FRANKLIN RESOURCES INC (BEN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BEN - US3546131018 - Common Stock
25.55 USD
+0.24 (+0.95%)
25.8 USD
+0.25 (+0.98%)
Overall BEN gets a fundamental rating of 3 out of 10. We evaluated BEN against 237 industry peers in the Capital Markets industry. Both the profitability and financial health of BEN have multiple concerns. BEN has a correct valuation and a medium growth rate.
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.
- In the past 5 years BEN has always been profitable.
- Each year in the past 5 years BEN had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.46%, BEN is doing worse than 64.13% of the companies in the same industry.
- BEN has a worse Return On Equity (3.90%) than 64.56% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 2.90%, BEN is in line with its industry, outperforming 41.77% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for BEN is below the industry average of 7.27%.
| 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
- With a Profit Margin value of 5.38%, BEN is not doing good in the industry: 70.89% of the companies in the same industry are doing better.
- BEN's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 12.54%, BEN is doing worse than 63.71% of the companies in the same industry.
- BEN's Operating Margin has declined in the last couple of years.
- BEN has a worse Gross Margin (36.61%) than 63.29% of 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
- Compared to 1 year ago, BEN has less shares outstanding
- BEN has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, BEN has a worse debt to assets ratio.
2.2 Solvency
- BEN has an Altman-Z score of 1.27. This is a bad value and indicates that BEN is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.27, BEN is in the better half of the industry, outperforming 60.76% of the companies in the same 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 of 13.49. This is comparable to the rest of the industry: BEN outperforms 59.92% of its industry peers.
- BEN has a Debt/Equity ratio of 0.98. This is a neutral value indicating BEN is somewhat dependend on debt financing.
- BEN has a Debt to Equity ratio (0.98) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 13.49 | ||
| Altman-Z | 1.27 |
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's Current ratio of 1.00 is in line compared to the rest of the industry. BEN outperforms 43.88% of its industry peers.
- A Quick Ratio of 1.00 indicates that BEN may have some problems paying its short term obligations.
- BEN has a Quick ratio (1.00) which is in line with its industry peers.
| 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.
- Measured over the past 5 years, BEN shows a small growth in Earnings Per Share. The EPS has been growing by 2.11% on average per year.
- Looking at the last year, BEN shows a small growth in Revenue. The Revenue has grown by 3.45% in the last year.
- The Revenue has been growing by 9.52% on average over the past years. This is quite good.
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
- BEN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.18% yearly.
- BEN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.81% yearly.
EPS Next Y14.2%
EPS Next 2Y13.01%
EPS Next 3Y11.39%
EPS Next 5Y9.18%
Revenue Next Year4.85%
Revenue Next 2Y5.21%
Revenue Next 3Y6.96%
Revenue Next 5Y5.81%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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
- With a Price/Earnings ratio of 11.51, the valuation of BEN can be described as very reasonable.
- 61.60% of the companies in the same industry are more expensive than BEN, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.25. BEN is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 10.08 indicates a reasonable valuation of BEN.
- Based on the Price/Forward Earnings ratio, BEN is valued a bit cheaper than 75.11% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. BEN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.51 | ||
| Fwd PE | 10.08 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BEN is valued cheaper than 83.54% of the companies in the same industry.
- 70.89% of the companies in the same industry are more expensive than BEN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.6 | ||
| EV/EBITDA | 13.51 |
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)0.81
PEG (5Y)5.46
EPS Next 2Y13.01%
EPS Next 3Y11.39%
5. Dividend
5.1 Amount
- BEN has a Yearly Dividend Yield of 5.12%, which is a nice return.
- Compared to an average industry Dividend Yield of 5.87, BEN has a dividend in line with its industry peers.
- BEN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.12% |
5.2 History
- The dividend of BEN has a limited annual growth rate of 4.06%.
- BEN has paid a dividend for at least 10 years, which is 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 2Y13.01%
EPS Next 3Y11.39%
FRANKLIN RESOURCES INC / BEN FAQ
What is the ChartMill fundamental rating of FRANKLIN RESOURCES INC (BEN) stock?
ChartMill assigns a fundamental rating of 3 / 10 to BEN.
What is the valuation status for BEN stock?
ChartMill assigns a valuation rating of 6 / 10 to FRANKLIN RESOURCES INC (BEN). This can be considered as Fairly Valued.
How profitable is FRANKLIN RESOURCES INC (BEN) stock?
FRANKLIN RESOURCES INC (BEN) has a profitability rating of 2 / 10.
What are the PE and PB ratios of FRANKLIN RESOURCES INC (BEN) stock?
The Price/Earnings (PE) ratio for FRANKLIN RESOURCES INC (BEN) is 11.51 and the Price/Book (PB) ratio is 1.1.
How financially healthy is FRANKLIN RESOURCES INC?
The financial health rating of FRANKLIN RESOURCES INC (BEN) is 2 / 10.