NasdaqCM:FRAF

Stock Analysis Report

Franklin Financial Services

Executive Summary

Franklin Financial Services Corporation operates as the bank holding company for Farmers and Merchants Trust Company of Chambersburg that provides commercial, retail banking, and trust services to small and medium-sized businesses, individuals, governmental entities, and non-profit organizations in Pennsylvania.

Snowflake

Fundamentals

Flawless balance sheet second-rate dividend payer.

Risks

  • Franklin Financial Services is not covered by any analysts.

Similar Companies

Share Price & News

How has Franklin Financial Services's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.9%

NasdaqCM:FRAF

-2.5%

US Banks

-0.7%

US Market


1 Year Return

-0.9%

NasdaqCM:FRAF

-14.2%

US Banks

-0.5%

US Market

FRAF outperformed the Banks industry which returned -14.2% over the past year.

FRAF matched the United States of America Market (-0.4%) over the past year.


Share holder returns

FRAFIndustryMarket
7 Day-2.9%-2.5%-0.7%
30 Day-4.9%-6.1%-3.0%
90 Day-10.4%-3.8%0.9%
1 Year2.3%-0.9%-11.8%-14.2%1.7%-0.5%
3 Year57.3%43.7%42.1%32.4%39.5%30.4%
5 Year104.5%74.8%53.3%36.7%54.1%37.0%

Price Volatility Vs. Market

How volatile is Franklin Financial Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Franklin Financial Services undervalued based on future cash flows and its price relative to the stock market?

10.16x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Franklin Financial Services's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Franklin Financial Services's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Franklin Financial Services is good value based on earnings compared to the US Banks industry average.

Franklin Financial Services is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Franklin Financial Services, we can't assess if its growth is good value.


Price Based on Value of Assets

Franklin Financial Services is overvalued based on assets compared to the US Banks industry average.


Next Steps

Future Growth

How is Franklin Financial Services expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

1.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Franklin Financial Services is high growth as no revenue estimate data is available.

Franklin Financial Services's earnings are expected to grow by 1.2% yearly, however this is not considered high growth (20% yearly).

Unable to compare Franklin Financial Services's revenue growth to the United States of America market average as no estimate data is available.

Franklin Financial Services's earnings growth is positive but not above the United States of America market average.

Franklin Financial Services's earnings growth is positive but not above the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Franklin Financial Services will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Franklin Financial Services performed over the past 5 years?

-13.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Franklin Financial Services's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Franklin Financial Services has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Franklin Financial Services has become profitable in the last year making it difficult to compare the US Banks industry average.


Return on Equity

Franklin Financial Services has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Franklin Financial Services used its assets more efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Franklin Financial Services improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Franklin Financial Services's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Information is not available.

Information is not available.


Financial Institutions Analysis

Franklin Financial Services has an acceptable proportion of non-loan assets held.

Franklin Financial Services has a sufficient allowance for bad loans.

Franklin Financial Services's liabilities are made up of primarily low risk sources of funding.

Franklin Financial Services's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).

Loans at Franklin Financial Services are broadly funded by customer deposits.

Franklin Financial Services has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

What is Franklin Financial Services's current dividend yield, its reliability and sustainability?

3.46%

Current Dividend Yield


Dividend Yield and Payments Analysis

Franklin Financial Services's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Franklin Financial Services's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.1x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Franklin Financial Services's salary, the management and board of directors tenure and is there insider trading?

7.6yrs

Average management tenure


CEO

Tim Henry (60yo)

3.1yrs

Tenure

US$374,175

Compensation

Timothy G. Henry has extensive experience in commercial lending, loan workout, retail management, private banking, trust and investment services, operations, risk management and compliance. He started his  ...


CEO Compensation Analysis

Tim's remuneration is lower than average for companies of similar size in United States of America.

Tim's compensation has increased in line with Franklin Financial Services recently becoming profitable.


Management Age and Tenure

7.6yrs

Average Tenure

57yo

Average Age

The average tenure for the Franklin Financial Services management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

11.2yrs

Average Tenure

66yo

Average Age

The average tenure for the Franklin Financial Services board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

