FRANKLIN RESOURCES INC (BEN)
US3546131018 - Common Stock
Overall BEN gets a fundamental rating of 4 out of 10. We evaluated BEN against 220 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.
BEN had positive earnings in each of the past 5 years.
In the past 5 years BEN always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 1.33%, BEN is not doing good in the industry: 64.06% of the companies in the same industry are doing better.
BEN has a Return On Equity of 3.46%. This is in the lower half of the industry: BEN underperforms 70.51% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.15%, BEN is in line with its industry, outperforming 40.09% 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 6.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.33% | ||
| ROE | 3.46% | ||
| ROIC | 3.15% |
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
Looking at the Profit Margin, with a value of 5.10%, BEN is doing worse than 70.97% of the companies in the same industry.
In the last couple of years the Profit Margin of BEN has declined.
BEN has a worse Operating Margin (13.66%) than 67.74% of its industry peers.
In the last couple of years the Operating Margin of BEN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.66% | ||
| PM (TTM) | 5.1% | ||
| GM | N/A |
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
BEN has an Altman-Z score of 1.26. 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 1.26. This is in the better half of the industry: BEN outperforms 61.29% of its industry peers.
The Debt to FCF ratio of BEN is 15.26, which is on the high side as it means it would take BEN, 15.26 years of fcf income to pay off all of its debts.
BEN has a Debt to FCF ratio of 15.26. This is comparable to the rest of the industry: BEN outperforms 48.85% of its industry peers.
A Debt/Equity ratio of 0.97 indicates that BEN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.97, BEN perfoms like the industry average, outperforming 52.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 15.26 | ||
| Altman-Z | 1.26 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
BEN has a Current Ratio of 1.28. 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 1.28, BEN is in line with its industry, outperforming 57.60% of the companies in the same industry.
BEN has a Quick Ratio of 1.28. 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 Quick ratio (1.28) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
BEN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.34%.
The Earnings Per Share has been decreasing by -0.97% on average over the past years.
The Revenue has grown by 8.01% in the past year. This is quite good.
BEN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.38% yearly.
EPS 1Y (TTM)-7.34%
EPS 3Y-13.75%
EPS 5Y-0.97%
EPS Q2Q%-29.76%
Revenue 1Y (TTM)8.01%
Revenue growth 3Y0.21%
Revenue growth 5Y8.38%
Sales Q2Q%8.6%
3.2 Future
Based on estimates for the next years, BEN will show a small growth in Earnings Per Share. The EPS will grow by 4.06% on average per year.
BEN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.40% yearly.
EPS Next Y1.8%
EPS Next 2Y4.55%
EPS Next 3Y5.96%
EPS Next 5Y4.06%
Revenue Next Year7.33%
Revenue Next 2Y5.48%
Revenue Next 3Y5.73%
Revenue Next 5Y3.4%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 8.70, 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 76.50% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.37. BEN is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.55 indicates a reasonable valuation of BEN.
Based on the Price/Forward Earnings ratio, BEN is valued a bit cheaper than 79.72% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.85. BEN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.7 | ||
| Fwd PE | 8.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BEN is valued cheaply inside the industry as 83.41% of the companies are valued more expensively.
BEN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BEN is cheaper than 62.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.77 | ||
| EV/EBITDA | 11.43 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BEN does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)4.84
PEG (5Y)N/A
EPS Next 2Y4.55%
EPS Next 3Y5.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.41%, BEN is a good candidate for dividend investing.
BEN's Dividend Yield is comparable with the industry average which is at 9.57.
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 | 6.41% |
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
151.87% of the earnings are spent on dividend by BEN. This is not a sustainable payout ratio.
The dividend of BEN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP151.87%
EPS Next 2Y4.55%
EPS Next 3Y5.96%
FRANKLIN RESOURCES INC
NYSE:BEN (12/24/2024, 1:15:00 PM)
After market: 20.88 0 (0%)20.88
+0.42 (+2.05%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners44%
Inst Owner Change4.68%
Ins Owners21.45%
Ins Owner Change0.54%
Market Cap10.93B
Analysts48.57
Price Target20.09 (-3.78%)
Short Float %9.41%
Short Ratio6.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.41% |
Dividend Growth(5Y)4.79%
DP151.87%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.5%
Min EPS beat(2)-3.23%
Max EPS beat(2)4.24%
EPS beat(4)2
Avg EPS beat(4)2.48%
Min EPS beat(4)-3.23%
Max EPS beat(4)12.01%
EPS beat(8)5
Avg EPS beat(8)6.98%
EPS beat(12)9
Avg EPS beat(12)9.82%
EPS beat(16)13
Avg EPS beat(16)12%
Revenue beat(2)1
Avg Revenue beat(2)-0.58%
Min Revenue beat(2)-1.54%
Max Revenue beat(2)0.38%
Revenue beat(4)2
Avg Revenue beat(4)-0.54%
Min Revenue beat(4)-1.54%
Max Revenue beat(4)0.38%
Revenue beat(8)6
Avg Revenue beat(8)4.61%
Revenue beat(12)7
Avg Revenue beat(12)2.89%
Revenue beat(16)10
Avg Revenue beat(16)2.46%
PT rev (1m)-4.81%
PT rev (3m)-15.66%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)-16.58%
EPS NY rev (1m)0.68%
EPS NY rev (3m)-9.27%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)2.05%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)1.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.7 | ||
| Fwd PE | 8.55 | ||
| P/S | 1.29 | ||
| P/FCF | 13.77 | ||
| P/OCF | 11.26 | ||
| P/B | 0.87 | ||
| P/tB | 7.32 | ||
| EV/EBITDA | 11.43 |
EPS(TTM)2.4
EY11.49%
EPS(NY)2.44
Fwd EY11.7%
FCF(TTM)1.52
FCFY7.26%
OCF(TTM)1.85
OCFY8.88%
SpS16.19
BVpS23.89
TBVpS2.85
PEG (NY)4.84
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.33% | ||
| ROE | 3.46% | ||
| ROCE | 4.15% | ||
| ROIC | 3.15% | ||
| ROICexc | 3.74% | ||
| ROICexgc | 7.3% | ||
| OM | 13.66% | ||
| PM (TTM) | 5.1% | ||
| GM | N/A | ||
| FCFM | 9.37% |
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 Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 15.26 | ||
| Debt/EBITDA | 7.52 | ||
| Cap/Depr | 38.95% | ||
| Cap/Sales | 2.09% | ||
| Interest Coverage | 1.43 | ||
| Cash Conversion | 60.23% | ||
| Profit Quality | 183.76% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 | ||
| 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)-7.34%
EPS 3Y-13.75%
EPS 5Y-0.97%
EPS Q2Q%-29.76%
EPS Next Y1.8%
EPS Next 2Y4.55%
EPS Next 3Y5.96%
EPS Next 5Y4.06%
Revenue 1Y (TTM)8.01%
Revenue growth 3Y0.21%
Revenue growth 5Y8.38%
Sales Q2Q%8.6%
Revenue Next Year7.33%
Revenue Next 2Y5.48%
Revenue Next 3Y5.73%
Revenue Next 5Y3.4%
EBIT growth 1Y-19.42%
EBIT growth 3Y-14.84%
EBIT growth 5Y-4.62%
EBIT Next Year16.4%
EBIT Next 3Y1.62%
EBIT Next 5Y1.75%
FCF growth 1Y-19.77%
FCF growth 3Y-12.02%
FCF growth 5Y86.93%
OCF growth 1Y-14.7%
OCF growth 3Y-7.95%
OCF growth 5Y29.32%