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Franklin Resources Inc
BEN : NYSE : Financial
$53.05 -1.02 | -1.89%
Today's Range: 53.00 - 54.85
Avg. Daily Volume: 1,919,700
03/06/15 - 4:03 PM ET

Financial Analysis


FRANKLIN RESOURCES INC's gross profit margin for the first quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not.

During the same period, stockholders' equity ("net worth") has increased by 9.98% from the same quarter last year.

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Income Statement Q1 FY15 Q1 FY14
Net Sales ($mil)2064.32109.5
EBITDA ($mil)816.3844.1
EBIT ($mil)791.4819.0
Net Income ($mil)566.4603.8


Balance Sheet Q1 FY15 Q1 FY14
Cash & Equiv. ($mil)7889.46705.0
Total Assets ($mil)16296.815909.3
Total Debt ($mil)2099.52257.2
Equity ($mil)11555.810507.1


Profitability Q1 FY15 Q1 FY14
Gross Profit Margin39.5440.01
EBITDA Margin39.5440.01
Operating Margin38.3438.82
Sales Turnover0.520.51
Return on Assets14.414.06
Return on Equity20.321.29
Debt Q1 FY15 Q1 FY14
Current Ratio0.00.0
Debt/Capital0.150.18
Interest Expense11.312.6
Interest Coverage70.0465.0


Share Data Q1 FY15 Q1 FY14
Shares outstanding (mil)622.43630.92
Div / share0.650.12
EPS0.910.96
Book value / share18.5716.65
Institutional Own % n/a n/a
Avg Daily Volume1895697.01797547.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 19.21 for the Capital Markets industry and a discount compared to the S&P 500 average of 19.92. For additional comparison, its price-to-book ratio of 2.94 indicates valuation on par with the S&P 500 average of 2.81 and a premium versus the industry average of 2.28. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
BEN 14.58 Peers 19.21   BEN 14.21 Peers 14.89

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.

 

Average. 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 valuation on par 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 13.77 Peers 15.98   BEN NM Peers 2.85

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 2.94 Peers 2.28   BEN 6.34 Peers 12.59

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 significant 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 4.02 Peers 3.96   BEN 3.09 Peers 1.29

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

BEN has a sales growth rate that significantly exceeds its peers.

 

 

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