Stock Analysis Report

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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. More Details

Snowflake Analysis

Flawless balance sheet average dividend payer.

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

Stable Share Price: FRAF is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: FRAF's weekly volatility (6%) has been stable over the past year.

Market Performance

7 Day Return




US Banks


US Market

1 Year Return




US Banks


US Market

Return vs Industry: FRAF underperformed the US Banks industry which returned -7.2% over the past year.

Return vs Market: FRAF underperformed the US Market which returned 19.6% over the past year.

Shareholder returns

7 Day8.2%0.8%-1.0%
30 Day-1.8%13.4%2.3%
90 Day32.9%40.1%13.1%
1 Year-17.2%-20.6%-3.8%-7.2%22.3%19.6%
3 Year-11.9%-20.6%1.6%-7.1%45.3%35.7%
5 Year63.8%38.4%87.4%63.6%124.8%99.8%

Long-Term 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


Is Franklin Financial Services undervalued compared to its fair value and its price relative to the market?


Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: FRAF ($29.76) is trading above our estimate of fair value ($29.02)

Significantly Below Fair Value: FRAF is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: FRAF is good value based on its PE Ratio (10.2x) compared to the US Banks industry average (12.3x).

PE vs Market: FRAF is good value based on its PE Ratio (10.2x) compared to the US market (21x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FRAF's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: FRAF's PB Ratio (0.9x) is in line with the US Banks industry average.

Next Steps

Future Growth

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


Forecasted Banks industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Franklin Financial Services has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Next Steps

Past Performance

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


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FRAF has high quality earnings.

Growing Profit Margin: FRAF's current net profit margins (24.3%) are lower than last year (28.2%).

Past Earnings Growth Analysis

Earnings Trend: FRAF's earnings have grown by 8.6% per year over the past 5 years.

Accelerating Growth: FRAF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FRAF had negative earnings growth (-18.6%) over the past year, making it difficult to compare to the Banks industry average (-4.4%).

Return on Equity

High ROE: FRAF's Return on Equity (9.1%) is considered low.

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

Financial Institutions Analysis

Asset Level: FRAF's Assets to Equity ratio (10.8x) is moderate.

Allowance for Bad Loans: FRAF has a sufficient allowance for bad loans (180%).

Low Risk Liabilities: 97% of FRAF's liabilities are made up of primarily low risk sources of funding.

Loan Level: FRAF has an appropriate level of Loans to Assets ratio (67%).

Low Risk Deposits: FRAF's Loans to Deposits ratio (75%) is appropriate.

Level of Bad Loans: FRAF has an appropriate level of bad loans (0.9%).

Next Steps


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


Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: FRAF's dividend (4.03%) is higher than the bottom 25% of dividend payers in the US market (1.39%).

High Dividend: FRAF's dividend (4.03%) is in the top 25% of dividend payers in the US market (3.85%)

Stability and Growth of Payments

Stable Dividend: FRAF's dividend payments have been volatile in the past 10 years.

Growing Dividend: FRAF's dividend payments have increased over the past 10 years.

Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.3%), FRAF's dividend payments are well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.

Next Steps


How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


Tim Henry (61 yo)





Mr. Timothy G. Henry, also known as Tim, has extensive experience in commercial lending, loan workout, retail management, private banking, trust and investment services, operations, risk management and com...

CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD546.86K) is about average for companies of similar size in the US market ($USD535.60K).

Compensation vs Earnings: Tim's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Timothy Henry
$ 248.6k
Mark Hollar
Senior VP15.83yrsUS$307.86k0.12%
$ 158.9k
Steven Butz
Senior VP and Commercial Services Market Manager of Farmers & Merchants Trust Co.8yrsUS$249.49k0.047%
$ 61.6k
Joyce Riley
Assistant Corporate Secretaryno datano datano data
Ronald Cekovich
Senior VP & Chief Information & Operations Officerof Farmers & Merchants Trust Co.15yrsUS$217.44k0.18%
$ 230.3k
Lise Shehan
Senior VP and Investment & Trust Services Manager of Farmers & Merchants Trust Co.10yrsUS$183.00kno data
Matthew Weaver
Senior VP and Chief Marketing Officer of Farmers & Merchants Trust Co.7yrsno data0.014%
$ 18.1k
Lorie Heckman
Senior VP of F&M Trust and Risk Management Officer of F&M Trustno dataUS$232.27k0.038%
$ 49.5k
Amanda Ducey
Corporate Secretaryno datano datano data
Amy Herrold
Controllerno datano datano data
Karen Carmack
Senior VP and Human Resources Manager of Farmers & Merchants Trust Co.15yrsno data0.033%
$ 43.5k
Patricia Hanks
Senior VP of F&M Trust and Retail Services Market Manager of F&M Trust10yrsno data0.084%
$ 109.9k


Average Tenure


Average Age

Experienced Management: FRAF's management team is seasoned and experienced (10 years average tenure).

Board Members

Timothy Henry
$ 248.6k
G. Elliott
Independent Chairman of the Board9yrsUS$90.60k0.20%
$ 266.1k
Donald Fry
Independent Director23yrsUS$46.05k0.14%
$ 181.4k
Martin Brown
Independent Director14.67yrsUS$59.20k0.14%
$ 183.5k
Allan Jennings
Independent Director19yrsUS$57.75k0.42%
$ 544.0k
Stanley Kerlin
Independent Director14.67yrsUS$53.85k0.77%
$ 1.0m
Patrica Lacy
Independent Director5.92yrsUS$51.20k0.17%
$ 216.5k
Donald Mowery
Independent Director10.5yrsUS$46.45k1.21%
$ 1.6m
Daniel Fisher
Independent Director10.5yrsUS$53.38k0.46%
$ 594.1k
Gregory Duffey
Independent Director5.92yrsUS$50.75k0.17%
$ 220.3k
Kimberly Rzomp
Independent Director1.5yrsUS$11.35k0.081%
$ 105.9k
Kevin Craig
Independent Director0.92yrno data0.090%
$ 117.5k


Average Tenure


Average Age

Experienced Board: FRAF's board of directors are considered experienced (9.8 years average tenure).


Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: FRAF insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

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$130.133m
  • Shares outstanding: 4.37m
  • Website:

Number of Employees


  • Franklin Financial Services Corporation
  • 20 South Main Street
  • PO Box 6010
  • Chambersburg
  • Pennsylvania
  • 17201-0819
  • United States


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


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 Analysis2021/01/18 00:13
End of Day Share Price2021/01/15 00:00
Annual Earnings2019/12/31

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.