FRANKLIN ELECTRIC CO INC (FELE) Stock Fundamental Analysis
USA - NASDAQ:FELE - US3535141028 - Common Stock
94.63 USD
-2.23 (-2.3%)
94.63 USD
0 (0%)
Taking everything into account, FELE scores 6 out of 10 in our fundamental rating. FELE was compared to 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 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.
In the past year FELE had a positive cash flow from operations.
FELE had positive earnings in each of the past 5 years.
FELE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.85%, FELE is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
With a decent Return On Equity value of 14.16%, FELE is doing good in the industry, outperforming 71.09% of the companies in the same industry.
The Return On Invested Capital of FELE (14.18%) is better than 83.59% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FELE is above the industry average of 10.02%.
| 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
FELE has a better Profit Margin (8.67%) than 65.63% of its industry peers.
In the last couple of years the Profit Margin of FELE has grown nicely.
FELE has a Operating Margin of 12.26%. This is in the better half of the industry: FELE outperforms 62.50% of its industry peers.
In the last couple of years the Operating Margin of FELE has grown nicely.
FELE has a better Gross Margin (35.42%) than 64.06% 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
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
The number of shares outstanding for FELE has been reduced compared to 5 years ago.
FELE has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.79 indicates that FELE is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.79, FELE belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
The Debt to FCF ratio of FELE is 1.31, which is an excellent value as it means it would take FELE, only 1.31 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.31, FELE belongs to the best of the industry, outperforming 82.81% 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 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 5.79 |
ROIC/WACC1.43
WACC9.95%
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: 60.94% of the companies in the same industry are doing better.
FELE has a Quick Ratio of 1.72. 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 (0.77) than 78.13% of its industry peers.
The current and quick ratio evaluation for FELE is rather negative, while it does have 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.
Looking at the last year, FELE shows a small growth in Revenue. The Revenue has grown by 2.20% in the last year.
The Revenue has been growing by 8.99% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 12.40% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.52% on average over the next years.
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
A Price/Earnings ratio of 24.45 indicates a rather expensive 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 27.30.
A Price/Forward Earnings ratio of 19.46 indicates a rather expensive valuation of FELE.
FELE's Price/Forward Earnings is on the same level as the industry average.
FELE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.45 | ||
| Fwd PE | 19.46 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FELE.
Based on the Price/Free Cash Flow ratio, FELE is valued a bit cheaper than 67.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.34 | ||
| EV/EBITDA | 14.1 |
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.
FELE's earnings are expected to grow with 12.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.43
PEG (5Y)1.85
EPS Next 2Y12.4%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.09%, FELE has a reasonable but not impressive dividend return.
FELE's Dividend Yield is a higher than the industry average which is at 1.76.
Compared to an average S&P500 Dividend Yield of 2.41, FELE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
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
26.99% of the earnings are spent on dividend by FELE. This is a low number and sustainable payout ratio.
FELE's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP26.99%
EPS Next 2Y12.4%
EPS Next 3YN/A
94.63
-2.23 (-2.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners86.12%
Inst Owner Change-0.43%
Ins Owners6.17%
Ins Owner Change3.7%
Market Cap4.21B
Analysts78.18
Price Target110.16 (16.41%)
Short Float %1.85%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
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)1.06%
EPS NY rev (1m)0.72%
EPS NY rev (3m)0.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)0.98%
Revenue NY rev (3m)0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.45 | ||
| Fwd PE | 19.46 | ||
| P/S | 2.04 | ||
| P/FCF | 19.34 | ||
| P/OCF | 16.29 | ||
| P/B | 3.34 | ||
| P/tB | 6.92 | ||
| EV/EBITDA | 14.1 |
EPS(TTM)3.87
EY4.09%
EPS(NY)4.86
Fwd EY5.14%
FCF(TTM)4.89
FCFY5.17%
OCF(TTM)5.81
OCFY6.14%
SpS46.31
BVpS28.37
TBVpS13.68
PEG (NY)2.43
PEG (5Y)1.85
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 | 5.79 |
F-Score6
WACC9.95%
ROIC/WACC1.43
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%