FRANKLIN ELECTRIC CO INC (FELE) Stock Fundamental Analysis
USA - NASDAQ:FELE - US3535141028 - Common Stock
92.84 USD
+1.08 (+1.18%)
92 USD
-0.84 (-0.9%)
Overall FELE gets a fundamental rating of 6 out of 10. We evaluated FELE against 129 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.
1. Profitability
1.1 Basic Checks
FELE had positive earnings in the past year.
FELE had a positive operating cash flow in the past year.
Each year in the past 5 years FELE has been profitable.
Each year in the past 5 years FELE had a positive operating cash flow.
1.2 Ratios
FELE has a Return On Assets of 8.85%. This is in the better half of the industry: FELE outperforms 75.19% of its industry peers.
With a decent Return On Equity value of 14.16%, FELE is doing good in the industry, outperforming 72.87% of the companies in the same industry.
FELE has a better Return On Invested Capital (14.18%) than 85.27% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FELE is above the industry average of 10.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.85% | ||
| ROE | 14.16% | ||
| ROIC | 14.18% |
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
Looking at the Profit Margin, with a value of 8.67%, FELE is in the better half of the industry, outperforming 65.12% of the companies in the same industry.
FELE's Profit Margin has improved in the last couple of years.
The Operating Margin of FELE (12.26%) is better than 64.34% of its industry peers.
In the last couple of years the Operating Margin of FELE has grown nicely.
FELE's Gross Margin of 35.42% is fine compared to the rest of the industry. FELE outperforms 63.57% of its industry peers.
In the last couple of years the Gross Margin of FELE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.26% | ||
| PM (TTM) | 8.67% | ||
| GM | 35.42% |
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
FELE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
FELE has less shares outstanding than it did 1 year ago.
The number of shares outstanding for FELE has been reduced compared to 5 years ago.
The debt/assets ratio for FELE is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.72 indicates that FELE is not in any danger for bankruptcy at the moment.
The Altman-Z score of FELE (5.72) is better than 82.95% of its industry peers.
FELE has a debt to FCF ratio of 1.31. This is a very positive value and a sign of high solvency as it would only need 1.31 years to pay back of all of its debts.
FELE has a Debt to FCF ratio of 1.31. This is amongst the best in the industry. FELE outperforms 84.50% of its industry peers.
FELE has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of FELE (0.01) is better than 83.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 5.72 |
ROIC/WACC1.5
WACC9.44%
2.3 Liquidity
A Current Ratio of 1.72 indicates that FELE should not have too much problems paying its short term obligations.
With a Current ratio value of 1.72, FELE is not doing good in the industry: 62.02% of the companies in the same industry are doing better.
A Quick Ratio of 0.77 indicates that FELE may have some problems paying its short term obligations.
With a Quick ratio value of 0.77, FELE is not doing good in the industry: 79.07% of the companies in the same industry are doing better.
FELE does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
FELE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.97%.
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 2.20%.
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)-3.97%
EPS 3Y5.7%
EPS 5Y13.21%
EPS Q2Q%3.97%
Revenue 1Y (TTM)2.2%
Revenue growth 3Y6.74%
Revenue growth 5Y8.99%
Sales Q2Q%8.13%
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 12.40% on average per year.
FELE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.52% yearly.
EPS Next Y10.06%
EPS Next 2Y12.4%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.67%
Revenue Next 2Y5.52%
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.
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
With a Price/Earnings ratio of 23.99, FELE is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as FELE.
FELE is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.34, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 19.09, which indicates a rather expensive current valuation of FELE.
The rest of the industry has a similar Price/Forward Earnings ratio as FELE.
The average S&P500 Price/Forward Earnings ratio is at 22.86. FELE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.99 | ||
| Fwd PE | 19.09 |
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 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.97 | ||
| EV/EBITDA | 13.85 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as FELE's earnings are expected to grow with 12.40% in the coming years.
