Macroaxis provides unbiased investment recommendation on Franklin Electric that should be used to complement current
analysts and expert consensus on Franklin Electric Co. Our trade advice engine determines the company's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon.
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 Electric income statement, its balance sheet, and the statement of cash flows. Potential Franklin Electric investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Franklin Electric investors may use each financial statement separately, they are all related. The changes in Franklin Electric's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Franklin Electric'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 Electric
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Franklin Electric performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Franklin Electric 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 Electric. Please read more on our
fundamental analysis page.
How effective is Franklin Electric in utilizing its assets?
Franklin Electric Co 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 Electric 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 Industrial Machinery & Supplies & Components 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 Electric Earnings Expected to grow?
The
future earnings power of Franklin Electric involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Franklin Electric factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Franklin Electric
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 Electric 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 Electric 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 USD0.58 per share.
At present, Franklin Electric's
Dividend Yield is projected to slightly decrease based on the last few years of reporting. The current year's
Dividend Paid And Capex Coverage Ratio is expected to grow to 1,076, whereas
Dividend Payout Ratio is forecasted to decline to 0.18.
Investing in dividend-paying stocks, such as Franklin Electric Co is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Franklin Electric 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 Electric. 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 Electric Gross Profit
Franklin Electric 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 Electric 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 Electric Gross Profit growth over the last 10 years. Please check Franklin Electric's
gross profit and other
fundamental indicators for more details.
An Additional Perspective On Franklin Electric
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 Electric is not uncomon. Institutional investors typically avoid acquiring a high percentage of Franklin Electric 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 Electric holds a total of fourty-six million two hundred thousand
outstanding shares. The majority of Franklin Electric Co
outstanding shares are owned by
other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in Franklin Electric to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Franklin Electric. Please pay attention to any change in the institutional holdings of Franklin Electric Co as this could imply that something significant has changed or about to change at the company. Please note that no matter how much assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.
| Insiders16.3% | Institutions80.81% |
| Retail Investors | 2.89 |
| Insiders | 16.3 |
| Institutions | 80.81 |
| 2018 | 2019 | 2020 | 2021 (projected) |
Consolidated Income | 105.52 M | 96 M | 110.4 M | 102.92 M | Direct Expenses | 865.76 M | 886.48 M | 797.83 M | 693.34 M |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Franklin Electric has an asset utilization ratio of 125.49 percent. This indicates that the company is making $1.25 for each dollar of assets. An increasing asset utilization means that Franklin Electric Co is more efficient with each dollar of assets it utilizes for everyday operations.
| Current Assets621.9 M | Assets Non Current698.8 M | Goodwill432.6 M | |
| Current Assets | 621.86 Million | 35.3 |
| Assets Non Current | 698.79 Million | 39.67 |
| Goodwill | 432.56 Million | 24.56 |
| Tax Assets | 8.37 Million | 0.48 |
Possible March recoup of Franklin?
The semi variance is down to 1.89 as of today. Franklin Electric Co has relatively low volatility with skewness of 0.36 and kurtosis of 0.41. However, we advise all investors to independently investigate Franklin Electric Co to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.
Our Final Take On Franklin Electric
Although some firms within the specialty industrial machinery industry are still a little expensive, even after the recent corrections, Franklin Electric may offer a potential longer-term growth to shareholders. On the whole, as of the 16th of February 2021, our final 30 days buy-hold-sell advice on the firm is
Cautious Hold. We believe Franklin Electric is
overvalued with
very small probability of distress for the next two years.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
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 Raphi Shpitalnik do not own shares of Franklin Electric Co. Please refer to our
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