Franklin Financial Services Corporation
Franklin Financial Services Corporation Fundamental Analysis
Franklin Financial Services Corporation (FRAF) shows strong financial fundamentals with a PE ratio of 10.42, profit margin of 17.82%, and ROE of 14.13%. The company generates $0.1B in annual revenue with strong year-over-year growth of 25.95%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze FRAF's fundamental strength across five key dimensions:
Efficiency Score
WeakFRAF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFRAF trades at attractive valuation levels.
Growth Score
ModerateFRAF shows steady but slowing expansion.
Financial Health Score
WeakFRAF carries high financial risk with limited liquidity.
Profitability Score
ModerateFRAF maintains healthy but balanced margins.
Key Financial Metrics
Is FRAF Expensive or Cheap?
P/E Ratio
FRAF trades at 10.42 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, FRAF's PEG of 0.10 indicates potential undervaluation.
Price to Book
The market values Franklin Financial Services Corporation at 1.40 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.99 times EBITDA. This is generally considered low.
How Well Does FRAF Make Money?
Net Profit Margin
For every $100 in sales, Franklin Financial Services Corporation keeps $17.82 as profit after all expenses.
Operating Margin
Core operations generate 22.15 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.13 in profit for every $100 of shareholder equity.
ROA
Franklin Financial Services Corporation generates $1.04 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Franklin Financial Services Corporation produces operating cash flow of $25.41M, showing steady but balanced cash generation.
Free Cash Flow
Franklin Financial Services Corporation generates strong free cash flow of $24.54M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.46 in free cash annually.
FCF Yield
FRAF converts 9.91% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.42
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.40
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.85
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How FRAF Stacks Against Its Sector Peers
| Metric | FRAF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.42 | 18.99 | Better (Cheaper) |
| ROE | 14.13% | 824.00% | Weak |
| Net Margin | 17.82% | 1603.00% | Weak |
| Debt/Equity | 1.18 | 0.99 | Neutral |
| Current Ratio | 0.00 | 621.71 | Weak Liquidity |
| ROA | 1.04% | -24664.00% (disorted) | Weak |
FRAF 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 Financial Services Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
78.78%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-31.81%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
13.56%
Industry Style: Value, Dividend, Cyclical
High Growth