FRANKLIN RESOURCES INC (BEN) Stock Fundamental Analysis
USA - NYSE:BEN - US3546131018 - Common Stock
24.21 USD
-0.03 (-0.12%)
24.5 USD
+0.29 (+1.2%)
We assign a fundamental rating of 4 out of 10 to BEN. BEN was compared to 237 industry peers in the Capital Markets industry. BEN may be in some trouble as it scores bad on both profitability and health. BEN is not valued too expensively and it also shows a decent 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.
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 (0.83%) than 67.93% of its industry peers.
BEN has a worse Return On Equity (2.22%) than 70.04% of its industry peers.
BEN has a worse Return On Invested Capital (2.87%) than 62.87% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BEN is below the industry average of 7.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.83% | ||
| ROE | 2.22% | ||
| ROIC | 2.87% |
ROA(3y)2.85%
ROA(5y)3.88%
ROE(3y)7.11%
ROE(5y)8.94%
ROIC(3y)4.25%
ROIC(5y)4.8%
1.3 Margins
BEN's Profit Margin of 3.13% is on the low side compared to the rest of the industry. BEN is outperformed by 69.62% of its industry peers.
In the last couple of years the Profit Margin of BEN has declined.
Looking at the Operating Margin, with a value of 12.20%, BEN is doing worse than 68.35% of the companies in the same industry.
In the last couple of years the Operating Margin of BEN has declined.
BEN's Gross Margin of 36.69% is on the low side compared to the rest of the industry. BEN is outperformed by 68.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.2% | ||
| PM (TTM) | 3.13% | ||
| GM | 36.69% |
OM growth 3Y-15.02%
OM growth 5Y-12%
PM growth 3Y-37.43%
PM growth 5Y-24.59%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
Compared to 1 year ago, BEN has more shares outstanding
The number of shares outstanding for BEN has been increased compared to 5 years ago.
The debt/assets ratio for BEN has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.28, we must say that BEN is in the distress zone and has some risk of bankruptcy.
BEN's Altman-Z score of 1.28 is fine compared to the rest of the industry. BEN outperforms 60.76% of its industry peers.
The Debt to FCF ratio of BEN is 8.43, which is on the high side as it means it would take BEN, 8.43 years of fcf income to pay off all of its debts.
BEN's Debt to FCF ratio of 8.43 is in line compared to the rest of the industry. BEN outperforms 57.38% of its industry peers.
BEN has a Debt/Equity ratio of 1.00. This is a neutral value indicating BEN is somewhat dependend on debt financing.
BEN has a Debt to Equity ratio (1.00) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 8.43 | ||
| Altman-Z | 1.28 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.21 indicates that BEN should not have too much problems paying its short term obligations.
BEN has a Current ratio of 1.21. This is comparable to the rest of the industry: BEN outperforms 54.43% of its industry peers.
A Quick Ratio of 1.21 indicates that BEN should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.21, BEN perfoms like the industry average, outperforming 55.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The earnings per share for BEN have decreased strongly by -19.25% in the last year.
BEN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.97% yearly.
BEN shows a small growth in Revenue. In the last year, the Revenue has grown by 4.67%.
The Revenue has been growing by 8.38% on average over the past years. This is quite good.
EPS 1Y (TTM)-19.25%
EPS 3Y-13.75%
EPS 5Y-0.97%
EPS Q2Q%-18.33%
Revenue 1Y (TTM)4.67%
Revenue growth 3Y0.21%
Revenue growth 5Y8.38%
Sales Q2Q%-3.68%
3.2 Future
BEN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.27% yearly.
The Revenue is expected to grow by 5.94% on average over the next years.
EPS Next Y-11.36%
EPS Next 2Y2.78%
EPS Next 3Y5.77%
EPS Next 5Y6.27%
Revenue Next Year1.5%
Revenue Next 2Y3.01%
Revenue Next 3Y3.36%
Revenue Next 5Y5.94%
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
Based on the Price/Earnings ratio of 11.31, the valuation of BEN can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of BEN indicates a somewhat cheap valuation: BEN is cheaper than 68.78% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of BEN to the average of the S&P500 Index (27.20), we can say BEN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.55, the valuation of BEN can be described as reasonable.
Based on the Price/Forward Earnings ratio, BEN is valued a bit cheaper than 75.53% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BEN to the average of the S&P500 Index (22.70), we can say BEN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.31 | ||
| Fwd PE | 9.55 |
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 83.97% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BEN is valued a bit cheaper than 75.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.66 | ||
| EV/EBITDA | 13.04 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.78%
EPS Next 3Y5.77%
5. Dividend
5.1 Amount
BEN has a Yearly Dividend Yield of 5.15%, which is a nice return.
BEN's Dividend Yield is comparable with the industry average which is at 7.96.
Compared to an average S&P500 Dividend Yield of 2.38, BEN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.15% |
5.2 History
The dividend of BEN has a limited annual growth rate of 4.79%.
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)4.79%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
BEN pays out 251.00% of its income as dividend. This is not a sustainable payout ratio.
