Franklin Electric Co., Inc.
Franklin Electric Co., Inc. Fundamental Analysis
Franklin Electric Co., Inc. (FELE) shows weak financial fundamentals with a PE ratio of 29.29, profit margin of 6.90%, and ROE of 11.30%. The company generates $2.1B in annual revenue with weak year-over-year growth of -2.12%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FELE's fundamental strength across five key dimensions:
Efficiency Score
WeakFELE struggles to generate sufficient returns from assets.
Valuation Score
WeakFELE trades at a premium to fair value.
Growth Score
WeakFELE faces weak or negative growth trends.
Financial Health Score
ExcellentFELE maintains a strong and stable balance sheet.
Profitability Score
WeakFELE struggles to sustain strong margins.
Key Financial Metrics
Is FELE Expensive or Cheap?
P/E Ratio
FELE trades at 29.29 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, FELE's PEG of 6.49 indicates potential overvaluation.
Price to Book
The market values Franklin Electric Co., Inc. at 3.25 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 15.09 times EBITDA. This signals the market has high growth expectations.
How Well Does FELE Make Money?
Net Profit Margin
For every $100 in sales, Franklin Electric Co., Inc. keeps $6.90 as profit after all expenses.
Operating Margin
Core operations generate 12.63 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.30 in profit for every $100 of shareholder equity.
ROA
Franklin Electric Co., Inc. generates $7.56 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Franklin Electric Co., Inc. produces operating cash flow of $235.04M, showing steady but balanced cash generation.
Free Cash Flow
Franklin Electric Co., Inc. produces free cash flow of $190.43M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $4.28 in free cash annually.
FCF Yield
FELE converts 4.58% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.29
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
6.49
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.25
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.99
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.79
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How FELE Stacks Against Its Sector Peers
| Metric | FELE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.29 | 26.49 | Worse (Expensive) |
| ROE | 11.30% | 1307.00% | Weak |
| Net Margin | 6.90% | -5131.00% (disorted) | Weak |
| Debt/Equity | 0.21 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 2.79 | 10.48 | Strong Liquidity |
| ROA | 7.56% | -1549792.00% (disorted) | Weak |
FELE outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Franklin Electric Co., Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
55.44%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
90.15%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
48.70%
Industry Style: Cyclical, Value, Infrastructure
High Growth