Franklin Story

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FELE -- USA Stock  

USD 75.06  0.34  0.45%

Franklin Electric Revenue Per Employee is projected to increase significantly based on the last few years of reporting. The past year's Revenue Per Employee was at 219,096. The current year Free Cash Flow is expected to grow to about 194.4 M, whereas Earnings Before Interest Taxes and Depreciation Amortization EBITDA are forecasted to decline to about 187.5 M. Franklin Electric is scheduled to announce its earnings today. The next earnings report is expected on the 27th of April 2021. Many investors are getting excited about industrials space, let's analyze if Franklin Electric Co fundamentals are strong enough to attract traders. I will address the reasons this entity was abused by shareholders resulted from the current market uncertainty. We currently estimate Franklin Electric as overvalued. The real value is approaching 65.80 per share.
Published over a week ago
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How sound are Franklin Electric (NASDAQ:FELE) forward looking signals given the latest surge?
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 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.

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 $0.3 per share.
The current year Dividend Yield is expected to grow to 0.009074, whereas Payment of Dividends and Other Cash Distributions is forecasted to decline to (32 M).
Last ReportedProjected for 2021
Payment of Dividends and Other Cash Distributions-29.7 M-32 M
Dividend Yield 0.009  0.009074 
Dividends per Basic Common Share 0.62  0.55 
Investing in dividend-paying stocks, such as Franklin Electric 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.

How Franklin utilizes its cash?

To perform a cash flow analysis of Franklin Electric, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Franklin Electric is receiving and how much cash it distributes out in a given period. The Franklin Electric cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Franklin Electric Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 211.85 Million

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 Gross Profit in more details.

A Deeper 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.

Insiders
16.3%
Institutions
80.81%
Retail Investors2.89
Insiders16.3
Institutions80.81
 2018 2019 2020 2021 (projected)
Consolidated Income105.52 M96 M110.4 M102.92 M
Direct Expenses865.76 M886.48 M797.83 M693.34 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 Assets
621.9 M
Assets Non Current
698.8 M
Goodwill
432.6 M
Current Assets621.86 Million35.3
Assets Non Current698.79 Million39.67
Goodwill432.56 Million24.56
Tax Assets8.37 Million0.48

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.

About Contributor

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. Please refer to our Terms of Use for any information regarding our disclosure principles.

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