FRANKLIN ELECTRIC CO INC (FELE) Stock Fundamental Analysis
NASDAQ:FELE - Nasdaq - US3535141028 - Common Stock - Currency: USD
FELE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. Both the health and profitability get an excellent rating, making FELE a very profitable company, without any liquidiy or solvency issues. FELE has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year FELE was profitable.
In the past year FELE had a positive cash flow from operations.
Of the past 5 years FELE 4 years were profitable.
Of the past 5 years FELE 4 years had a positive operating cash flow.
1.2 Ratios
FELE has a Return On Assets of 10.21%. This is amongst the best in the industry. FELE outperforms 80.80% of its industry peers.
FELE has a better Return On Equity (14.53%) than 68.00% of its industry peers.
The Return On Invested Capital of FELE (14.31%) is better than 82.40% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FELE is above the industry average of 11.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.21% | ||
| ROE | 14.53% | ||
| ROIC | 14.31% |
ROA(3y)10.62%
ROA(5y)9.53%
ROE(3y)16.53%
ROE(5y)14.65%
ROIC(3y)14.63%
ROIC(5y)12.84%
1.3 Margins
The Profit Margin of FELE (9.19%) is better than 67.20% of its industry peers.
In the last couple of years the Profit Margin of FELE has grown nicely.
FELE has a better Operating Margin (12.54%) than 63.20% 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 35.50%, FELE is in the better half of the industry, outperforming 61.60% of the companies in the same industry.
FELE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.54% | ||
| PM (TTM) | 9.19% | ||
| GM | 35.5% |
OM growth 3Y6.21%
OM growth 5Y4.34%
PM growth 3Y5.24%
PM growth 5Y2.87%
GM growth 3Y-0.94%
GM growth 5Y0.26%
2. Health
2.1 Basic Checks
FELE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
There is no outstanding debt for FELE. 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
An Altman-Z score of 8.22 indicates that FELE is not in any danger for bankruptcy at the moment.
FELE's Altman-Z score of 8.22 is amongst the best of the industry. FELE outperforms 89.60% of its industry peers.
The Debt to FCF ratio of FELE is 0.39, which is an excellent value as it means it would take FELE, only 0.39 years of fcf income to pay off all of its debts.
FELE has a Debt to FCF ratio of 0.39. This is amongst the best in the industry. FELE outperforms 90.40% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that FELE is not too dependend on debt financing.
FELE has a better Debt to Equity ratio (0.01) than 81.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.39 | ||
| Altman-Z | 8.22 |
ROIC/WACC1.35
WACC10.62%
2.3 Liquidity
A Current Ratio of 2.40 indicates that FELE has no problem at all paying its short term obligations.
FELE's Current ratio of 2.40 is fine compared to the rest of the industry. FELE outperforms 63.20% of its industry peers.
FELE has a Quick Ratio of 1.06. This is a normal value and indicates that FELE is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.06, FELE is not doing good in the industry: 64.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The earnings per share for FELE have decreased by -6.78% in the last year.
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.
EPS 1Y (TTM)-6.78%
EPS 3Y5.7%
EPS 5Y13.21%
EPS Q2Q%-13.25%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%2.7%
3.2 Future
Based on estimates for the next years, FELE will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.38% on average per year.
FELE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.17% yearly.
EPS Next Y12.17%
EPS Next 2Y11.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.16%
Revenue Next 2Y4.17%
Revenue Next 3YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
FELE is valuated quite expensively with a Price/Earnings ratio of 27.08.
The rest of the industry has a similar Price/Earnings ratio as FELE.
Compared to an average S&P500 Price/Earnings ratio of 29.63, FELE is valued at the same level.
Based on the Price/Forward Earnings ratio of 24.14, the valuation of FELE can be described as rather expensive.
FELE's Price/Forward Earnings ratio is in line with the industry average.
FELE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.08 | ||
| Fwd PE | 24.14 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FELE is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FELE indicates a somewhat cheap valuation: FELE is cheaper than 72.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.88 | ||
| EV/EBITDA | 15.75 |
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)2.22
PEG (5Y)2.05
EPS Next 2Y11.38%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FELE has a yearly dividend return of 1.00%, which is pretty low.
FELE's Dividend Yield is a higher than the industry average which is at 1.67.
Compared to an average S&P500 Dividend Yield of 2.29, FELE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
5.2 History
The dividend of FELE is nicely growing with an annual growth rate of 13.20%!
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)13.2%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
24.86% of the earnings are spent on dividend by FELE. This is a low number and sustainable payout ratio.
