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BEN

Franklin ResourcesNYSE:BEN Stock Report

Market Cap

US$15.5b

7D

2.3%

1Y

32.3%

Updated

22 Oct, 2021

Data

Company Financials +
BEN fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance2/6
Financial Health5/6
Dividends5/6

BEN Overview

Franklin Resources, Inc. is a publicly owned asset management holding company.

Franklin Resources Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Franklin Resources
Historical stock prices
Current Share PriceUS$30.73
52 Week HighUS$17.97
52 Week LowUS$35.94
Beta1.26
1 Month Change0.56%
3 Month Change4.88%
1 Year Change32.34%
3 Year Change4.85%
5 Year Change-10.12%
Change since IPO1,807.38%

Recent News & Updates

Sep 12

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.

Aug 14

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.

Shareholder Returns

BENUS Capital MarketsUS Market
7D2.3%3.5%1.7%
1Y32.3%63.9%30.3%

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.

Price Volatility

Is BEN's price volatile compared to industry and market?
BEN volatility
BEN Beta1.26
Industry Beta1.19
Market Beta1

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

FoundedEmployeesCEOWebsite
194710,600Jenny Johnsonhttps://www.franklinresources.com

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

How do Franklin Resources's earnings and revenue compare to its market cap?
BEN fundamental statistics
Market CapUS$15.45b
Earnings (TTM)US$1.19b
Revenue (TTM)US$7.95b

13.0x

P/E Ratio

1.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BEN income statement (TTM)
RevenueUS$7.95b
Cost of RevenueUS$4.68b
Gross ProfitUS$3.27b
ExpensesUS$2.08b
EarningsUS$1.19b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.36
Gross Margin41.15%
Net Profit Margin14.95%
Debt/Equity Ratio27.9%

How did BEN perform over the long term?

See historical performance and comparison

Dividends

3.6%

Current Dividend Yield

46%

Payout Ratio

Valuation

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

49.6%

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).


Future Growth

How is Franklin Resources forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

2.4%

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%).


Past Performance

How has Franklin Resources performed over the past 5 years?

-11.1%

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.


Financial Health

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.


Balance Sheet


Dividend

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

3.64%

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).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Jenny Johnson (57 yo)

1.67yrs

Tenure

US$8,814,782

Compensation

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.


Leadership Team

Experienced Management: BEN's management team is considered experienced (2.6 years average tenure).


Board Members

Experienced Board: BEN's board of directors are considered experienced (4.1 years average tenure).


Ownership

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

Ownership Breakdown

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


Top Shareholders

Company Information

Franklin Resources, Inc.'s employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Franklin Resources, Inc.
  • One Franklin Parkway
  • San Mateo
  • California
  • 94403
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 22:52
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2020/09/30


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.