PEG (NY)2.38
PEG (5Y)1.82
EPS Next 2Y12.4%
EPS Next 3YN/A
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.
With a Dividend Yield of 1.14, FELE pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
5.2 History
On average, the dividend of FELE grows each year by 11.32%, which is quite nice.
FELE has been paying a dividend for at least 10 years, so it has a reliable track record.
FELE has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.32%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
FELE pays out 26.99% 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.
DP26.99%
EPS Next 2Y12.4%
EPS Next 3YN/A
92.84
+1.08 (+1.18%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners88.49%
Inst Owner Change-0.2%
Ins Owners6.36%
Ins Owner Change3.69%
Market Cap4.13B
Analysts78.18
Price Target110.16 (18.66%)
Short Float %1.9%
Short Ratio2.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
Yearly Dividend1.02
Dividend Growth(5Y)11.32%
DP26.99%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.2%
Min EPS beat(2)-10.26%
Max EPS beat(2)-0.13%
EPS beat(4)1
Avg EPS beat(4)-3.4%
Min EPS beat(4)-10.26%
Max EPS beat(4)6.63%
EPS beat(8)1
Avg EPS beat(8)-4.42%
EPS beat(12)2
Avg EPS beat(12)-2.67%
EPS beat(16)5
Avg EPS beat(16)1.55%
Revenue beat(2)1
Avg Revenue beat(2)-1.82%
Min Revenue beat(2)-5.28%
Max Revenue beat(2)1.63%
Revenue beat(4)2
Avg Revenue beat(4)-2.11%
Min Revenue beat(4)-6.27%
Max Revenue beat(4)1.63%
Revenue beat(8)2
Avg Revenue beat(8)-4.38%
Revenue beat(12)3
Avg Revenue beat(12)-3.63%
Revenue beat(16)6
Avg Revenue beat(16)-1.66%
PT rev (1m)0%
PT rev (3m)8.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.75%
EPS NY rev (1m)0%
EPS NY rev (3m)0.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.99 | ||
| Fwd PE | 19.09 | ||
| P/S | 2 | ||
| P/FCF | 18.97 | ||
| P/OCF | 15.98 | ||
| P/B | 3.27 | ||
| P/tB | 6.79 | ||
| EV/EBITDA | 13.85 |
EPS(TTM)3.87
EY4.17%
EPS(NY)4.86
Fwd EY5.24%
FCF(TTM)4.89
FCFY5.27%
OCF(TTM)5.81
OCFY6.26%
SpS46.31
BVpS28.37
TBVpS13.68
PEG (NY)2.38
PEG (5Y)1.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.85% | ||
| ROE | 14.16% | ||
| ROCE | 17.87% | ||
| ROIC | 14.18% | ||
| ROICexc | 15.31% | ||
| ROICexgc | 30.58% | ||
| OM | 12.26% | ||
| PM (TTM) | 8.67% | ||
| GM | 35.42% | ||
| FCFM | 10.57% |
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 Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 1.31 | ||
| Debt/EBITDA | 0.05 | ||
| Cap/Depr | 69.39% | ||
| Cap/Sales | 1.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.01% | ||
| Profit Quality | 121.85% | ||
| Current Ratio | 1.72 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 5.72 |
F-Score6
WACC9.44%
ROIC/WACC1.5
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)-3.97%
EPS 3Y5.7%
EPS 5Y13.21%
EPS Q2Q%3.97%
EPS Next Y10.06%
EPS Next 2Y12.4%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.2%
Revenue growth 3Y6.74%
Revenue growth 5Y8.99%
Sales Q2Q%8.13%
Revenue Next Year5.67%
Revenue Next 2Y5.52%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-1.65%
EBIT growth 3Y9.03%
EBIT growth 5Y13.75%
EBIT Next Year34.85%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y31.78%
FCF growth 3Y30.12%
FCF growth 5Y7.11%
OCF growth 1Y24.68%
OCF growth 3Y26.28%
OCF growth 5Y8.02%