NasdaqGS:FELE

Stock Analysis Report

Executive Summary

Franklin Electric Co., Inc., together with its subsidiaries, designs, manufactures, and distributes water and fuel pumping systems worldwide.

Snowflake

Fundamentals

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.2%

FELE

-0.7%

US Machinery

0.9%

US Market


1 Year Return

21.9%

FELE

17.8%

US Machinery

16.8%

US Market

Return vs Industry: FELE exceeded the US Machinery industry which returned 17.8% over the past year.

Return vs Market: FELE exceeded the US Market which returned 16.8% over the past year.


Shareholder returns

FELEIndustryMarket
7 Day0.2%-0.7%0.9%
30 Day7.9%6.1%4.5%
90 Day16.3%14.0%6.2%
1 Year23.3%21.9%20.0%17.8%19.4%16.8%
3 Year38.8%34.4%44.3%35.2%47.5%38.0%
5 Year46.0%38.0%57.2%38.1%62.0%44.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

24.78x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FELE ($53.09) is trading above our estimate of fair value ($32.07)

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


Price To Earnings Ratio

PE vs Industry: FELE is poor value based on its PE Ratio (24.8x) compared to the Machinery industry average (22.3x).

PE vs Market: FELE is poor value based on its PE Ratio (24.8x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FELE is overvalued based on its PB Ratio (3.2x) compared to the US Machinery industry average (2.4x).


Next Steps

Future Growth

How is Franklin Electric forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

3.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if FELE's forecast earnings growth is above the savings rate (2.7%).

Earnings vs Market: Insufficient data to determine if FELE's earnings are forecast to grow faster than the US market

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

Revenue vs Market: FELE's revenue (3.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: FELE's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if FELE's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Franklin Electric performed over the past 5 years?

8.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FELE has high quality earnings.

Growing Profit Margin: FELE's current net profit margins (7.6%) are higher than last year (7%).


Past Earnings Growth Analysis

Earnings Trend: FELE's earnings have grown by 8.5% per year over the past 5 years.

Accelerating Growth: FELE's earnings growth over the past year (11.4%) exceeds its 5-year average (8.5% per year).

Earnings vs Industry: FELE earnings growth over the past year (11.4%) underperformed the Machinery industry 13.5%.


Return on Equity

High ROE: FELE's Return on Equity (12.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Franklin Electric's financial position?


Financial Position Analysis

Short Term Liabilities: FELE's short term assets ($617.6M) exceeds its short term liabilities ($257.2M)

Long Term Liabilities: FELE's short term assets ($617.6M) exceeds its long term liabilities (202.9M)


Debt to Equity History and Analysis

Debt Level: FELE's debt to equity ratio (22.4%) is considered satisfactory.

Reducing Debt: FELE's debt to equity ratio has reduced from 35% to 22.4% over the past 5 years.

Debt Coverage: FELE's debt is well covered by operating cash flow (91%).

Interest Coverage: FELE's interest payments on its debt are well covered by EBIT (15.3x coverage).


Balance Sheet

Inventory Level: FELE has a high level of physical assets or inventory.

Debt Coverage by Assets: FELE's debt is covered by short term assets (assets are 3.6x debt).


Next Steps

Dividend

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

1.09%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years1.0%

Current dividend yield vs market & industry

Notable Dividend: FELE's dividend (1.09%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: FELE's dividend (1.09%) is low compared to the top 25% of dividend payers in the US market (3.68%).


Stability and Growth of Payments

Stable Dividend: FELE's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.9%), FELE'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 Electric's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Gregg Sengstack (61yo)

5.5yrs

Tenure

US$5,103,276

Compensation

Mr. Gregg C. Sengstack has been the Chief Executive Officer of Franklin Electric Co., Inc. since May 2, 2014 and has been its Chairman since May 8, 2015, and also serves as its President. Mr. Sengstack ser ...


CEO Compensation Analysis

Compensation vs Market: Gregg's total compensation ($USD5.10M) is about average for companies of similar size in the US market ($USD5.10M).

