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Franklin Wireless Corp (FKWL) stock analysis

FKWLNasdaqTelephone & Telegraph ApparatusFiscal year ends June 30
Financials through Q4 FY2026, quarter ended Jun 30, 2026Last filing: 10-K on Sep 28, 2026Score 9/3062% below fair value
$2.07−0.01 (-0.48%)

Close on Nov 11, 2026Market cap $24.39MP/E –Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Value3Growth0Performance0Health5Dividend1

Mixed9 of 30 checks passed

Franklin Wireless passes 9 of the 30 checks behind our score; 11 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
3/6
Growth
0/6
Past performance
0/6
Financial health
5/6
Dividend
1/6

What stands out

  • Margin of safety over 20%

    The price is 61.8% below fair value, more than the 20% cushion we look for.

  • Trading below fair value

    The share price of $2.07 is below our fair value estimate of $5.42.

  • No debt

    Franklin Wireless has no borrowings on its latest balance sheet.

  • Interest well covered

    No meaningful interest expense to cover.

What to watch

  • Return on equity under 15%

    Return on equity was -14.9% over the last twelve months and averaged -8.4% over five years; we look for 15% on both.

  • Revenue growing under 10% a year

    Revenue grew -7.4% a year over the last three fiscal years, short of the 10% we look for.

  • Bankruptcy risk in the grey zone

    The Altman Z-score is 2.77; above 3 is the safe zone and below 1.8 the distress zone.

  • Growing slower than the industry

    Revenue grew -20.8% over the last twelve months; the Communications Equipment median is 10.9%.

Valuation3/6

  • P/E against its history

    Not enough price and earnings history to compare.

  • P/E against the industry

    Needs positive earnings and enough profitable companies in the industry.

  • EV/EBITDA against its history

    Needs positive EBITDA and price history.

  • P/B below the industry

    Franklin Wireless's price-to-book of 0.83 is below the Communications Equipment median of 2.54.

  • Trading below fair value

    The share price of $2.07 is below our fair value estimate of $5.42.

  • Margin of safety over 20%

    The price is 61.8% below fair value, more than the 20% cushion we look for.

Growth0/6

  • Revenue growing under 10% a year

    Revenue grew -7.4% a year over the last three fiscal years, short of the 10% we look for.

  • EPS growth over 3 years

    Needs positive EPS three years ago and today.

  • Earnings acceleration

    Needs positive net income now, a year ago and five years ago.

  • Growing slower than the industry

    Revenue grew -20.8% over the last twelve months; the Communications Equipment median is 10.9%.

  • Company guidance

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

  • Gross margin slipping

    Gross margin was 17.1% over the last twelve months, against 17.2% a year earlier.

Past performance0/6

  • Return on equity under 15%

    Return on equity was -14.9% over the last twelve months and averaged -8.4% over five years; we look for 15% on both.

  • Return on invested capital

    Needs operating income and invested capital.

  • Return on equity below the industry

    Franklin Wireless's return on equity of -14.9% is below the Communications Equipment median of -3.7%.

  • Earnings over 5 years

    Needs positive net income five years ago and in the latest year.

  • Net margin below its 5-year average

    Net margin was -13.0% over the last twelve months, against a 5-year average of -9.7%.

  • Net margin below the industry

    Franklin Wireless's net margin of -13.0% is below the Communications Equipment median of -2.2%.

Financial health5/6

  • No debt

    Franklin Wireless 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

    No meaningful interest expense to cover.

  • Short-term assets cover short-term debts

    Current assets are 2.67 times current liabilities.

  • Bankruptcy risk in the grey zone

    The Altman Z-score is 2.77; above 3 is the safe zone and below 1.8 the distress zone.

Dividend1/6

  • Pays a dividend

    Franklin Wireless paid dividends worth 1.9% of the share price over the last twelve months.

  • Yield below Treasuries

    The 1.9% 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 Wireless yields 1.9%.

  • Dividend stability

    Fewer than five years of dividend history.

  • Earnings cover

    Needs dividends paid and net income.

  • Cash-flow cover

    Needs dividends paid and free cash flow.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$5.42

The share price is 62% below this estimate.

20%+ below
Near fair value
20%+ above
$2.07Price$5.42Fair value
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
P/B1.8×1.1×2.5×$4.5050%
P/S2.0×1.1×3.0×$6.3450%
Fair value$5.42100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/E at month end
  • Communications Equipment median 24.9

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

High risk

Average value traded per day
$19.84K
Value traded per 1% price move
$8.85K

Downside

Medium risk

Typical loss in a bad month
19.9%
Volatility (annualized)
34%
Sharpe ratio, 1 year
-1.90
Beta to the S&P 500 (5Y)
0.12

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2012 to 2026

Gross margin

17.1%−0.5 pts over 5 years

Operating margin

-7.3%−19.7 pts over 5 years

Net margin

-13.0%−22.6 pts over 5 years

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