Is Franklin Resources Stock a Good Investment?
Franklin Resources Investment Advice | BEN |
- Examine Franklin Resources' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Franklin Resources' leadership team and their track record. Good management can help Franklin Resources navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Asset Management & Custody Banks space and any emerging trends that could impact Franklin Resources' business and its evolving consumer preferences.
- Compare Franklin Resources' performance and market position to its competitors. Analyze how Franklin Resources is positioned in terms of product offerings, innovation, and market share.
- Check if Franklin Resources pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Franklin Resources' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Franklin Resources stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Franklin Resources is a good investment.
Sell | Buy |
Buy
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Hold | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Franklin Resources Stock
Researching Franklin Resources' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 47.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 0.82. Some equities with similar Price to Book (P/B) outperform the market in the long run. Franklin Resources has Price/Earnings To Growth (PEG) ratio of 0.85. The entity last dividend was issued on the 30th of September 2024. The firm had 3:1 split on the 26th of July 2013.
To determine if Franklin Resources is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Franklin Resources' research are outlined below:
| Franklin Resources generated a negative expected return over the last 90 days | |
| Franklin Resources has a poor financial position based on the latest SEC disclosures | |
| About 47.0% of the company shares are held by company insiders | |
| On 11th of October 2024 Franklin Resources paid $ 0.31 per share dividend to its current shareholders | |
| Latest headline from zacks.com: Franklin BSP Reports Q3 Loss, Lags Revenue Estimates |
Franklin Resources uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Franklin Resources. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Franklin Resources' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 29th of January 2024 Upcoming Quarterly Report | View | |
| 6th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 29th of October 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 30th of September 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Franklin Resources' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Franklin Resources' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2002-01-24 | 2001-12-31 | 0.13 | 0.15 | 0.02 | 15 | ||
2001-10-25 | 2001-09-30 | 0.13 | 0.11 | -0.02 | 15 | ||
2005-01-27 | 2004-12-31 | 0.28 | 0.31 | 0.03 | 10 | ||
2006-04-27 | 2006-03-31 | 0.4 | 0.44 | 0.04 | 10 | ||
2009-04-28 | 2009-03-31 | 0.21 | 0.16 | -0.05 | 23 | ||
2006-10-26 | 2006-09-30 | 0.45 | 0.5 | 0.05 | 11 | ||
2006-07-27 | 2006-06-30 | 0.42 | 0.47 | 0.05 | 11 | ||
2008-10-23 | 2008-09-30 | 0.49 | 0.43 | -0.06 | 12 |
Know Franklin Resources' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Franklin Resources is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Franklin Resources backward and forwards among themselves. Franklin Resources' institutional investor refers to the entity that pools money to purchase Franklin Resources' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Capital Research Global Investors | 2024-06-30 | 3.6 M | First Trust Advisors L.p. | 2024-06-30 | 3.5 M | Dimensional Fund Advisors, Inc. | 2024-06-30 | 3.2 M | Northern Trust Corp | 2024-06-30 | 3 M | Aqr Capital Management Llc | 2024-06-30 | 2.5 M | Amundi | 2024-06-30 | 2.4 M | Vest Financial | 2024-09-30 | 2.2 M | Legal & General Group Plc | 2024-06-30 | 2.2 M | Norges Bank | 2024-06-30 | 2.1 M | Vanguard Group Inc | 2024-06-30 | 35.6 M | Power Corporation Of Canada | 2024-06-30 | 32.2 M |
Franklin Resources' market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 10.9 B.Market Cap |
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Franklin Resources' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.05 | 0.05 | |
| Return On Capital Employed | 0.04 | 0.04 | |
| Return On Assets | 0.03 | 0.03 | |
| Return On Equity | 0.09 | 0.08 |
Determining Franklin Resources' profitability involves analyzing its financial statements and using various financial metrics to determine if Franklin Resources is a good buy. For example, gross profit margin measures Franklin Resources' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Franklin Resources' profitability and make more informed investment decisions.
Franklin Resources' Earnings Breakdown by Geography
Evaluate Franklin Resources' management efficiency
Franklin Resources has Return on Asset of 0.0267 % which means that on every $100 spent on assets, it made $0.0267 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.0758 %, implying that it generated $0.0758 on every 100 dollars invested. Franklin Resources' management efficiency ratios could be used to measure how well Franklin Resources manages its routine affairs as well as how well it operates its assets and liabilities. As of the 5th of November 2024, Return On Tangible Assets is likely to drop to 0.05. In addition to that, Return On Capital Employed is likely to drop to 0.04. At this time, Franklin Resources' Total Assets are very stable compared to the past year. As of the 5th of November 2024, Other Assets is likely to grow to about 15.7 B, while Non Currrent Assets Other are likely to drop about 251.4 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 24.93 | 26.18 | |
| Tangible Book Value Per Share | 4.90 | 4.74 | |
| Enterprise Value Over EBITDA | 12.09 | 12.70 | |
| Price Book Value Ratio | 1.16 | 1.10 | |
| Enterprise Value Multiple | 12.09 | 12.70 | |
| Price Fair Value | 1.16 | 1.10 | |
| Enterprise Value | 26.8 B | 28.1 B |
Franklin Resources benefits from a proactive management team that anticipates market trends. Our analysis delves into how this proactive stance influences financial metrics and stock valuation.
