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FRANKLIN ELECTRIC CO INC (FELE) Stock Fundamental Analysis

NASDAQ:FELE - Nasdaq - US3535141028 - Common Stock - Currency: USD

91.33  -1.66 (-1.79%)

After market: 91.33 0 (0%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to FELE. FELE was compared to 128 industry peers in the Machinery industry. FELE scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, FELE is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

FELE had positive earnings in the past year.
In the past year FELE had a positive cash flow from operations.
In the past 5 years FELE has always been profitable.
In the past 5 years FELE always reported a positive cash flow from operatings.
FELE Yearly Net Income VS EBIT VS OCF VS FCFFELE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

1.2 Ratios

FELE has a better Return On Assets (9.21%) than 77.34% of its industry peers.
FELE has a Return On Equity of 13.69%. This is in the better half of the industry: FELE outperforms 67.19% of its industry peers.
With a decent Return On Invested Capital value of 13.37%, FELE is doing good in the industry, outperforming 79.69% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FELE is above the industry average of 10.71%.
Industry RankSector Rank
ROA 9.21%
ROE 13.69%
ROIC 13.37%
ROA(3y)10.67%
ROA(5y)9.92%
ROE(3y)15.87%
ROE(5y)15.11%
ROIC(3y)14.89%
ROIC(5y)13.48%
FELE Yearly ROA, ROE, ROICFELE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

FELE has a better Profit Margin (8.81%) than 67.19% of its industry peers.
In the last couple of years the Profit Margin of FELE has grown nicely.
FELE has a better Operating Margin (12.08%) than 62.50% of its industry peers.
In the last couple of years the Operating Margin of FELE has grown nicely.
Looking at the Gross Margin, with a value of 35.60%, FELE is in the better half of the industry, outperforming 64.06% of the companies in the same industry.
In the last couple of years the Gross Margin of FELE has grown nicely.
Industry RankSector Rank
OM 12.08%
PM (TTM) 8.81%
GM 35.6%
OM growth 3Y2.14%
OM growth 5Y4.37%
PM growth 3Y-1.17%
PM growth 5Y4.26%
GM growth 3Y0.78%
GM growth 5Y1.73%
FELE Yearly Profit, Operating, Gross MarginsFELE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

7

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FELE is still creating some value.
FELE has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, FELE has less shares outstanding
Compared to 1 year ago, FELE has a worse debt to assets ratio.
FELE Yearly Shares OutstandingFELE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M
FELE Yearly Total Debt VS Total AssetsFELE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.2 Solvency

FELE has an Altman-Z score of 6.56. This indicates that FELE is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of FELE (6.56) is better than 85.16% of its industry peers.
FELE has a debt to FCF ratio of 0.81. This is a very positive value and a sign of high solvency as it would only need 0.81 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.81, FELE belongs to the top of the industry, outperforming 89.84% of the companies in the same industry.
FELE has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
FELE has a Debt to Equity ratio of 0.01. This is amongst the best in the industry. FELE outperforms 80.47% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF 0.81
Altman-Z 6.56
ROIC/WACC1.35
WACC9.88%
FELE Yearly LT Debt VS Equity VS FCFFELE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.3 Liquidity

A Current Ratio of 1.98 indicates that FELE should not have too much problems paying its short term obligations.
With a Current ratio value of 1.98, FELE perfoms like the industry average, outperforming 48.44% of the companies in the same industry.
FELE has a Quick Ratio of 1.98. This is a bad value and indicates that FELE is not financially healthy enough and could expect problems in meeting its short term obligations.
FELE has a worse Quick ratio (0.82) than 73.44% of its industry peers.
Industry RankSector Rank
Current Ratio 1.98
Quick Ratio 0.82
FELE Yearly Current Assets VS Current LiabilitesFELE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

4

3. Growth

3.1 Past

The earnings per share for FELE have decreased by -5.45% in the last year.
FELE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.21% yearly.
The Revenue has decreased by -1.26% in the past year.
The Revenue has been growing by 8.99% on average over the past years. This is quite good.
EPS 1Y (TTM)-5.45%
EPS 3Y5.7%
EPS 5Y13.21%
EPS Q2Q%-4.29%
Revenue 1Y (TTM)-1.26%
Revenue growth 3Y6.74%
Revenue growth 5Y8.99%
Sales Q2Q%-1.23%

3.2 Future

The Earnings Per Share is expected to grow by 11.11% on average over the next years. This is quite good.
FELE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.15% yearly.
EPS Next Y9.12%
EPS Next 2Y11.11%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.65%
Revenue Next 2Y5.15%
Revenue Next 3YN/A
Revenue Next 5YN/A

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 stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
FELE Yearly Revenue VS EstimatesFELE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B 2B
FELE Yearly EPS VS EstimatesFELE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4

3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 23.91, which indicates a rather expensive current valuation of FELE.
The rest of the industry has a similar Price/Earnings ratio as FELE.
FELE's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.29.
FELE is valuated rather expensively with a Price/Forward Earnings ratio of 19.21.
FELE's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of FELE to the average of the S&P500 Index (21.74), we can say FELE is valued inline with the index average.
Industry RankSector Rank
PE 23.91
Fwd PE 19.21
FELE Price Earnings VS Forward Price EarningsFELE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

FELE's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, FELE is valued a bit cheaper than the industry average as 63.28% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 20.42
EV/EBITDA 14.14
FELE Per share dataFELE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
FELE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.62
PEG (5Y)1.81
EPS Next 2Y11.11%
EPS Next 3YN/A

