Franklin Resources, Inc. is a publicly owned asset management holding company.
Franklin Resources Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$30.73|
|52 Week High||US$17.97|
|52 Week Low||US$35.94|
|1 Month Change||0.56%|
|3 Month Change||4.88%|
|1 Year Change||32.34%|
|3 Year Change||4.85%|
|5 Year Change||-10.12%|
|Change since IPO||1,807.38%|
Recent News & Updates
Franklin Resources: Positive Trends Support The Valuation Opportunity
Sales have improved since the Legg Mason acquisition, and positive net flows are now within striking distance. The underlying 3Q21 operating margin was distorted by high performance fees and an element of one-off costs. Whilst investment product performance is still not great, there were clear signs of improvement in 3Q21. Redemptions continue to be elevated and there are other negative risks to be aware of. BEN has clear valuation appeal, with genuine prospects for a PE re-rating, I, therefore, remain Bullish.
Franklin Resources: Caution Warranted Despite A Resilient Quarter
Franklin Resources delivers a relatively strong quarter, outperforming across the top and bottom lines. However, outflows remain an issue even with ESG and alternatives supporting inflows. Coupled with the deal-related integration risk following the Legg Mason acquisition, I see downside risk to the current valuation.
|BEN||US Capital Markets||US Market|
Return vs Industry: BEN underperformed the US Capital Markets industry which returned 61.5% over the past year.
Return vs Market: BEN exceeded the US Market which returned 31.1% over the past year.
Stable Share Price: BEN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: BEN's weekly volatility (4%) has been stable over the past year.
About the Company
Franklin Resources, Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides its services to individuals, institutions, pension plans, trusts, and partnerships. It launches equity, fixed income, balanced, and multi-asset mutual funds through its subsidiaries.
Franklin Resources Fundamentals Summary
|BEN fundamental statistics|
Is BEN overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|BEN income statement (TTM)|
|Cost of Revenue||US$4.68b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||2.36|
|Net Profit Margin||14.95%|
How did BEN perform over the long term?See historical performance and comparison
3.6%Current Dividend Yield
Is Franklin Resources undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: BEN ($30.73) is trading below our estimate of fair value ($61.02)
Significantly Below Fair Value: BEN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: BEN is good value based on its PE Ratio (13x) compared to the US Capital Markets industry average (16.2x).
PE vs Market: BEN is good value based on its PE Ratio (13x) compared to the US market (18.3x).
Price to Earnings Growth Ratio
PEG Ratio: BEN is poor value based on its PEG Ratio (5.4x)
Price to Book Ratio
PB vs Industry: BEN is good value based on its PB Ratio (1.4x) compared to the US Capital Markets industry average (61.3x).
How is Franklin Resources forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BEN's forecast earnings growth (2.4% per year) is above the savings rate (2%).
Earnings vs Market: BEN's earnings (2.4% per year) are forecast to grow slower than the US market (15.1% per year).
High Growth Earnings: BEN's earnings are forecast to grow, but not significantly.
Revenue vs Market: BEN's revenue is expected to decline over the next 3 years (-1.3% per year).
High Growth Revenue: BEN's revenue is forecast to decline over the next 3 years (-1.3% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: BEN's Return on Equity is forecast to be low in 3 years time (13%).
How has Franklin Resources performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BEN has high quality earnings.
Growing Profit Margin: BEN's current net profit margins (14.9%) are lower than last year (19.5%).
Past Earnings Growth Analysis
Earnings Trend: BEN's earnings have declined by 11.1% per year over the past 5 years.
Accelerating Growth: BEN's earnings growth over the past year (17.1%) exceeds its 5-year average (-11.1% per year).
Earnings vs Industry: BEN earnings growth over the past year (17.1%) underperformed the Capital Markets industry 77.5%.
Return on Equity
High ROE: BEN's Return on Equity (11.8%) is considered low.
How is Franklin Resources's financial position?
Financial Position Analysis
Short Term Liabilities: BEN's short term assets ($10.7B) exceed its short term liabilities ($2.8B).
Long Term Liabilities: BEN's short term assets ($10.7B) exceed its long term liabilities ($7.8B).
Debt to Equity History and Analysis
Debt Level: BEN's debt to equity ratio (27.9%) is considered satisfactory.
Reducing Debt: BEN's debt to equity ratio has increased from 11.6% to 27.9% over the past 5 years.
Debt Coverage: BEN's debt is well covered by operating cash flow (30.4%).
Interest Coverage: BEN earns more interest than it pays, so coverage of interest payments is not a concern.
What is Franklin Resources's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: BEN's dividend (3.64%) is higher than the bottom 25% of dividend payers in the US market (1.27%).
High Dividend: BEN's dividend (3.64%) is in the top 25% of dividend payers in the US market (3.49%)
Stability and Growth of Payments
Stable Dividend: BEN's dividend payments have been volatile in the past 10 years.
Growing Dividend: BEN's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (45.8%), BEN's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: BEN's dividends in 3 years are forecast to be well covered by earnings (35.9% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jenny Johnson (57 yo)
Ms. Jennifer M. Johnson, also known as Jenny, serves as the Chief Executive Officer, President and Director at Franklin Resources, Inc. since February 11, 2020. She served as Chief Operating Officer at Fra...
CEO Compensation Analysis
Compensation vs Market: Jenny's total compensation ($USD8.81M) is about average for companies of similar size in the US market ($USD11.15M).
Compensation vs Earnings: Jenny's compensation has been consistent with company performance over the past year.
Experienced Management: BEN's management team is considered experienced (2.6 years average tenure).
Experienced Board: BEN's board of directors are considered experienced (4.1 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: BEN insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Franklin Resources, Inc.'s employee growth, exchange listings and data sources
- Name: Franklin Resources, Inc.
- Ticker: BEN
- Exchange: NYSE
- Founded: 1947
- Industry: Asset Management and Custody Banks
- Sector: Diversified Financials
- Market Cap: US$15.453b
- Shares outstanding: 502.85m
- Website: https://www.franklinresources.com
Number of Employees
- Franklin Resources, Inc.
- One Franklin Parkway
- San Mateo
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/22 22:52|
|End of Day Share Price||2021/10/22 00:00|
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.