Franklin Resources Inc

Finance
Investment Managers
www.franklinresources.com

Earnings Score
Moat Score
Safety Score

Market Cap $11.38B
PE 26
Debt $2.78B
Cash $4.41B
EV $9.75B
FCF $794.20M

Earnings

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Sales & Net Margins

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Earnings	$432.20M
EBIT	$823.20M
ROE	3%
ROA	3%
FCF	$794.20M
Equity	$13.24B
Growth Stability	34%
PE	26.33
PEG	-2.89
PB	0.86
P/FCF	14.33
P/S	1.34
Price/Cash	0.39
Debt/Equity	0.21
Debt/FCF	3.5
Net Margins	5%
Op. Margins	10%
Earnings CAGR	-7%
Sales Growth YoY	11%
Sales Growth QoQ	4%
Sales CAGR	3%
FCF CAGR	-4%
Equity CAGR	0%
Earnings Stability	0.21
Earnings Growth YoY	-133%
Earnings Growth QoQ	-156%

Earnings CAGR 5Y	-9%
Sales CAGR 5Y	9%
FCF CAGR 5Y	2%
Equity CAGR 5Y	5%
Earnings CAGR 3Y	-2%
Sales CAGR 3Y	-2%
FCF CAGR 3Y	-11%
Equity CAGR 3Y	4%
Market Cap	$11.38B
Revenue	$8.48B
Dividend Yield	6%
Payout Ratio	155%
Assets	$32.46B
Total Debt	$2.78B
Cash	$4.41B
Shares Outstanding	509.5M
EV	9.75B
Earnings Score	4%
Moat Score	46%
Safety Score	62%
Final Score	37%
Shares Growth 3y	1%
Equity Growth QoQ	-3%
Equity Growth YoY	6%

Assets & ROA

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Stockholders Equity & ROE

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Franklin Resources provides investment services for individual and institutional investors. At the end of May 2022, Franklin had $1.446 trillion in managed assets, composed primarily of equity (32%), fixed-income (39%), multi-asset/balanced (10%) funds, alternatives (15%) and money market funds (4%). Distribution tends to be weighted more toward retail investors (52% of AUM) investors, as opposed to institutional (46%) and high-net-worth (2%) clients. Franklin is also one of the more global firms of the U.S.-based asset managers we cover, with more than 35% of its AUM invested in global/international strategies and 25% of managed assets sourced from clients domiciled outside the United States.

SEC Filings

Direct access to Franklin Resources Inc (BEN) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-Q Dec 31
- 10-K Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-Q Dec 31
- 10-K Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Franklin Resources Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Franklin Resources Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -7%

Stability 21%

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Franklin Resources Inc Discounted Cash Flow

Fully customizable DCF calculator online for Franklin Resources Inc.

Years

Calculation mode

= $6B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$794M	$761M	$729M	$699M	$670M	$642M	$615M	$589M	$564M	$541M	$518M	$5.2B
DCF		$692M	$603M	$525M	$457M	$398M	$347M	$302M	$263M	$229M	$200M	$2B
Value	$6B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	09/2015	09/2016	09/2017	09/2018	09/2019	09/2020	09/2021	09/2022	09/2023	09/2024	TTM
Net Margins	25%	26%	26%	12%	21%	14%	21%	15%	11%	5%	5%
ROA	-	16%	15%	15%	11%	5%	10%	6%	5%	3%	3%
ROE	-	14%	13%	7%	11%	7%	15%	10%	7%	3%	3%

Bad Net Margins (5.1%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	09/2015	09/2016	09/2017	09/2018	09/2019	09/2020	09/2021	09/2022	09/2023	09/2024	TTM
Debt over FCF	-	0.86	0.98	0.33	-21.71	3.29	2.92	1.81	3.08	3.5	3.5
Debt over Equity	0.11	0.11	0.08	0.07	0.07	0.27	0.29	0.27	0.24	0.21	0.21
Growth Stability	-	-	-	41%	86%	65%	100%	100%	67%	34%	34%

Neutral Debt/FCF ratio (3.5)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.21)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (34%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	09/2015	09/2016	09/2017	09/2018	09/2019	09/2020	09/2021	09/2022	09/2023	09/2024	CAGR 5Y
Revenue YoY growth	-	-17%	-3%	-1%	-9%	-4%	51%	-2%	-5%	8%	9%
Earnings YoY growth	-	-15%	-2%	-56%	60%	-34%	124%	-29%	-32%	-49%	-9%
Equity YoY growth	-	0%	3%	-21%	4%	3%	8%	4%	2%	6%	5%
FCF YoY growth	-	-25%	-35%	100%	-102%	-3K%	27%	60%	-47%	-20%	2%