FRANKLIN RESOURCES INC (BEN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BEN - US3546131018 - Common Stock
23.12 USD
-0.28 (-1.2%)
23.12 USD
0 (0%)
Overall BEN gets a fundamental rating of 4 out of 10. We evaluated BEN against 237 industry peers in the Capital Markets industry. BEN has a bad profitability rating. Also its financial health evaluation is rather negative. BEN scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
BEN had positive earnings in the past year.
BEN had a positive operating cash flow in the past year.
Each year in the past 5 years BEN has been profitable.
In the past 5 years BEN always reported a positive cash flow from operatings.
1.2 Ratios
BEN has a worse Return On Assets (1.46%) than 60.76% of its industry peers.
The Return On Equity of BEN (3.90%) is worse than 65.82% of its industry peers.
BEN has a Return On Invested Capital (2.90%) which is in line with its industry peers.
BEN had an Average Return On Invested Capital over the past 3 years of 3.25%. This is below the industry average of 6.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.46% | ||
| ROE | 3.9% | ||
| ROIC | 2.9% |
ROA(3y)1.86%
ROA(5y)3.45%
ROE(3y)4.82%
ROE(5y)8.17%
ROIC(3y)3.25%
ROIC(5y)4.29%
1.3 Margins
BEN's Profit Margin of 5.38% is on the low side compared to the rest of the industry. BEN is outperformed by 67.51% of its industry peers.
BEN's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 12.54%, BEN is not doing good in the industry: 64.13% of the companies in the same industry are doing better.
BEN's Operating Margin has declined in the last couple of years.
BEN has a Gross Margin (36.61%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.54% | ||
| PM (TTM) | 5.38% | ||
| GM | 36.61% |
OM growth 3Y-16.37%
OM growth 5Y-7.82%
PM growth 3Y-28.89%
PM growth 5Y-17.51%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The number of shares outstanding for BEN has been reduced compared to 1 year ago.
The number of shares outstanding for BEN has been increased compared to 5 years ago.
The debt/assets ratio for BEN is higher compared to a year ago.
2.2 Solvency
BEN has an Altman-Z score of 1.24. This is a bad value and indicates that BEN is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of BEN (1.24) is comparable to the rest of the industry.
BEN has a debt to FCF ratio of 13.49. This is a negative value and a sign of low solvency as BEN would need 13.49 years to pay back of all of its debts.
BEN has a Debt to FCF ratio (13.49) which is comparable to the rest of the industry.
BEN has a Debt/Equity ratio of 0.98. This is a neutral value indicating BEN is somewhat dependend on debt financing.
BEN's Debt to Equity ratio of 0.98 is in line compared to the rest of the industry. BEN outperforms 51.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 13.49 | ||
| Altman-Z | 1.24 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.00 indicates that BEN may have some problems paying its short term obligations.
BEN has a Current ratio of 1.00. This is comparable to the rest of the industry: BEN outperforms 42.19% of its industry peers.
A Quick Ratio of 1.00 indicates that BEN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.00, BEN is in line with its industry, outperforming 45.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The earnings per share for BEN have decreased by -7.50% in the last year.
BEN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.11% yearly.
The Revenue has been growing slightly by 3.45% in the past year.
BEN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.52% yearly.
EPS 1Y (TTM)-7.5%
EPS 3Y-15.2%
EPS 5Y2.11%
EPS Q2Q%13.56%
Revenue 1Y (TTM)3.45%
Revenue growth 3Y1.96%
Revenue growth 5Y9.52%
Sales Q2Q%5.74%
3.2 Future
Based on estimates for the next years, BEN will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.18% on average per year.
The Revenue is expected to grow by 5.81% on average over the next years.
EPS Next Y14.38%
EPS Next 2Y12.7%
EPS Next 3Y10.62%
EPS Next 5Y9.18%
Revenue Next Year4.55%
Revenue Next 2Y5.08%
Revenue Next 3Y10.52%
Revenue Next 5Y5.81%
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 accelerating.
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
A Price/Earnings ratio of 10.41 indicates a reasonable valuation of BEN.
Based on the Price/Earnings ratio, BEN is valued a bit cheaper than 68.35% of the companies in the same industry.
BEN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.34.
BEN is valuated reasonably with a Price/Forward Earnings ratio of 9.11.
77.64% of the companies in the same industry are more expensive than BEN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.56. BEN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.41 | ||
| Fwd PE | 9.11 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BEN indicates a rather cheap valuation: BEN is cheaper than 84.81% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BEN indicates a somewhat cheap valuation: BEN is cheaper than 65.82% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.21 | ||
| EV/EBITDA | 12.82 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.72
PEG (5Y)4.94
EPS Next 2Y12.7%
EPS Next 3Y10.62%
5. Dividend
5.1 Amount
BEN has a Yearly Dividend Yield of 5.53%, which is a nice return.
BEN's Dividend Yield is comparable with the industry average which is at 8.30.
BEN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.53% |
5.2 History
The dividend of BEN has a limited annual growth rate of 4.06%.
BEN has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of BEN decreased recently.
Dividend Growth(5Y)4.06%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
144.97% of the earnings are spent on dividend by BEN. This is not a sustainable payout ratio.