More shares have been bought than sold by Franklin Financial Services individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyUS$3616 Aug 19
Karen Carmack
EntityIndividual
Shares1
Max PriceUS$35.61
BuyUS$10716 Aug 19
Ronald Cekovich
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Information & Operations Officerof Farmers & Merchants Trust Co.
Shares3
Max PriceUS$35.61
BuyUS$10901 Aug 19
Patricia Hanks
EntityIndividual
Shares3
Max PriceUS$36.33
BuyUS$10901 Aug 19
Ronald Cekovich
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Information & Operations Officerof Farmers & Merchants Trust Co.
Shares3
Max PriceUS$36.33
BuyUS$3601 Aug 19
Karen Carmack
EntityIndividual
Shares1
Max PriceUS$36.33
BuyUS$1,01701 Aug 19
Gregory Duffey
EntityIndividual
Shares28
Max PriceUS$36.33
BuyUS$11318 Jul 19
Ronald Cekovich
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Information & Operations Officerof Farmers & Merchants Trust Co.
Shares3
Max PriceUS$37.83
BuyUS$3818 Jul 19
Karen Carmack
EntityIndividual
Shares1
Max PriceUS$37.83
BuyUS$11103 Jul 19
Patricia Hanks
EntityIndividual
Shares3
Max PriceUS$36.91
BuyUS$11103 Jul 19
Ronald Cekovich
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Information & Operations Officerof Farmers & Merchants Trust Co.
Shares3
Max PriceUS$36.91
BuyUS$3703 Jul 19
Karen Carmack
EntityIndividual
Shares1
Max PriceUS$36.91
BuyUS$99703 Jul 19
Gregory Duffey
EntityIndividual
Shares27
Max PriceUS$36.91
BuyUS$11721 Jun 19
Ronald Cekovich
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Information & Operations Officerof Farmers & Merchants Trust Co.
Shares3
Max PriceUS$38.99
BuyUS$3921 Jun 19
Karen Carmack
EntityIndividual
Shares1
Max PriceUS$38.99
BuyUS$11630 May 19
Patricia Hanks
EntityIndividual
Shares3
Max PriceUS$38.69
BuyUS$11630 May 19
Ronald Cekovich
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Information & Operations Officerof Farmers & Merchants Trust Co.
Shares3
Max PriceUS$38.69
BuyUS$3930 May 19
Karen Carmack
EntityIndividual
Shares1
Max PriceUS$38.69
BuyUS$1,00630 May 19
Gregory Duffey
EntityIndividual
Shares26
Max PriceUS$38.69
BuyUS$23,34024 May 19
Stanley Kerlin
EntityIndividual
Role
Member of the Board of Directors
Director
Shares600
Max PriceUS$38.90
BuyUS$11616 May 19
Ronald Cekovich
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Information & Operations Officerof Farmers & Merchants Trust Co.
Shares3
Max PriceUS$38.78
BuyUS$3916 May 19
Karen Carmack
EntityIndividual
Shares1
Max PriceUS$38.78
BuyUS$11003 May 19
Patricia Hanks
EntityIndividual
Shares3
Max PriceUS$36.78
BuyUS$11003 May 19
Ronald Cekovich
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Information & Operations Officerof Farmers & Merchants Trust Co.
Shares3
Max PriceUS$36.78
BuyUS$3703 May 19
Karen Carmack
EntityIndividual
Shares1
Max PriceUS$36.78
BuyUS$99303 May 19
Gregory Duffey
EntityIndividual
Shares27
Max PriceUS$36.78
BuyUS$3618 Apr 19
Karen Carmack
EntityIndividual
Shares1
Max PriceUS$35.98
BuyUS$10818 Apr 19
Ronald Cekovich
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Information & Operations Officerof Farmers & Merchants Trust Co.
Shares3
Max PriceUS$35.98
BuyUS$10805 Apr 19
Patricia Hanks
EntityIndividual
Shares3
Max PriceUS$35.87
BuyUS$10805 Apr 19
Ronald Cekovich
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Information & Operations Officerof Farmers & Merchants Trust Co.
Shares3
Max PriceUS$35.87
BuyUS$3605 Apr 19
Karen Carmack
EntityIndividual
Shares1
Max PriceUS$35.87
BuyUS$1,00405 Apr 19
Gregory Duffey
EntityIndividual
Shares28
Max PriceUS$35.87
BuyUS$3722 Mar 19
Karen Carmack
EntityIndividual
Shares1
Max PriceUS$36.60
BuyUS$11022 Mar 19
Ronald Cekovich
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Information & Operations Officerof Farmers & Merchants Trust Co.
Shares3
Max PriceUS$36.60
BuyUS$10908 Mar 19
Ronald Cekovich
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Information & Operations Officerof Farmers & Merchants Trust Co.
Shares3
Max PriceUS$36.40
BuyUS$10908 Mar 19
Patricia Hanks
EntityIndividual
Shares3
Max PriceUS$36.40
BuyUS$3608 Mar 19
Karen Carmack
EntityIndividual
Shares1
Max PriceUS$36.40
BuyUS$98308 Mar 19
Gregory Duffey
EntityIndividual
Shares27
Max PriceUS$36.40
BuyUS$11322 Feb 19
Ronald Cekovich
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Information & Operations Officerof Farmers & Merchants Trust Co.
Shares3
Max PriceUS$37.58
BuyUS$3822 Feb 19
Karen Carmack
EntityIndividual
Shares1
Max PriceUS$37.58
BuyUS$37,94015 Feb 19
Steven Butz
EntityIndividual
Role
Senior Key Executive
Senior VP and Commercial Services Market Manager of Farmers & Merchants Trust Co.
Shares1,000
Max PriceUS$37.94
BuyUS$4,91808 Feb 19
Richard Jordan
EntityIndividual
