100.2 USD
-1.92 (-1.88%)
100.2 USD
0 (0%)
FELE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 132 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. FELE is not valued too expensively and it also shows a decent growth rate. These ratings could make FELE a good candidate for quality investing.
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.
1.2 Ratios
- Looking at the Return On Assets, with a value of 7.05%, FELE is in the better half of the industry, outperforming 71.21% of the companies in the same industry.
- The Return On Equity of FELE (10.69%) is better than 64.39% of its industry peers.
- The Return On Invested Capital of FELE (13.13%) is better than 81.06% of its industry peers.
- FELE had an Average Return On Invested Capital over the past 3 years of 14.89%. This is above the industry average of 10.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.05% | ||
| ROE | 10.69% | ||
| ROIC | 13.13% |
ROA(3y)10.67%
ROA(5y)9.92%
ROE(3y)15.87%
ROE(5y)15.11%
ROIC(3y)14.89%
ROIC(5y)13.48%
1.3 Margins
- The Profit Margin of FELE (6.68%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of FELE has grown nicely.
- FELE's Operating Margin of 12.52% is fine compared to the rest of the industry. FELE outperforms 62.88% 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 35.48%, FELE is in the better half of the industry, outperforming 65.15% of the companies in the same industry.
- In the last couple of years the Gross Margin of FELE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.52% | ||
| PM (TTM) | 6.68% | ||
| GM | 35.48% |
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%
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.
- Compared to 1 year ago, FELE has less shares outstanding
- Compared to 5 years ago, FELE has less shares outstanding
- Compared to 1 year ago, FELE has a worse debt to assets ratio.
2.2 Solvency
- FELE has an Altman-Z score of 6.57. This indicates that FELE is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of FELE (6.57) is better than 87.12% of its industry peers.
- The Debt to FCF ratio of FELE is 1.01, which is an excellent value as it means it would take FELE, only 1.01 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of FELE (1.01) is better than 88.64% of its industry peers.
- A Debt/Equity ratio of 0.10 indicates that FELE is not too dependend on debt financing.
- FELE has a Debt to Equity ratio of 0.10. This is in the better half of the industry: FELE outperforms 78.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | 6.57 |
ROIC/WACC1.35
WACC9.75%
2.3 Liquidity
- FELE has a Current Ratio of 2.54. This indicates that FELE is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of FELE (2.54) is better than 66.67% of its industry peers.
- A Quick Ratio of 1.12 indicates that FELE should not have too much problems paying its short term obligations.
- FELE's Quick ratio of 1.12 is in line compared to the rest of the industry. FELE outperforms 44.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.54 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
- FELE shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.01%.
- Measured over the past years, FELE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.21% on average per year.
- FELE shows a small growth in Revenue. In the last year, the Revenue has grown by 5.06%.
- FELE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.99% yearly.
EPS 1Y (TTM)1.01%
EPS 3Y5.7%
EPS 5Y13.21%
EPS Q2Q%11.11%
Revenue 1Y (TTM)5.06%
Revenue growth 3Y6.74%
Revenue growth 5Y8.99%
Sales Q2Q%9.46%
3.2 Future
- The Earnings Per Share is expected to grow by 11.91% on average over the next years. This is quite good.
- Based on estimates for the next years, FELE will show a small growth in Revenue. The Revenue will grow by 5.42% on average per year.
EPS Next Y10.14%
EPS Next 2Y12.24%
EPS Next 3Y11.91%
EPS Next 5YN/A
Revenue Next Year6.75%
Revenue Next 2Y5.8%
Revenue Next 3Y5.42%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 25.05, which means the current valuation is very expensive for FELE.
- Compared to the rest of the industry, the Price/Earnings ratio of FELE is on the same level as its industry peers.
- FELE's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 20.66, FELE is valued on the expensive side.
- FELE's Price/Forward Earnings is on the same level as the industry average.
- FELE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.05 | ||
| Fwd PE | 20.66 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FELE indicates a somewhat cheap valuation: FELE is cheaper than 64.39% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of FELE indicates a somewhat cheap valuation: FELE is cheaper than 65.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.04 | ||
| EV/EBITDA | 14.05 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FELE does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of FELE may justify a higher PE ratio.
PEG (NY)2.47
PEG (5Y)1.9
EPS Next 2Y12.24%
EPS Next 3Y11.91%
5. Dividend
5.1 Amount
- FELE has a Yearly Dividend Yield of 1.04%. Purely for dividend investing, there may be better candidates out there.
- FELE's Dividend Yield is a higher than the industry average which is at 1.01.
- With a Dividend Yield of 1.04, FELE pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
5.2 History
- The dividend of FELE is nicely growing with an annual growth rate of 11.32%!
- FELE has paid a dividend for at least 10 years, which is 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
5.3 Sustainability
- FELE pays out 34.51% of its income as dividend. This is a sustainable payout ratio.
- The dividend of FELE is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP34.51%
EPS Next 2Y12.24%
EPS Next 3Y11.91%
FRANKLIN ELECTRIC CO INC / FELE FAQ
What is the fundamental rating for FELE stock?
ChartMill assigns a fundamental rating of 6 / 10 to FELE.
What is the valuation status of FRANKLIN ELECTRIC CO INC (FELE) stock?
ChartMill assigns a valuation rating of 3 / 10 to FRANKLIN ELECTRIC CO INC (FELE). This can be considered as Overvalued.
How profitable is FRANKLIN ELECTRIC CO INC (FELE) stock?
FRANKLIN ELECTRIC CO INC (FELE) has a profitability rating of 7 / 10.
What is the valuation of FRANKLIN ELECTRIC CO INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for FRANKLIN ELECTRIC CO INC (FELE) is 25.05 and the Price/Book (PB) ratio is 3.38.
Can you provide the dividend sustainability for FELE stock?
The dividend rating of FRANKLIN ELECTRIC CO INC (FELE) is 6 / 10 and the dividend payout ratio is 34.51%.