FRANKLIN RESOURCES INC (BEN)
US3546131018 - Common Stock
BEN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 218 industry peers in the Capital Markets industry. Both the profitability and financial health of BEN have multiple concerns. BEN has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BEN was profitable.
BEN had a positive operating cash flow in the past year.
Of the past 5 years BEN 4 years were profitable.
BEN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
BEN has a Return On Assets (2.44%) which is in line with its industry peers.
BEN has a Return On Equity of 6.30%. This is in the lower half of the industry: BEN underperforms 61.40% of its industry peers.
BEN has a Return On Invested Capital (3.39%) which is comparable to the rest of the industry.
BEN had an Average Return On Invested Capital over the past 3 years of 5.61%. This is in line with the industry average of 6.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.44% | ||
| ROE | 6.3% | ||
| ROIC | 3.39% |
ROA(3y)4.82%
ROA(5y)5.25%
ROE(3y)11.17%
ROE(5y)10.64%
ROIC(3y)5.61%
ROIC(5y)6.04%
1.3 Margins
Looking at the Profit Margin, with a value of 9.82%, BEN is doing worse than 62.79% of the companies in the same industry.
BEN's Profit Margin has declined in the last couple of years.
BEN has a Operating Margin of 15.31%. This is in the lower half of the industry: BEN underperforms 64.65% of its industry peers.
In the last couple of years the Operating Margin of BEN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.31% | ||
| PM (TTM) | 9.82% | ||
| GM | N/A |
OM growth 3Y-0.96%
OM growth 5Y-10.95%
PM growth 3Y-8.55%
PM growth 5Y-2.21%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
There is no outstanding debt for BEN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
BEN has an Altman-Z score of 1.27. This is a bad value and indicates that BEN is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of BEN (1.27) is comparable to the rest of the industry.
BEN has a debt to FCF ratio of 12.05. This is a negative value and a sign of low solvency as BEN would need 12.05 years to pay back of all of its debts.
BEN has a Debt to FCF ratio of 12.05. This is comparable to the rest of the industry: BEN outperforms 51.63% of its industry peers.
A Debt/Equity ratio of 0.98 indicates that BEN is somewhat dependend on debt financing.
BEN has a Debt to Equity ratio (0.98) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 12.05 | ||
| Altman-Z | 1.27 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
BEN has a Current Ratio of 1.30. 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 Current ratio (1.30) which is in line with its industry peers.
A Quick Ratio of 1.30 indicates that BEN should not have too much problems paying its short term obligations.
BEN has a Quick ratio (1.30) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The earnings per share for BEN have decreased by -7.34% in the last year.
BEN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.97% yearly.
EPS 1Y (TTM)-7.34%
EPS 3Y-13.75%
EPS 5Y-0.97%
EPS Q2Q%-29.76%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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 4.32% yearly.
BEN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.45% yearly.
EPS Next Y1.11%
EPS Next 2Y4.76%
EPS Next 3Y5.05%
EPS Next 5Y4.32%
Revenue Next Year7.46%
Revenue Next 2Y5.55%
Revenue Next 3Y9.82%
Revenue Next 5Y4.45%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.13, which indicates a very decent valuation of BEN.
73.95% of the companies in the same industry are more expensive than BEN, based on the Price/Earnings ratio.
BEN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.96.
A Price/Forward Earnings ratio of 9.02 indicates a reasonable valuation of BEN.
Based on the Price/Forward Earnings ratio, BEN is valued a bit cheaper than the industry average as 76.74% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.82. BEN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.13 | ||
| Fwd PE | 9.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BEN is valued cheaply inside the industry as 83.26% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, BEN is valued a bit cheaper than 69.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.9 | ||
| EV/EBITDA | 11.61 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BEN does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)8.21
PEG (5Y)N/A
EPS Next 2Y4.76%
EPS Next 3Y5.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.75%, BEN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 9.01, 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 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.75% |
5.2 History
The dividend of BEN decreases each year by -20.92%.
BEN has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of BEN decreased recently.
Dividend Growth(5Y)-20.92%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
79.22% of the earnings are spent on dividend by BEN. This is not a sustainable payout ratio.
DP79.22%
EPS Next 2Y4.76%
EPS Next 3Y5.05%
FRANKLIN RESOURCES INC
NYSE:BEN (11/22/2024, 10:40:57 AM)
21.9
+0.18 (+0.83%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap11.47B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.75% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.13 | ||
| Fwd PE | 9.02 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)8.21
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.44% | ||
| ROE | 6.3% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.31% | ||
| PM (TTM) | 9.82% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-7.34%
EPS 3Y-13.75%
EPS 5Y
EPS Q2Q%
EPS Next Y1.11%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y