Role
Member of the Board of Directors
Director
Shares135
Max PriceUS$36.43
BuyUS$10101 Feb 19
Ronald Cekovich
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Information & Operations Officerof Farmers & Merchants Trust Co.
Shares3
Max PriceUS$33.63
BuyUS$3401 Feb 19
Karen Carmack
EntityIndividual
Shares1
Max PriceUS$33.63
BuyUS$10101 Feb 19
Patricia Hanks
EntityIndividual
Shares3
Max PriceUS$33.63
BuyUS$1,00901 Feb 19
Gregory Duffey
EntityIndividual
Shares30
Max PriceUS$33.63
BuyUS$32,63025 Jan 19
Gregory Duffey
EntityIndividual
Shares1,000
Max PriceUS$32.63
BuyUS$9518 Jan 19
Ronald Cekovich
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Information & Operations Officerof Farmers & Merchants Trust Co.
Shares3
Max PriceUS$31.65
BuyUS$3218 Jan 19
Karen Carmack
EntityIndividual
Shares1
Max PriceUS$31.65
BuyUS$4,70011 Jan 19
Timothy Henry
EntityIndividual
Role
Chief Executive Officer
President
Shares150
Max PriceUS$31.33
BuyUS$9204 Jan 19
Patricia Hanks
EntityIndividual
Shares3
Max PriceUS$30.71
BuyUS$9204 Jan 19
Ronald Cekovich
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Information & Operations Officerof Farmers & Merchants Trust Co.
Shares3
Max PriceUS$30.71
BuyUS$3104 Jan 19
Karen Carmack
EntityIndividual
Shares1
Max PriceUS$30.71
BuyUS$8,99804 Jan 19
Stanley Kerlin
EntityIndividual
Role
Member of the Board of Directors
Director
Shares293
Max PriceUS$30.71
BuyUS$1,01304 Jan 19
Gregory Duffey
EntityIndividual
Shares33
Max PriceUS$30.71
BuyUS$5,95027 Dec 18
Timothy Henry
EntityIndividual
Role
Chief Executive Officer
President
Shares200
Max PriceUS$29.75
BuyUS$9,99627 Dec 18
Allan Jennings
EntityIndividual
Role
Member of the Board of Directors
Director
Shares336
Max PriceUS$29.75
BuyUS$14,87527 Dec 18
G. Elliott
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares500
Max PriceUS$29.75
BuyUS$9420 Dec 18
Ronald Cekovich
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Information & Operations Officerof Farmers & Merchants Trust Co.
Shares3
Max PriceUS$31.45
BuyUS$3120 Dec 18
Karen Carmack
EntityIndividual
Shares1
Max PriceUS$31.45
BuyUS$19,65620 Dec 18
Richard Jordan
EntityIndividual
Role
Member of the Board of Directors
Director
Shares625
Max PriceUS$31.45
BuyUS$1,00630 Nov 18
Gregory Duffey
EntityIndividual
Shares30
Max PriceUS$33.54
BuyUS$10130 Nov 18
Patricia Hanks
EntityIndividual
Shares3
Max PriceUS$33.54
BuyUS$10130 Nov 18
Ronald Cekovich
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Information & Operations Officerof Farmers & Merchants Trust Co.
Shares3
Max PriceUS$33.54
BuyUS$3430 Nov 18
Karen Carmack
EntityIndividual
Shares1
Max PriceUS$33.54
BuyUS$33,59023 Nov 18
Daniel Fisher
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceUS$33.59
BuyUS$10215 Nov 18
Ronald Cekovich
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Information & Operations Officerof Farmers & Merchants Trust Co.
Shares3
Max PriceUS$33.93
BuyUS$3415 Nov 18
Karen Carmack
EntityIndividual
Shares1
Max PriceUS$33.93
BuyUS$10302 Nov 18
Patricia Hanks
EntityIndividual
Shares3
Max PriceUS$34.20
BuyUS$10302 Nov 18
Ronald Cekovich
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Information & Operations Officerof Farmers & Merchants Trust Co.
Shares3
Max PriceUS$34.20
BuyUS$3402 Nov 18
Karen Carmack
EntityIndividual
Shares1
Max PriceUS$34.20
BuyUS$99202 Nov 18
Gregory Duffey
EntityIndividual
Shares29
Max PriceUS$34.20
BuyUS$3519 Oct 18
Karen Carmack
EntityIndividual
Shares1
Max PriceUS$34.60
BuyUS$10419 Oct 18
Ronald Cekovich
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Information & Operations Officerof Farmers & Merchants Trust Co.
Shares3
Max PriceUS$34.60
BuyUS$10705 Oct 18
Ronald Cekovich
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Information & Operations Officerof Farmers & Merchants Trust Co.
Shares3
Max PriceUS$35.55
BuyUS$10705 Oct 18
Patricia Hanks
EntityIndividual
Shares3
Max PriceUS$35.55
BuyUS$3605 Oct 18
Karen Carmack
EntityIndividual
Shares1
Max PriceUS$35.55
BuyUS$99505 Oct 18
Gregory Duffey
EntityIndividual
Shares28
Max PriceUS$35.55
BuyUS$3621 Sep 18
Karen Carmack
EntityIndividual
Shares1
Max PriceUS$35.53
BuyUS$10721 Sep 18
Ronald Cekovich
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Information & Operations Officerof Farmers & Merchants Trust Co.
Shares3
Max PriceUS$35.53
BuyUS$10430 Aug 18
Ronald Cekovich
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Information & Operations Officerof Farmers & Merchants Trust Co.
Shares3
Max PriceUS$34.78
BuyUS$3530 Aug 18
Karen Carmack
EntityIndividual
Shares1
Max PriceUS$34.78
BuyUS$10430 Aug 18
Patricia Hanks
EntityIndividual
Shares3
Max PriceUS$34.78
BuyUS$97430 Aug 18
Gregory Duffey
EntityIndividual
Shares28
Max PriceUS$34.78

