NYSE:FT

Stock Analysis Report

Executive Summary

Franklin Universal Trust is a closed-ended balanced mutual fund launched by Franklin Resources, Inc.

Rewards


Snowflake Analysis

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.1%

FT

1.7%

US Capital Markets

1.5%

US Market


1 Year Return

20.1%

FT

19.0%

US Capital Markets

20.1%

US Market

Return vs Industry: FT exceeded the US Capital Markets industry which returned 19% over the past year.

Return vs Market: FT matched the US Market which returned 20.1% over the past year.


Shareholder returns

FTIndustryMarket
7 Day0.1%1.7%1.5%
30 Day1.8%0.5%1.4%
90 Day6.6%8.6%8.7%
1 Year26.6%20.1%21.4%19.0%22.7%20.1%
3 Year38.2%17.3%40.0%32.1%50.1%40.5%
5 Year52.4%12.5%83.6%66.5%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

37.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FT ($8.12) is trading below our estimate of fair value ($13.06)

Significantly Below Fair Value: FT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FT is good value based on its PE Ratio (8.5x) compared to the Capital Markets industry average (36x).

PE vs Market: FT is good value based on its PE Ratio (8.5x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FT is good value based on its PB Ratio (0.9x) compared to the US Capital Markets industry average (6.7x).

Future Growth

How is Franklin Universal Trust forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.4%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Franklin Universal Trust has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Franklin Universal Trust performed over the past 5 years?

14.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FT has a large one-off gain of $14.6M impacting its August 31 2019 financial results.

Growing Profit Margin: FT's current net profit margins are higher than last year (25.1%).


Past Earnings Growth Analysis

Earnings Trend: FT's earnings have grown by 14.5% per year over the past 5 years.

Accelerating Growth: FT's earnings growth over the past year (593.4%) exceeds its 5-year average (14.5% per year).

Earnings vs Industry: FT earnings growth over the past year (593.4%) exceeded the Capital Markets industry 8.4%.


Return on Equity

High ROE: FT's Return on Equity (11.2%) is considered low.


Return on Assets


Return on Capital Employed

Financial Health

How is Franklin Universal Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: FT has a low level of unsold assets or inventory.

Debt Coverage by Assets: FT's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: FT's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if FT has a sufficient allowance for bad loans.

Low Risk Liabilities: FT reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if FT has an acceptable proportion of non-loan assets held.

Low Risk Deposits: FT has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if FT has an appropriate level of bad loans.

Dividend

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

4.75%

Current Dividend Yield


Dividend Yield vs Market

company4.7%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: FT's dividend (4.75%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: FT's dividend (4.75%) is in the top 25% of dividend payers in the US market (3.69%)


Stability and Growth of Payments

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

Growing Dividend: FT's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40%), FT'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.

Management

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

13.8yrs

Average board tenure


CEO

Franklin Universal Trust has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Frank Olson
Independent Trustee14.7yrsUS$3.37kno data
Edith Holiday
Independent Trustee16.1yrsUS$1.37kno data
Samuel Ginn
Independent Trustee12.8yrsUS$1.37kno data
Mary Choksi
0yrsUS$1.37kno data
Harris Ashton
Independent Trustee32.1yrsUS$1.37kno data
Lawrence Thompson
Independent Trustee12.8yrsUS$1.37kno data
J. Luttig
Independent Trustee10.2yrsUS$1.37kno data
Terrence Checki
0yrsno datano data

13.8yrs

Average Tenure

73.5yo

Average Age

Experienced Board: FT's board of directors are seasoned and experienced ( 13.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Top Shareholders

Company Information

Franklin Universal Trust's company bio, employee growth, exchange listings and data sources


Key Information


Location

  • Franklin Universal Trust
  • One Franklin Parkway
  • Suite 2100
  • San Mateo
  • California
  • 94403-1906
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FTNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 1988

Biography

Franklin Universal Trust is a closed-ended balanced mutual fund launched by Franklin Resources, Inc. The fund is managed by Franklin Advisers, Inc. It invests in the public equity and fixed income markets of the United States. The fund invests in companies operating in utility sector. It employs fundamental analysis to invest in a diversified portfolio of corporate bonds and dividend paying utility stocks. The fund benchmarks the equity component of its balanced portfolio against the S&P 500 Electric Utilities Index and the fixed component against the Credit Suisse High Yield. Franklin Universal Trust was formed on September 23, 1988 and is domiciled in the United States. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:09
End of Day Share Price2020/02/14 00:00
Earnings2019/08/31
Annual Earnings2019/08/31


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.