99.5 USD
-0.91 (-0.91%)
Taking everything into account, FELE scores 6 out of 10 in our fundamental rating. FELE was compared to 132 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 correct valuation and a medium growth rate. This makes FELE very considerable for quality investing!
1. Profitability
1.1 Basic Checks
- In the past year FELE was profitable.
- In the past year FELE had a positive cash flow from operations.
- 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
- With a decent Return On Assets value of 7.05%, FELE is doing good in the industry, outperforming 71.21% of the companies in the same industry.
- FELE has a Return On Equity of 10.69%. This is in the better half of the industry: FELE outperforms 64.39% of its industry peers.
- The Return On Invested Capital of FELE (13.13%) is better than 81.06% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for FELE is above the industry average of 10.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.05% | ||
| ROE | 10.69% | ||
| ROIC | 13.13% |
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 Profit Margin (6.68%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of FELE has grown nicely.
- With a decent Operating Margin value of 12.52%, FELE is doing good in the industry, outperforming 62.88% of the companies in the same industry.
- FELE's Operating Margin has improved in the last couple of years.
- The Gross Margin of FELE (35.48%) is better than 65.15% of its industry peers.
- In the last couple of years the Gross Margin of FELE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.52% | ||
| PM (TTM) | 6.68% | ||
| GM | 35.48% |
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.
- 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.
- The debt/assets ratio for FELE is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 6.58 indicates that FELE is not in any danger for bankruptcy at the moment.
- FELE has a better Altman-Z score (6.58) than 87.12% of its industry peers.
- The Debt to FCF ratio of FELE is 1.01, which is an excellent value as it means it would take FELE, only 1.01 years of fcf income to pay off all of its debts.
- FELE has a Debt to FCF ratio of 1.01. This is amongst the best in the industry. FELE outperforms 88.64% of its industry peers.
- FELE has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
- FELE has a better Debt to Equity ratio (0.10) than 78.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | 6.58 |
ROIC/WACC1.37
WACC9.62%
2.3 Liquidity
- A Current Ratio of 2.54 indicates that FELE has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 2.54, FELE is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- A Quick Ratio of 1.12 indicates that FELE should not have too much problems paying its short term obligations.
- FELE's Quick ratio of 1.12 is in line compared to the rest of the industry. FELE outperforms 44.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.54 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 1.01% over the past year.
- 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.
- FELE shows a small growth in Revenue. In the last year, the Revenue has grown by 5.06%.
- 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)1.01%
EPS 3Y5.7%
EPS 5Y13.21%
EPS Q2Q%11.11%
Revenue 1Y (TTM)5.06%
Revenue growth 3Y6.74%
Revenue growth 5Y8.99%
Sales Q2Q%9.46%
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 11.91% yearly.
- Based on estimates for the next years, FELE will show a small growth in Revenue. The Revenue will grow by 5.42% on average per year.
EPS Next Y10.14%
EPS Next 2Y12.24%
EPS Next 3Y11.91%
EPS Next 5YN/A
Revenue Next Year6.75%
Revenue Next 2Y5.8%
Revenue Next 3Y5.42%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 24.88, FELE is valued on the expensive side.
- 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 (27.25), we can say FELE is valued inline with the index average.
- FELE is valuated rather expensively with a Price/Forward Earnings ratio of 20.51.
- FELE's Price/Forward Earnings ratio is in line with the industry average.
- FELE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.88 | ||
| Fwd PE | 20.51 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FELE indicates a somewhat cheap valuation: FELE is cheaper than 64.39% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, FELE is valued a bit cheaper than 65.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.89 | ||
| EV/EBITDA | 14.08 |
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)2.45
PEG (5Y)1.88
EPS Next 2Y12.24%
EPS Next 3Y11.91%
5. Dividend
5.1 Amount
- FELE has a Yearly Dividend Yield of 1.04%.
- FELE's Dividend Yield is a higher than the industry average which is at 1.01.
- With a Dividend Yield of 1.04, FELE pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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
- 34.51% 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.
DP34.51%
EPS Next 2Y12.24%
EPS Next 3Y11.91%
FRANKLIN ELECTRIC CO INC / FELE FAQ
What is the fundamental rating for FELE stock?
ChartMill assigns a fundamental rating of 6 / 10 to FELE.
What is the valuation status of FRANKLIN ELECTRIC CO INC (FELE) stock?
ChartMill assigns a valuation rating of 4 / 10 to FRANKLIN ELECTRIC CO INC (FELE). This can be considered as Fairly Valued.
How profitable is FRANKLIN ELECTRIC CO INC (FELE) stock?
FRANKLIN ELECTRIC CO INC (FELE) has a profitability rating of 7 / 10.
What is the valuation of FRANKLIN ELECTRIC CO INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for FRANKLIN ELECTRIC CO INC (FELE) is 24.88 and the Price/Book (PB) ratio is 3.36.
Can you provide the dividend sustainability for FELE stock?
The dividend rating of FRANKLIN ELECTRIC CO INC (FELE) is 6 / 10 and the dividend payout ratio is 34.51%.