BEN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP251%
EPS Next 2Y2.78%
EPS Next 3Y5.77%
24.21
-0.03 (-0.12%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners48.37%
Inst Owner Change-0.12%
Ins Owners21.52%
Ins Owner Change0.19%
Market Cap12.57B
Analysts51.11
Price Target25.05 (3.47%)
Short Float %6.61%
Short Ratio4.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.15% |
Yearly Dividend1.29
Dividend Growth(5Y)4.79%
DP251%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.68%
Min EPS beat(2)-1.74%
Max EPS beat(2)-1.62%
EPS beat(4)1
Avg EPS beat(4)1.02%
Min EPS beat(4)-3.23%
Max EPS beat(4)10.67%
EPS beat(8)4
Avg EPS beat(8)7.34%
EPS beat(12)7
Avg EPS beat(12)6.47%
EPS beat(16)11
Avg EPS beat(16)10.63%
Revenue beat(2)1
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-1.59%
Max Revenue beat(2)0.01%
Revenue beat(4)2
Avg Revenue beat(4)-1.34%
Min Revenue beat(4)-4.17%
Max Revenue beat(4)0.38%
Revenue beat(8)4
Avg Revenue beat(8)-0.96%
Revenue beat(12)7
Avg Revenue beat(12)2.6%
Revenue beat(16)8
Avg Revenue beat(16)1.79%
PT rev (1m)1.38%
PT rev (3m)20.37%
EPS NQ rev (1m)4.71%
EPS NQ rev (3m)9.04%
EPS NY rev (1m)1.7%
EPS NY rev (3m)4.2%
Revenue NQ rev (1m)1.41%
Revenue NQ rev (3m)7.93%
Revenue NY rev (1m)1.79%
Revenue NY rev (3m)2.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.31 | ||
| Fwd PE | 9.55 | ||
| P/S | 1.46 | ||
| P/FCF | 8.66 | ||
| P/OCF | 7.64 | ||
| P/B | 1.03 | ||
| P/tB | 8.1 | ||
| EV/EBITDA | 13.04 |
EPS(TTM)2.14
EY8.84%
EPS(NY)2.54
Fwd EY10.47%
FCF(TTM)2.8
FCFY11.55%
OCF(TTM)3.17
OCFY13.09%
SpS16.64
BVpS23.51
TBVpS2.99
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.83% | ||
| ROE | 2.22% | ||
| ROCE | 3.79% | ||
| ROIC | 2.87% | ||
| ROICexc | 3.35% | ||
| ROICexgc | 6.25% | ||
| OM | 12.2% | ||
| PM (TTM) | 3.13% | ||
| GM | 36.69% | ||
| FCFM | 16.81% |
ROA(3y)2.85%
ROA(5y)3.88%
ROE(3y)7.11%
ROE(5y)8.94%
ROIC(3y)4.25%
ROIC(5y)4.8%
ROICexc(3y)5.17%
ROICexc(5y)5.99%
ROICexgc(3y)11.12%
ROICexgc(5y)14.53%
ROCE(3y)5.61%
ROCE(5y)6.32%
ROICexcg growth 3Y-30.48%
ROICexcg growth 5Y-25.02%
ROICexc growth 3Y-24.91%
ROICexc growth 5Y-25.54%
OM growth 3Y-15.02%
OM growth 5Y-12%
PM growth 3Y-37.43%
PM growth 5Y-24.59%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 8.43 | ||
| Debt/EBITDA | 7.62 | ||
| Cap/Depr | 35.41% | ||
| Cap/Sales | 2.24% | ||
| Interest Coverage | 1.2 | ||
| Cash Conversion | 102.85% | ||
| Profit Quality | 536.15% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 1.28 |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)32.09%
Cap/Depr(5y)40.5%
Cap/Sales(3y)1.69%
Cap/Sales(5y)1.58%
Profit Quality(3y)150.56%
Profit Quality(5y)128.64%
High Growth Momentum
Growth
EPS 1Y (TTM)-19.25%
EPS 3Y-13.75%
EPS 5Y-0.97%
EPS Q2Q%-18.33%
EPS Next Y-11.36%
EPS Next 2Y2.78%
EPS Next 3Y5.77%
EPS Next 5Y6.27%
Revenue 1Y (TTM)4.67%
Revenue growth 3Y0.21%
Revenue growth 5Y8.38%
Sales Q2Q%-3.68%
Revenue Next Year1.5%
Revenue Next 2Y3.01%
Revenue Next 3Y3.36%
Revenue Next 5Y5.94%
EBIT growth 1Y-16.55%
EBIT growth 3Y-14.84%
EBIT growth 5Y-4.62%
EBIT Next Year4.46%
EBIT Next 3Y9.27%
EBIT Next 5Y5.85%
FCF growth 1Y35%
FCF growth 3Y-12.02%
FCF growth 5Y86.93%
OCF growth 1Y33.56%
OCF growth 3Y-7.95%
OCF growth 5Y29.32%