AMEX:FTF

Stock Analysis Report

Franklin Limited Duration Income Trust

Executive Summary

Franklin Limited Duration Income Trust is a closed-ended fixed income mutual fund launched by Franklin Resources, Inc.

Rewards


Snowflake Analysis


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.6%

FTF

-4.2%

US Capital Markets

-4.2%

US Market


1 Year Return

0.05%

FTF

12.0%

US Capital Markets

14.0%

US Market

Return vs Industry: FTF underperformed the US Capital Markets industry which returned 12% over the past year.

Return vs Market: FTF underperformed the US Market which returned 14% over the past year.


Shareholder returns

FTFIndustryMarket
7 Day-0.6%-4.2%-4.2%
30 Day-1.0%-2.1%-1.8%
90 Day3.6%1.1%2.6%
1 Year11.4%0.05%14.3%12.0%16.3%14.0%
3 Year17.8%-20.7%35.2%27.6%43.2%34.0%
5 Year34.4%-21.3%74.5%58.3%65.9%47.6%

Price Volatility Vs. Market

How volatile is Franklin Limited Duration Income 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 Limited Duration Income Trust undervalued compared to its fair value and its price relative to the market?

21.04x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FTF ($9.66) is trading above our estimate of fair value ($5.22)

Significantly Below Fair Value: FTF is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FTF is good value based on its PE Ratio (21x) compared to the Capital Markets industry average (33.4x).

PE vs Market: FTF is poor value based on its PE Ratio (21x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FTF is good value based on its PB Ratio (0.9x) compared to the US Capital Markets industry average (6.6x).

Future Growth

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

8.7%

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 Limited Duration Income 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 Limited Duration Income Trust performed over the past 5 years?

-1.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FTF has high quality earnings.

Growing Profit Margin: FTF's current net profit margins (66.3%) are higher than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: FTF's earnings have declined by -1% per year over the past 5 years.

Accelerating Growth: FTF's earnings growth over the past year (1454.6%) exceeds its 5-year average (-1% per year).

Earnings vs Industry: FTF earnings growth over the past year (1454.6%) exceeded the Capital Markets industry 8.4%.


Return on Equity

High ROE: FTF's Return on Equity (4.6%) is considered low.


Return on Assets


Return on Capital Employed

Financial Health

How is Franklin Limited Duration Income 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: FTF has a low level of unsold assets or inventory.

Debt Coverage by Assets: FTF's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

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

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

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

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

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

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

Dividend

What is Franklin Limited Duration Income Trust's current dividend yield, its reliability and sustainability?

10.61%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Franklin Limited Duration Income Trust before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company10.6%marketbottom25%1.5%markettop25%3.8%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: FTF's dividend (10.61%) is higher than the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: FTF's dividend (10.61%) is in the top 25% of dividend payers in the US market (3.77%)


Stability and Growth of Payments

Stable Dividend: FTF's dividend payments have been volatile in the past 10 years.

Growing Dividend: FTF's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (236.8%), FTF's dividend payments are not 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?

13.0yrs

Average board tenure


CEO

Franklin Limited Duration Income Trust has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Frank Olson
Independent Trustee14.7yrsUS$3.10kno data
Edith Holiday
Independent Trustee13.1yrsUS$3.05kno data
Samuel Ginn
Independent Trustee12.8yrsUS$3.05kno data
Harris Ashton
Independent Trustee17.1yrsUS$3.05kno data
Lawrence Thompson
Independent Trustee12.8yrsUS$3.05kno data
J. Luttig
Independent Trustee10.2yrsUS$3.10kno data

13.0yrs

Average Tenure

78yo

Average Age

Experienced Board: FTF's board of directors are seasoned and experienced ( 13 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 been diluted in the past year, with total shares outstanding growing by 11.2%.


Top Shareholders

Company Information

Franklin Limited Duration Income Trust's company bio, employee growth, exchange listings and data sources


Key Information


Location

  • Franklin Limited Duration Income Trust
  • One Franklin Parkway
  • Suite 2100
  • San Mateo
  • California
  • 94403-1906
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FTFAMEX (NYSE MKT LLC)YesCommon SharesUSUSDAug 2003

Biography

Franklin Limited Duration Income Trust is a closed-ended fixed income mutual fund launched by Franklin Resources, Inc. The fund is managed by Franklin Advisers, Inc. It invests in the fixed income markets of the United States. The fund primarily invests in mortgage-backed securities, asset-backed securities, floating rate bank loans, and high yield corporate bonds. It employs fundamental analysis with a combination of top-down and bottom-up security selection process to create its portfolio. The fund was formerly known as Franklin Templeton Limited Duration Income Trust. Franklin Limited Duration Income Trust was formed on August 27, 2003 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 Analysis2020/02/25 01:05
End of Day Share Price2020/02/24 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.