Ownership Breakdown


Management Team

  • Mark Hollar (57yo)

    Senior VP

    • Tenure: 14.4yrs
    • Compensation: US$260.39k
  • Ron Cekovich (62yo)

    Senior VP & Chief Information & Operations Officerof Farmers & Merchants Trust Co.

    • Tenure: 13.6yrs
    • Compensation: US$217.44k
  • Lise Shehan (62yo)

    Senior VP of F&M Trust and Investment & Trust Services Manager

    • Tenure: 8.6yrs
    • Compensation: US$183.00k
  • Lorie Heckman (55yo)

    Senior VP of F&M Trust and Risk Management Officer of F&M Trust

    • Tenure: 0.0yrs
    • Compensation: US$232.27k
  • Tim Henry (60yo)

    President

    • Tenure: 3.1yrs
    • Compensation: US$374.18k
  • Steven Butz (54yo)

    Senior VP and Commercial Services Market Manager of Farmers & Merchants Trust Co.

    • Tenure: 6.6yrs
    • Compensation: US$220.99k
  • Matthew Weaver (50yo)

    Senior VP and Chief Marketing Officer of Farmers & Merchants Trust Co.

    • Tenure: 5.6yrs
  • Amanda Ducey

    Corporate Secretary

    • Tenure: 0.0yrs
  • Joyce Riley

    Assistant Corporate Secretary

    • Tenure: 0.0yrs
  • Amy Herrold

    Controller

    • Tenure: 0.0yrs

Board Members

  • G. Elliott (65yo)

    Chairman of the Board

    • Tenure: 7.6yrs
    • Compensation: US$69.97k
  • Donald Fry (70yo)

    Director

    • Tenure: 21.6yrs
    • Compensation: US$38.91k
  • Martha Walker (72yo)

    Director

    • Tenure: 40.6yrs
    • Compensation: US$57.96k
  • Martin Brown (67yo)

    Director

    • Tenure: 13.3yrs
    • Compensation: US$44.65k
  • Allan Jennings (70yo)

    Director

    • Tenure: 17.6yrs
    • Compensation: US$46.95k
  • Stanley Kerlin (65yo)

    Director

    • Tenure: 13.3yrs
    • Compensation: US$42.11k
  • Don Mowery (67yo)

    Director

    • Tenure: 9.1yrs
    • Compensation: US$36.20k
  • Tim Henry (60yo)

    President

    • Tenure: 3.1yrs
    • Compensation: US$374.18k
  • Dan Fisher (62yo)

    Director

    • Tenure: 9.1yrs
    • Compensation: US$39.41k
  • Richard Jordan (46yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: US$35.66k

Company Information

Franklin Financial Services Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Franklin Financial Services Corporation
  • Ticker: FRAF
  • Exchange: NasdaqCM
  • Founded: 1906
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$150.555m
  • Shares outstanding: 4.34m
  • Website: https://www.franklinfin.com

Number of Employees


Location

  • Franklin Financial Services Corporation
  • 20 South Main Street
  • PO Box 6010
  • Chambersburg
  • Pennsylvania
  • 17201
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FRAFNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDOct 1990

Biography

Franklin Financial Services Corporation operates as the bank holding company for Farmers and Merchants Trust Company of Chambersburg that provides commercial, retail banking, and trust services to small an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 23:38
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.