FRANKLIN ELECTRIC CO INC (FELE) Stock Fundamental Analysis
NASDAQ:FELE - Nasdaq - US3535141028 - Common Stock - Currency: USD
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.
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
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 Rank | Sector 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%
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 Rank | Sector 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%
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.81 | ||
| Altman-Z | 6.56 |
ROIC/WACC1.35
WACC9.88%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 0.82 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.91 | ||
| Fwd PE | 19.21 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.42 | ||
| EV/EBITDA | 14.14 |
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
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 Rank | Sector 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
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
91.33
-1.66 (-1.79%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
Yearly Dividend1.02
Dividend Growth(5Y)11.32%
DP26.82%
Div Incr Years21
Div Non Decr Years21
Ex-Date
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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%