FRANKLIN RESOURCES INC (BEN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BEN - US3546131018 - Common Stock
23.89 USD
+0.03 (+0.13%)
23.89 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to BEN. BEN was compared to 235 industry peers in the Capital Markets industry. BEN may be in some trouble as it scores bad on both profitability and health. BEN scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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's Return On Assets of 1.46% is on the low side compared to the rest of the industry. BEN is outperformed by 60.00% of its industry peers.
The Return On Equity of BEN (3.90%) is worse than 64.68% of its industry peers.
BEN has a Return On Invested Capital of 2.90%. This is comparable to the rest of the industry: BEN outperforms 42.13% of its industry peers.
BEN had an Average Return On Invested Capital over the past 3 years of 3.25%. This is below the industry average of 7.07%.
| 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: 67.23% of the companies in the same industry are doing better.
BEN's Profit Margin has declined in the last couple of years.
BEN's Operating Margin of 12.54% is on the low side compared to the rest of the industry. BEN is outperformed by 62.98% of its industry peers.
BEN's Operating Margin has declined in the last couple of years.
BEN has a Gross Margin of 36.61%. This is in the lower half of the industry: BEN underperforms 63.40% 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
BEN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, BEN has more shares outstanding
Compared to 1 year ago, BEN has a worse debt to assets ratio.
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 has a Altman-Z score of 1.25. This is in the better half of the industry: BEN outperforms 61.28% of its industry peers.
The Debt to FCF ratio of BEN is 13.49, which is on the high side as it means it would take BEN, 13.49 years of fcf income to pay off all of its debts.
BEN has a Debt to FCF ratio (13.49) which is comparable to the rest of the industry.
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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 13.49 | ||
| Altman-Z | 1.25 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
BEN has a Current Ratio of 1.00. This is a bad value and indicates that BEN is not financially healthy enough and could expect problems in meeting its short term obligations.
BEN has a Current ratio (1.00) which is in line with its industry peers.
BEN has a Quick Ratio of 1.00. This is a bad value and indicates that BEN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.00, BEN is in line with its industry, outperforming 43.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
BEN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.50%.
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.
BEN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.52% yearly.
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.
The Revenue is expected to grow by 5.81% on average over the next years.
EPS Next Y13.95%
EPS Next 2Y12.48%
EPS Next 3Y11.6%
EPS Next 5Y9.18%
Revenue Next Year4.55%
Revenue Next 2Y5.08%
Revenue Next 3Y11.4%
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.
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
Based on the Price/Earnings ratio of 10.76, the valuation of BEN can be described as reasonable.
67.23% of the companies in the same industry are more expensive than BEN, based on the Price/Earnings ratio.
BEN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.51.
With a Price/Forward Earnings ratio of 9.44, the valuation of BEN can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BEN indicates a somewhat cheap valuation: BEN is cheaper than 76.17% of the companies listed in the same industry.
BEN is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.76 | ||
| Fwd PE | 9.44 |
4.2 Price Multiples
84.26% of the companies in the same industry are more expensive than BEN, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BEN indicates a somewhat cheap valuation: BEN is cheaper than 68.94% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.65 | ||
| EV/EBITDA | 12.97 |
4.3 Compensation for Growth
BEN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.77
PEG (5Y)5.1
EPS Next 2Y12.48%
EPS Next 3Y11.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.46%, BEN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.65, 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 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.46% |
5.2 History
The dividend of BEN has a limited annual growth rate of 4.06%.
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)4.06%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
BEN pays out 144.97% 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.
