FRANKLIN ELECTRIC CO INC (FELE)
US3535141028 - Common Stock
FELE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 131 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 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year FELE was profitable.
FELE had a positive operating cash flow in the past year.
FELE had positive earnings in each of the past 5 years.
Each year in the past 5 years FELE had a positive operating cash flow.
1.2 Ratios
The Return On Assets of FELE (10.21%) is better than 81.10% of its industry peers.
FELE has a better Return On Equity (14.53%) than 70.08% of its industry peers.
FELE has a Return On Invested Capital of 14.31%. This is amongst the best in the industry. FELE outperforms 81.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FELE is above the industry average of 11.22%.
| 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
Looking at the Profit Margin, with a value of 9.19%, FELE is in the better half of the industry, outperforming 68.50% of the companies in the same industry.
FELE's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 12.54%, FELE is doing good in the industry, outperforming 62.99% of the companies in the same industry.
FELE's Operating Margin has improved in the last couple of years.
FELE's Gross Margin of 35.50% is fine compared to the rest of the industry. FELE outperforms 61.42% of its industry peers.
In the last couple of years the Gross Margin of FELE has remained more or less at the same level.
| 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
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 an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.78 indicates that FELE is not in any danger for bankruptcy at the moment.
The Altman-Z score of FELE (7.78) is better than 88.19% of its industry peers.
FELE has a debt to FCF ratio of 0.39. This is a very positive value and a sign of high solvency as it would only need 0.39 years to pay back of all of its debts.
FELE has a Debt to FCF ratio of 0.39. This is amongst the best in the industry. FELE outperforms 92.13% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that FELE is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.01, FELE belongs to the top of the industry, outperforming 81.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.39 | ||
| Altman-Z | 7.78 |
ROIC/WACC1.5
WACC9.51%
2.3 Liquidity
FELE has a Current Ratio of 2.40. This indicates that FELE is financially healthy and has no problem in meeting its short term obligations.
FELE has a Current ratio of 2.40. This is in the better half of the industry: FELE outperforms 64.57% 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.
FELE has a Quick ratio of 1.06. This is in the lower half of the industry: FELE underperforms 64.57% of its industry peers.
| 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 -4.35% in the last year.
The Earnings Per Share has been growing by 12.82% on average over the past years. This is quite good.
The Revenue has decreased by -3.51% in the past year.
FELE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.73% yearly.
EPS 1Y (TTM)-4.35%
EPS 3Y23.74%
EPS 5Y12.82%
EPS Q2Q%-5.65%
Revenue 1Y (TTM)-3.51%
Revenue growth 3Y18.3%
Revenue growth 5Y9.73%
Sales Q2Q%-1.3%
3.2 Future
The Earnings Per Share is expected to grow by 6.42% on average over the next years.
The Revenue is expected to grow by 1.85% on average over the next years.
EPS Next Y-6.15%
EPS Next 2Y3.41%
EPS Next 3Y6.42%
EPS Next 5YN/A
Revenue Next Year-3.45%
Revenue Next 2Y0.42%
Revenue Next 3Y1.85%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
Based on the Price/Earnings ratio of 24.21, the valuation of FELE can be described as rather expensive.
FELE's Price/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/Earnings ratio to 27.09, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 21.71, the valuation of FELE can be described as rather expensive.
FELE's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.45, FELE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.21 | ||
| Fwd PE | 21.71 |
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 the industry average as 73.23% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.21 | ||
| EV/EBITDA | 14.47 |
4.3 Compensation for Growth
The excellent profitability rating of FELE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.89
EPS Next 2Y3.41%
EPS Next 3Y6.42%
5. Dividend
5.1 Amount
FELE has a Yearly Dividend Yield of 1.01%. Purely for dividend investing, there may be better candidates out there.
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 2.30, FELE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
5.2 History
The dividend of FELE is nicely growing with an annual growth rate of 13.20%!
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)13.2%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
FELE pays out 24.86% of its income as dividend. This is a sustainable payout ratio.
FELE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP24.86%
EPS Next 2Y3.41%
EPS Next 3Y6.42%
FRANKLIN ELECTRIC CO INC
NASDAQ:FELE (1/2/2025, 4:30:00 PM)
After market: 95.88 0 (0%)95.88
-1.57 (-1.61%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners84.83%
Inst Owner Change-0.58%
Ins Owners7.15%
Ins Owner Change1.6%
Market Cap4.38B
Analysts78.18
Price Target105.06 (9.57%)
Short Float %1.59%
Short Ratio3.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
Dividend Growth(5Y)13.2%
DP24.86%
Div Incr Years21
Div Non Decr Years21
Ex-DateN/A
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%
PT rev (3m)-2.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-27.32%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.94%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.21 | ||
| Fwd PE | 21.71 | ||
| P/S | 2.18 | ||
| P/FCF | 19.21 | ||
| P/OCF | 16.33 | ||
| P/B | 3.45 | ||
| P/tB | 6.16 | ||
| EV/EBITDA | 14.47 |
EPS(TTM)3.96
EY4.13%
EPS(NY)4.42
Fwd EY4.61%
FCF(TTM)4.99
FCFY5.21%
OCF(TTM)5.87
OCFY6.12%
SpS43.96
BVpS27.79
TBVpS15.57
PEG (NY)N/A
PEG (5Y)1.89
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 | 7.78 |
F-Score6
WACC9.51%
ROIC/WACC1.5
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)-4.35%
EPS 3Y23.74%
EPS 5Y12.82%
EPS Q2Q%-5.65%
EPS Next Y-6.15%
EPS Next 2Y3.41%
EPS Next 3Y6.42%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.51%
Revenue growth 3Y18.3%
Revenue growth 5Y9.73%
Sales Q2Q%-1.3%
Revenue Next Year-3.45%
Revenue Next 2Y0.42%
Revenue Next 3Y1.85%
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%