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

1.6%

FELE

3.2%

US Machinery

1.0%

US Market


1 Year Return

10.2%

FELE

2.3%

US Machinery

6.7%

US Market

Return vs Industry: FELE exceeded the US Machinery industry which returned 2.3% over the past year.

Return vs Market: FELE exceeded the US Market which returned 6.7% over the past year.


Share holder returns

FELEIndustryMarket
7 Day1.6%3.2%1.0%
30 Day-7.3%-3.5%-1.8%
90 Day1.8%-4.6%-1.8%
1 Year11.6%10.2%4.5%2.3%9.1%6.7%
3 Year26.3%22.3%46.3%36.8%46.1%36.6%
5 Year37.1%29.7%60.6%41.3%66.9%48.6%

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?

22.91x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: FELE ($46.95) is trading above our estimate of fair value ($41.55)

Significantly Undervalued: FELE is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: FELE is poor value based on its PE Ratio (22.9x) compared to the Machinery industry average (19.7x).

PE vs Market: FELE is poor value based on its PE Ratio (22.9x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: FELE is poor value based on its PEG Ratio (1.8x)


Price Based on Value of Assets

PB vs Industry: FELE is overvalued based on its PB Ratio (2.9x) compared to the US Machinery industry average (2.2x).


Next Steps

Future Growth

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

12.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: FELE's forecast earnings growth (12.8% per year) is above the savings rate (2.7%).

Earnings vs Market: FELE's earnings (12.8% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: FELE's earnings are forecast to grow, but not significantly.

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 Estimates


Future Return on Equity

High 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?

7.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FELE's earnings have grown by 7.1% per year over the past 5 years.

Accelerating Growth: FELE's earnings growth over the past year (14.1%) exceeds its 5-year average (7.1% per year).

Earnings vs Industry: FELE earnings growth over the past year (14.1%) underperformed the Machinery industry 18.7%.


Return on Equity

High ROE: FELE's Return on Equity (12.6%) is considered low.


Return on Assets

ROA vs Industry: FELE has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: FELE has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Franklin Electric's financial position?


Financial Position Analysis

Short Term Liabilities: FELE's short term assets ($649.1M) exceeds its short term liabilities ($301.4M)

Long Term Liabilities: FELE's short term assets (649.1M) exceeds its long term liabilities (207.6M)


Debt to Equity History and Analysis

Debt Level: FELE's debt to equity ratio (29.3%) is considered satisfactory

Reducing Debt: FELE's debt to equity ratio has reduced from 37.9% to 29.3% over the past 5 years.

Debt Coverage: FELE's debt is well covered by operating cash flow (57.1%).

Interest Coverage: FELE's interest payments on its debt are well covered by EBIT (14.4x 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 2.911610x debt).


Next Steps

Dividend

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

1.13%

Expected Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%1.5%markettop25%3.8%industryaverage1.7%forecastin3Years1.1%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: FELE's dividend (1.24%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: FELE's dividend (1.24%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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?

3.1yrs

Average management tenure


CEO

Gregg Sengstack (61yo)

5.4yrs

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 ($USD5.10M) is about average for companies of similar size in the US market ($USD4.08M).

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


Management Age and Tenure

3.1yrs

Average Tenure

54yo

Average Age

Experienced Management: FELE's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

7.0yrs

Average Tenure

66yo

Average Age

Experienced Board: FELE's board of directors are considered experienced (7 years average tenure).


Insider Trading

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


Recent Insider Transactions

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
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: 5.4yrs
    • Compensation: US$5.10m
  • John Haines (55yo)

    VP & CFO

    • Tenure: 11.5yrs
    • Compensation: US$1.53m
  • Dee Davis (53yo)

    VP & President of Headwater Companies

    • Tenure: 2.5yrs
    • Compensation: US$1.28m
  • Jon Grandon (43yo)

    VP, Chief Administrative Officer

    • Tenure: 3.1yrs
  • Jay Walsh

    VP & President of Franklin Fueling Systems

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

    VP & President of North America Water Systems

    • Tenure: 2.5yrs
    • 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: 5.4yrs
    • Compensation: US$5.10m
  • David Brown (71yo)

    Independent Director

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

    Independent Director

    • Tenure: 16yrs
    • 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: 4.1yrs
    • 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$2.176b
  • 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 Analysis2019/10/14 01:18
End of Day Share Price2019/10/11 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.

© 2018 SIMPLY WALL STREET PTY LTD, COMMUNITY DESIGN 2845206, US DESIGN PATENT #29/544/281, EUROPEAN DESIGN REGISTRATION #2845206, STANDARD & POOR’S FINANCIAL SERVICES LLC. ALL RIGHTS RESERVED.

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Copyright © 2018, Standard & Poor’s Financial Services LLC. Reproduction of S&P Capital IQ in any form is prohibited except with the prior written permission of S&P. S&P does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions, regardless of the cause or for the results obtained from the use of such information. S&P DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P be liable for any direct, indirect, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with subscriber’s or others’ use of S&P Capital IQ. (2018)