Franklin Wireless (NasdaqCM:FKWL) - Share price, News & Analysis

FKWL fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	0/6
Financial Health	6/6
Dividends	0/6

FKWL Stock Overview

Franklin Wireless Corp. provides intelligent wireless solutions.

Risk Analysis

Does not have a meaningful market cap ($34M)

Franklin Wireless Competitors

NETGEAR

NasdaqGS:NTGR

US$558.2m

Samsung Electronics

KOSE:A005930

₩455.9t

Nokia Oyj

HLSE:NOKIA

€26.0b

Telefonaktiebolaget LM Ericsson

OM:ERIC B

kr260.2b

Price History & Performance

Summary of all time highs, changes and price drops for Franklin Wireless
Historical stock prices
Current Share Price	US$3.63
52 Week High	US$10.45
52 Week Low	US$3.21
Beta	0.16
1 Month Change	-6.44%
3 Month Change	-7.63%
1 Year Change	-64.13%
3 Year Change	39.62%
5 Year Change	86.15%
Change since IPO	-98.68%

Recent News & Updates

May 03

Franklin Wireless (NASDAQ:FKWL) Might Be Having Difficulty Using Its Capital Effectively

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Typically, we'll want to...

Apr 18

Franklin Wireless: Turnaround Possible For This Small Cap, But Much Risk Looms

Franklin Wireless (FKWL) is a supplier of wireless products such as mobile hotspots and routers which support 5G technology. The company’s main customer Verizon recalled 2.5 million units in 2021, due to just 15 devices overheating. However, the device fault was unable to be replicated by Franklin. Their share price is now down by 81% from the highs in April 2021 and the small cap stock trades at just 1.2 times cash.

Jan 18

Franklin Wireless Is Too Expensive Even After The Sell-Off

FKWL is dedicated to router and hotspot device manufacturing. The company's sales multiplied because of COVID and so did its stock price. Failure in a few devices made Verizon give voluntary recall options to their clients. The ensuing panic made the stock plummet again. Some speculate the stock can rebound. However, before COVID, the company's operations were marginal and its products have no differentiation.

Shareholder Returns

	FKWL	US Communications	US Market
7D	12.0%	-9.8%	0.1%
1Y	-64.1%	-16.3%	-12.7%

Return vs Industry: FKWL underperformed the US Communications industry which returned -5.3% over the past year.

Return vs Market: FKWL underperformed the US Market which returned -11.5% over the past year.

Price Volatility

Is FKWL's price volatile compared to industry and market?
FKWL volatility
FKWL Average Weekly Movement	6.6%
Communications Industry Average Movement	7.3%
Market Average Movement	8.0%
10% most volatile stocks in US Market	17.0%
10% least volatile stocks in US Market	3.0%

Stable Share Price: FKWL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: FKWL's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1981	74	n/a	https://www.franklinwireless.com

Franklin Wireless Corp. provides intelligent wireless solutions. The company’s products include mobile hotspots, routers, trackers, and other devices, which integrates hardware and software enabling machine-to-machine (M2M) applications and the Internet of Things (IoT). It offers M2M and IoT solutions that include embedded modules, and modems and gateways built to deliver connectivity supporting various spectrum of applications based on 5G/4G wireless technology.

Franklin Wireless Fundamentals Summary

How do Franklin Wireless's earnings and revenue compare to its market cap?
FKWL fundamental statistics
Market Cap	US$34.28m
Earnings (TTM)	-US$3.08m
Revenue (TTM)	US$22.82m

1.4x

P/S Ratio

-10.7x

P/E Ratio

Is FKWL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
FKWL income statement (TTM)
Revenue	US$22.82m
Cost of Revenue	US$18.67m
Gross Profit	US$4.15m
Other Expenses	US$7.23m
Earnings	-US$3.08m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.34
Gross Margin	18.19%
Net Profit Margin	-13.48%
Debt/Equity Ratio	0%

How did FKWL perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

0.79x

Price to Book (PB) ratio

Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate FKWL's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate FKWL's fair value for valuation analysis.

Price To Earnings Ratio

PE vs Industry: FKWL is unprofitable, so we can't compare its PE Ratio to the US Communications industry average.

PE vs Market: FKWL is unprofitable, so we can't compare its PE Ratio to the US market.

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: FKWL is good value based on its PB Ratio (0.8x) compared to the US Communications industry average (1.7x).

Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

13.4%

Forecasted Tech 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 Wireless 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 Wireless performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

51.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FKWL is currently unprofitable.

Growing Profit Margin: FKWL is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: FKWL is unprofitable, but has reduced losses over the past 5 years at a rate of 51.2% per year.

Accelerating Growth: Unable to compare FKWL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: FKWL is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (38.2%).

Return on Equity

High ROE: FKWL has a negative Return on Equity (-6.84%), as it is currently unprofitable.

Financial Health

How is Franklin Wireless's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: FKWL's short term assets ($53.3M) exceed its short term liabilities ($13.7M).

Long Term Liabilities: FKWL's short term assets ($53.3M) exceed its long term liabilities ($237.5K).

Debt to Equity History and Analysis

Debt Level: FKWL is debt free.

Reducing Debt: FKWL had no debt 5 years ago.

Debt Coverage: FKWL has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: FKWL has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate FKWL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FKWL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FKWL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FKWL's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as FKWL has not reported any payouts.

Discover strong dividend paying companies

Management

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

2.3yrs

Average management tenure

CEO

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

Leadership Team

Experienced Management: FKWL's management team is considered experienced (2.3 years average tenure).

Board Members

Experienced Board: FKWL's board of directors are seasoned and experienced ( 12.7 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/19 00:00
End of Day Share Price	2022/05/19 00:00
Earnings	2022/03/31
Annual Earnings	2021/06/30