Franklin Financial Services
Market Cap
US$121.4m
Last Updated
2021/01/14 23:10 UTC
Data Sources
Company Financials
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
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet, good value and pays a dividend.
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
0.8%
FRAF
3.1%
US Banks
0.6%
US Market
1 Year Return
-25.8%
FRAF
-4.2%
US Banks
21.0%
US Market
Return vs Industry: FRAF underperformed the US Banks industry which returned -5% over the past year.
Return vs Market: FRAF underperformed the US Market which returned 22% over the past year.
Shareholder returns
| FRAF | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.8% | 3.1% | 0.6% |
| 30 Day | -4.5% | 15.6% | 4.2% |
| 90 Day | 22.5% | 42.5% | 12.4% |
| 1 Year | -22.6%-25.8% | -0.7%-4.2% | 23.7%21.0% |
| 3 Year | -16.8%-25.0% | 5.5%-3.5% | 47.4%37.6% |
| 5 Year | 56.8%32.5% | 96.6%71.7% | 131.6%105.9% |
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
1 month ago | Simply Wall St
What We Learned About Franklin Financial Services' (NASDAQ:FRAF) CEO Pay2 months ago | Simply Wall St
Franklin Financial Services Corporation (NASDAQ:FRAF) Looks Interesting, And It's About To Pay A Dividend3 months ago | Simply Wall St
A Look At Franklin Financial Services' (NASDAQ:FRAF) Share Price ReturnsValuation
Is Franklin Financial Services undervalued compared to its fair value and its price relative to the market?
3.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FRAF ($27.9) is trading below our estimate of fair value ($28.98)
Significantly Below Fair Value: FRAF is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: FRAF is good value based on its PE Ratio (9.6x) compared to the US Banks industry average (12.2x).
PE vs Market: FRAF is good value based on its PE Ratio (9.6x) compared to the US market (21.1x).
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 is good value based on its PB Ratio (0.9x) compared to the US Banks industry average (1x).
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?
14.2%
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
- Examine whether Franklin Financial Services is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Explore growth companies in the Banks industry.
Past Performance
How has Franklin Financial Services performed over the past 5 years?
8.6%
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
Dividend
What is Franklin Financial Services's current dividend yield, its reliability and sustainability?
4.30%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FRAF's dividend (4.3%) is higher than the bottom 25% of dividend payers in the US market (1.38%).
High Dividend: FRAF's dividend (4.3%) is in the top 25% of dividend payers in the US market (3.88%)
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
Management
How experienced are the management team and are they aligned to shareholders interests?
10.0yrs
Average management tenure
CEO
Tim Henry (61 yo)
4.5yrs
Tenure
US$546,864
Compensation
Mr. Timothy G. Henry, also known as Tim, has extensive experience in commercial lending, loan workout, retail management, private banking, trust and investment services, operations, risk management and com...
CEO Compensation Analysis
Compensation vs Market: Tim's total compensation ($USD546.86K) is about average for companies of similar size in the US market ($USD541.25K).
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 4.5yrs | US$546.86k | 0.19% $ 231.9k | |
| Senior VP | 15.83yrs | US$307.86k | 0.12% $ 148.2k | |
| Senior VP and Commercial Services Market Manager of Farmers & Merchants Trust Co. | 8yrs | US$249.49k | 0.047% $ 57.5k | |
| Assistant Corporate Secretary | no data | no data | no data | |
| Senior VP & Chief Information & Operations Officerof Farmers & Merchants Trust Co. | 15yrs | US$217.44k | 0.18% $ 214.8k | |
| Senior VP and Investment & Trust Services Manager of Farmers & Merchants Trust Co. | 10yrs | US$183.00k | no data | |
| Senior VP and Chief Marketing Officer of Farmers & Merchants Trust Co. | 7yrs | no data | 0.014% $ 16.9k | |
| Senior VP of F&M Trust and Risk Management Officer of F&M Trust | no data | US$232.27k | 0.038% $ 46.2k | |
| Corporate Secretary | no data | no data | no data | |
| Controller | no data | no data | no data | |
| Senior VP and Human Resources Manager of Farmers & Merchants Trust Co. | 15yrs | no data | 0.033% $ 40.5k | |
| Senior VP of F&M Trust and Retail Services Market Manager of F&M Trust | 10yrs | no data | 0.084% $ 102.5k |
10.0yrs
Average Tenure
58yo
Average Age
Experienced Management: FRAF's management team is seasoned and experienced (10 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 4.5yrs | US$546.86k | 0.19% $ 231.9k | |
| Independent Chairman of the Board | 9yrs | US$90.60k | 0.20% $ 248.3k | |
| Independent Director | 23yrs | US$46.05k | 0.14% $ 169.2k | |
| Independent Director | 14.67yrs | US$59.20k | 0.14% $ 171.1k | |
| Independent Director | 19yrs | US$57.75k | 0.42% $ 507.5k | |
| Independent Director | 14.67yrs | US$53.85k | 0.77% $ 937.5k | |
| Independent Director | 5.92yrs | US$51.20k | 0.17% $ 201.9k | |
| Independent Director | 10.5yrs | US$46.45k | 1.21% $ 1.5m | |
| Independent Director | 10.5yrs | US$53.38k | 0.46% $ 554.1k | |
| Independent Director | 5.92yrs | US$50.75k | 0.17% $ 205.5k | |
| Independent Director | 1.5yrs | US$11.35k | 0.081% $ 98.8k | |
| Independent Director | 0.92yr | no data | 0.090% $ 109.6k |
9.8yrs
Average Tenure
64.5yo
Average Age
Experienced Board: FRAF's board of directors are considered experienced (9.8 years average tenure).
Ownership
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$121.388m
- Shares outstanding: 4.37m
- Website: https://www.franklinfin.com
Number of Employees
Location
- Franklin Financial Services Corporation
- 20 South Main Street
- PO Box 6010
- Chambersburg
- Pennsylvania
- 17201-0819
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| FRAF | NasdaqCM (Nasdaq Capital Market) | Yes | Common Stock | US | USD | Oct 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/14 23:10 |
| End of Day Share Price | 2021/01/14 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.