BEN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP144.97%
EPS Next 2Y12.7%
EPS Next 3Y10.62%
23.12
-0.28 (-1.2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners46.7%
Inst Owner Change-2.38%
Ins Owners21.83%
Ins Owner Change0.78%
Market Cap12.04B
Revenue(TTM)8.77B
Net Income(TTM)471.60M
Analysts52.63
Price Target25.13 (8.69%)
Short Float %9.07%
Short Ratio5.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.53% |
Yearly Dividend1.31
Dividend Growth(5Y)4.06%
DP144.97%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.65%
Min EPS beat(2)-1.74%
Max EPS beat(2)15.04%
EPS beat(4)2
Avg EPS beat(4)5.59%
Min EPS beat(4)-1.74%
Max EPS beat(4)15.04%
EPS beat(8)4
Avg EPS beat(8)4.04%
EPS beat(12)7
Avg EPS beat(12)6.52%
EPS beat(16)11
Avg EPS beat(16)8.76%
Revenue beat(2)1
Avg Revenue beat(2)1.48%
Min Revenue beat(2)-1.59%
Max Revenue beat(2)4.55%
Revenue beat(4)2
Avg Revenue beat(4)-0.3%
Min Revenue beat(4)-4.17%
Max Revenue beat(4)4.55%
Revenue beat(8)4
Avg Revenue beat(8)-0.42%
Revenue beat(12)8
Avg Revenue beat(12)2.98%
Revenue beat(16)9
Avg Revenue beat(16)2.09%
PT rev (1m)-1.09%
PT rev (3m)0.79%
EPS NQ rev (1m)-5.44%
EPS NQ rev (3m)-2.35%
EPS NY rev (1m)-2.19%
EPS NY rev (3m)0.16%
Revenue NQ rev (1m)-0.46%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.41 | ||
| Fwd PE | 9.11 | ||
| P/S | 1.37 | ||
| P/FCF | 13.21 | ||
| P/OCF | 11.3 | ||
| P/B | 1 | ||
| P/tB | 7.06 | ||
| EV/EBITDA | 12.82 |
EPS(TTM)2.22
EY9.6%
EPS(NY)2.54
Fwd EY10.98%
FCF(TTM)1.75
FCFY7.57%
OCF(TTM)2.05
OCFY8.85%
SpS16.84
BVpS23.18
TBVpS3.27
PEG (NY)0.72
PEG (5Y)4.94
Graham Number34.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.46% | ||
| ROE | 3.9% | ||
| ROCE | 4.04% | ||
| ROIC | 2.9% | ||
| ROICexc | 3.34% | ||
| ROICexgc | 6.18% | ||
| OM | 12.54% | ||
| PM (TTM) | 5.38% | ||
| GM | 36.61% | ||
| FCFM | 10.39% |
ROA(3y)1.86%
ROA(5y)3.45%
ROE(3y)4.82%
ROE(5y)8.17%
ROIC(3y)3.25%
ROIC(5y)4.29%
ROICexc(3y)3.84%
ROICexc(5y)5.28%
ROICexgc(3y)7.52%
ROICexgc(5y)11.66%
ROCE(3y)4.53%
ROCE(5y)5.98%
ROICexgc growth 3Y-25.89%
ROICexgc growth 5Y-17.95%
ROICexc growth 3Y-19.86%
ROICexc growth 5Y-8.77%
OM growth 3Y-16.37%
OM growth 5Y-7.82%
PM growth 3Y-28.89%
PM growth 5Y-17.51%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 13.49 | ||
| Debt/EBITDA | 7.25 | ||
| Cap/Depr | 29.05% | ||
| Cap/Sales | 1.76% | ||
| Interest Coverage | 1.28 | ||
| Cash Conversion | 65.34% | ||
| Profit Quality | 193.3% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 1.24 |
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)33.8%
Cap/Depr(5y)30.17%
Cap/Sales(3y)1.92%
Cap/Sales(5y)1.56%
Profit Quality(3y)164.72%
Profit Quality(5y)142.29%
High Growth Momentum
Growth
EPS 1Y (TTM)-7.5%
EPS 3Y-15.2%
EPS 5Y2.11%
EPS Q2Q%13.56%
EPS Next Y14.38%
EPS Next 2Y12.7%
EPS Next 3Y10.62%
EPS Next 5Y9.18%
Revenue 1Y (TTM)3.45%
Revenue growth 3Y1.96%
Revenue growth 5Y9.52%
Sales Q2Q%5.74%
Revenue Next Year4.55%
Revenue Next 2Y5.08%
Revenue Next 3Y10.52%
Revenue Next 5Y5.81%
EBIT growth 1Y-5.02%
EBIT growth 3Y-14.73%
EBIT growth 5Y0.95%
EBIT Next Year44.6%
EBIT Next 3Y19.37%
EBIT Next 5Y9.68%
FCF growth 1Y14.78%
FCF growth 3Y-21.25%
FCF growth 5Y-1.43%
OCF growth 1Y9.76%
OCF growth 3Y-18.32%
OCF growth 5Y-0.32%
FRANKLIN RESOURCES INC / BEN FAQ
What is the ChartMill fundamental rating of FRANKLIN RESOURCES INC (BEN) stock?
ChartMill assigns a fundamental rating of 4 / 10 to BEN.
What is the valuation status of FRANKLIN RESOURCES INC (BEN) stock?
ChartMill assigns a valuation rating of 7 / 10 to FRANKLIN RESOURCES INC (BEN). This can be considered as Undervalued.
How profitable is FRANKLIN RESOURCES INC (BEN) stock?
FRANKLIN RESOURCES INC (BEN) has a profitability rating of 3 / 10.
What is the expected EPS growth for FRANKLIN RESOURCES INC (BEN) stock?
The Earnings per Share (EPS) of FRANKLIN RESOURCES INC (BEN) is expected to grow by 14.38% in the next year.
Is the dividend of FRANKLIN RESOURCES INC sustainable?
The dividend rating of FRANKLIN RESOURCES INC (BEN) is 5 / 10 and the dividend payout ratio is 144.97%.