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


Management Age and Tenure

3.2yrs

Average Tenure

54yo

Average Age

Experienced Management: FELE's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

7.1yrs

Average Tenure

66yo

Average Age

Experienced Board: FELE's board of directors are considered experienced (7.1 years average tenure).


Insider Trading

Insider Buying: FELE insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$435,37907 Nov 19
Gregg Sengstack
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares8,008
Max PriceUS$54.37
SellUS$29,15631 Oct 19
DeLancey Davis
EntityIndividual
Role
Unit President
VP & President of Headwater Companies
Shares534
Max PriceUS$54.60
SellUS$150,00016 Sep 19
Steven Aikman
EntityIndividual
Shares3,000
Max PriceUS$50.00
SellUS$160,66513 Sep 19
DeLancey Davis
EntityIndividual
Role
Unit President
VP & President of Headwater Companies
Shares3,220
Max PriceUS$50.26
SellUS$60,67317 Jun 19
Donald Kenney
EntityIndividual
Role
Unit President
VP & President of North America Water Systems
Shares1,313
Max PriceUS$46.21
SellUS$61,94125 Apr 19
Donald Kenney
EntityIndividual
Role
Unit President
VP & President of North America Water Systems
Shares1,335
Max PriceUS$46.40
SellUS$78,20808 Mar 19
Donald Kenney
EntityIndividual
Role
Unit President
VP & President of North America Water Systems
Shares1,500
Max PriceUS$52.14
SellUS$151,89507 Mar 19
DeLancey Davis
EntityIndividual
Role
Unit President
VP & President of Headwater Companies
Shares2,885
Max PriceUS$52.65
SellUS$145,39428 Feb 19
DeLancey Davis
EntityIndividual
Role
Unit President
VP & President of Headwater Companies
Shares2,705
Max PriceUS$53.75
SellUS$110,42026 Feb 19
Thomas VerHage
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$55.21
SellUS$220,72022 Feb 19
John Haines
EntityIndividual
Role
Chief Financial Officer
VP & CFO
Shares4,000
Max PriceUS$55.18

Ownership Breakdown

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


Management Team

  • Gregg Sengstack (61yo)

    Chairman

    • Tenure: 5.5yrs
    • Compensation: US$5.10m
  • John Haines (55yo)

    VP & CFO

    • Tenure: 11.6yrs
    • Compensation: US$1.53m
  • Dee Davis (53yo)

    VP & President of Headwater Companies

    • Tenure: 2.6yrs
    • Compensation: US$1.28m
  • Jon Grandon (43yo)

    VP, Chief Administrative Officer

    • Tenure: 3.2yrs
  • Jay Walsh

    VP & President of Franklin Fueling Systems

    • Tenure: 0.8yrs
  • Don Kenney (58yo)

    VP & President of North America Water Systems

    • Tenure: 2.6yrs
    • Compensation: US$1.34m
  • Julie Freigang (51yo)

    VP & Chief Information Officer

    • Tenure: 5.8yrs

Board Members

  • Dave Wathen (66yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$205.00k
  • Gregg Sengstack (61yo)

    Chairman

    • Tenure: 5.5yrs
    • Compensation: US$5.10m
  • David Brown (71yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$195.00k
  • Dave Roberts (71yo)

    Independent Director

    • Tenure: 16.1yrs
    • Compensation: US$185.00k
  • Jennifer Sherman (54yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$195.00k
  • Thomas VerHage (66yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$185.00k
  • Renee Peterson (57yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$195.00k

Company Information

Franklin Electric Co., Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Franklin Electric Co., Inc.
  • Ticker: FELE
  • Exchange: NasdaqGS
  • Founded: 1944
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$2.461b
  • Shares outstanding: 46.36m
  • Website: https://www.franklin-electric.com

Number of Employees


Location

  • Franklin Electric Co., Inc.
  • 9255 Coverdale Road
  • Fort Wayne
  • Indiana
  • 46809
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FELENasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDJan 1980
FE4DB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1980

Biography

Franklin Electric Co., Inc., together with its subsidiaries, designs, manufactures, and distributes water and fuel pumping systems worldwide. It operates in three segments: Water Systems, Fueling Systems,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 23:36
End of Day Share Price2019/11/20 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.