Franklin Resources, trading under the ticker BEN on the NYSE, is a key player in the capital markets sector, but its financial fundamentals suggest potential challenges ahead. With a market capitalization of $10.5 billion, the company has a substantial presence, yet its Return on Assets stands at a modest 2.46%, indicating limited efficiency in generating profits from its assets. Additionally, the firm's significant total liabilities of $17.9 billion could weigh heavily on its financial flexibility. As investors consider the strategic outlook for February, these factors, combined with a beta of 1.4 suggesting higher volatility, might signal a cautious approach towards this stock. Currently, Franklin Resources' net income per share remains stable compared to last year. By January 26, 2025, the average inventory is expected to increase to 0.47, while the price-to-sales ratio might decrease to 1.32. With earnings set to be announced tomorrow, it's worth examining whether Franklin Resources is signaling any bullish trends that could attract new investors. What can shareholders expect in February? As a company that closely monitors market trends, Franklin Resources could be a worthwhile addition to your investment portfolio.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Franklin Resources income statement, its balance sheet, and the statement of cash flows. Potential Franklin Resources investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Franklin Resources investors may use each financial statement separately, they are all related. The changes in Franklin Resources's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Franklin Resources's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Franklin Resources
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Franklin Resources performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Franklin Resources shares is the value that is considered the true value of the share. If
the intrinsic value of Franklin is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Franklin Resources. Please read more on our
fundamental analysis page.
How effective is Franklin Resources in utilizing its assets?
Franklin Resources reports assets on its Balance Sheet. It represents the amount of Franklin resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Franklin Resources aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Asset Management & Custody Banks space. To get a better handle on how balance sheet or income statements item affect Franklin volatility, please check the breakdown of all its
fundamentals.
Are Franklin Resources Earnings Expected to grow?
The
future earnings power of Franklin Resources involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Franklin Resources factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Franklin Resources
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Franklin
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Franklin Resources earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Franklin Resources dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Franklin one year expected dividend income is about USD0.82 per share.
At this time, Franklin Resources'
Dividends Paid is very stable compared to the past year. As of the 5th of February 2025,
Dividend Yield is likely to grow to 0.06, while
Dividend Paid And Capex Coverage Ratio is likely to drop 1.27.
Investing in dividend-paying stocks, such as Franklin Resources is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Franklin Resources must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Franklin Resources. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Franklin Resources Gross Profit
Franklin Resources Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Franklin Resources previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Franklin Resources Gross Profit growth over the last 10 years. Please check Franklin Resources'
gross profit and other
fundamental indicators for more details.
What is driving Franklin Resources Investor Appetite?
Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Franklin Resources is not uncomon. Institutional investors typically avoid acquiring a high percentage of Franklin Resources stocks because performing such an act may violate securities laws. They are usually not investing their own money, but rather making investments on behalf of their clients. Let's take a look at how the ownership of Franklin is distributed among investors.
Ownership Allocation
Franklin Resources holds a total of 523.98 Million
outstanding shares. Franklin Resources retains significant amount of outstanding shares owned by
insiders. An
insider is usually defined as a CEO, other corporate executive, director, or
institutional investor who own at least 10% of the company's outstanding shares. Please note that on January 23, 2025, Representative
Thomas H Kean of US Congress acquired under $15k worth of Franklin Resources's common stock.
| Retail Investors6.39% | Insiders47.72% | Institutions45.89% |
| Retail Investors | 6.39 |
| Insiders | 47.72 |
| Institutions | 45.89 |
Please be aware that individual investors typically purchase shares for their personal accounts and usually in smaller quantities compared to institutional investors. While they might influence Franklin Resources' decisions if they own a significant combined portion of its shares, such influence is relatively rare. Conversely, institutional investors - like mutual funds, pension funds, hedge funds, and other investment companies - often have a substantial sway over Franklin Resources' decisions due to their larger holdings.
| 2022 | 2023 | 2024 | 2025 (projected) |
Capital Expenditures | 148.8M | 177.1M | 203.7M | 213.8M | Dividends Paid | 607.3M | 656.4M | 754.9M | 792.6M |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Franklin Resources has an asset utilization ratio of 26.11 percent. This suggests that the Company is making $0.26 for each dollar of assets. An increasing asset utilization means that Franklin Resources is more efficient with each dollar of assets it utilizes for everyday operations.
| Non Current Assets Total32.1 B | | | | | |
| Other Assets | 1.09 Billion | 2.69 |
| Non Current Assets Total | 32.09 Billion | 78.99 |
| Non Currrent Assets Other | 257.38 Million | 0.63 |
| Other Current Assets | (4.92 Billion) | -12.1 |
| Total Current Assets | 5.44 Billion | 13.39 |
| Intangible Assets | 5.8 Billion | 14.27 |
| Net Tangible Assets | 864.32 Million | 2.13 |
Investing wisely often means knowing when to hold and when to fold. Franklin Resources (NYSE: BEN) presents a mixed bag of fundamentals that could suggest a potential decline in February. With a Price to Earnings ratio of 17.04x, the stock appears reasonably valued, yet its profit margin of just 0.05% raises concerns about its ability to generate substantial returns. The company's long-term debt stands at a hefty $12.1 billion, which could weigh heavily on its financial flexibility. Additionally, a Return on Equity of 4.32% indicates that Franklin Resources may not be utilizing its equity as effectively as investors might hope. These factors combined suggest a cautious approach might be warranted for those considering an investment in BEN.
Franklin technical analysis suggests possible come-back
Franklin Resources recently saw a drawdown of 9.55%. While this might catch some attention, it's not unusual given market fluctuations. Interestingly, this dip could offer a buying opportunity. Technical signals hint at a possible rebound, as the stock seems to be stabilizing and gaining momentum. For investors tracking market patterns, now might be a good time to consider adding Franklin Resources to their portfolios.
The stock shows low volatility, with a skewness of -0.35 and kurtosis of 1.24. Understanding these volatility metrics can help investors time their market moves.
During bear markets, increased volatility can affect Franklin Resources' stock price, often prompting investors to adjust their portfolios by acquiring different assets as prices drop.Investing in Franklin Resources (BEN) presents a nuanced opportunity. While the stock has shown a gradual upward trend, the potential for a significant surge seems tempered by its current market dynamics. Analysts suggest a mixed outlook with a consensus rating of "Hold," reflecting a cautious stance. The target price estimates range from a low of 18.82 to a high of 22.95, indicating some optimism but also highlighting the stock's volatility. With a valuation real value hovering around 20.54, investors should weigh the possible downside of 18.64 against the upside potential of 22. If you're considering adding BEN to your portfolio, it's essential to keep an eye on market conditions and company performance, especially as the fiscal year ends in September. While a dramatic surge might not be imminent, the stock's steady climb could appeal to those seeking gradual growth..
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Franklin Resources. Please refer to our
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