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 228 industry peers in the Capital Markets industry. Both the profitability and financial health of BEN have multiple concerns. BEN has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years BEN has been profitable.
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 66.23% of its industry peers.
BEN has a worse Return On Equity (2.71%) than 69.30% of its industry peers.
BEN's Return On Invested Capital of 3.07% is on the low side compared to the rest of the industry. BEN is outperformed by 61.40% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BEN is below the industry average of 7.06%.
| 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 71.05% of its industry peers.
In the last couple of years the Profit Margin of BEN has declined.
BEN has a worse Operating Margin (13.09%) than 67.98% of its industry peers.
In the last couple of years the Operating Margin of BEN has declined.
Looking at the Gross Margin, with a value of 37.12%, BEN is doing worse than 65.79% of the companies in the same industry.
| 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
BEN has more shares outstanding than it did 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 1.21, we must say that BEN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of BEN (1.21) is better than 60.96% of its industry peers.
The Debt to FCF ratio of BEN is 13.94, which is on the high side as it means it would take BEN, 13.94 years of fcf income to pay off all of its debts.
BEN has a Debt to FCF ratio (13.94) which is comparable to the rest of the industry.
BEN has a Debt/Equity ratio of 0.94. This is a neutral value indicating BEN is somewhat dependend on debt financing.
BEN's Debt to Equity ratio of 0.94 is in line compared to the rest of the industry. BEN outperforms 55.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 13.94 | ||
| Altman-Z | 1.21 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.23 indicates that BEN should not have too much problems paying its short term obligations.
BEN's Current ratio of 1.23 is in line compared to the rest of the industry. BEN outperforms 57.02% of its industry peers.
A Quick Ratio of 1.23 indicates that BEN should not have too much problems paying its short term obligations.
BEN has a Quick ratio of 1.23. This is comparable to the rest of the industry: BEN outperforms 57.02% of its industry peers.
| 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.
The Earnings Per Share has been decreasing by -0.97% on average over the past years.
The Revenue has grown by 10.99% 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)-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 1.82% 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 2.82% on average per year.
EPS Next Y-13.18%
EPS Next 2Y-2.92%
EPS Next 3Y2.88%
EPS Next 5Y1.82%
Revenue Next Year-0.62%
Revenue Next 2Y0.48%
Revenue Next 3Y1.9%
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.
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
A Price/Earnings ratio of 7.53 indicates a rather cheap valuation of BEN.
Based on the Price/Earnings ratio, BEN is valued cheaply inside the industry as 82.89% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of BEN to the average of the S&P500 Index (28.29), we can say BEN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.79, the valuation of BEN can be described as very cheap.
Based on the Price/Forward Earnings ratio, BEN is valued a bit cheaper than the industry average as 79.82% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.08. BEN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.53 | ||
| Fwd PE | 7.79 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BEN indicates a rather cheap valuation: BEN is cheaper than 85.09% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BEN is valued a bit cheaper than the industry average as 71.05% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.9 | ||
| EV/EBITDA | 10.7 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.92%
EPS Next 3Y2.88%
5. Dividend
5.1 Amount
BEN has a Yearly Dividend Yield of 7.27%, which is a nice return.
BEN's Dividend Yield is a higher than the industry average which is at 8.65.
BEN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.27% |
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.
The dividend of BEN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP197.19%
EPS Next 2Y-2.92%
EPS Next 3Y2.88%
17.61
+0.06 (+0.34%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners47.32%
Inst Owner Change0.07%
Ins Owners21.44%
Ins Owner Change0.41%
Market Cap9.25B
Analysts49.47
Price Target21.45 (21.81%)
Short Float %11.42%
Short Ratio7.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.27% |
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)-2.11%
PT rev (3m)4.32%
EPS NQ rev (1m)-1.61%
EPS NQ rev (3m)-16.63%
EPS NY rev (1m)-3.96%
EPS NY rev (3m)-14.71%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)-8.26%
Revenue NY rev (1m)-3.87%
Revenue NY rev (3m)-7.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.53 | ||
| Fwd PE | 7.79 | ||
| P/S | 1.06 | ||
| P/FCF | 10.9 | ||
| P/OCF | 8.58 | ||
| P/B | 0.74 | ||
| P/tB | 5.82 | ||
| EV/EBITDA | 10.7 |
EPS(TTM)2.34
EY13.29%
EPS(NY)2.26
Fwd EY12.84%
FCF(TTM)1.62
FCFY9.17%
OCF(TTM)2.05
OCFY11.65%
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 | 1.21 |
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-13.18%
EPS Next 2Y-2.92%
EPS Next 3Y2.88%
EPS Next 5Y1.82%
Revenue 1Y (TTM)10.99%
Revenue growth 3Y0.21%
Revenue growth 5Y8.38%
Sales Q2Q%10.05%
Revenue Next Year-0.62%
Revenue Next 2Y0.48%
Revenue Next 3Y1.9%
Revenue Next 5Y2.82%
EBIT growth 1Y-17.31%
EBIT growth 3Y-14.84%
EBIT growth 5Y-4.62%
EBIT Next Year4.75%
EBIT Next 3Y9.69%
EBIT Next 5Y2.89%
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%