Franklin Resources Inc

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BEN : NYSE : Financial
$41.7 0.0 | 0.0%
Today's Range: 41.5 - 41.858
Avg. Daily Volume: 2315300.0
05/26/17 - 4:02 PM ET

Financial Analysis


FRANKLIN RESOURCES INC's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.59% from the same quarter last year.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)1600.61613.9
EBITDA ($mil)580.3569.7
EBIT ($mil)559.7545.9
Net Income ($mil)420.7360.4


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)8776.18041.0
Total Assets ($mil)17210.115890.9
Total Debt ($mil)1680.22166.4
Equity ($mil)12193.611770.4


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin36.2635.3
EBITDA Margin36.2535.29
Operating Margin34.9733.82
Sales Turnover0.370.46
Return on Assets10.3310.51
Return on Equity14.5914.19
Debt Q2 FY17 Q2 FY16
Current Ratio0.00.0
Debt/Capital0.120.16
Interest Expense12.612.2
Interest Coverage44.4244.75


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)562.08586.13
Div / share0.20.18
EPS0.740.61
Book value / share21.6920.08
Institutional Own % n/a n/a
Avg Daily Volume2290616.02415622.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 20.57 for the Capital Markets industry and a significant discount compared to the S&P 500 average of 25.54. To use another comparison, its price-to-book ratio of 1.92 indicates a discount versus the S&P 500 average of 3.06 and a significant discount versus the industry average of 3.88. 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 13.45 Peers 20.57   BEN 12.30 Peers 17.53

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 14.63 Peers 17.33   BEN NM Peers 1.24

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.

 

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 1.92 Peers 3.88   BEN 12.31 Peers 61.52

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 3.66 Peers 3.91   BEN -11.58 Peers 10.79

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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