FRANKLIN ELECTRIC CO INC (FELE) Stock Fundamental Analysis
USA - NASDAQ:FELE - US3535141028 - Common Stock
94.77 USD
-0.83 (-0.87%)
94.77 USD
0 (0%)
FELE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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 is not valued too expensively and it also shows 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.
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
The Return On Assets of FELE (8.85%) is better than 75.38% of its industry peers.
FELE has a Return On Equity of 14.16%. This is in the better half of the industry: FELE outperforms 73.85% of its industry peers.
With an excellent Return On Invested Capital value of 14.18%, FELE belongs to the best of the industry, outperforming 86.15% 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 10.00%.
| 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 has a better Profit Margin (8.67%) than 65.38% of its industry peers.
In the last couple of years the Profit Margin of FELE has grown nicely.
FELE has a better Operating Margin (12.26%) than 64.62% of its industry peers.
In the last couple of years the Operating Margin of FELE has grown nicely.
With a decent Gross Margin value of 35.42%, FELE is doing good in the industry, outperforming 63.85% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FELE is 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
An Altman-Z score of 5.82 indicates that FELE is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.82, FELE belongs to the best of the industry, outperforming 83.85% 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.
Looking at the Debt to FCF ratio, with a value of 1.31, FELE belongs to the top of the industry, outperforming 83.85% of the companies in the same industry.
A Debt/Equity ratio of 0.01 indicates that FELE is not too dependend on debt financing.
The Debt to Equity ratio of FELE (0.01) is better than 83.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 5.82 |
ROIC/WACC1.49
WACC9.52%
2.3 Liquidity
A Current Ratio of 1.72 indicates that FELE should not have too much problems paying its short term obligations.
The Current ratio of FELE (1.72) is worse than 61.54% of its industry peers.
A Quick Ratio of 0.77 indicates that FELE may have some problems paying its short term obligations.
With a Quick ratio value of 0.77, FELE is not doing good in the industry: 77.69% of the companies in the same industry are doing better.
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%.
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)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 12.40% on average per year.
The Revenue is expected to grow by 5.52% on average over the next years.
EPS Next Y10.06%
EPS Next 2Y12.4%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.67%
Revenue Next 2Y5.52%
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.
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 23.69, FELE is valued on the expensive side.
FELE's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.10, FELE is valued at the same level.
The Price/Forward Earnings ratio is 19.48, which indicates a rather expensive current valuation of FELE.
The rest of the industry has a similar Price/Forward Earnings ratio as FELE.
When comparing the Price/Forward Earnings ratio of FELE to the average of the S&P500 Index (22.52), we can say FELE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.69 | ||
| Fwd PE | 19.48 |
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 67.69% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.36 | ||
| EV/EBITDA | 14.24 |
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.
The excellent profitability rating of FELE may justify a higher PE ratio.
FELE's earnings are expected to grow with 12.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.36
PEG (5Y)1.79
EPS Next 2Y12.4%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FELE has a Yearly Dividend Yield of 1.11%.
Compared to an average industry Dividend Yield of 1.79, FELE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, FELE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
5.2 History
The dividend of FELE is nicely growing with an annual growth rate of 11.32%!
FELE has paid a dividend for at least 10 years, which is 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
FELE pays out 26.99% of its income as dividend. This is a 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 2Y12.4%
EPS Next 3YN/A
94.77
-0.83 (-0.87%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners88.49%
Inst Owner Change0.04%
Ins Owners6.36%
Ins Owner Change1.68%
Market Cap4.22B
Revenue(TTM)2.02B
Net Income(TTM)178.65M
Analysts78.18
Price Target110.16 (16.24%)
Short Float %1.58%
Short Ratio2.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
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)0.75%
EPS NY rev (1m)0%
EPS NY rev (3m)0.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.69 | ||
| Fwd PE | 19.48 | ||
| P/S | 2.05 | ||
| P/FCF | 19.36 | ||
| P/OCF | 16.32 | ||
| P/B | 3.34 | ||
| P/tB | 6.93 | ||
| EV/EBITDA | 14.24 |
EPS(TTM)4
EY4.22%
EPS(NY)4.86
Fwd EY5.13%
FCF(TTM)4.89
FCFY5.16%
OCF(TTM)5.81
OCFY6.13%
SpS46.31
BVpS28.37
TBVpS13.68
PEG (NY)2.36
PEG (5Y)1.79
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
WACC9.52%
ROIC/WACC1.49
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 Y10.06%
EPS Next 2Y12.4%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-2.12%
Revenue growth 3Y6.74%
Revenue growth 5Y8.99%
Sales Q2Q%9.46%
Revenue Next Year5.67%
Revenue Next 2Y5.52%
Revenue Next 3YN/A
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 4 / 10 to FRANKLIN ELECTRIC CO INC (FELE). This can be considered as Fairly Valued.
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 23.69 and the Price/Book (PB) ratio is 3.34.
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%.