FRANKLIN RESOURCES INC (BEN) Stock Fundamental Analysis
NYSE:BEN - New York Stock Exchange, Inc. - US3546131018 - Common Stock - Currency: USD
Taking everything into account, BEN scores 4 out of 10 in our fundamental rating. BEN was compared to 222 industry peers in the Capital Markets industry. BEN may be in some trouble as it scores bad on both profitability and health. BEN has a correct valuation and a medium 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.
In the past 5 years BEN has always been profitable.
In the past 5 years BEN always reported a positive cash flow from operatings.
1.2 Ratios
BEN has a worse Return On Assets (1.33%) than 63.59% of its industry peers.
BEN has a worse Return On Equity (3.46%) than 70.05% of its industry peers.
BEN has a Return On Invested Capital of 3.15%. This is comparable to the rest of the industry: BEN outperforms 40.55% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BEN is below the industry average of 6.67%.
| 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 70.51% of the companies in the same industry.
BEN's Profit Margin has declined in the last couple of years.
The Operating Margin of BEN (13.66%) is worse than 67.28% 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.
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.
BEN has a Altman-Z score of 1.26. This is in the better half of the industry: BEN outperforms 60.37% of its industry peers.
BEN has a debt to FCF ratio of 15.26. This is a negative value and a sign of low solvency as BEN would need 15.26 years to pay back of all of its debts.
With a Debt to FCF ratio value of 15.26, BEN perfoms like the industry average, outperforming 48.39% of the companies in the same industry.
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 51.15% 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.
With a Current ratio value of 1.28, BEN perfoms like the industry average, outperforming 56.22% 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 of 1.28. This is comparable to the rest of the industry: BEN outperforms 56.22% of its industry peers.
| 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.
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)-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
BEN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.06% yearly.
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 Year4.5%
Revenue Next 2Y3.82%
Revenue Next 3Y5.07%
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
The Price/Earnings ratio is 9.27, which indicates a very decent valuation of BEN.
BEN's Price/Earnings ratio is rather cheap when compared to the industry. BEN is cheaper than 80.18% of the companies in the same industry.
BEN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.51.
A Price/Forward Earnings ratio of 9.10 indicates a reasonable valuation of BEN.
Based on the Price/Forward Earnings ratio, BEN is valued cheaply inside the industry as 84.33% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 93.88. BEN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.27 | ||
| Fwd PE | 9.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BEN is valued cheaper than 84.33% of the companies in the same industry.
63.59% 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 | 14.67 | ||
| EV/EBITDA | 11.33 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)5.16
PEG (5Y)N/A
EPS Next 2Y4.55%
EPS Next 3Y5.96%
5. Dividend
5.1 Amount
BEN has a Yearly Dividend Yield of 6.40%, which is a nice return.
BEN's Dividend Yield is comparable with the industry average which is at 9.42.
Compared to an average S&P500 Dividend Yield of 2.27, BEN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.4% |
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
BEN pays out 151.87% of its income as dividend. 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 (1/31/2025, 5:24:38 PM)
After market: 22.05 -0.19 (-0.85%)22.24
+2.09 (+10.37%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners44%
Inst Owner Change0.02%
Ins Owners21.45%
Ins Owner Change0.34%
Market Cap11.65B
Analysts48.57
Price Target20.56 (-7.55%)
Short Float %9.19%
Short Ratio5.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.4% |
Yearly Dividend1.29
Dividend Growth(5Y)4.79%
DP151.87%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)2.34%
PT rev (3m)-2.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.58%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.05%
Revenue NY rev (1m)-2.64%
Revenue NY rev (3m)-1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.27 | ||
| Fwd PE | 9.1 | ||
| P/S | 1.37 | ||
| P/FCF | 14.67 | ||
| P/OCF | 12 | ||
| P/B | 0.93 | ||
| P/tB | 7.8 | ||
| EV/EBITDA | 11.33 |
EPS(TTM)2.4
EY10.79%
EPS(NY)2.44
Fwd EY10.99%
FCF(TTM)1.52
FCFY6.82%
OCF(TTM)1.85
OCFY8.33%
SpS16.18
BVpS23.87
TBVpS2.85
PEG (NY)5.16
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 Year4.5%
Revenue Next 2Y3.82%
Revenue Next 3Y5.07%
Revenue Next 5Y3.4%
EBIT growth 1Y-19.42%
EBIT growth 3Y-14.84%
EBIT growth 5Y-4.62%
EBIT Next Year11.82%
EBIT Next 3Y6.96%
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%