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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. FELE is quite expensive at the moment. It does show 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.
In the past 5 years FELE has always been profitable.
FELE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of FELE (9.21%) is better 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.
Looking at the Return On Invested Capital, with a value of 13.37%, FELE is in the better half of 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's Profit Margin of 8.81% is fine compared to the rest of the industry. FELE outperforms 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.
FELE's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 35.60%, FELE is doing good in 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FELE is creating some value.
The number of shares outstanding for FELE has been reduced compared to 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
An Altman-Z score of 6.63 indicates that FELE is not in any danger for bankruptcy at the moment.
The Altman-Z score of FELE (6.63) 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.
The Debt to FCF ratio of FELE (0.81) is better than 89.84% 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 80.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.81 | ||
| Altman-Z | 6.63 |
ROIC/WACC1.36
WACC9.86%
2.3 Liquidity
FELE has a Current Ratio of 1.98. This is a normal value and indicates that FELE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.98, FELE is in line with its industry, outperforming 48.44% of the companies in the same industry.
A Quick Ratio of 0.82 indicates that FELE may have some problems paying its short term obligations.
FELE's Quick ratio of 0.82 is on the low side compared to the rest of the industry. FELE is outperformed by 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
FELE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.11% yearly.
Based on estimates for the next years, FELE will show a small growth in Revenue. The Revenue will grow by 5.15% on average per year.
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
With a Price/Earnings ratio of 24.34, FELE is valued on the expensive side.
FELE's Price/Earnings ratio is in line with the industry average.
FELE's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.45.
With a Price/Forward Earnings ratio of 19.56, FELE is valued on the expensive side.
FELE's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.90. FELE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.34 | ||
| Fwd PE | 19.56 |
4.2 Price Multiples
FELE's Enterprise Value to EBITDA is on the same level as the industry average.
FELE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FELE is cheaper than 64.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.79 | ||
| EV/EBITDA | 14.39 |
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)2.67
PEG (5Y)1.84
EPS Next 2Y11.11%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FELE has a Yearly Dividend Yield of 1.14%.
FELE's Dividend Yield is a higher than the industry average which is at 1.83.
With a Dividend Yield of 1.14, FELE pays less dividend than the S&P500 average, which is at 2.38.
| 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 26.82% 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
92.99
+0.04 (+0.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners84.95%
Inst Owner Change-49.68%
Ins Owners6.18%
Ins Owner Change7.62%
Market Cap4.24B
Analysts78.18
Price Target101.66 (9.32%)
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 | 24.34 | ||
| Fwd PE | 19.56 | ||
| P/S | 2.1 | ||
| P/FCF | 20.79 | ||
| P/OCF | 17.43 | ||
| P/B | 3.27 | ||
| P/tB | 6.58 | ||
| EV/EBITDA | 14.39 |
EPS(TTM)3.82
EY4.11%
EPS(NY)4.75
Fwd EY5.11%
FCF(TTM)4.47
FCFY4.81%
OCF(TTM)5.33
OCFY5.74%
SpS44.2
BVpS28.45
TBVpS14.14
PEG (NY)2.67
PEG (5Y)1.84
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 | 6.63 |
F-Score6
WACC9.86%
ROIC/WACC1.36
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%