Franklin Templeton Inc (BEN) stock analysis

P/E above its 5-year median

Franklin Templeton's P/E of 18.4 is above its own 5-year median of 15.4.

P/E below the industry

Franklin Templeton's P/E of 18.4 is below the Services Allied with the Exchange of Securities median of 21.0.

EV/EBITDA above its 5-year median

Franklin Templeton's EV/EBITDA of 12.0 is above its 5-year median of 8.0.

P/B below the industry

Franklin Templeton's price-to-book of 1.55 is below the Services Allied with the Exchange of Securities median of 3.70.

Trading above fair value

The share price of $36.30 is above our fair value estimate of $34.18.

Margin of safety under 20%

The price is 6.2% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 6.3% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 4.6% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 105% over the last twelve months, against a 5-year average of -10.1% a year.

Growing slower than the industry

Revenue grew 7.3% over the last twelve months; the Services Allied with the Exchange of Securities median is 8.7%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 9.0% over the last twelve months and averaged 7.2% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 11.6%, above the 10% that usually covers the cost of capital.

Return on equity below the industry

Franklin Templeton's return on equity of 9.0% is below the Services Allied with the Exchange of Securities median of 15.7%.

Earnings shrank over 5 years

Net income shrank 10.1% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 11.4% over the last twelve months, against a 5-year average of 9.9%.

Net margin below the industry

Franklin Templeton's net margin of 11.4% is below the Services Allied with the Exchange of Securities median of 16.3%.

No debt

Franklin Templeton has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

Operating income covers interest expense 12.4 times.

Short-term liquidity

The balance sheet is not split into current and non-current items.

Elevated bankruptcy risk

The Altman Z-score is 1.23; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Franklin Templeton paid dividends worth 3.6% of the share price over the last twelve months.

Yield below Treasuries

The 3.6% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Franklin Templeton yields 3.6%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 64.9% of net income.

Covered by free cash flow

Dividends take 85.5% of free cash flow.