OTCPK:FKWL

Stock Analysis Report

Executive Summary

Franklin Wireless Corp. provides intelligent wireless solutions.

Snowflake

Flawless balance sheet and overvalued.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.1%

FKWL

1.5%

US Communications

0.3%

US Market


1 Year Return

23.7%

FKWL

1.9%

US Communications

12.5%

US Market

Return vs Industry: FKWL exceeded the US Communications industry which returned 1.9% over the past year.

Return vs Market: FKWL exceeded the US Market which returned 12.5% over the past year.


Shareholder returns

FKWLIndustryMarket
7 Day-4.1%1.5%0.3%
30 Day-0.8%2.7%4.1%
90 Day-9.6%-6.5%5.6%
1 Year23.7%23.7%4.3%1.9%15.0%12.5%
3 Year-2.9%-2.9%46.2%36.8%49.1%39.4%
5 Year45.1%45.1%78.2%58.3%62.8%44.7%

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?

1.68x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: FKWL ($2.35) is trading above our estimate of fair value ($0.22)

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


Price To Earnings Ratio

PE vs Industry: FKWL is unprofitable, so we can't compare its PE Ratio to the 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 (1.7x) compared to the US Communications industry average (1.8x).


Next Steps

Future Growth

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

12.1%

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.


Next Steps

Past Performance

How has Franklin Wireless performed over the past 5 years?

-40.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FKWL has a high level of non-cash earnings.

Growing Profit Margin: FKWL's current net profit margins (-3.5%) are higher than last year (-7%).


Past Earnings Growth Analysis

Earnings Trend: FKWL is unprofitable, and losses have increased over the past 5 years at a rate of -40.9% 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 (21.7%).


Return on Equity

High ROE: FKWL has a negative Return on Equity (-9.65%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

  • Explore strong past performing companies in the Tech industry.

Financial Health

How is Franklin Wireless's financial position?


Financial Position Analysis

Short Term Liabilities: FKWL's short term assets ($17.1M) exceeds its short term liabilities ($5.9M)

Long Term Liabilities: FKWL has no long term liabilities


Debt to Equity History and Analysis

Debt Level: FKWL is debt free.

Reducing Debt: FKWL has no debt compared to 5 years ago when its debt to equity ratio was 1%.

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

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

Debt Coverage by Assets: Insufficient data to determine if FKWL's debt is covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

What is the CEO of Franklin Wireless's salary, the management and board of directors tenure and is there insider trading?

10.2yrs

Average board tenure


CEO

Ok Kim (55yo)

0yrs

Tenure

US$220,000

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's total compensation ($USD220.00K) is below average for companies of similar size in the US market ($USD505.79K).

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


Board Age and Tenure

10.2yrs

Average Tenure

56yo

Average Age

Experienced Board: FKWL's board of directors are seasoned and experienced ( 10.2 years average tenure).


Insider Trading

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.


Management Team

  • Ok Kim (55yo)

    CEO, President

    • Tenure: 0yrs
    • Compensation: US$220.00k
  • David Lee (58yo)

    Chief Operating Officer

    • Tenure: 11.2yrs
    • Compensation: US$220.00k
  • Peter Won

    Vice President of Engineering

    • Tenure: 0yrs

Board Members

  • Ok Kim (55yo)

    CEO, President

    • Tenure: 0yrs
    • Compensation: US$220.00k
  • Gary Nelson (79yo)

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: US$10.00k
  • Joon Jyoung (77yo)

    Director

    • Tenure: 10.2yrs
  • Johnathan Chee (56yo)

    Director

    • Tenure: 10.2yrs
    • Compensation: US$10.00k
  • Benjamin Chung (44yo)

    Independent Director

    • Tenure: 8yrs
    • Compensation: US$10.00k

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$24.840m
  • Shares outstanding: 10.57m
  • 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. Its products include mobile hotspots, routers, and modems, as well as hardware and software products that support machine-to-machine (M2M) a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/11 23:51
End of Day Share Price2019/11/06 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.