FRANKLIN RESOURCES INC (BEN) Stock Fundamental Analysis
NYSE:BEN - New York Stock Exchange, Inc. - US3546131018 - Common Stock - Currency: USD
BEN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 225 industry peers in the Capital Markets industry. Both the profitability and financial health of BEN have multiple concerns. BEN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BEN was profitable.
In the past year BEN had a positive cash flow from operations.
BEN had positive earnings in each of the past 5 years.
BEN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BEN has a Return On Assets of 1.04%. This is in the lower half of the industry: BEN underperforms 67.12% of its industry peers.
BEN has a Return On Equity of 2.71%. This is in the lower half of the industry: BEN underperforms 70.32% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.07%, BEN is doing worse than 62.10% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BEN is below the industry average of 6.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.04% | ||
| ROE | 2.71% | ||
| ROIC | 3.07% |
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 3.87% is on the low side compared to the rest of the industry. BEN is outperformed by 71.69% of its industry peers.
BEN's Profit Margin has declined in the last couple of years.
BEN has a worse Operating Margin (13.09%) than 66.67% of its industry peers.
BEN's Operating Margin has declined in the last couple of years.
The Gross Margin of BEN (37.12%) is worse than 68.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.09% | ||
| PM (TTM) | 3.87% | ||
| GM | 37.12% |
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 1.26, we must say that BEN is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.26, BEN is doing good in the industry, outperforming 61.64% of the companies in the same industry.
BEN has a debt to FCF ratio of 13.94. This is a negative value and a sign of low solvency as BEN would need 13.94 years to pay back of all of its debts.
BEN has a Debt to FCF ratio of 13.94. This is comparable to the rest of the industry: BEN outperforms 51.14% of its industry peers.
BEN has a Debt/Equity ratio of 0.94. This is a neutral value indicating BEN is somewhat dependend on debt financing.
BEN has a Debt to Equity ratio (0.94) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 13.94 | ||
| Altman-Z | 1.26 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
BEN has a Current Ratio of 1.23. This is a normal value and indicates that BEN is financially healthy and should not expect problems in meeting its short term obligations.
BEN has a Current ratio of 1.23. This is comparable to the rest of the industry: BEN outperforms 53.42% of its industry peers.
BEN has a Quick Ratio of 1.23. 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 Quick ratio, with a value of 1.23, BEN is in line with its industry, outperforming 53.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The earnings per share for BEN have decreased strongly by -14.29% in the last year.
Measured over the past years, BEN shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.97% on average per year.
BEN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.99%.
Measured over the past years, BEN shows a quite strong growth in Revenue. The Revenue has been growing by 8.38% on average per year.
EPS 1Y (TTM)-14.29%
EPS 3Y-13.75%
EPS 5Y-0.97%
EPS Q2Q%-9.23%
Revenue 1Y (TTM)10.99%
Revenue growth 3Y0.21%
Revenue growth 5Y8.38%
Sales Q2Q%10.05%
3.2 Future
The Earnings Per Share is expected to grow by 4.06% on average over the next years.
Based on estimates for the next years, BEN will show a small growth in Revenue. The Revenue will grow by 3.40% on average per year.
EPS Next Y-9.59%
EPS Next 2Y1.53%
EPS Next 3Y5.87%
EPS Next 5Y4.06%
Revenue Next Year3.38%
Revenue Next 2Y1.23%
Revenue Next 3Y2.59%
Revenue Next 5Y3.4%
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 8.66 indicates a reasonable valuation of BEN.
Compared to the rest of the industry, the Price/Earnings ratio of BEN indicates a somewhat cheap valuation: BEN is cheaper than 79.00% of the companies listed in the same industry.
BEN is valuated cheaply when we compare the Price/Earnings ratio to 29.98, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.20, the valuation of BEN can be described as reasonable.
Based on the Price/Forward Earnings ratio, BEN is valued cheaply inside the industry as 86.30% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.66, BEN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.66 | ||
| Fwd PE | 8.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BEN is valued cheaper than 84.47% of the companies in the same industry.
BEN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BEN is cheaper than 65.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.55 | ||
| EV/EBITDA | 11.55 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.53%
EPS Next 3Y5.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.45%, BEN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.75, BEN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, BEN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.45% |
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
197.19% of the earnings are spent on dividend by BEN. This is not a sustainable payout ratio.
