10Y annualized return is
negative
at -9.5% per year
BEN has met or exceeded earnings expectations in
some
recent quarters (6/10)
Attractive Price-to-Book Ratio
Reasonable EV/EBITDA Ratio
Strong Gross Profit Margin
Positive Operating and Net Profit Margins
Low Debt Levels
Strong Liquidity Ratios
Global Presence and Diversified Offerings
Strong Investment Performance
Focus on Alternatives and Wealth Channel
Innovation in Product Development
Positive Outlook on Market Conditions
High Price-to-Earnings Ratio
Elevated Price-to-Cash Flow Ratio
Low Return on Equity
Challenges with Western Asset Management
Dependence on Market Conditions
Franklin Templeton demonstrates a solid business model with competitive advantages through its global presence and diversified offerings. However, it faces challenges with outflows from Western Asset Management. Future prospects look promising due to innovative product development and a positive outlook on market conditions, although dependence on market stability poses a risk.
Analysis Date: January 31, 2025
Last Updated: March 11, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Franklin Resources, Inc. helps people and organizations manage their money. They offer various investment options, like mutual funds, which are pools of money that allow many investors to invest together in stocks and bonds. Founded in 1947, the company has its main office in California and also operates in India. Simply put, they help you grow your savings and investments over time.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$11.02
Current Market Price: $17.78
IV/P Ratio: 0.62x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
-61.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for BEN
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (24.02)
P/B ratio ≤ 1.5 (0.73)
Current ratio ≥ 2.0 (2.99x)
Long-term debt < Net current assets (0.00x)
Margin of safety (-61.0%)
BEN does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
2.98%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
66.99%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
4.34%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
The gross profit margin of 66.99% indicates that the company retains a significant portion of revenue after accounting for the cost of goods sold, which is a positive indicator of profitability.
Operating profit margin of 10.72% and net profit margin of 4.34% show that the company is able to convert a portion of revenues into profits after covering operating costs and expenses.
The return on equity (ROE) of 2.98% is relatively low, indicating that the company is not generating strong returns on shareholders' equity, which might raise concerns for investors.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.06x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q1 2025
Current Ratio
Current assets divided by current liabilities
2.99x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q1 2025
With a debt-to-equity ratio of 0.076, the company maintains a very conservative capital structure, indicating low reliance on debt and reduced financial risk.
A current ratio of 2.99 and a quick ratio of 2.99 indicate that the company is well-positioned to cover its short-term liabilities with its current assets.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Revenue
Franklin Templeton has established a strong global presence with offices in over 30 countries, which allows them to serve clients in more than 150 countries. This extensive reach, combined with a diverse range of investment strategies across public and private markets, positions the firm as a trusted advisor to clients looking for comprehensive asset management services.
Investment performance has been strong across various time frames, with a significant percentage of mutual fund AUM outperforming their respective peers. This demonstrates the effectiveness of Franklin's investment strategies and enhances the firm's reputation in the market.
Franklin has increased its focus on alternatives, launching innovative products that cater to wealth management needs. The firm successfully raised significant capital in alternatives, indicating strong demand and a growing market for these investment vehicles.
Western Asset Management has faced significant long-term net outflows, which have posed challenges to Franklin's overall revenue. The firm reported $68 billion in outflows from Western, indicating a need for strategic adjustments to retain client confidence and improve inflows.
Franklin's commitment to developing alternative investment products and enhancing client education through initiatives like Franklin Templeton Academy positions the firm well for future growth. Their ability to adapt to market demands is indicative of strong innovation potential.
The investment management teams anticipate that earnings growth will support higher valuations across global equity markets, which may lead to increased client investment into various strategies offered by Franklin. This reflects a favorable outlook for the firm in the upcoming quarters.
The firm's performance is highly correlated with market conditions, as evidenced by the recent volatility and geopolitical uncertainties that have affected inflows. The reliance on favorable market conditions for growth could pose risks in less favorable environments.
Insider trading data shows purchase and sale activities by company executives and board members.
Insider trading patterns can provide insights into how company executives and board members view the stock's future prospects.
Insiders are buying significantly more than selling (ratio: 2.00x)
Total Bought
Total value of insider purchases in recent quarters
$181455
Higher values indicate stronger insider confidence
Total Sold
Total value of insider sales in recent quarters
BEN: No insider sale data available
Active Insiders
Number of insiders trading in recent quarters
1
Limited insider activity
Recent Trend
Change in insider trading pattern
BEN: No trend data available
