FRANKLIN RESOURCES INC (BEN) Stock Fundamental Analysis
USA - NYSE:BEN - US3546131018 - Common Stock
22.59 USD
-0.06 (-0.26%)
22.59 USD
0 (0%)
Overall BEN gets a fundamental rating of 4 out of 10. We evaluated BEN against 236 industry peers in the Capital Markets industry. Both the profitability and financial health of BEN have multiple concerns. BEN has a decent growth rate and is not valued too expensively.
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.
BEN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.83%, BEN is not doing good in the industry: 68.64% of the companies in the same industry are doing better.
The Return On Equity of BEN (2.22%) is worse than 70.76% of its industry peers.
BEN has a Return On Invested Capital (2.87%) which is in line with its industry peers.
BEN had an Average Return On Invested Capital over the past 3 years of 4.25%. This is below the industry average of 7.56%.
| 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
With a Profit Margin value of 3.13%, BEN is not doing good in the industry: 69.92% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of BEN has declined.
BEN's Operating Margin of 12.20% is on the low side compared to the rest of the industry. BEN is outperformed by 67.37% of its industry peers.
BEN's Operating Margin has declined in the last couple of years.
BEN has a Gross Margin of 36.69%. This is in the lower half of the industry: BEN underperforms 66.95% 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.
BEN has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.25, we must say that BEN is in the distress zone and has some risk of bankruptcy.
BEN has a Altman-Z score of 1.25. This is comparable to the rest of the industry: BEN outperforms 59.75% 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 has a Debt to FCF ratio of 8.43. This is in the better half of the industry: BEN outperforms 60.17% of its industry peers.
A Debt/Equity ratio of 1.00 indicates that BEN is somewhat dependend on debt financing.
The Debt to Equity ratio of BEN (1.00) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 8.43 | ||
| Altman-Z | 1.25 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
BEN has a Current Ratio of 1.21. This is a normal value and indicates that BEN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.21, BEN is in line with its industry, outperforming 55.08% of the companies in the same industry.
BEN has a Quick Ratio of 1.21. This is a normal value and indicates that BEN is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.21, BEN perfoms like the industry average, outperforming 55.93% 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.
The Earnings Per Share has been decreasing by -0.97% on average over the past years.
Looking at the last year, BEN shows a small growth in Revenue. The Revenue has grown by 4.67% in the last year.
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
The Earnings Per Share is expected to grow by 6.27% on average over the next years.
BEN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.94% yearly.
EPS Next Y-11.36%
EPS Next 2Y2.92%
EPS Next 3Y5.82%
EPS Next 5Y6.27%
Revenue Next Year1.53%
Revenue Next 2Y3.15%
Revenue Next 3Y3.46%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.56, which indicates a very decent valuation of BEN.
69.49% of the companies in the same industry are more expensive than BEN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.77, BEN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.89, the valuation of BEN can be described as reasonable.
BEN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BEN is cheaper than 75.42% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.23. BEN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.56 | ||
| Fwd PE | 8.89 |
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 83.90% 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 75.85% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.08 | ||
| EV/EBITDA | 12.53 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.92%
EPS Next 3Y5.82%
5. Dividend
5.1 Amount
BEN has a Yearly Dividend Yield of 5.79%, which is a nice return.
BEN's Dividend Yield is comparable with the industry average which is at 8.51.
BEN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.79% |
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.
BEN has decreased its dividend recently.
Dividend Growth(5Y)4.79%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
251.00% 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.
DP251%
EPS Next 2Y2.92%
EPS Next 3Y5.82%
22.59
-0.06 (-0.26%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners47.64%
Inst Owner Change0.51%
Ins Owners21.76%
Ins Owner Change0.41%
Market Cap11.73B
Revenue(TTM)8.64B
Net Income(TTM)270.80M
Analysts51.11
Price Target25.05 (10.89%)
Short Float %5.72%
Short Ratio4.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.79% |
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)0%
PT rev (3m)3.17%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)3.68%
EPS NY rev (1m)0%
EPS NY rev (3m)1.7%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)5.88%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)2.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.56 | ||
| Fwd PE | 8.89 | ||
| P/S | 1.36 | ||
| P/FCF | 8.08 | ||
| P/OCF | 7.13 | ||
| P/B | 0.96 | ||
| P/tB | 7.56 | ||
| EV/EBITDA | 12.53 |
EPS(TTM)2.14
EY9.47%
EPS(NY)2.54
Fwd EY11.25%
FCF(TTM)2.8
FCFY12.38%
OCF(TTM)3.17
OCFY14.03%
SpS16.64
BVpS23.51
TBVpS2.99
PEG (NY)N/A
PEG (5Y)N/A
Graham Number33.64
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)-19.25%
EPS 3Y-13.75%
EPS 5Y-0.97%
EPS Q2Q%-18.33%
EPS Next Y-11.36%
EPS Next 2Y2.92%
EPS Next 3Y5.82%
EPS Next 5Y6.27%
Revenue 1Y (TTM)4.67%
Revenue growth 3Y0.21%
Revenue growth 5Y8.38%
Sales Q2Q%-3.68%
Revenue Next Year1.53%
Revenue Next 2Y3.15%
Revenue Next 3Y3.46%
Revenue Next 5Y5.94%
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%