE is still creating some value.
FELE has less shares outstanding than it did 1 year ago.
The number of shares outstanding for FELE has been reduced compared to 5 years ago.
The debt/assets ratio for FELE is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.82 indicates that FELE is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.82, FELE belongs to the top of the industry, outperforming 82.31% of the companies in the same industry.
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's Debt to FCF ratio of 1.31 is amongst the best of the industry. FELE outperforms 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.
FELE has a better Debt to Equity ratio (0.01) than 83.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 5.82 |
ROIC/WACC1.48
WACC9.57%
2.3 Liquidity
FELE has a Current Ratio of 1.72. This is a normal value and indicates that FELE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.72, FELE is doing worse than 61.54% of the companies in the same industry.
A Quick Ratio of 0.77 indicates that FELE may have some problems paying its short term obligations.
FELE has a Quick ratio of 0.77. This is in the lower half of the industry: FELE underperforms 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.
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 -2.12%.
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
The Earnings Per Share is expected to grow by 11.91% 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 5.42% on average per year.
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
With a Price/Earnings ratio of 23.79, 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 (25.67), we can say FELE is valued inline with the index average.
A Price/Forward Earnings ratio of 19.59 indicates a rather expensive valuation of FELE.
FELE's Price/Forward Earnings ratio is in line with the industry average.
FELE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 31.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.79 | ||
| Fwd PE | 19.59 |
4.2 Price Multiples
FELE's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FELE indicates a somewhat cheap valuation: FELE is cheaper than 69.23% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.44 | ||
| EV/EBITDA | 14.26 |
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)2.32
PEG (5Y)1.8
EPS Next 2Y12.31%
EPS Next 3Y11.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.13%, FELE has a reasonable but not impressive dividend return.
FELE's Dividend Yield is a higher than the industry average which is at 1.83.
Compared to an average S&P500 Dividend Yield of 2.40, FELE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
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
26.99% 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%
95.15
-0.56 (-0.59%)
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 Cap4.23B
Revenue(TTM)2.02B
Net Income(TTM)178.65M
Analysts78.18
Price Target110.16 (15.78%)
Short Float %1.58%
Short Ratio2.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
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 | 23.79 | ||
| Fwd PE | 19.59 | ||
| P/S | 2.05 | ||
| P/FCF | 19.44 | ||
| P/OCF | 16.38 | ||
| P/B | 3.35 | ||
| P/tB | 6.96 | ||
| EV/EBITDA | 14.26 |
EPS(TTM)4
EY4.2%
EPS(NY)4.86
Fwd EY5.1%
FCF(TTM)4.89
FCFY5.14%
OCF(TTM)5.81
OCFY6.1%
SpS46.31
BVpS28.37
TBVpS13.68
PEG (NY)2.32
PEG (5Y)1.8
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 | 5.82 |
F-Score6
WACC9.57%
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 23.79 and the Price/Book (PB) ratio is 3.35.
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%.