OTCPK:FKWL

Stock Analysis Report

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Executive Summary

Franklin Wireless Corp. provides intelligent wireless solutions. More Details


Snowflake Analysis

Undervalued with high growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: FKWL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: FKWL's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

7.9%

FKWL

0.2%

US Communications

2.6%

US Market


1 Year Return

846.7%

FKWL

1.5%

US Communications

26.0%

US Market

Return vs Industry: FKWL exceeded the US Communications industry which returned 1.5% over the past year.

Return vs Market: FKWL exceeded the US Market which returned 26% over the past year.


Shareholder returns

FKWLIndustryMarket
7 Day7.9%0.2%2.6%
30 Day-1.2%4.2%5.1%
90 Day24.0%25.6%17.1%
1 Year846.7%846.7%4.4%1.5%28.9%26.0%
3 Year973.3%973.3%15.2%6.9%46.3%36.6%
5 Year850.9%850.9%102.1%79.0%126.9%101.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FKWL ($21.68) is trading below our estimate of fair value ($296.27)

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


Price To Earnings Ratio

PE vs Industry: FKWL is good value based on its PE Ratio (18.8x) compared to the US Communications industry average (45.3x).

PE vs Market: FKWL is good value based on its PE Ratio (18.8x) compared to the US market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: FKWL is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: FKWL is overvalued based on its PB Ratio (7.5x) compared to the US Communications industry average (2.7x).


Next Steps

Future Growth

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

26.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FKWL's forecast earnings growth (26.9% per year) is above the savings rate (2%).

Earnings vs Market: FKWL's earnings (26.9% per year) are forecast to grow faster than the US market (21.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FKWL's revenue (23.4% per year) is forecast to grow faster than the US market (10.6% per year).

High Growth Revenue: FKWL's revenue (23.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if FKWL's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Franklin Wireless performed over the past 5 years?

25.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FKWL has high quality earnings.

Growing Profit Margin: FKWL became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: FKWL's earnings have grown significantly by 25.7% per year over the past 5 years.

Accelerating Growth: FKWL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: FKWL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Communications industry (-0.1%).


Return on Equity

High ROE: FKWL's Return on Equity (37.1%) is considered high.


Next Steps

Financial Health

How is Franklin Wireless's financial position?


Financial Position Analysis

Short Term Liabilities: FKWL's short term assets ($79.4M) exceed its short term liabilities ($47.5M).

Long Term Liabilities: FKWL's short term assets ($79.4M) exceed its long term liabilities ($1.2M).


Debt to Equity History and Analysis

Debt Level: FKWL's debt to equity ratio (1.4%) is considered satisfactory.

Reducing Debt: FKWL's debt to equity ratio has increased from 0.9% to 1.4% over the past 5 years.

Debt Coverage: FKWL's debt is well covered by operating cash flow (6614.3%).

Interest Coverage: FKWL earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FKWL's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

11.3yrs

Average board tenure


CEO

Ok Chae Kim (56 yo)

no data

Tenure

US$245,000

Compensation

Mr. Ok Chae Kim has been the President and Secretary at Franklin Wireless Corp. (Formerly Known as Franklin Telecommunications Corp.) since September 2003 and serves as its Chief Executive Officer. Mr. Kim...


CEO Compensation Analysis

Compensation vs Market: Ok Chae's total compensation ($USD245.00K) is below average for companies of similar size in the US market ($USD996.42K).

Compensation vs Earnings: Ok Chae's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Ok Chae Kim
CEO, Presidentno dataUS$245.00k10.86%
$ 27.2m
Gary Nelson
Independent Chairman of the Boardno dataUS$12.50k3.38%
$ 8.5m
Joon Won Jyoung
Director11.33yrsno data16.15%
$ 40.5m
Johnathan Chee
Director11.33yrsUS$12.50k0.12%
$ 292.7k
Heidy Kingwan Chow
Director1.08yrsUS$7.50kno data

11.3yrs

Average Tenure

57yo

Average Age

Experienced Board: FKWL's board of directors are seasoned and experienced ( 11.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: FKWL insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.5%.


Top Shareholders

Company Information

Franklin Wireless Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Franklin Wireless Corp.
  • Ticker: FKWL
  • Exchange: OTCPK
  • Founded: 1981
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$250.974m
  • Shares outstanding: 11.58m
  • Website: https://www.franklinwireless.com

Number of Employees


Location

  • Franklin Wireless Corp.
  • 9707 Waples Street
  • Suite 150
  • San Diego
  • California
  • 92121
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FKWLOTCPK (Pink Sheets LLC)YesCommon StockUSUSDMar 1999

Biography

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 machin...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/25 23:43
End of Day Share Price2021/01/25 00:00
Earnings2020/09/30
Annual Earnings2020/06/30


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.