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.

Rewards

PE ratio (10.5x) is below the US market (18.4x)

Became profitable this year

Risk Analysis

Earnings have declined by -7.77% per year over past 5 years

Unstable dividend track record



Snowflake Analysis

Flawless balance sheet second-rate 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.6%

FRAF

2.7%

US Banks

1.1%

US Market


1 Year Return

16.3%

FRAF

22.7%

US Banks

17.8%

US Market

Return vs Industry: FRAF underperformed the US Banks industry which returned 22.7% over the past year.

Return vs Market: FRAF underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

FRAFIndustryMarket
7 Day2.6%2.7%1.1%
30 Day1.6%0.9%1.4%
90 Day15.9%10.0%3.9%
1 Year20.0%16.3%26.3%22.7%20.3%17.8%
3 Year46.6%33.9%31.8%22.6%44.8%35.4%
5 Year99.1%70.1%80.2%60.2%71.3%52.4%

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 compared to its fair value and its price relative to the market?

10.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FRAF ($37.09) is trading above our estimate of fair value ($31.8)

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 (10.5x) compared to the Banks industry average (12.7x).

PE vs Market: FRAF is good value based on its PE Ratio (10.5x) compared to the US market (18.4x).


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 overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (1.2x).


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?

0.5%

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?

-7.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FRAF has high quality earnings.

Growing Profit Margin: FRAF became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: FRAF's earnings have declined by -7.8% per year over the past 5 years.

Accelerating Growth: FRAF has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: FRAF has become profitable in the last year, making it difficult to compare its past year earnings growth to the Banks industry (27.1%).


Return on Equity

High ROE: FRAF's Return on Equity (12.3%) is considered low.


Return on Assets


Return on Capital Employed


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

Inventory Level: FRAF has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if FRAF's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: FRAF's level of assets compared to its equity is moderate.

Allowance for Bad Loans: FRAF has a sufficient allowance for bad loans.

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

Loan Level: FRAF has an acceptable proportion of non-loan assets held.

Low Risk Deposits: FRAF's loans are broadly funded by customer deposits.

Level of Bad Loans: FRAF has an appropriate level of bad loans (0.53%)


Next Steps

Dividend

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

3.24%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: FRAF's dividend (3.24%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: FRAF's dividend (3.24%) is low compared to the top 25% of dividend payers in the US market (3.67%).


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 (32.2%), 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

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

7.9yrs

Average management tenure


CEO

Tim Henry (60yo)

3.4yrs

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

Compensation vs Market: Tim's total compensation ($USD374.18K) is below average for companies of similar size in the US market ($USD1.12M).

Compensation vs Earnings: Tim's compensation has been consistent with company performance over the past year.


Management Age and Tenure

7.9yrs

Average Tenure

57yo

Average Age

Experienced Management: FRAF's management team is seasoned and experienced (7.9 years average tenure).


