Franklin Resources Inc

Find Ratings Reports
BEN : NYSE : Financial
$39.21 | %
Today's Range: 39.1 - 39.69
Avg. Daily Volume: 3167300.0
12/02/16 - 4:03 PM ET

Financial Analysis


FRANKLIN RESOURCES INC's gross profit margin for the fourth quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Even though sales decreased, the net income has increased.

During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)1611.81873.8
EBITDA ($mil)601.9755.9
EBIT ($mil)580.6731.1
Net Income ($mil)472.1358.2


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)8483.38368.1
Total Assets ($mil)16098.816335.7
Total Debt ($mil)2083.42155.3
Equity ($mil)11935.811841.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin37.3440.34
EBITDA Margin37.3440.34
Operating Margin36.0239.02
Sales Turnover0.410.49
Return on Assets10.7212.45
Return on Equity14.4617.18
Debt Q4 FY16 Q4 FY15
Current Ratio0.00.0
Debt/Capital0.150.15
Interest Expense13.412.9
Interest Coverage43.3356.67


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)570.35603.52
Div / share0.180.15
EPS0.820.59
Book value / share20.9319.62
Institutional Own % n/a n/a
Avg Daily Volume3228668.03203572.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 20.92 for the Capital Markets industry and a significant discount compared to the S&P 500 average of 25.16. To use another comparison, its price-to-book ratio of 1.86 indicates a discount versus the S&P 500 average of 2.79 and a significant discount versus the industry average of 4.52. 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 13.21 Peers 20.92   BEN 12.82 Peers 17.12

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 13.63 Peers 20.01   BEN NM Peers 2.07

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 significant 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 1.86 Peers 4.52   BEN -10.91 Peers 54.92

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 3.35 Peers 5.07   BEN -16.75 Peers 1.15

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

 

 

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