FRANKLIN ELECTRIC CO INC (FELE) Stock Fundamental Analysis
USA - NASDAQ:FELE - US3535141028 - Common Stock
95.1 USD
+1.2 (+1.28%)
95.1 USD
0 (0%)
FELE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 129 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 has a correct valuation and a medium 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 better Return On Assets (8.85%) than 75.19% of its industry peers.
With a decent Return On Equity value of 14.16%, FELE is doing good in the industry, outperforming 72.09% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.18%, FELE belongs to the best of the industry, outperforming 84.50% 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
The Profit Margin of FELE (8.67%) is better than 65.12% of its industry peers.
FELE's Profit Margin has improved in the last couple of years.
FELE has a Operating Margin of 12.26%. This is in the better half of the industry: FELE outperforms 63.57% 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 64.34% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FELE is 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.
Compared to 1 year ago, FELE has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.80 indicates that FELE is not in any danger for bankruptcy at the moment.
FELE has a better Altman-Z score (5.80) than 83.72% 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's Debt to FCF ratio of 1.31 is amongst the best of the industry. FELE outperforms 82.95% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that FELE is not too dependend on debt financing.
FELE has a better Debt to Equity ratio (0.01) than 82.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 5.8 |
ROIC/WACC1.43
WACC9.9%
2.3 Liquidity
A Current Ratio of 1.72 indicates that FELE should not have too much problems paying its short term obligations.
FELE has a worse Current ratio (1.72) than 61.24% 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.
FELE has a Quick ratio of 0.77. This is in the lower half of the industry: FELE underperforms 78.29% 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 for FELE have decreased by -3.97% in the last 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.
Looking at the last year, FELE shows a small growth in Revenue. The Revenue has grown by 2.20% in the last year.
The Revenue has been growing by 8.99% on average over the past years. This is quite good.
EPS 1Y (TTM)-3.97%
EPS 3Y5.7%
EPS 5Y13.21%
EPS Q2Q%3.97%
Revenue 1Y (TTM)2.2%
Revenue growth 3Y6.74%
Revenue growth 5Y8.99%
Sales Q2Q%8.13%
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 12.40% yearly.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.57, the valuation of FELE can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of FELE is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.32, FELE is valued at the same level.
Based on the Price/Forward Earnings ratio of 19.55, the valuation of FELE can be described as rather expensive.
FELE's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of FELE to the average of the S&P500 Index (22.89), we can say FELE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.57 | ||
| Fwd PE | 19.55 |
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 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.43 | ||
| EV/EBITDA | 14.17 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
FELE has an outstanding profitability rating, which 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)2.44
PEG (5Y)1.86
EPS Next 2Y12.4%
EPS Next 3YN/A
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 1.78.
Compared to an average S&P500 Dividend Yield of 2.42, 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 paid a dividend for at least 10 years, which is 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.
The dividend of FELE is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP26.99%
EPS Next 2Y12.4%
EPS Next 3YN/A
95.1
+1.2 (+1.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners88.49%
Inst Owner Change-0.42%
Ins Owners6.36%
Ins Owner Change3.37%
Market Cap4.23B
Analysts78.18
Price Target110.16 (15.84%)
Short Float %1.67%
Short Ratio2.77
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)8.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.06%
EPS NY rev (1m)0%
EPS NY rev (3m)0.86%
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 | 24.57 | ||
| Fwd PE | 19.55 | ||
| P/S | 2.05 | ||
| P/FCF | 19.43 | ||
| P/OCF | 16.37 | ||
| P/B | 3.35 | ||
| P/tB | 6.95 | ||
| EV/EBITDA | 14.17 |
EPS(TTM)3.87
EY4.07%
EPS(NY)4.86
Fwd EY5.11%
FCF(TTM)4.89
FCFY5.15%
OCF(TTM)5.81
OCFY6.11%
SpS46.31
BVpS28.37
TBVpS13.68
PEG (NY)2.44
PEG (5Y)1.86
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%
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 Turnover1.02
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 | 5.8 |
F-Score6
WACC9.9%
ROIC/WACC1.43
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)-3.97%
EPS 3Y5.7%
EPS 5Y13.21%
EPS Q2Q%3.97%
EPS Next Y10.06%
EPS Next 2Y12.4%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.2%
Revenue growth 3Y6.74%
Revenue growth 5Y8.99%
Sales Q2Q%8.13%
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%