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Franklin Resources Inc
BEN : NYSE : Financial
$33.71 | %
Today's Range: 33.42 - 34.22
Avg. Daily Volume: 4,087,200
02/05/16 - 4:02 PM ET

Financial Analysis


FRANKLIN RESOURCES INC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.95% from the same quarter last year.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)1758.02064.3
EBITDA ($mil)683.0816.3
EBIT ($mil)660.4791.4
Net Income ($mil)447.8566.4


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)8269.07887.8
Total Assets ($mil)16155.516296.8
Total Debt ($mil)2120.32099.5
Equity ($mil)11781.211555.8


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin38.8539.54
EBITDA Margin38.8539.54
Operating Margin37.5738.34
Sales Turnover0.470.52
Return on Assets11.8614.4
Return on Equity16.2620.3
Debt Q1 FY16 Q1 FY15
Current Ratio0.00.0
Debt/Capital0.150.15
Interest Expense12.011.3
Interest Coverage55.0370.04


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)595.23622.43
Div / share0.180.65
EPS0.740.91
Book value / share19.7918.57
Institutional Own % n/a n/a
Avg Daily Volume4101479.04177392.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 14.34 for the Capital Markets industry and a significant discount compared to the S&P 500 average of 21.13. Conducting a second comparison, its price-to-book ratio of 1.71 indicates a discount versus the S&P 500 average of 2.51 and a premium versus the industry average of 1.53. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average. The valuation analysis reveals that, FRANKLIN RESOURCES INC seems to be trading at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
BEN 10.80 Peers 14.34   BEN 10.22 Peers 8.98

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

BEN is trading at a discount to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

BEN is trading at a premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
BEN 11.65 Peers 12.17   BEN NM Peers 9.04

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

BEN is trading at a valuation on par with its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

BEN's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BEN 1.71 Peers 1.53   BEN -16.32 Peers 42.23

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

BEN is trading at a premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, BEN is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
BEN 2.63 Peers 2.79   BEN -9.52 Peers 0.79

Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

BEN is trading at a valuation on par with its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

BEN significantly trails its peers on the basis of sales growth

 

 

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