Board Age and Tenure

11.5yrs

Average Tenure

66yo

Average Age

Experienced Board: FRAF's board of directors are seasoned and experienced ( 11.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$11004 Dec 19
Patricia Hanks
EntityIndividual
Shares3
Max PriceUS$36.62
BuyUS$11004 Dec 19
Ronald Cekovich
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Information & Operations Officerof Farmers & Merchants Trust Co.
Shares3
Max PriceUS$36.62
BuyUS$3704 Dec 19
Karen Carmack
EntityIndividual
Shares1
Max PriceUS$36.62
BuyUS$98904 Dec 19
Gregory Duffey
EntityIndividual
Shares27
Max PriceUS$36.62
BuyUS$10621 Nov 19
Ronald Cekovich
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Information & Operations Officerof Farmers & Merchants Trust Co.
Shares3
Max PriceUS$35.38
BuyUS$3521 Nov 19
Karen Carmack
EntityIndividual
Shares1
Max PriceUS$35.38
BuyUS$35,35121 Nov 19
Kimberly Rzomp
EntityIndividual
Shares1,000
Max PriceUS$35.38
BuyUS$19,99107 Nov 19
Allan Jennings
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares548
Max PriceUS$36.48
BuyUS$1,00501 Nov 19
Gregory Duffey
EntityIndividual
Shares28
Max PriceUS$35.88
BuyUS$10801 Nov 19
Patricia Hanks
EntityIndividual
Shares3
Max PriceUS$35.88
BuyUS$3601 Nov 19
Karen Carmack
EntityIndividual
Shares1
Max PriceUS$35.88
BuyUS$10801 Nov 19
Ronald Cekovich
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Information & Operations Officerof Farmers & Merchants Trust Co.
Shares3
Max PriceUS$35.88
BuyUS$10517 Oct 19
Ronald Cekovich
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Information & Operations Officerof Farmers & Merchants Trust Co.
Shares3
Max PriceUS$35.10
BuyUS$3517 Oct 19
Karen Carmack
EntityIndividual
Shares1
Max PriceUS$35.10
BuyUS$10704 Oct 19
Patricia Hanks
EntityIndividual
Shares3
Max PriceUS$35.80
BuyUS$10704 Oct 19
Ronald Cekovich
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Information & Operations Officerof Farmers & Merchants Trust Co.
Shares3
Max PriceUS$35.80
BuyUS$3604 Oct 19
Karen Carmack
EntityIndividual
Shares1
Max PriceUS$35.80
BuyUS$1,00204 Oct 19
Gregory Duffey
EntityIndividual
Shares28
Max PriceUS$35.80
BuyUS$26228 Aug 19
Karen Carmack
EntityIndividual
Shares8
Max PriceUS$32.70
BuyUS$2,12628 Aug 19
Ronald Cekovich
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Information & Operations Officerof Farmers & Merchants Trust Co.
Shares65
Max PriceUS$32.70
BuyUS$1,86428 Aug 19
Gregory Duffey
EntityIndividual
Shares57
Max PriceUS$32.70
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
Independent 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
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
Independent 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
Independent 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
Shares625
Max PriceUS$31.45

Ownership Breakdown

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


Management Team

  • Mark Hollar (57yo)

    Senior VP

    • Tenure: 14.8yrs
    • Compensation: US$260.39k
  • Ron Cekovich (62yo)

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

    • Tenure: 13.9yrs
    • Compensation: US$217.44k
  • Lise Shehan (62yo)

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

    • Tenure: 8.9yrs
    • Compensation: US$183.00k
  • Lorie Heckman (55yo)

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

    • Tenure: 0yrs
    • Compensation: US$232.27k
  • Tim Henry (60yo)

    President

    • Tenure: 3.4yrs
    • Compensation: US$374.18k
  • Steve Butz (54yo)

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

    • Tenure: 6.9yrs
    • Compensation: US$220.99k
  • Matthew Weaver (50yo)

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

    • Tenure: 5.9yrs
  • Amanda Ducey

    Corporate Secretary

    • Tenure: 0yrs
  • Joyce Riley

    Assistant Corporate Secretary

    • Tenure: 0yrs
  • Amy Herrold

    Controller

    • Tenure: 0yrs

Board Members

  • G. Elliott (65yo)

    Chairman of the Board

    • Tenure: 7.9yrs
    • Compensation: US$69.97k
  • Donald Fry (70yo)

    Independent Director

    • Tenure: 21.9yrs
    • Compensation: US$38.91k
  • Martha Walker (72yo)

    Independent Director

    • Tenure: 40.9yrs
    • Compensation: US$57.96k
  • Martin Brown (67yo)

    Independent Director

    • Tenure: 13.6yrs
    • Compensation: US$44.65k
  • Allan Jennings (70yo)

    Independent Director

    • Tenure: 17.9yrs
    • Compensation: US$46.95k
  • Stanley Kerlin (65yo)

    Independent Director

    • Tenure: 13.6yrs
    • Compensation: US$42.11k
  • Tricia Lacy (60yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$41.07k
  • Don Mowery (67yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: US$36.20k
  • Tim Henry (60yo)

    President

    • Tenure: 3.4yrs
    • Compensation: US$374.18k
  • Dan Fisher (62yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: US$39.41k

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$159.254m
  • Shares outstanding: 4.35m
  • 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 Analysis2019/12/10 23:35
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
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.