NYSE:FSB

Stock Analysis Report

Franklin Financial Network

Executive Summary

Franklin Financial Network, Inc. operates as the bank holding company for Franklin Synergy Bank that provides banking and related financial services to small businesses, corporate entities, local governments, and individuals.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: FSB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

13.2%

FSB

-1.0%

US Banks

-0.09%

US Market


1 Year Return

28.9%

FSB

14.7%

US Banks

23.9%

US Market

Return vs Industry: FSB exceeded the US Banks industry which returned 17% over the past year.

Return vs Market: FSB exceeded the US Market which returned 25.1% over the past year.


Shareholder returns

FSBIndustryMarket
7 Day13.2%-1.0%-0.09%
30 Day12.9%-3.0%3.1%
90 Day18.4%4.5%10.4%
1 Year29.7%28.9%18.0%14.7%26.6%23.9%
3 Year-0.3%-0.9%28.6%19.4%50.9%41.2%
5 Year106.5%105.3%86.7%65.8%78.1%58.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

23.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FSB ($33.8) is trading below our estimate of fair value ($48.64)

Significantly Below Fair Value: FSB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FSB is poor value based on its PE Ratio (21.3x) compared to the Banks industry average (12.8x).

PE vs Market: FSB is poor value based on its PE Ratio (21.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: FSB is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: FSB is overvalued based on its PB Ratio (1.2x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Franklin Financial Network forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

24.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FSB's forecast earnings growth (24.8% per year) is above the savings rate (1.7%).

Earnings vs Market: FSB's earnings (24.8% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FSB's revenue (10.7% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: FSB's revenue (10.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FSB's Return on Equity is forecast to be low in 3 years time (9.5%).


Next Steps

Past Performance

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

19.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FSB has high quality earnings.

Growing Profit Margin: FSB's current net profit margins (21.1%) are lower than last year (28.6%).


Past Earnings Growth Analysis

Earnings Trend: FSB's earnings have grown by 19.3% per year over the past 5 years.

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

Earnings vs Industry: FSB had negative earnings growth (-30.2%) over the past year, making it difficult to compare to the Banks industry average (27.1%).


Return on Equity

High ROE: FSB's Return on Equity (5.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Franklin Financial Network'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: FSB has a low level of unsold assets or inventory.

Debt Coverage by Assets: FSB's debt is not covered by short term assets (assets are 0.9x debt).


Financial Institutions Analysis

Asset Level: FSB's level of assets compared to its equity is low.

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

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

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

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

Level of Bad Loans: FSB has an appropriate level of bad loans (0.11%)


Next Steps

Dividend

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

0.62%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years0.6%

Current dividend yield vs market & industry

Notable Dividend: FSB's dividend (0.71%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: FSB's dividend (0.71%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: FSB is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: FSB is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: FSB is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FSB's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

J. Jones (68yo)

0.8yrs

Tenure

US$256,090

Compensation

Mr. J. Myers Jones, III serves as Chief Executive Officer at Franklin Financial Network, Inc. and Franklin Synergy Bank since August 28, 2019. Mr. Jones had been an Interim Chief Executive Officer at Frank ...


CEO Compensation Analysis

Compensation vs Market: J.'s total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD1.70M).

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


Management Age and Tenure

0.8yrs

Average Tenure

61yo

Average Age

Experienced Management: FSB's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

4.4yrs

Average Tenure

58yo

Average Age

Experienced Board: FSB's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$60,32011 Sep 19
James Cross
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares2,000
Max PriceUS$30.16
SellUS$34,55022 Feb 19
Henry Brockman
EntityIndividual
Shares1,000
Max PriceUS$34.55
SellUS$17,08714 Feb 19
Kevin Herrington
EntityIndividual
Shares518
Max PriceUS$33.02
BuyUS$31,65029 Jan 19
Pamela Stephens
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$31.65

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.3%.


Management Team

  • J. Jones (68yo)

    Chief Executive Officer

    • Tenure: 0.8yrs
    • Compensation: US$256.09k
  • Sally Kimble (65yo)

    Executive VP & Chief Administrative Officer

    • Tenure: 6yrs
  • Ashley Hill (57yo)

    EVP & Chief Banking Officer

    • Lee Moss (68yo)

      President

      • Tenure: 0.8yrs
      • Compensation: US$333.62k
    • Steve Groom (67yo)

      Executive VP & General Counsel

      • Tenure: 0.5yrs
    • Chris Black (44yo)

      Executive VP & CFO

      • Tenure: 1.1yrs
    • Dee Jernigan (51yo)

      Executive VP & Financial Executive

      • David McDaniel (51yo)

        Executive VP

        • Compensation: US$566.54k
      • Terry Howell (61yo)

        Executive VP

        • Julian Bibb

          Senior VP & Deputy Counsel

          • Tenure: 0.5yrs

        Board Members

        • Jim Cross (55yo)

          Independent Chairman

          • Tenure: 0.8yrs
          • Compensation: US$462.90k
        • Melody Sullivan (66yo)

          Lead Independent Director

          • Compensation: US$468.88k
        • Paul Pratt (55yo)

          Director

          • Tenure: 2.7yrs
          • Compensation: US$462.95k
        • Pam Stephens (60yo)

          Independent Director

          • Tenure: 10.5yrs
          • Compensation: US$468.18k
        • Greg Waldron (56yo)

          Independent Director

          • Tenure: 4.8yrs
          • Compensation: US$463.00k
        • Jimmy Allen (79yo)

          Independent Director

          • Tenure: 5.5yrs
          • Compensation: US$471.96k
        • Ben Wynd (41yo)

          Independent Director

          • Tenure: 4.4yrs
          • Compensation: US$467.64k
        • Anil Patel (61yo)

          Independent Director

          • Tenure: 1.8yrs
          • Compensation: US$411.07k

        Company Information

        Franklin Financial Network, Inc.'s company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Franklin Financial Network, Inc.
        • Ticker: FSB
        • Exchange: NYSE
        • Founded: 2007
        • Industry: Regional Banks
        • Sector: Banks
        • Market Cap: US$578.042m
        • Shares outstanding: 14.82m
        • Website: https://www.franklinsynergybank.com

        Number of Employees


        Location

        • Franklin Financial Network, Inc.
        • 722 Columbia Avenue
        • Franklin
        • Tennessee
        • 37064
        • United States

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        FSBNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 2013

        Biography

        Franklin Financial Network, Inc. operates as the bank holding company for Franklin Synergy Bank that provides banking and related financial services to small businesses, corporate entities, local governments, and individuals. Its deposit products include checking, savings, and certificate of deposit accounts; and demand deposits, interest-bearing transaction accounts, money market accounts, and municipal deposits. The company also provides construction and land development, commercial real estate, residential real estate, commercial and industrial, and consumer and other loans. In addition, it offers retirement planning, financial planning, and investment services, as well as insurance products; and Internet banking, remote deposit capture, lockbox, and treasury management services. The company operates through 15 branches and a loan production office in the Williamson, Rutherford, and Davidson counties in the Nashville metropolitan area. Franklin Financial Network, Inc. was founded in 2007 and is headquartered in Franklin, Tennessee. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/24 01:10
        End of Day Share Price2020/01/23 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.