Fundamental analysis: Franklin Resources, Inc. (BEN)

Awarener score: 8.1

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Superb), the business stability (Modest) and growth (Modest), and the company's inclination to return cash to the stockholders (Very good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.0

Business growth has been almost stagnant. It's been below average when measured against peer companies.
Franklin Resources, Inc. business trend isn't so stable. The higher the stability, the lower the risk. It looks somewhat better than rivals.

Margins score: 8.7

BEN profit margins -on goods and services sold- are usually good. They stand slightly better than rival companies.
Business profit on sales tends to be huge. It's encouraging in relation to competitors.
Profits on sales made -available to repay debt and purchase properties- are usually very good. They remain in a weak position compared to peers.
Earnings -before income taxes and interests on loans taken- tend to be excellent in relation to total revenues. They're still mediocre against similar companies.
Profits -before income taxes- are usually excellent considering total sales, and remain weak when measured against rivals.
Total net profit tends to be excellent when confronted to sales. Company stands weak when measured against comparable firms.

Growth score: 3.9

Franklin Resources, Inc. profit -on goods and services sold- has been growing at a low pace. It's been close to average when compared to competitors.
In recent years, earnings growth -on operations- have been almost stagnant, which has been mediocre against comparable firms.
Profits -available to repay debt and purchase properties- have been growing at a very low pace, which compares below average when measured against peer enterprises.
Growth on earnings -before income taxes and interests on loans taken- have been almost stagnant. It turns to be in a weak position compared to similar stocks.
In past years, profits -before income taxes- grew at a very low speed. It was somewhat worse than rivals.
In the previous years, growth on total net profit has been very low, and below average when measured against peer companies.
Earnings per share have grown at a very low rhythm in past years. It's been lacking compared to industry peers.

Miscellaneous score: 6.0

BEN had to pay sparse income taxes in relation to profits made in the past years. It's been somewhat worse than peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 8.2

Franklin Resources, Inc. usually gets excellent returns on the resources it controls. It proves more than average in relation to peer firms.
The company normally gets very good proceeds -on the resources directly invested in the business-. They remain in good shape compared to similar companies.
There's usually abundant profitability -in relation to owned resources-. It ranks similar to competitors.
In the past, got very good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's encouraging in relation to comparable enterprises.

Usage of Funds score: 5.5

BEN usually uses a portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is rather normal. It stands encouraging in relation to rival firms.
The company is usually replacing the property, plant, and equipment that gets old, keeping its operating capabilities up to date, which is great when measured against industry peers.
In the past twelve months it paid good dividends, considering the current stock price. It came somewhat worse than competitors.
In recent years, has greatly cut back dividend payments. It could be enduring difficult times. The company has behaved in a very weak position compared to similar firms.
The company usually uses a large portion of genuine funds generated to pay dividends. There could be some concerns on sustainability if business takes a dive. Sustainability looks somewhat worse than comparable companies.
The company usually reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains in good shape compared to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands a slight improvement compared to rivals.
The company uses somewhat more funds to reward investors than it can genuinely generate, so some part of them is paid out of existing cash or by borrowing money, both of which will eventually reach a limit. Either business somewhat improves, or rewards will probably not be sustained at this pace. It still looks weak when measured against competitors.

Balance Sheet score: 6.4

Franklin Resources, Inc. intangible assets (like brands and goodwill) represent a significant portion of resources controlled, according to accounting books. There could be significant difficulties in liquidating them if the company ever gets in financial distress. It happens to be substantially worse when measured against peer companies.
The company has more than enough short-term resources to face short-term obligations. Liquidity concerns are non-significant. It turns to be rather normal in relation to similar firms.
Very few resources controlled were provided for with financial debt. Financial strength is very solid. Company could increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains slightly better than rival firms.
Most controlled resources might be only slowly turned into cash and equivalents, which is risky. It looks weak when measured against rivals.
For every dollar of short-term obligations, the company has abundant dollars in cash and short-term receivables. It's rather normal in relation to peer firms.
For every dollar of short-term obligations, the company has more than enough dollars in cash and equivalents, which is slightly better than similar enterprises.
Usually, sales are on slightly higher than two months credit. It still ranks below average when measured against peers.
Normally has no inventories. It comes up as impressive in relation to competitors.
On average, it takes less than three months from the purchase to charging customers. It happens to be mediocre against peers.
On average pays suppliers two months after the purchase. It ranks encouraging in relation to industry peers.
The company pays its suppliers less than one month before charging its customers, so there's little money invested in working capital. It's lacking compared to similar companies.
Net interest expenses consume a slight portion of usual business earnings, and are very easily bearable. It stands slightly worse than rival firms.
Business earnings have usually been great when measured against loans taken. Debt might be repaid almost as soon as desired. It ranks more than average in relation to comparable enterprises.
Revenues are quite good in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks lacking compared to similar firms.
Resource exploitation is low when yearly sales are considered, business volume must be significantly increased. This metric is normally tied to the industry where the firm belongs. It's still somewhat better than peer companies.

Valuation score: 7.6

Franklin Resources, Inc. looks cheap in relation to profits and financial position. It happens to be encouraging in relation to competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a very weak position compared to peers.
In the past twelve months, the company generated excellent free funds in relation to the stock price, which stands well ranked against similar companies.
The company usually generates plenty more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share looks to be very attractive. It's still more than average in relation to industry firms.
In the past twelve months, the company has slightly rewarded investors, considering both dividends and share on the pie of earnings. It came up lacking compared to peer ventures.
This company is a cash hoarder. It might be well poised to substantially increase stockholder payments, or to fund new business projects. It looks well ranked against similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation might be more or less reasonable, but hardly cheap. It ranks similar to peer companies.
Comparing the current stock price with the past twelve-months revenues gives a roughly two to one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks excellent in relation to rival firms.
The relation between the stock price and accounting book value might be reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains slightly worse than peer firms.
In the past twelve months, the operating business earned great money when compared to the current stock price and financial position. It happens to be encouraging in relation to industry peers.
In an alternate metric of bang for the buck, the company has usually shown an extreme earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be significantly undervalued. It's still a slight improvement compared to peer companies.

Total score: 6.4

Company at a glance: Franklin Resources, Inc. (BEN)

Sector, industry: Financial Services, Asset Management

Market Cap: 13.15 billions

Revenues TTM: 8.02 billions

Franklin Resources, Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides its services to individuals, institutions, pension plans, trusts, and partnerships. It launches equity, fixed income, balanced, and multi-asset mutual funds through its subsidiaries. The firm invests in the public equity, fixed income, and alternative markets. Franklin Resources, Inc. was founded in 1947 and is based in San Mateo, California with an additional office in Hyderabad, India.