FRANKLIN ELECTRIC CO INC (FELE) Stock Fundamental Analysis
NASDAQ:FELE - Nasdaq - US3535141028 - Common Stock - Currency: USD
Overall FELE gets a fundamental rating of 6 out of 10. We evaluated FELE against 127 industry peers in the Machinery industry. FELE gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, FELE is valued expensive at the moment.
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
Looking at the Return On Assets, with a value of 9.21%, FELE is in the better half of the industry, outperforming 77.17% of the companies in the same industry.
With a decent Return On Equity value of 13.69%, FELE is doing good in the industry, outperforming 66.93% of the companies in the same industry.
FELE has a better Return On Invested Capital (13.37%) than 79.53% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FELE is above the industry average of 10.78%.
| 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 66.93% of its industry peers.
FELE's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.08%, FELE is in the better half of the industry, outperforming 62.20% of the companies in the same industry.
FELE's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 35.60%, FELE is in the better half of the industry, outperforming 63.78% 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
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.
FELE has less shares outstanding than it did 5 years ago.
The debt/assets ratio for FELE is higher compared to a year ago.
2.2 Solvency
FELE has an Altman-Z score of 6.57. This indicates that FELE is financially healthy and has little risk of bankruptcy at the moment.
FELE has a better Altman-Z score (6.57) than 85.83% 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 89.76% 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.
FELE's Debt to Equity ratio of 0.01 is amongst the best of the industry. FELE outperforms 80.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.81 | ||
| Altman-Z | 6.57 |
ROIC/WACC1.35
WACC9.92%
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.
FELE has a Current ratio of 1.98. This is comparable to the rest of the industry: FELE outperforms 48.03% of its industry peers.
A Quick Ratio of 0.82 indicates that FELE may have some problems paying its short term obligations.
FELE has a Quick ratio of 0.82. This is in the lower half of the industry: FELE underperforms 73.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
FELE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.45%.
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 decrease in Revenue. The Revenue has decreased by -1.26% 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)-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
The Earnings Per Share is expected to grow by 11.45% on average over the next years. This is quite good.
FELE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.15% yearly.
EPS Next Y9.28%
EPS Next 2Y11.45%
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
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
The Price/Earnings ratio is 23.79, which indicates a rather expensive current valuation of FELE.
The rest of the industry has a similar Price/Earnings ratio as FELE.
When comparing the Price/Earnings ratio of FELE to the average of the S&P500 Index (27.50), we can say FELE is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 19.00, 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's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.79 | ||
| Fwd PE | 19 |
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 the industry average as 62.99% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.32 | ||
| EV/EBITDA | 14.18 |
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.
FELE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.56
PEG (5Y)1.8
EPS Next 2Y11.45%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.14%, FELE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.83, FELE pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.14, FELE pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
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
26.82% 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.
DP26.82%
EPS Next 2Y11.45%
EPS Next 3YN/A
90.86
-0.7 (-0.76%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners84.95%
Inst Owner Change0%
Ins Owners6.18%
Ins Owner Change7.62%
Market Cap4.14B
Analysts78.18
Price Target101.66 (11.89%)
Short Float %2.07%
Short Ratio3.01
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)0.15%
EPS NY rev (3m)-1.89%
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 | 23.79 | ||
| Fwd PE | 19 | ||
| P/S | 2.06 | ||
| P/FCF | 20.32 | ||
| P/OCF | 17.03 | ||
| P/B | 3.19 | ||
| P/tB | 6.42 | ||
| EV/EBITDA | 14.18 |
EPS(TTM)3.82
EY4.2%
EPS(NY)4.78
Fwd EY5.26%
FCF(TTM)4.47
FCFY4.92%
OCF(TTM)5.33
OCFY5.87%
SpS44.2
BVpS28.45
TBVpS14.14
PEG (NY)2.56
PEG (5Y)1.8
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 | 6.57 |
F-Score6
WACC9.92%
ROIC/WACC1.35
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 Y9.28%
EPS Next 2Y11.45%
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%