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.14%, FELE has a reasonable but not impressive dividend return.
FELE's Dividend Yield is a higher than the industry average which is at 1.81.
Compared to an average S&P500 Dividend Yield of 2.37, FELE's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.14%

5.2 History

The dividend of FELE is nicely growing with an annual growth rate of 11.32%!
FELE has been paying a dividend for at least 10 years, so it has a reliable track record.
FELE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)11.32%
Div Incr Years21
Div Non Decr Years21
FELE Yearly Dividends per shareFELE Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8

5.3 Sustainability

FELE pays out 26.82% of its income as dividend. This is a sustainable payout ratio.
The dividend of FELE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP26.82%
EPS Next 2Y11.11%
EPS Next 3YN/A
FELE Yearly Income VS Free CF VS DividendFELE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
FELE Dividend Payout.FELE Dividend Payout, showing the Payout Ratio.FELE Dividend Payout.PayoutRetained Earnings

FRANKLIN ELECTRIC CO INC

NASDAQ:FELE (7/7/2025, 8:18:52 PM)

After market: 91.33 0 (0%)

91.33

-1.66 (-1.79%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)04-29 2025-04-29/bmo
Earnings (Next)07-29 2025-07-29/bmo
Inst Owners84.95%
Inst Owner Change0%
Ins Owners6.18%
Ins Owner Change7.62%
Market Cap4.16B
Analysts78.18
Price Target101.66 (11.31%)
Short Float %2.04%
Short Ratio2.65
Dividend
Industry RankSector Rank
Dividend Yield 1.14%
Yearly Dividend1.02
Dividend Growth(5Y)11.32%
DP26.82%
Div Incr Years21
Div Non Decr Years21
Ex-Date05-08 2025-05-08 (0.265)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.82%
Min EPS beat(2)-10.26%
Max EPS beat(2)6.63%
EPS beat(4)1
Avg EPS beat(4)-4.98%
Min EPS beat(4)-10.26%
Max EPS beat(4)6.63%
EPS beat(8)1
Avg EPS beat(8)-5.22%
EPS beat(12)3
Avg EPS beat(12)-1.26%
EPS beat(16)6
Avg EPS beat(16)1.65%
Revenue beat(2)1
Avg Revenue beat(2)-1.89%
Min Revenue beat(2)-5.28%
Max Revenue beat(2)1.49%
Revenue beat(4)1
Avg Revenue beat(4)-4.15%
Min Revenue beat(4)-6.55%
Max Revenue beat(4)1.49%
Revenue beat(8)1
Avg Revenue beat(8)-5.43%
Revenue beat(12)2
Avg Revenue beat(12)-3.83%
Revenue beat(16)6
Avg Revenue beat(16)-1.13%
PT rev (1m)0%
PT rev (3m)-8.56%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)-1.98%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.88%
Valuation
Industry RankSector Rank
PE 23.91
Fwd PE 19.21
P/S 2.07
P/FCF 20.42
P/OCF 17.12
P/B 3.21
P/tB 6.46
EV/EBITDA 14.14
EPS(TTM)3.82
EY4.18%
EPS(NY)4.75
Fwd EY5.2%
FCF(TTM)4.47
FCFY4.9%
OCF(TTM)5.33
OCFY5.84%
SpS44.2
BVpS28.45
TBVpS14.14
PEG (NY)2.62
PEG (5Y)1.81
Profitability
Industry RankSector Rank
ROA 9.21%
ROE 13.69%
ROCE 16.85%
ROIC 13.37%
ROICexc 14.2%
ROICexgc 27.27%
OM 12.08%
PM (TTM) 8.81%
GM 35.6%
FCFM 10.12%
ROA(3y)10.67%
ROA(5y)9.92%
ROE(3y)15.87%
ROE(5y)15.11%
ROIC(3y)14.89%
ROIC(5y)13.48%
ROICexc(3y)16.28%
ROICexc(5y)14.68%
ROICexgc(3y)29.59%
ROICexgc(5y)27.09%
ROCE(3y)18.76%
ROCE(5y)16.98%
ROICexcg growth 3Y5.64%
ROICexcg growth 5Y11.53%
ROICexc growth 3Y8.16%
ROICexc growth 5Y9.05%
OM growth 3Y2.14%
OM growth 5Y4.37%
PM growth 3Y-1.17%
PM growth 5Y4.26%
GM growth 3Y0.78%
GM growth 5Y1.73%
F-Score6
Asset Turnover1.05
Health
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF 0.81
Debt/EBITDA 0.05
Cap/Depr 69.36%
Cap/Sales 1.95%
Interest Coverage 250
Cash Conversion 81.03%
Profit Quality 114.81%
Current Ratio 1.98
Quick Ratio 0.82
Altman-Z 6.56
F-Score6
WACC9.88%
ROIC/WACC1.35
Cap/Depr(3y)78.91%
Cap/Depr(5y)73.39%
Cap/Sales(3y)2.04%
Cap/Sales(5y)1.95%
Profit Quality(3y)98.93%
Profit Quality(5y)110.27%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.45%
EPS 3Y5.7%
EPS 5Y13.21%
EPS Q2Q%-4.29%
EPS Next Y9.12%
EPS Next 2Y11.11%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.26%
Revenue growth 3Y6.74%
Revenue growth 5Y8.99%
Sales Q2Q%-1.23%
Revenue Next Year4.65%
Revenue Next 2Y5.15%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-5.9%
EBIT growth 3Y9.03%
EBIT growth 5Y13.75%
EBIT Next Year30.61%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y87.08%
FCF growth 3Y30.12%
FCF growth 5Y7.11%
OCF growth 1Y61.09%
OCF growth 3Y26.28%
OCF growth 5Y8.02%