FRANKLIN ELECTRIC CO INC (FELE) Stock Fundamental Analysis
NASDAQ:FELE - Nasdaq - US3535141028 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to FELE. FELE was compared to 127 industry peers in the Machinery industry. FELE has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. FELE is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year FELE was profitable.
FELE had a positive operating cash flow in the past year.
Each year in the past 5 years FELE has been profitable.
FELE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of FELE (9.21%) is better than 76.38% of its industry peers.
Looking at the Return On Equity, with a value of 13.69%, FELE is in the better half of the industry, outperforming 66.14% of the companies in the same industry.
The Return On Invested Capital of FELE (13.37%) is better than 79.53% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FELE is above the industry average of 10.83%.
| 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
FELE has a Profit Margin of 8.81%. This is in the better half of the industry: FELE outperforms 66.14% of its industry peers.
In the last couple of years the Profit Margin of FELE has grown nicely.
With a decent Operating Margin value of 12.08%, FELE is doing good in the industry, outperforming 61.42% of the companies in the same industry.
FELE's Operating Margin has improved in the last couple of years.
FELE has a Gross Margin of 35.60%. This is in the better half of the industry: FELE outperforms 63.78% 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
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.
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 6.63 indicates that FELE is not in any danger for bankruptcy at the moment.
FELE has a better Altman-Z score (6.63) than 86.61% of its industry peers.
The Debt to FCF ratio of FELE is 0.81, which is an excellent value as it means it would take FELE, only 0.81 years of fcf income to pay off all of its debts.
FELE has a better Debt to FCF ratio (0.81) than 88.98% 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.
The Debt to Equity ratio of FELE (0.01) is better than 80.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.81 | ||
| Altman-Z | 6.63 |
ROIC/WACC1.53
WACC8.75%
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 comparable to the rest of the industry.
A Quick Ratio of 0.82 indicates that FELE may have some problems paying its short term obligations.
With a Quick ratio value of 0.82, FELE is not doing good in the industry: 73.23% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The earnings per share for FELE have decreased by -3.97% in the last year.
The Earnings Per Share has been growing by 13.21% on average over the past years. This is quite good.
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)-3.97%
EPS 3Y5.7%
EPS 5Y13.21%
EPS Q2Q%3.97%
Revenue 1Y (TTM)-2.12%
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 11.45% yearly.
The Revenue is expected to grow by 5.15% on average over the next years.
EPS Next Y9.28%
EPS Next 2Y11.45%
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.
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
FELE is valuated rather expensively with a Price/Earnings ratio of 24.07.
FELE's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of FELE to the average of the S&P500 Index (26.82), we can say FELE is valued inline with the index average.
A Price/Forward Earnings ratio of 19.48 indicates a rather expensive valuation of FELE.
FELE's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.21, FELE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.07 | ||
| Fwd PE | 19.48 |
4.2 Price Multiples
FELE's Enterprise Value to EBITDA is on the same level as the industry average.
61.42% of the companies in the same industry are more expensive than FELE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.83 | ||
| EV/EBITDA | 14.42 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.6
PEG (5Y)1.82
EPS Next 2Y11.45%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FELE has a Yearly Dividend Yield of 1.13%.
Compared to an average industry Dividend Yield of 1.89, FELE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, 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
26.82% 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.
DP26.82%
EPS Next 2Y11.45%
EPS Next 3YN/A
93.15
-0.8 (-0.85%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners84.95%
Inst Owner Change-0.12%
Ins Owners6.18%
Ins Owner Change7.62%
Market Cap4.25B
Analysts78.18
Price Target106.76 (14.61%)
Short Float %1.77%
Short Ratio2.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
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)5.02%
PT rev (3m)-3.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.16%
EPS NY rev (1m)0.15%
EPS NY rev (3m)-1.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.07 | ||
| Fwd PE | 19.48 | ||
| P/S | 2.11 | ||
| P/FCF | 20.83 | ||
| P/OCF | 17.46 | ||
| P/B | 3.27 | ||
| P/tB | 6.59 | ||
| EV/EBITDA | 14.42 |
EPS(TTM)3.87
EY4.15%
EPS(NY)4.78
Fwd EY5.13%
FCF(TTM)4.47
FCFY4.8%
OCF(TTM)5.33
OCFY5.73%
SpS44.2
BVpS28.45
TBVpS14.14
PEG (NY)2.6
PEG (5Y)1.82
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 | 6.63 |
F-Score6
WACC8.75%
ROIC/WACC1.53
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 Y9.28%
EPS Next 2Y11.45%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-2.12%
Revenue growth 3Y6.74%
Revenue growth 5Y8.99%
Sales Q2Q%8.13%
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%