Dividend Yield 0.0595 | Forward Dividend Yield 0.0595 | Forward Dividend Rate 1.24 | Beta 1.407 |
Basic technical analysis of Franklin Stock
As of the 5th of November, Franklin Resources shows the Mean Deviation of 1.5, standard deviation of 2.23, and Coefficient Of Variation of (2,954). Franklin Resources technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices.Franklin Resources' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Franklin Resources insiders, such as employees or executives, is commonly permitted as long as it does not rely on Franklin Resources' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Franklin Resources insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Jennifer Johnson over six months ago Acquisition by Jennifer Johnson of 100246 shares of Franklin Resources subject to Rule 16b-3 | ||
Geoff Yang over six months ago Acquisition by Geoff Yang of 7323 shares of Franklin Resources subject to Rule 16b-3 | ||
Geoff Yang over a year ago Acquisition by Geoff Yang of 1435 shares of Franklin Resources subject to Rule 16b-3 |
Franklin Resources' Outstanding Corporate Bonds
Franklin Resources issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Franklin Resources uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Franklin bonds can be classified according to their maturity, which is the date when Franklin Resources has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| FRANKLIN RES INC Corp BondUS354613AK71 | View | |
| US354613AL54 Corp BondUS354613AL54 | View | |
| BEN 295 12 AUG 51 Corp BondUS354613AM38 | View |
Understand Franklin Resources' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Franklin Resources' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.02) | |||
| Market Risk Adjusted Performance | (0.06) | |||
| Mean Deviation | 1.5 | |||
| Coefficient Of Variation | (2,954) | |||
| Standard Deviation | 2.23 | |||
| Variance | 4.97 | |||
| Information Ratio | (0.07) | |||
| Jensen Alpha | (0.17) | |||
| Total Risk Alpha | (0.29) | |||
| Treynor Ratio | (0.07) | |||
| Maximum Drawdown | 14.84 | |||
| Value At Risk | (2.93) | |||
| Potential Upside | 2.32 | |||
| Skewness | (2.67) | |||
| Kurtosis | 14.08 |
| Risk Adjusted Performance | (0.02) | |||
| Market Risk Adjusted Performance | (0.06) | |||
| Mean Deviation | 1.5 | |||
| Coefficient Of Variation | (2,954) | |||
| Standard Deviation | 2.23 | |||
| Variance | 4.97 | |||
| Information Ratio | (0.07) | |||
| Jensen Alpha | (0.17) | |||
| Total Risk Alpha | (0.29) | |||
| Treynor Ratio | (0.07) | |||
| Maximum Drawdown | 14.84 | |||
| Value At Risk | (2.93) | |||
| Potential Upside | 2.32 | |||
| Skewness | (2.67) | |||
| Kurtosis | 14.08 |
Consider Franklin Resources' intraday indicators
Franklin Resources intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Franklin Resources stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Franklin Resources Corporate Filings
8K | 4th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 31st of October 2024 Other Reports | ViewVerify | |
F4 | 28th of October 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
F3 | 18th of October 2024 An amendment to the original Schedule 13D filing | ViewVerify |
Franklin Stock media impact
Far too much social signal, news, headlines, and media speculation about Franklin Resources that are available to investors today. That information is available publicly through Franklin media outlets and privately through word of mouth or via Franklin internal channels. However, regardless of the origin, that massive amount of Franklin data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Franklin Resources news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Franklin Resources relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Franklin Resources' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Franklin Resources alpha.
Franklin Resources Historical Investor Sentiment
Investor biases related to Franklin Resources' public news can be used to forecast risks associated with an investment in Franklin. The trend in average sentiment can be used to explain how an investor holding Franklin can time the market purely based on public headlines and social activities around Franklin Resources. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Franklin Resources' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Franklin Resources and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Franklin Resources news discussions. The higher the estimate score, the more favorable the investor's outlook on Franklin Resources.
Franklin Resources Corporate Directors
| Seth Waugh | Independent Director | Profile | |
| Peter Barker | Lead Independent Director | Profile | |
| Charles Johnson | Director | Profile | |
| Laura Stein | Independent Director | Profile |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Franklin Resources. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income. To learn how to invest in Franklin Stock, please use our How to Invest in Franklin Resources guide.You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Is Asset Management & Custody Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Franklin Resources. If investors know Franklin will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Franklin Resources listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.27) | Earnings Share 1.56 | Revenue Per Share 16.418 | Quarterly Revenue Growth 0.078 | Return On Assets 0.0267 |
The market value of Franklin Resources is measured differently than its book value, which is the value of Franklin that is recorded on the company's balance sheet. Investors also form their own opinion of Franklin Resources' value that differs from its market value or its book value, called intrinsic value, which is Franklin Resources' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Franklin Resources' market value can be influenced by many factors that don't directly affect Franklin Resources' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Franklin Resources' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Franklin Resources is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Franklin Resources' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.