DP144.97%
EPS Next 2Y12.48%
EPS Next 3Y11.6%
23.89
+0.03 (+0.13%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners46.7%
Inst Owner Change-2.38%
Ins Owners21.83%
Ins Owner Change0.45%
Market Cap12.45B
Revenue(TTM)8.77B
Net Income(TTM)471.60M
Analysts52.63
Price Target25.22 (5.57%)
Short Float %9.42%
Short Ratio6.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.46% |
Yearly Dividend1.31
Dividend Growth(5Y)4.06%
DP144.97%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.65%
Min EPS beat(2)-1.74%
Max EPS beat(2)15.04%
EPS beat(4)2
Avg EPS beat(4)5.59%
Min EPS beat(4)-1.74%
Max EPS beat(4)15.04%
EPS beat(8)4
Avg EPS beat(8)4.04%
EPS beat(12)7
Avg EPS beat(12)6.52%
EPS beat(16)11
Avg EPS beat(16)8.76%
Revenue beat(2)1
Avg Revenue beat(2)1.48%
Min Revenue beat(2)-1.59%
Max Revenue beat(2)4.55%
Revenue beat(4)2
Avg Revenue beat(4)-0.3%
Min Revenue beat(4)-4.17%
Max Revenue beat(4)4.55%
Revenue beat(8)4
Avg Revenue beat(8)-0.42%
Revenue beat(12)8
Avg Revenue beat(12)2.98%
Revenue beat(16)9
Avg Revenue beat(16)2.09%
PT rev (1m)-0.37%
PT rev (3m)0.7%
EPS NQ rev (1m)-6.44%
EPS NQ rev (3m)-8.57%
EPS NY rev (1m)-2.56%
EPS NY rev (3m)-0.5%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)-0.97%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)-0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.76 | ||
| Fwd PE | 9.44 | ||
| P/S | 1.42 | ||
| P/FCF | 13.65 | ||
| P/OCF | 11.67 | ||
| P/B | 1.03 | ||
| P/tB | 7.3 | ||
| EV/EBITDA | 12.97 |
EPS(TTM)2.22
EY9.29%
EPS(NY)2.53
Fwd EY10.59%
FCF(TTM)1.75
FCFY7.32%
OCF(TTM)2.05
OCFY8.57%
SpS16.84
BVpS23.18
TBVpS3.27
PEG (NY)0.77
PEG (5Y)5.1
Graham Number34.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.46% | ||
| ROE | 3.9% | ||
| ROCE | 4.04% | ||
| ROIC | 2.9% | ||
| ROICexc | 3.34% | ||
| ROICexgc | 6.18% | ||
| OM | 12.54% | ||
| PM (TTM) | 5.38% | ||
| GM | 36.61% | ||
| FCFM | 10.39% |
ROA(3y)1.86%
ROA(5y)3.45%
ROE(3y)4.82%
ROE(5y)8.17%
ROIC(3y)3.25%
ROIC(5y)4.29%
ROICexc(3y)3.84%
ROICexc(5y)5.28%
ROICexgc(3y)7.52%
ROICexgc(5y)11.66%
ROCE(3y)4.53%
ROCE(5y)5.98%
ROICexgc growth 3Y-25.89%
ROICexgc growth 5Y-17.95%
ROICexc growth 3Y-19.86%
ROICexc growth 5Y-8.77%
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
F-Score7
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 13.49 | ||
| Debt/EBITDA | 7.25 | ||
| Cap/Depr | 29.05% | ||
| Cap/Sales | 1.76% | ||
| Interest Coverage | 1.28 | ||
| Cash Conversion | 65.34% | ||
| Profit Quality | 193.3% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 1.25 |
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)33.8%
Cap/Depr(5y)30.17%
Cap/Sales(3y)1.92%
Cap/Sales(5y)1.56%
Profit Quality(3y)164.72%
Profit Quality(5y)142.29%
High Growth Momentum
Growth
EPS 1Y (TTM)-7.5%
EPS 3Y-15.2%
EPS 5Y2.11%
EPS Q2Q%13.56%
EPS Next Y13.95%
EPS Next 2Y12.48%
EPS Next 3Y11.6%
EPS Next 5Y9.18%
Revenue 1Y (TTM)3.45%
Revenue growth 3Y1.96%
Revenue growth 5Y9.52%
Sales Q2Q%5.74%
Revenue Next Year4.55%
Revenue Next 2Y5.08%
Revenue Next 3Y11.4%
Revenue Next 5Y5.81%
EBIT growth 1Y-5.02%
EBIT growth 3Y-14.73%
EBIT growth 5Y0.95%
EBIT Next Year44.53%
EBIT Next 3Y15.67%
EBIT Next 5Y9.68%
FCF growth 1Y14.78%
FCF growth 3Y-21.25%
FCF growth 5Y-1.43%
OCF growth 1Y9.76%
OCF growth 3Y-18.32%
OCF growth 5Y-0.32%
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 7 / 10 to FRANKLIN RESOURCES INC (BEN). This can be considered as Undervalued.
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 10.76 and the Price/Book (PB) ratio is 1.03.
How financially healthy is FRANKLIN RESOURCES INC?
The financial health rating of FRANKLIN RESOURCES INC (BEN) is 2 / 10.