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


Market Performance


7 Day Return

-4.7%

NasdaqGS:FELE

-2.5%

US Machinery

-1.6%

US Market


1 Year Return

-9.6%

NasdaqGS:FELE

-9.9%

US Machinery

-3.0%

US Market

FELE matched the Machinery industry (-9.9%) over the past year.

FELE underperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

FELEIndustryMarket
7 Day-4.7%-2.5%-1.6%
30 Day-6.0%-11.7%-5.7%
90 Day-2.1%-4.2%0.2%
1 Year-8.5%-9.6%-8.0%-9.9%-0.8%-3.0%
3 Year17.7%14.0%32.5%23.9%38.1%29.1%
5 Year22.1%15.5%32.8%16.3%50.8%34.1%

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 based on future cash flows and its price relative to the stock market?

0.317%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Franklin Electric's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Franklin Electric's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Franklin Electric is overvalued based on earnings compared to the US Machinery industry average.

Franklin Electric is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Franklin Electric is poor value based on expected growth next year.


Price Based on Value of Assets

Franklin Electric is overvalued based on assets compared to the US Machinery industry average.


Next Steps

Future Growth

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

14.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Franklin Electric's revenue is expected to grow by 4.2% yearly, however this is not considered high growth (20% yearly).

Franklin Electric's earnings are expected to grow by 14% yearly, however this is not considered high growth (20% yearly).

Franklin Electric's revenue growth is positive but not above the United States of America market average.

Franklin Electric's earnings growth is positive but not above the United States of America market average.

Franklin Electric's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Franklin Electric will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Franklin Electric performed over the past 5 years?

7.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Franklin Electric's year on year earnings growth rate has been positive over the past 5 years.

Franklin Electric's 1-year earnings growth exceeds its 5-year average (14.1% vs 7.1%)

Franklin Electric's earnings growth has not exceeded the US Machinery industry average in the past year (14.1% vs 17.5%).


Return on Equity

Franklin Electric has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Franklin Electric used its assets more efficiently than the US Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Franklin Electric has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Franklin Electric's financial position?


Financial Position Analysis

Franklin Electric is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Franklin Electric's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Franklin Electric's level of debt (29.3%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (37.9% vs 29.3% today).

Debt is well covered by operating cash flow (57.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 14.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.9x debt.


Next Steps

Dividend

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

1.21%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Franklin Electric's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

Franklin Electric's dividend is below the markets top 25% of dividend payers in United States of America (3.93%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.9x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Gregg Sengstack (61yo)

5.3yrs

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

Gregg's remuneration is about average for companies of similar size in United States of America.

Gregg's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.9yrs

Average Tenure

54yo

Average Age

The tenure for the Franklin Electric management team is about average.


Board Age and Tenure

6.8yrs

Average Tenure

66yo

Average Age

The tenure for the Franklin Electric board of directors is about average.


Insider Trading

Franklin Electric individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

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
SellUS$90,50013 Nov 18
John Haines
EntityIndividual
Role
Chief Financial Officer
VP & CFO
Shares2,000
Max PriceUS$45.25

Ownership Breakdown


Management Team

  • Gregg Sengstack (61yo)

    Chairman

    • Tenure: 5.3yrs
    • Compensation: US$5.10m
  • John Haines (55yo)

    VP & CFO

    • Tenure: 11.3yrs
    • Compensation: US$1.53m
  • Dee Davis (53yo)

    VP & President of Headwater Companies

    • Tenure: 2.3yrs
    • Compensation: US$1.28m
  • Jon Grandon (43yo)

    VP, Chief Administrative Officer

    • Tenure: 2.9yrs
  • Jay Walsh

    VP & President of Franklin Fueling Systems

    • Tenure: 0.6yrs
  • Don Kenney (58yo)

    VP & President of North America Water Systems

    • Tenure: 2.3yrs
    • Compensation: US$1.34m
  • Julie Freigang (51yo)

    VP & Chief Information Officer

    • Tenure: 5.6yrs

Board Members

  • Dave Wathen (66yo)

    Lead Independent Director

    • Tenure: 0.0yrs
    • Compensation: US$205.00k
  • Gregg Sengstack (61yo)

    Chairman

    • Tenure: 5.3yrs
    • Compensation: US$5.10m
  • David Brown (71yo)

    Independent Director

    • Tenure: 11.6yrs
    • Compensation: US$195.00k
  • Dave Roberts (71yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$185.00k
  • Jennifer Sherman (54yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$195.00k
  • Thomas VerHage (66yo)

    Independent Director

    • Tenure: 9.1yrs
    • Compensation: US$185.00k
  • Renee Peterson (57yo)

    Director

    • Tenure: 3.9yrs
    • 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$2.032b
  • Shares outstanding: 46.34m
  • 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 Analysis2019/08/24 23:37
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
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.