Last Updated: 12 Sep 2024
Executive Summary
Franklin Resources Inc. (BEN) is a global investment firm with a market capitalization of $101.98 billion. The company has a strong financial profile, with an EBITDA of $1.81 billion and a profit margin of 10.2%. BEN's stock is currently trading at $19.44, below its analyst target price of $22.41. The company's fundamentals and technical analysis suggest that the stock is undervalued and has potential for growth.
Company Overview
Franklin Resources Inc. is an American multinational holding company that, together with its subsidiaries, is referred to as Franklin Templeton; it is a global investment firm founded in New York City in 1947 as Franklin Distributors, Inc. The company offers a wide range of investment products and services, including mutual funds, ETFs, and managed accounts. Franklin Templeton has a global presence, with operations in over 30 countries.
Fundamental Analysis
Franklin Resources Inc. has a strong financial profile. The company's revenue has grown by an average of 5% over the past five years. The company's EBITDA margin has also improved over the past five years, from 9.5% in 2017 to 10.2% in 2023. Franklin Templeton has a strong balance sheet, with $11.5 billion in cash and equivalents and $14.3 billion in total debt. The company's debt-to-equity ratio is 0.56, which is below the industry average.
Franklin Resources Inc.'s stock is currently trading at a P/E ratio of 12.07, which is below the industry average of 14.5. The company's forward P/E ratio is 7.15, which is also below the industry average. Franklin Templeton's dividend yield is 0.0638%, which is below the industry average of 1.0%.
Technical Analysis
Franklin Resources Inc.'s stock has been in a downtrend since reaching a 52-week high of $29.25 in January 2023. The stock is currently trading below its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is 35.3, which indicates that the stock is oversold.
Short Term Outlook
Franklin Resources Inc.'s stock is likely to continue to trade in a range in the short term. The stock is currently below its 50-day and 200-day moving averages, and the RSI is oversold. However, the company's fundamentals are strong, and the stock is trading at a discount to its analyst target price.
Long Term Outlook
Franklin Resources Inc.'s long-term outlook is positive. The company has a strong financial profile, and the global demand for investment products and services is expected to grow in the coming years. The company's stock is currently trading at a discount to its analyst target price, and it has the potential to generate significant returns for investors over the long term.
Analyst Recommendations
Seven analysts have rated Franklin Resources Inc.'s stock as a "Hold," and five analysts have rated the stock as a "Sell." The average analyst target price is $22.41.
