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 has a decent growth rate and is not valued too 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.
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
FELE's Return On Assets of 9.87% is fine compared to the rest of the industry. FELE outperforms 79.69% of its industry peers.
FELE has a better Return On Equity (14.19%) than 67.19% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.14%, FELE belongs to the top of the industry, outperforming 82.03% 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 10.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.87% | ||
| ROE | 14.19% | ||
| ROIC | 14.14% |
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 (8.89%) than 64.84% of its industry peers.
FELE's Profit Margin has improved in the last couple of years.
FELE has a better Operating Margin (12.23%) than 61.72% 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 35.49%, FELE is in the better half of the industry, outperforming 63.28% 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 | 12.23% | ||
| PM (TTM) | 8.89% | ||
| GM | 35.49% |
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.
Compared to 1 year ago, FELE has less shares outstanding
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 6.98. This indicates that FELE is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of FELE (6.98) is better than 89.06% of its industry peers.
The Debt to FCF ratio of FELE is 0.59, which is an excellent value as it means it would take FELE, only 0.59 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of FELE (0.59) is better than 89.84% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that FELE is not too dependend on debt financing.
FELE has a Debt to Equity ratio of 0.01. This is amongst the best in the industry. FELE outperforms 82.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.59 | ||
| Altman-Z | 6.98 |
ROIC/WACC1.42
WACC9.96%
2.3 Liquidity
FELE has a Current Ratio of 2.22. This indicates that FELE is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.22, FELE is in line with its industry, outperforming 57.03% of the companies in the same industry.
FELE has a Quick Ratio of 1.11. This is a normal value and indicates that FELE is financially healthy and should not expect problems in meeting its short term obligations.
FELE's Quick ratio of 1.11 is in line compared to the rest of the industry. FELE outperforms 41.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The earnings per share for FELE have decreased by -6.78% 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.
Looking at the last year, FELE shows a decrease in Revenue. The Revenue has decreased by -2.12% in the last year.
Measured over the past years, FELE shows a quite strong growth in Revenue. The Revenue has been growing by 8.99% on average per year.
EPS 1Y (TTM)-6.78%
EPS 3Y5.7%
EPS 5Y13.21%
EPS Q2Q%-13.25%
Revenue 1Y (TTM)-2.12%
Revenue growth 3Y6.74%
Revenue growth 5Y8.99%
Sales Q2Q%2.7%
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 11.94% yearly.
FELE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.45% yearly.
EPS Next Y11.38%
EPS Next 2Y11.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.57%
Revenue Next 2Y5.45%
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 21.96 indicates a rather expensive valuation of FELE.
Compared to the rest of the industry, the Price/Earnings ratio of FELE is on the same level as its industry peers.
When comparing the Price/Earnings ratio of FELE to the average of the S&P500 Index (27.63), we can say FELE is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 19.72, the valuation of FELE can be described as rather expensive.
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 20.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.96 | ||
| Fwd PE | 19.72 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FELE is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, FELE is valued a bit cheaper than 61.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.62 | ||
| EV/EBITDA | 12.47 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FELE does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of FELE may justify a higher PE ratio.
PEG (NY)1.93
PEG (5Y)1.66
EPS Next 2Y11.94%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FELE has a Yearly Dividend Yield of 1.22%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.12, FELE pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.22, FELE pays less dividend than the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
5.2 History
On average, the dividend of FELE grows each year by 11.32%, which is quite nice.
FELE has paid a dividend for at least 10 years, which is 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
26.10% of the earnings are spent on dividend by FELE. This is a low number and 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.
DP26.1%
EPS Next 2Y11.94%
EPS Next 3YN/A
84.56
-2.05 (-2.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners85.09%
Inst Owner Change0.72%
Ins Owners7.22%
Ins Owner Change9.65%
Market Cap3.87B
Analysts78.18
Price Target111.18 (31.48%)
Short Float %1.42%
Short Ratio2.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
Yearly Dividend1.02
Dividend Growth(5Y)11.32%
DP26.1%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.6%
Min EPS beat(2)-9.82%
Max EPS beat(2)6.63%
EPS beat(4)1
Avg EPS beat(4)-4.08%
Min EPS beat(4)-9.82%
Max EPS beat(4)6.63%
EPS beat(8)2
Avg EPS beat(8)-1.13%
EPS beat(12)3
Avg EPS beat(12)-0.43%
EPS beat(16)7
Avg EPS beat(16)5.94%
Revenue beat(2)1
Avg Revenue beat(2)-2.39%
Min Revenue beat(2)-6.27%
Max Revenue beat(2)1.49%
Revenue beat(4)1
Avg Revenue beat(4)-4.18%
Min Revenue beat(4)-6.55%
Max Revenue beat(4)1.49%
Revenue beat(8)1
Avg Revenue beat(8)-4.8%
Revenue beat(12)3
Avg Revenue beat(12)-3.04%
Revenue beat(16)7
Avg Revenue beat(16)-0.28%
PT rev (1m)0%
PT rev (3m)5.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.42%
EPS NY rev (1m)-0.71%
EPS NY rev (3m)-2.91%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-2.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.96 | ||
| Fwd PE | 19.72 | ||
| P/S | 1.92 | ||
| P/FCF | 17.62 | ||
| P/OCF | 14.81 | ||
| P/B | 3.06 | ||
| P/tB | 5.42 | ||
| EV/EBITDA | 12.47 |
EPS(TTM)3.85
EY4.55%
EPS(NY)4.29
Fwd EY5.07%
FCF(TTM)4.8
FCFY5.67%
OCF(TTM)5.71
OCFY6.75%
SpS44.15
BVpS27.66
TBVpS15.61
PEG (NY)1.93
PEG (5Y)1.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.87% | ||
| ROE | 14.19% | ||
| ROCE | 17.82% | ||
| ROIC | 14.14% | ||
| ROICexc | 16.82% | ||
| ROICexgc | 31.9% | ||
| OM | 12.23% | ||
| PM (TTM) | 8.89% | ||
| GM | 35.49% | ||
| FCFM | 10.87% |
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 Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.59 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 74.34% | ||
| Cap/Sales | 2.06% | ||
| Interest Coverage | 38.48 | ||
| Cash Conversion | 86.19% | ||
| Profit Quality | 122.31% | ||
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 6.98 |
F-Score6
WACC9.96%
ROIC/WACC1.42
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)-6.78%
EPS 3Y5.7%
EPS 5Y13.21%
EPS Q2Q%-13.25%
EPS Next Y11.38%
EPS Next 2Y11.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-2.12%
Revenue growth 3Y6.74%
Revenue growth 5Y8.99%
Sales Q2Q%2.7%
Revenue Next Year5.57%
Revenue Next 2Y5.45%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-6.2%
EBIT growth 3Y9.03%
EBIT growth 5Y13.75%
EBIT Next Year32.48%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-19.91%
FCF growth 3Y30.12%
FCF growth 5Y7.11%
OCF growth 1Y-17.22%
OCF growth 3Y26.28%
OCF growth 5Y8.02%