Franklin Electric Co., Inc. (FELE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Why is Franklin Electric Co., Inc. ?

High Management Efficiency with a high ROCE of 18.37%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.53 times

Healthy long term growth as Operating profit has grown by an annual rate 16.76%

The company has declared Negative results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at USD 217.46 MM
NET PROFIT(9M) At USD 93.76 MM has Grown at -24.35%
INTEREST(HY) At USD 4.85 MM has Grown at 54.62%

With ROCE of 19.46%, it has a fair valuation with a 2.91 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 18.81%, its profits have fallen by -20.2%

High Institutional Holdings at 86.09%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Franklin Electric Co., Inc. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Franklin Electric Co., Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Franklin Electric Co., Inc.

17.25%

0.28

28.39%

S&P 500

20.78%

1.67

13.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.31%

EBIT Growth (5y)

16.76%

EBIT to Interest (avg)

30.27

Debt to EBITDA (avg)

0.45

Net Debt to Equity (avg)

0.08

Sales to Capital Employed (avg)

1.45

Tax Ratio

22.25%

Dividend Payout Ratio

32.92%

Pledged Shares

Institutional Holding

86.09%

ROCE (avg)

18.37%

ROE (avg)

15.53%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.02

EV to EBIT

14.95

EV to EBITDA

11.56

EV to Capital Employed

2.91

EV to Sales

1.91

PEG Ratio

Dividend Yield

1.24%

ROCE (Latest)

19.46%

ROE (Latest)

11.40%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Sideways

Moving Averages

Bullish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 7.64

-11What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 217.46 MM

NET PROFIT(9M)

At USD 93.76 MM has Grown at -24.35%

INTEREST(HY)

At USD 4.85 MM has Grown at 54.62%

DEBT-EQUITY RATIO (HY)

Highest at 15.38 %

Here's what is working for Franklin Electric Co., Inc.

Dividend per share

Highest at USD 7.64 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Here's what is not working for Franklin Electric Co., Inc.

Operating Cash Flow

Lowest at USD 217.46 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest

At USD 4.85 MM has Grown at 54.62%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Profit

At USD 93.76 MM has Grown at -24.35%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at 15.38 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio