FRANKLIN RESOURCES INC (BEN) Stock Fundamental Analysis
NYSE:BEN - New York Stock Exchange, Inc. - US3546131018 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to BEN. BEN was compared to 233 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
In the past year BEN was profitable.
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
BEN's Return On Assets of 1.12% is on the low side compared to the rest of the industry. BEN is outperformed by 64.81% of its industry peers.
BEN has a Return On Equity of 2.90%. This is in the lower half of the industry: BEN underperforms 69.10% of its industry peers.
BEN's Return On Invested Capital of 2.98% is on the low side compared to the rest of the industry. BEN is outperformed by 63.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BEN is below the industry average of 7.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.12% | ||
| ROE | 2.9% | ||
| ROIC | 2.98% |
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 has a worse Profit Margin (4.12%) than 68.24% of its industry peers.
BEN's Profit Margin has declined in the last couple of years.
BEN's Operating Margin of 12.84% is on the low side compared to the rest of the industry. BEN is outperformed by 68.24% of its industry peers.
BEN's Operating Margin has declined in the last couple of years.
BEN has a worse Gross Margin (37.13%) than 68.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.84% | ||
| PM (TTM) | 4.12% | ||
| GM | 37.13% |
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
The number of shares outstanding for BEN has been increased compared to 1 year ago.
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
BEN has an Altman-Z score of 1.35. This is a bad value and indicates that BEN is not financially healthy and even has some risk of bankruptcy.
BEN has a better Altman-Z score (1.35) than 60.09% of its industry peers.
BEN has a debt to FCF ratio of 18.32. This is a negative value and a sign of low solvency as BEN would need 18.32 years to pay back of all of its debts.
BEN has a Debt to FCF ratio (18.32) which is comparable to the rest of the industry.
BEN has a Debt/Equity ratio of 0.99. This is a neutral value indicating BEN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.99, BEN perfoms like the industry average, outperforming 49.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 18.32 | ||
| Altman-Z | 1.35 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
BEN has a Current Ratio of 1.41. This is a normal value and indicates that BEN is financially healthy and should not expect problems in meeting its short term obligations.
BEN's Current ratio of 1.41 is in line compared to the rest of the industry. BEN outperforms 57.94% of its industry peers.
A Quick Ratio of 1.41 indicates that BEN should not have too much problems paying its short term obligations.
BEN has a Quick ratio of 1.41. This is comparable to the rest of the industry: BEN outperforms 57.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
The earnings per share for BEN have decreased strongly by -16.04% in the last year.
The Earnings Per Share has been decreasing by -0.97% on average over the past years.
BEN shows a small growth in Revenue. In the last year, the Revenue has grown by 7.38%.
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)-16.04%
EPS 3Y-13.75%
EPS 5Y-0.97%
EPS Q2Q%-16.07%
Revenue 1Y (TTM)7.38%
Revenue growth 3Y0.21%
Revenue growth 5Y8.38%
Sales Q2Q%-3.3%
3.2 Future
BEN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.82% yearly.
BEN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.82% yearly.
EPS Next Y-13.95%
EPS Next 2Y-2.12%
EPS Next 3Y4.05%
EPS Next 5Y1.82%
Revenue Next Year-1.17%
Revenue Next 2Y-0.14%
Revenue Next 3Y1.59%
Revenue Next 5Y2.82%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 11.06, the valuation of BEN can be described as reasonable.
BEN's Price/Earnings ratio is a bit cheaper when compared to the industry. BEN is cheaper than 69.96% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. BEN is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.82, which indicates a very decent valuation of BEN.
68.67% of the companies in the same industry are more expensive than BEN, based on the Price/Forward Earnings ratio.
BEN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.06 | ||
| Fwd PE | 10.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BEN is valued cheaply inside the industry as 82.83% of the companies are valued more expensively.
BEN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.63 | ||
| EV/EBITDA | 13.35 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.12%
EPS Next 3Y4.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.45%, BEN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.00, BEN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, BEN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.45% |
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.
The dividend of BEN decreased recently.
Dividend Growth(5Y)4.79%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
188.22% 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.
DP188.22%
EPS Next 2Y-2.12%
EPS Next 3Y4.05%
24.88
+0.09 (+0.36%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners48.72%
Inst Owner Change2.93%
Ins Owners21.44%
Ins Owner Change0.38%
Market Cap13.07B
Analysts50.53
Price Target21.11 (-15.15%)
Short Float %7.9%
Short Ratio4.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.45% |
Yearly Dividend1.29
Dividend Growth(5Y)4.79%
DP188.22%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.53%
Min EPS beat(2)-1.62%
Max EPS beat(2)10.67%
EPS beat(4)2
Avg EPS beat(4)2.52%
Min EPS beat(4)-3.23%
Max EPS beat(4)10.67%
EPS beat(8)5
Avg EPS beat(8)7.98%
EPS beat(12)8
Avg EPS beat(12)7.51%
EPS beat(16)12
Avg EPS beat(16)12.24%
Revenue beat(2)1
Avg Revenue beat(2)-2.08%
Min Revenue beat(2)-4.17%
Max Revenue beat(2)0.01%
Revenue beat(4)2
Avg Revenue beat(4)-1.33%
Min Revenue beat(4)-4.17%
Max Revenue beat(4)0.38%
Revenue beat(8)5
Avg Revenue beat(8)-0.38%
Revenue beat(12)7
Avg Revenue beat(12)2.52%
Revenue beat(16)9
Avg Revenue beat(16)1.99%
PT rev (1m)6.43%
PT rev (3m)-2.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.76%
EPS NY rev (1m)1.16%
EPS NY rev (3m)-4.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.27%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)-4.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.06 | ||
| Fwd PE | 10.82 | ||
| P/S | 1.5 | ||
| P/FCF | 19.63 | ||
| P/OCF | 14.67 | ||
| P/B | 1.06 | ||
| P/tB | 8.15 | ||
| EV/EBITDA | 13.35 |
EPS(TTM)2.25
EY9.04%
EPS(NY)2.3
Fwd EY9.24%
FCF(TTM)1.27
FCFY5.09%
OCF(TTM)1.7
OCFY6.82%
SpS16.55
BVpS23.49
TBVpS3.05
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.12% | ||
| ROE | 2.9% | ||
| ROCE | 3.93% | ||
| ROIC | 2.98% | ||
| ROICexc | 3.4% | ||
| ROICexgc | 6.16% | ||
| OM | 12.84% | ||
| PM (TTM) | 4.12% | ||
| GM | 37.13% | ||
| FCFM | 7.66% |
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 | 0.99 | ||
| Debt/FCF | 18.32 | ||
| Debt/EBITDA | 7.49 | ||
| Cap/Depr | 43.93% | ||
| Cap/Sales | 2.59% | ||
| Interest Coverage | 1.29 | ||
| Cash Conversion | 54.72% | ||
| Profit Quality | 185.91% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 1.35 |
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)-16.04%
EPS 3Y-13.75%
EPS 5Y-0.97%
EPS Q2Q%-16.07%
EPS Next Y-13.95%
EPS Next 2Y-2.12%
EPS Next 3Y4.05%
EPS Next 5Y1.82%
Revenue 1Y (TTM)7.38%
Revenue growth 3Y0.21%
Revenue growth 5Y8.38%
Sales Q2Q%-3.3%
Revenue Next Year-1.17%
Revenue Next 2Y-0.14%
Revenue Next 3Y1.59%
Revenue Next 5Y2.82%
EBIT growth 1Y-17%
EBIT growth 3Y-14.84%
EBIT growth 5Y-4.62%
EBIT Next Year-2.2%
EBIT Next 3Y7.46%
EBIT Next 5Y2.89%
FCF growth 1Y-48.99%
FCF growth 3Y-12.02%
FCF growth 5Y86.93%
OCF growth 1Y-36.18%
OCF growth 3Y-7.95%
OCF growth 5Y29.32%