Franklin Resources, Inc.
Franklin Resources, Inc. Fundamental Analysis
Franklin Resources, Inc. (BEN) shows weak financial fundamentals with a PE ratio of 19.63, profit margin of 6.97%, and ROE of 5.06%. The company generates $8.9B in annual revenue with moderate year-over-year growth of 3.45%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 34.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BEN's fundamental strength across five key dimensions:
Efficiency Score
WeakBEN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBEN trades at attractive valuation levels.
Growth Score
ModerateBEN shows steady but slowing expansion.
Financial Health Score
ModerateBEN shows balanced financial health with some risks.
Profitability Score
WeakBEN struggles to sustain strong margins.
Key Financial Metrics
Is BEN Expensive or Cheap?
P/E Ratio
BEN trades at 19.63 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BEN's PEG of 1.05 indicates fair valuation.
Price to Book
The market values Franklin Resources, Inc. at 1.00 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.98 times EBITDA. This is generally considered low.
How Well Does BEN Make Money?
Net Profit Margin
For every $100 in sales, Franklin Resources, Inc. keeps $6.97 as profit after all expenses.
Operating Margin
Core operations generate 7.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.06 in profit for every $100 of shareholder equity.
ROA
Franklin Resources, Inc. generates $1.89 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Franklin Resources, Inc. produces operating cash flow of $962.23M, showing steady but balanced cash generation.
Free Cash Flow
Franklin Resources, Inc. produces free cash flow of $879.01M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.69 in free cash annually.
FCF Yield
BEN converts 7.17% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.63
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.00
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.38
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.42
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How BEN Stacks Against Its Sector Peers
| Metric | BEN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.63 | 18.66 | Neutral |
| ROE | 5.06% | 806.00% | Weak |
| Net Margin | 6.97% | -451.00% (disorted) | Weak |
| Debt/Equity | 1.17 | 1.00 | Neutral |
| Current Ratio | 3.42 | 662.02 | Strong Liquidity |
| ROA | 1.89% | -24409.00% (disorted) | Weak |
BEN outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Franklin Resources, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
50.64%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-37.18%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
-5.91%
Industry Style: Value, Dividend, Cyclical
Declining