FRANKLIN RESOURCES INC (BEN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BEN - US3546131018 - Common Stock
24.19 USD
+0.01 (+0.04%)
24.19 USD
0 (0%)
Overall BEN gets a fundamental rating of 3 out of 10. We evaluated BEN against 235 industry peers in the Capital Markets industry. BEN may be in some trouble as it scores bad on both profitability and health. BEN may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
BEN had positive earnings in the past year.
In the past year BEN had a positive cash flow from operations.
Each year in the past 5 years BEN has been profitable.
In the past 5 years BEN always reported a positive cash flow from operatings.
1.2 Ratios
BEN has a Return On Assets of 1.46%. This is in the lower half of the industry: BEN underperforms 60.08% of its industry peers.
Looking at the Return On Equity, with a value of 3.90%, BEN is doing worse than 64.71% of the companies in the same industry.
With a Return On Invested Capital value of 2.90%, BEN perfoms like the industry average, outperforming 42.02% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BEN 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
BEN's Profit Margin of 5.38% is on the low side compared to the rest of the industry. BEN is outperformed by 67.65% of its industry peers.
In the last couple of years the Profit Margin of BEN has declined.
BEN has a Operating Margin of 12.54%. This is in the lower half of the industry: BEN underperforms 63.45% 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 63.45% 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
The number of shares outstanding for BEN has been reduced compared to 1 year ago.
Compared to 5 years ago, BEN has more shares outstanding
The debt/assets ratio for BEN is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.25, we must say that BEN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of BEN (1.25) is better than 60.92% 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 of 13.49. This is comparable to the rest of the industry: BEN outperforms 57.14% of its industry peers.
BEN has a Debt/Equity ratio of 0.98. This is a neutral value indicating BEN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.98, BEN perfoms like the industry average, outperforming 51.26% of the companies in the same 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.
With a Current ratio value of 1.00, BEN perfoms like the industry average, outperforming 43.28% of the companies in the same industry.
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.
BEN has a Quick ratio (1.00) which is comparable to the rest of the 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%.
The Earnings Per Share has been growing slightly by 2.11% on average over the past years.
BEN shows a small growth in Revenue. In the last year, the Revenue has grown by 3.45%.
The Revenue has been growing by 9.52% on average over the past years. This is quite good.
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
Based on estimates for the next years, BEN will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.18% on average per year.
BEN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.81% yearly.
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
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
Based on the Price/Earnings ratio of 10.90, the valuation of BEN can be described as reasonable.
66.39% of the companies in the same industry are more expensive than BEN, based on the Price/Earnings ratio.
BEN is valuated cheaply when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.56, which indicates a very decent valuation of BEN.
Based on the Price/Forward Earnings ratio, BEN is valued a bit cheaper than 76.05% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BEN to the average of the S&P500 Index (23.46), we can say BEN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.9 | ||
| Fwd PE | 9.56 |
4.2 Price Multiples
83.61% of the companies in the same industry are more expensive than BEN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, BEN is valued a bit cheaper than 68.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.82 | ||
| EV/EBITDA | 13.07 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.78
PEG (5Y)5.17
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 paid a dividend for at least 10 years, which is a reliable track record.
BEN has decreased its dividend 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.
The dividend of BEN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP144.97%
EPS Next 2Y12.48%
EPS Next 3Y11.6%
24.19
+0.01 (+0.04%)
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 Cap12.60B
Revenue(TTM)8.77B
Net Income(TTM)471.60M
Analysts52.63
Price Target25.22 (4.26%)
Short Float %9.43%
Short Ratio5.74
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-Date
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 | 10.9 | ||
| Fwd PE | 9.56 | ||
| P/S | 1.44 | ||
| P/FCF | 13.82 | ||
| P/OCF | 11.82 | ||
| P/B | 1.04 | ||
| P/tB | 7.39 | ||
| EV/EBITDA | 13.07 |
EPS(TTM)2.22
EY9.18%
EPS(NY)2.53
Fwd EY10.46%
FCF(TTM)1.75
FCFY7.23%
OCF(TTM)2.05
OCFY8.46%
SpS16.84
BVpS23.18
TBVpS3.27
PEG (NY)0.78
PEG (5Y)5.17
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 of FRANKLIN RESOURCES INC (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 is the expected EPS growth for FRANKLIN RESOURCES INC (BEN) stock?
The Earnings per Share (EPS) of FRANKLIN RESOURCES INC (BEN) is expected to grow by 13.95% in the next year.
Is the dividend of FRANKLIN RESOURCES INC sustainable?
The dividend rating of FRANKLIN RESOURCES INC (BEN) is 5 / 10 and the dividend payout ratio is 144.97%.