FELE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP24.86%
EPS Next 2Y11.38%
EPS Next 3YN/A
104.24
-1.76 (-1.66%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners85.09%
Inst Owner Change1.32%
Ins Owners7.22%
Ins Owner Change3.74%
Market Cap4.76B
Analysts78.18
Price Target104.3 (0.06%)
Short Float %1.27%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
Yearly Dividend0.9
Dividend Growth(5Y)13.2%
DP24.86%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.15%
Min EPS beat(2)-9.82%
Max EPS beat(2)-6.47%
EPS beat(4)0
Avg EPS beat(4)-6.47%
Min EPS beat(4)-9.82%
Max EPS beat(4)-2.92%
EPS beat(8)1
Avg EPS beat(8)-3.38%
EPS beat(12)3
Avg EPS beat(12)1.79%
EPS beat(16)7
Avg EPS beat(16)6%
Revenue beat(2)0
Avg Revenue beat(2)-6.41%
Min Revenue beat(2)-6.55%
Max Revenue beat(2)-6.27%
Revenue beat(4)0
Avg Revenue beat(4)-5.92%
Min Revenue beat(4)-6.55%
Max Revenue beat(4)-5.41%
Revenue beat(8)1
Avg Revenue beat(8)-4.97%
Revenue beat(12)3
Avg Revenue beat(12)-2.37%
Revenue beat(16)7
Avg Revenue beat(16)-0.31%
PT rev (1m)-0.73%
PT rev (3m)-4.22%
EPS NQ rev (1m)-1.49%
EPS NQ rev (3m)-1.49%
EPS NY rev (1m)-0.26%
EPS NY rev (3m)-0.26%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.08 | ||
| Fwd PE | 24.14 | ||
| P/S | 2.37 | ||
| P/FCF | 20.88 | ||
| P/OCF | 17.76 | ||
| P/B | 3.75 | ||
| P/tB | 6.7 | ||
| EV/EBITDA | 15.75 |
EPS(TTM)3.85
EY3.69%
EPS(NY)4.32
Fwd EY4.14%
FCF(TTM)4.99
FCFY4.79%
OCF(TTM)5.87
OCFY5.63%
SpS43.96
BVpS27.79
TBVpS15.57
PEG (NY)2.22
PEG (5Y)2.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.21% | ||
| ROE | 14.53% | ||
| ROCE | 17.82% | ||
| ROIC | 14.31% | ||
| ROICexc | 15.48% | ||
| ROICexgc | 27% | ||
| OM | 12.54% | ||
| PM (TTM) | 9.19% | ||
| GM | 35.5% | ||
| FCFM | 11.36% |
ROA(3y)10.62%
ROA(5y)9.53%
ROE(3y)16.53%
ROE(5y)14.65%
ROIC(3y)14.63%
ROIC(5y)12.84%
ROICexc(3y)15.29%
ROICexc(5y)13.66%
ROICexgc(3y)28.32%
ROICexgc(5y)24.71%
ROCE(3y)18.21%
ROCE(5y)15.99%
ROICexcg growth 3Y10.79%
ROICexcg growth 5Y3.95%
ROICexc growth 3Y11.11%
ROICexc growth 5Y4.7%
OM growth 3Y6.21%
OM growth 5Y4.34%
PM growth 3Y5.24%
PM growth 5Y2.87%
GM growth 3Y-0.94%
GM growth 5Y0.26%
F-Score6
Asset Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.39 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 73.62% | ||
| Cap/Sales | 2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.53% | ||
| Profit Quality | 123.62% | ||
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 8.22 |
F-Score6
WACC10.62%
ROIC/WACC1.35
Cap/Depr(3y)76.62%
Cap/Depr(5y)70.36%
Cap/Sales(3y)1.96%
Cap/Sales(5y)1.87%
Profit Quality(3y)79.88%
Profit Quality(5y)118.68%
High Growth Momentum
Growth
EPS 1Y (TTM)-6.78%
EPS 3Y5.7%
EPS 5Y13.21%
EPS Q2Q%-13.25%
EPS Next Y12.17%
EPS Next 2Y11.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%2.7%
Revenue Next Year4.16%
Revenue Next 2Y4.17%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-6.27%
EBIT growth 3Y25.65%
EBIT growth 5Y14.49%
EBIT Next Year12.96%
EBIT Next 3Y10.63%
EBIT Next 5YN/A
FCF growth 1Y5602.1%
FCF growth 3Y13.22%
FCF growth 5Y20.94%
OCF growth 1Y522.27%
OCF growth 3Y14.21%
OCF growth 5Y19.71%