FRANKLIN RESOURCES INC (BEN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BEN - US3546131018 - Common Stock
25.66 USD
+0.21 (+0.83%)
25.66 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to BEN. BEN was compared to 235 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.
In the past year BEN had a positive cash flow from operations.
BEN had positive earnings in each of the past 5 years.
BEN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 1.46%, BEN is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
The Return On Equity of BEN (3.90%) is worse than 64.68% of its industry peers.
BEN has a Return On Invested Capital (2.90%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for BEN is below the industry average of 7.14%.
| 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 67.66% of its industry peers.
BEN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 12.54%, BEN is doing worse than 63.40% of the companies in the same industry.
BEN's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 36.61%, BEN is not doing good in the industry: 62.98% of the companies in the same industry are doing better.
| 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
Compared to 1 year ago, BEN has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.27, we must say that BEN is in the distress zone and has some risk of bankruptcy.
BEN has a Altman-Z score of 1.27. This is in the better half of the industry: BEN outperforms 62.13% of its industry peers.
BEN has a debt to FCF ratio of 13.49. This is a negative value and a sign of low solvency as BEN would need 13.49 years to pay back of all of its debts.
BEN's Debt to FCF ratio of 13.49 is in line compared to the rest of the industry. BEN outperforms 57.02% of its industry peers.
A Debt/Equity ratio of 0.98 indicates that BEN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.98, BEN perfoms like the industry average, outperforming 51.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 13.49 | ||
| Altman-Z | 1.27 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.00 indicates that BEN may have some problems paying its short term obligations.
BEN's Current ratio of 1.00 is in line compared to the rest of the industry. BEN outperforms 43.40% of its industry peers.
A Quick Ratio of 1.00 indicates that BEN may have some problems paying its short term obligations.
BEN has a Quick ratio of 1.00. This is comparable to the rest of the industry: BEN outperforms 43.83% of its industry peers.
| 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%.
Measured over the past years, BEN shows a quite strong growth in Revenue. The Revenue has been growing by 9.52% on average per year.
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
The Earnings Per Share is expected to grow by 9.18% on average over the next years. This is quite good.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 11.56 indicates a reasonable valuation of BEN.
65.11% of the companies in the same industry are more expensive than BEN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.19, BEN is valued rather cheaply.
The Price/Forward Earnings ratio is 10.14, which indicates a very decent valuation of BEN.
74.47% of the companies in the same industry are more expensive than BEN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, BEN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.56 | ||
| Fwd PE | 10.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BEN is valued cheaply inside the industry as 83.83% of the companies are valued more expensively.
68.94% 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 | 14.66 | ||
| EV/EBITDA | 13.47 |
4.3 Compensation for Growth
BEN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.83
PEG (5Y)5.48
EPS Next 2Y12.48%
EPS Next 3Y11.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.19%, BEN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.27, BEN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.90, BEN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.19% |
5.2 History
The dividend of BEN has a limited annual growth rate of 4.06%.
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)4.06%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
144.97% of the earnings are spent on dividend by BEN. This is not a sustainable payout ratio.
BEN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP144.97%
EPS Next 2Y12.48%
EPS Next 3Y11.6%
25.66
+0.21 (+0.83%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners47.07%
Inst Owner Change0%
Ins Owners21.79%
Ins Owner Change0.44%
Market Cap13.37B
Revenue(TTM)8.77B
Net Income(TTM)471.60M
Analysts52.63
Price Target25.22 (-1.71%)
Short Float %9.42%
Short Ratio6.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.19% |
Yearly Dividend1.31
Dividend Growth(5Y)4.06%
DP144.97%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)-6.18%
EPS NQ rev (3m)-8.57%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)-0.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.56 | ||
| Fwd PE | 10.14 | ||
| P/S | 1.52 | ||
| P/FCF | 14.66 | ||
| P/OCF | 12.54 | ||
| P/B | 1.11 | ||
| P/tB | 7.84 | ||
| EV/EBITDA | 13.47 |
EPS(TTM)2.22
EY8.65%
EPS(NY)2.53
Fwd EY9.86%
FCF(TTM)1.75
FCFY6.82%
OCF(TTM)2.05
OCFY7.97%
SpS16.84
BVpS23.18
TBVpS3.27
PEG (NY)0.83
PEG (5Y)5.48
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 | 1.27 |
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 for BEN stock?
ChartMill assigns a valuation rating of 6 / 10 to FRANKLIN RESOURCES INC (BEN). This can be considered as Fairly Valued.
How profitable is FRANKLIN RESOURCES INC (BEN) stock?
FRANKLIN RESOURCES INC (BEN) has a profitability rating of 2 / 10.
What are the PE and PB ratios of FRANKLIN RESOURCES INC (BEN) stock?
The Price/Earnings (PE) ratio for FRANKLIN RESOURCES INC (BEN) is 11.56 and the Price/Book (PB) ratio is 1.11.
How financially healthy is FRANKLIN RESOURCES INC?
The financial health rating of FRANKLIN RESOURCES INC (BEN) is 2 / 10.