BEN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP197.19%
EPS Next 2Y1.53%
EPS Next 3Y5.87%
NYSE:BEN (3/3/2025, 12:32:46 PM)
20.275
+0.02 (+0.12%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners47.32%
Inst Owner Change3.86%
Ins Owners21.44%
Ins Owner Change0.41%
Market Cap10.65B
Analysts49.52
Price Target21.99 (8.46%)
Short Float %11.06%
Short Ratio7.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.45% |
Yearly Dividend1.29
Dividend Growth(5Y)4.79%
DP197.19%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.72%
Min EPS beat(2)-3.23%
Max EPS beat(2)10.67%
EPS beat(4)2
Avg EPS beat(4)2.15%
Min EPS beat(4)-3.23%
Max EPS beat(4)10.67%
EPS beat(8)6
Avg EPS beat(8)9.07%
EPS beat(12)9
Avg EPS beat(12)9.01%
EPS beat(16)13
Avg EPS beat(16)12.66%
Revenue beat(2)1
Avg Revenue beat(2)-1.9%
Min Revenue beat(2)-4.17%
Max Revenue beat(2)0.38%
Revenue beat(4)1
Avg Revenue beat(4)-1.59%
Min Revenue beat(4)-4.17%
Max Revenue beat(4)0.38%
Revenue beat(8)5
Avg Revenue beat(8)0.04%
Revenue beat(12)6
Avg Revenue beat(12)2.44%
Revenue beat(16)9
Avg Revenue beat(16)2.13%
PT rev (1m)9.99%
PT rev (3m)9.93%
EPS NQ rev (1m)-5.27%
EPS NQ rev (3m)-14.8%
EPS NY rev (1m)-1.87%
EPS NY rev (3m)-11.22%
Revenue NQ rev (1m)-3.91%
Revenue NQ rev (3m)-7.64%
Revenue NY rev (1m)-1.07%
Revenue NY rev (3m)-3.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.66 | ||
| Fwd PE | 8.2 | ||
| P/S | 1.22 | ||
| P/FCF | 12.55 | ||
| P/OCF | 9.88 | ||
| P/B | 0.85 | ||
| P/tB | 6.7 | ||
| EV/EBITDA | 11.55 |
EPS(TTM)2.34
EY11.54%
EPS(NY)2.47
Fwd EY12.2%
FCF(TTM)1.62
FCFY7.97%
OCF(TTM)2.05
OCFY10.12%
SpS16.63
BVpS23.72
TBVpS3.03
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.04% | ||
| ROE | 2.71% | ||
| ROCE | 4.04% | ||
| ROIC | 3.07% | ||
| ROICexc | 3.52% | ||
| ROICexgc | 6.5% | ||
| OM | 13.09% | ||
| PM (TTM) | 3.87% | ||
| GM | 37.12% | ||
| FCFM | 9.71% |
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 | 0.94 | ||
| Debt/FCF | 13.94 | ||
| Debt/EBITDA | 7.19 | ||
| Cap/Depr | 47.2% | ||
| Cap/Sales | 2.63% | ||
| Interest Coverage | 1.35 | ||
| Cash Conversion | 66.15% | ||
| Profit Quality | 250.92% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 1.26 |
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)-14.29%
EPS 3Y-13.75%
EPS 5Y-0.97%
EPS Q2Q%-9.23%
EPS Next Y-9.59%
EPS Next 2Y1.53%
EPS Next 3Y5.87%
EPS Next 5Y4.06%
Revenue 1Y (TTM)10.99%
Revenue growth 3Y0.21%
Revenue growth 5Y8.38%
Sales Q2Q%10.05%
Revenue Next Year3.38%
Revenue Next 2Y1.23%
Revenue Next 3Y2.59%
Revenue Next 5Y3.4%
EBIT growth 1Y-17.31%
EBIT growth 3Y-14.84%
EBIT growth 5Y-4.62%
EBIT Next Year6.26%
EBIT Next 3Y10.04%
EBIT Next 5Y1.75%
FCF growth 1Y-40.78%
FCF growth 3Y-12.02%
FCF growth 5Y86.93%
OCF growth 1Y-29.73%
OCF growth 3Y-7.95%
OCF growth 5Y29.32%