Franklin Resources Inc

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BEN : NYSE : Financial
$42.97 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 2009000.0
09/20/17 - 4:01 PM ET

Financial Analysis


FRANKLIN RESOURCES INC's gross profit margin for the third quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry.

During the same period, stockholders' equity ("net worth") has increased by 5.24% from the same quarter last year.

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Income Statement Q3 FY17 Q3 FY16
Net Sales ($mil)1613.91634.3
EBITDA ($mil)586.1616.0
EBIT ($mil)564.3596.6
Net Income ($mil)410.6446.4


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)8786.28242.1
Total Assets ($mil)17476.215997.5
Total Debt ($mil)1427.82163.8
Equity ($mil)12400.011782.1


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin36.3237.69
EBITDA Margin36.3137.69
Operating Margin34.9636.5
Sales Turnover0.370.43
Return on Assets9.9710.08
Return on Equity14.0613.68
Debt Q3 FY17 Q3 FY16
Current Ratio0.00.0
Debt/Capital0.10.16
Interest Expense12.912.3
Interest Coverage43.7448.5


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)557.96576.78
Div / share0.20.18
EPS0.730.77
Book value / share22.2220.43
Institutional Own % n/a n/a
Avg Daily Volume1852109.02268874.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 21.01 for the Capital Markets industry and a significant discount compared to the S&P 500 average of 24.88. To use another comparison, its price-to-book ratio of 1.90 indicates a discount versus the S&P 500 average of 3.10 and a significant discount versus the industry average of 3.76. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average. Upon assessment of these and other key valuation criteria, FRANKLIN RESOURCES INC proves to trade 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 13.77 Peers 21.01   BEN 15.46 Peers 20.56

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

BEN is trading at a significant discount to its peers.

 

Discount. 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 discount 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 14.51 Peers 18.04   BEN 37.22 Peers 2.22

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

BEN is trading at a discount to its peers.

 

Premium. 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 trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BEN 1.90 Peers 3.76   BEN 12.91 Peers 55.04

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

BEN is trading at a significant discount 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 3.68 Peers 4.09   BEN -7.17 Peers 19.17

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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