Franklin Resources Inc. (BEN)Growth Analysis: Profit Driven by Strength

Franklin Resources Inc. (BEN) is owned by a number of high-value investors. Its largest direct holder is Rupert H. Johnson Vice Chairman of the Board with 102,853,045 shares. The second-largest direct holder is Gregory E. Johnson Chairman of the Board and Chief Executive Officer, with 2,283,701 shares of the company’s stock. In third place with 1,779,433 shares of BEN is Jennifer M. Johnson President and Chief Operating Officer.

Now turning to institutional ownership of Franklin Resources Inc. (BEN), The Vanguard Group, Inc. is the top holder with 35.79 million shares. The next largest fund holder of this company’s stock is SSgA Funds Management, Inc. with 21.35 million shares. In the third-place spot with 16.48 million shares is T. Rowe Price Associates, Inc. (Investment Management).

This company’s stock price was $26.98 at the previous market close, with its latest volume reaching 3471387. Compare that to its average daily volume of 3.12M. Given the fact that this stock has 505.14M shares outstanding, its current market value is sitting at $13.63B. This publicly-traded stock’s 60-month Beta is 1.22. Its Price to Sales ratio is 2.36, its Price to Cash Flow ratio is 2.29, and its Price to Book ratio is 1.36.

BEN stock has achieved a 5-day range of $26.95 to $27.99, with a total performance of -3.57% during that period. Meanwhile, in the past month of trading, this stock has traded in the range of $26.95 to $29.27, generating a -3.81% change during the period. In the past three months, this stock’s price has changed by +2.66%, trading in the range of $25.76 to $30.20.

In the past 5 days, shares of BEN have made a new high 2 times. In the last month, it has made a new high 2 times, and in the past 3 months, it has made a new high 8 times.

Now let’s turn to this public company’s earnings. For the quarter ending 9/29/2019, the earnings per share (EPS) was reported at 0.61. This is a -0.03 difference compared to the consensus estimate of 0.64, amounting to an earnings surprise of -4.70%. In the previous quarter, which ended in 9/29/2019, the consensus estimate was 0.62, making for an earnings surprise of -22.60%. For the quarter ending 3/30/2019, EPS was reported at 0.72, generating a 16.10% earnings surprise.

The Net Income for the most recent full fiscal year, which ended in 09-2019, was $1.21 billion. This is compared to the prior year, where Net Income was $742.7 million. Meanwhile, this company’s Operating Cash Flow was $201.6 million for the year, compared to $2.23 billion in 2017. Capital Expenditures for the year were reportedly -$233.7 million, compared to -$106.5 million, and Free Cash flow was $-32.1 million compared to the prior year’s $2.12 billion.

Franklin Resources Inc. (BEN) stock currently has a Financial Strength score of 8/10. This is due to a combination of factors, including a Cash to Debt ratio of 7.97, an Equity to Asset ratio of 0.68, a Debt to Equity ratio of 0.08 and a Debt to EBITDA of 0.42. The Interest Coverage of this stock is 63.05, its Piotroski F-Score is 5, its Altman Z-Score is 4.33 and its Beneish M-Score is -2.07.

This publicly-traded company’s Profitability and Growth score is 8/10, thanks to a combination of things: an Operating Margin of 26.97, a Net Margin of 20.71, a ROE of 12, and a ROC of 276.78.

Shifting focus now to Valuation and Return for BEN, this company’s Price to Tangible Book is 1.95 and its Price to Median PS Value is 0.63. Price to Peter Lynch Fair Value for BEN is now 0.00, and this organization’s Price to Graham Number is 1. Meanwhile, its Forward Rate of Return (Yactman) is 1.4.

Certain ratios provide helpful insights into how a stock is performing. The Quick Ratio for BEN is sitting at 5.37, while its Current Ratio is 5.37. This stock’s PB Ratio is 1.37, its PS Ratio is 2.37, its Forward PE Ratio is 11.57, and its PE Ratio without NRI is 11.48. Similarly, its Shiller PE Ratio is 8.8, its Price to Owner Earnings is 10.21, its Price to Operating Cash Flow is 68.82.