FRANKLIN RESOURCES INC (BEN) Stock Fundamental Analysis
USA - NYSE:BEN - US3546131018 - Common Stock
22.23 USD
-1.02 (-4.39%)
22.48 USD
+0.25 (+1.12%)
BEN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 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 valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
BEN had positive earnings in the past year.
In the past year BEN had a positive cash flow from operations.
BEN had positive earnings in 4 of the past 5 years.
BEN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
BEN's Return On Assets of 0.83% is on the low side compared to the rest of the industry. BEN is outperformed by 67.93% of its industry peers.
BEN's Return On Equity of 2.22% is on the low side compared to the rest of the industry. BEN is outperformed by 70.04% of its industry peers.
BEN has a Return On Invested Capital of 2.87%. This is comparable to the rest of the industry: BEN outperforms 40.93% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BEN is below the industry average of 7.63%.
| 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 69.20% of its industry peers.
In the last couple of years the Profit Margin of BEN has declined.
BEN has a worse Operating Margin (12.20%) than 66.24% of its industry peers.
In the last couple of years the Operating Margin of BEN has declined.
The Gross Margin of BEN (36.69%) is worse than 66.67% 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
There is no outstanding debt for BEN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
BEN has an Altman-Z score of 1.25. This is a bad value and indicates that BEN is not financially healthy and even has some risk of bankruptcy.
BEN's Altman-Z score of 1.25 is in line compared to the rest of the industry. BEN outperforms 58.23% of its industry peers.
BEN has a debt to FCF ratio of 8.43. This is a slightly negative value and a sign of low solvency as BEN would need 8.43 years to pay back of all of its debts.
BEN has a Debt to FCF ratio (8.43) which is comparable to the rest of the industry.
BEN has a Debt/Equity ratio of 1.00. This is a neutral value indicating BEN is somewhat dependend on debt financing.
BEN's Debt to Equity ratio of 1.00 is in line compared to the rest of the industry. BEN outperforms 48.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 8.43 | ||
| Altman-Z | 1.25 |
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's Current ratio of 1.21 is in line compared to the rest of the industry. BEN outperforms 55.27% of its industry peers.
A Quick Ratio of 1.21 indicates that BEN should not have too much problems paying its short term obligations.
BEN has a Quick ratio of 1.21. This is comparable to the rest of the industry: BEN outperforms 56.12% of its industry peers.
| 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 by -7.50% in the last year.
The Earnings Per Share has been growing slightly by 2.11% on average over the past years.
EPS 1Y (TTM)-7.5%
EPS 3Y-15.2%
EPS 5Y2.11%
EPS Q2Q%13.56%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%36.54%
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.
Based on estimates for the next years, BEN will show a small growth in Revenue. The Revenue will grow by 5.81% on average per year.
EPS Next Y16.94%
EPS Next 2Y13.29%
EPS Next 3Y10.74%
EPS Next 5Y9.18%
Revenue Next Year4.35%
Revenue Next 2Y4.77%
Revenue Next 3Y10.53%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.01, the valuation of BEN can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of BEN indicates a somewhat cheap valuation: BEN is cheaper than 70.04% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of BEN to the average of the S&P500 Index (26.06), we can say BEN is valued rather cheaply.
A Price/Forward Earnings ratio of 8.56 indicates a reasonable valuation of BEN.
Based on the Price/Forward Earnings ratio, BEN is valued a bit cheaper than 79.75% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BEN to the average of the S&P500 Index (32.73), we can say BEN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.01 | ||
| Fwd PE | 8.56 |
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.
76.37% 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 | 7.95 | ||
| EV/EBITDA | 12.4 |
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)0.59
PEG (5Y)4.75
EPS Next 2Y13.29%
EPS Next 3Y10.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.51%, BEN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.49, BEN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, BEN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.51% |
5.2 History
The dividend of BEN has a limited annual growth rate of 4.79%.
BEN has paid a dividend for at least 10 years, which is a reliable track record.
BEN has decreased its dividend 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.
The dividend of BEN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP251%
EPS Next 2Y13.29%
EPS Next 3Y10.74%
22.23
-1.02 (-4.39%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners47.64%
Inst Owner Change0.17%
Ins Owners21.76%
Ins Owner Change0.41%
Market Cap11.54B
Revenue(TTM)N/A
Net Income(TTM)270.80M
Analysts52.63
Price Target25.41 (14.3%)
Short Float %8%
Short Ratio5.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.51% |
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)1.44%
PT rev (3m)2.84%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)3.87%
EPS NY rev (1m)0.79%
EPS NY rev (3m)2.51%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)6.11%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.01 | ||
| Fwd PE | 8.56 | ||
| P/S | 1.34 | ||
| P/FCF | 7.95 | ||
| P/OCF | 7.02 | ||
| P/B | 0.95 | ||
| P/tB | 7.44 | ||
| EV/EBITDA | 12.4 |
EPS(TTM)2.22
EY9.99%
EPS(NY)2.6
Fwd EY11.68%
FCF(TTM)2.8
FCFY12.58%
OCF(TTM)3.17
OCFY14.25%
SpS16.64
BVpS23.51
TBVpS2.99
PEG (NY)0.59
PEG (5Y)4.75
Graham Number34.26
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%
ROICexgc growth 3Y-30.48%
ROICexgc 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 | 1.25 |
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)-7.5%
EPS 3Y-15.2%
EPS 5Y2.11%
EPS Q2Q%13.56%
EPS Next Y16.94%
EPS Next 2Y13.29%
EPS Next 3Y10.74%
EPS Next 5Y9.18%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%36.54%
Revenue Next Year4.35%
Revenue Next 2Y4.77%
Revenue Next 3Y10.53%
Revenue Next 5Y5.81%
EBIT growth 1Y-16.55%
EBIT growth 3Y-14.84%
EBIT growth 5Y-4.62%
EBIT Next Year5.62%
EBIT Next 3Y7.06%
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%
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 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 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 16.94% 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 251%.