Franklin Resources Inc

Find Ratings Reports
BEN : NYSE : Financial
$41.26 | %
Today's Range: 41.045 - 41.95
Avg. Daily Volume: 2301700.0
03/24/17 - 4:01 PM ET

Financial Analysis


FRANKLIN RESOURCES INC's gross profit margin for the first 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.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.55% from the same quarter last year.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)1560.81758.0
EBITDA ($mil)594.6701.8
EBIT ($mil)574.7679.2
Net Income ($mil)440.2447.8


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)8454.88269.0
Total Assets ($mil)16210.316155.5
Total Debt ($mil)1734.52120.3
Equity ($mil)11964.811781.2


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin38.139.92
EBITDA Margin38.0939.92
Operating Margin36.8238.63
Sales Turnover0.40.47
Return on Assets10.611.86
Return on Equity14.3616.26
Debt Q1 FY17 Q1 FY16
Current Ratio0.00.0
Debt/Capital0.130.15
Interest Expense13.312.0
Interest Coverage43.2156.6


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)565.68595.23
Div / share0.20.18
EPS0.770.74
Book value / share21.1519.79
Institutional Own % n/a n/a
Avg Daily Volume2301783.03178446.0

Valuation


BUY. FRANKLIN RESOURCES INC's P/E ratio indicates a significant discount compared to an average of 26.25 for the Capital Markets industry and a significant discount compared to the S&P 500 average of 26.73. To use another comparison, its price-to-book ratio of 2.08 indicates a discount versus the S&P 500 average of 2.98 and a significant discount versus the industry average of 4.27. The price-to-sales ratio is well above the S&P 500 average, but well 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 14.78 Peers 26.25   BEN 13.22 Peers 25.47

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 significant 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 16.38 Peers 17.41   BEN NM Peers 1.55

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 2.08 Peers 4.27   BEN -5.12 Peers 12.44

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 3.87 Peers 8.09   BEN -15.99 Peers 4.81

Discount. 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 significant discount to 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

 

 

Latest Stock Upgrades/Downgrades