Latest Ratios: P/E Ratio 29.9x · EV/EBITDA 13.1x · ROE 11.3%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $4.3B | $4.3B | $4.5B | $4.5B | $3.7B | $4.4B | $3.2B | $2.7B | $2.0B | $2.2B | $1.8B |
| Enterprise Value | $4.4B | $4.5B | $4.5B | $4.6B | $4.0B | $4.6B | $3.2B | $2.8B | $2.2B | $2.3B | $1.9B |
| P/E Ratio → | 29.91 | 29.67 | 25.25 | 23.52 | 20.09 | 29.10 | 32.34 | 28.24 | 19.06 | 27.82 | 23.58 |
| P/S Ratio | 2.00 | 2.04 | 2.24 | 2.19 | 1.83 | 2.67 | 2.59 | 2.04 | 1.55 | 1.92 | 1.93 |
| P/B Ratio | 3.30 | 3.28 | 3.57 | 3.75 | 3.50 | 4.69 | 3.80 | 3.36 | 2.74 | 3.07 | 2.98 |
| P/FCF | 21.98 | 22.46 | 20.63 | 16.53 | 62.71 | 44.60 | 17.10 | 17.22 | 19.04 | 64.84 | 24.06 |
| P/OCF | 17.81 | 18.20 | 17.34 | 14.36 | 36.87 | 34.25 | 15.26 | 15.10 | 15.71 | 32.32 | 15.90 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.10 | 2.23 | 2.23 | 1.94 | 2.79 | 2.59 | 2.10 | 1.67 | 2.06 | 2.02 |
| EV / EBITDA | 13.11 | 13.38 | 15.02 | 14.63 | 12.90 | 19.85 | 19.33 | 16.82 | 12.69 | 15.89 | 13.01 |
| EV / EBIT | 16.14 | 21.83 | 18.90 | 18.13 | 16.08 | 23.81 | 25.15 | 22.07 | 16.62 | 20.16 | 17.02 |
| EV / FCF | — | 23.15 | 20.50 | 16.79 | 66.38 | 46.57 | 17.08 | 17.72 | 20.42 | 69.62 | 25.19 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 35.5% | 35.5% | 35.5% | 33.8% | 33.8% | 34.7% | 34.7% | 32.6% | 33.3% | 33.5% | 34.9% |
| Operating Margin | 12.8% | 12.8% | 12.1% | 12.7% | 12.6% | 11.4% | 10.5% | 9.7% | 10.2% | 9.5% | 11.8% |
| Net Profit Margin | 6.9% | 6.9% | 8.9% | 9.4% | 9.2% | 9.3% | 8.1% | 7.3% | 8.2% | 6.9% | 8.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 11.3% | 11.3% | 14.5% | 16.9% | 18.6% | 17.1% | 12.2% | 12.4% | 14.7% | 11.9% | 13.4% |
| ROA | 7.8% | 7.8% | 10.2% | 11.3% | 11.5% | 10.8% | 8.1% | 8.0% | 8.9% | 7.0% | 7.7% |
| ROIC | 15.1% | 15.1% | 14.5% | 15.3% | 15.8% | 14.3% | 11.4% | 10.8% | 11.3% | 10.3% | 12.0% |
| ROCE | 18.2% | 18.2% | 17.2% | 19.2% | 20.8% | 16.8% | 12.6% | 13.1% | 14.1% | 11.8% | 12.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.18 | 0.18 | 0.15 | 0.13 | 0.25 | 0.25 | 0.15 | 0.18 | 0.28 | 0.32 | 0.31 |
| Debt / EBITDA | 0.70 | 0.70 | 0.64 | 0.50 | 0.86 | 1.01 | 0.76 | 0.87 | 1.21 | 1.55 | 1.29 |
| Net Debt / Equity | — | 0.10 | -0.02 | 0.06 | 0.20 | 0.21 | -0.01 | 0.10 | — | — | — |
| Net Debt / EBITDA | 0.40 | 0.40 | -0.10 | 0.23 | 0.71 | 0.84 | -0.03 | 0.48 | 0.86 | 1.09 | 0.58 |
| Debt / FCF | — | 0.69 | -0.13 | 0.26 | 3.66 | 1.97 | -0.02 | 0.50 | 1.39 | 4.77 | 1.13 |
| Interest Coverage | 19.29 | 19.29 | 37.69 | 21.54 | 21.41 | 37.51 | 27.73 | 15.17 | 13.24 | 11.13 | 12.92 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.79 | 2.79 | 2.22 | 2.97 | 2.11 | 1.83 | 3.04 | 3.05 | 2.27 | 2.40 | 3.07 |
| Quick Ratio | 1.18 | 1.18 | 1.11 | 1.20 | 0.77 | 0.69 | 1.56 | 1.44 | 1.04 | 1.13 | 1.78 |
| Cash Ratio | 0.29 | 0.29 | 0.51 | 0.30 | 0.11 | 0.10 | 0.64 | 0.35 | 0.23 | 0.27 | 0.66 |
| Asset Turnover | — | 1.10 | 1.11 | 1.20 | 1.21 | 1.06 | 0.98 | 1.10 | 1.10 | 0.95 | 0.91 |
| Inventory Turnover | 2.49 | 2.49 | 2.70 | 2.69 | 2.48 | 2.41 | 2.71 | 2.95 | 2.76 | 2.39 | 3.04 |
| Days Sales Outstanding | — | 42.39 | 40.96 | 39.31 | 41.15 | 43.09 | 46.77 | 48.13 | 48.61 | 55.49 | 56.10 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.1% | 1.2% | 1.0% | 0.9% | 1.0% | 0.8% | 0.9% | 1.0% | 1.1% | 0.9% | 1.0% |
| Payout Ratio | 34.0% | 34.0% | 26.0% | 21.6% | 19.7% | 21.7% | 29.5% | 29.0% | 21.4% | 26.0% | 24.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.3% | 3.4% | 4.0% | 4.3% | 5.0% | 3.4% | 3.1% | 3.5% | 5.2% | 3.6% | 4.2% |
| FCF Yield | 4.5% | 4.5% | 4.8% | 6.1% | 1.6% | 2.2% | 5.8% | 5.8% | 5.3% | 1.5% | 4.2% |
| Buyback Yield | 3.9% | 3.8% | 1.3% | 1.0% | 1.1% | 0.6% | 0.6% | 0.4% | 1.7% | 0.2% | 0.4% |
| Total Shareholder Yield | 5.0% | 5.0% | 2.4% | 1.9% | 2.1% | 1.3% | 1.5% | 1.4% | 2.8% | 1.1% | 1.4% |
| Shares Outstanding | — | $46M | $47M | $47M | $47M | $47M | $47M | $47M | $47M | $47M | $47M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying FELE stock.
Franklin Electric Co., Inc.'s current P/E ratio is 29.9x. The historical average is 22.0x. This places it at the 93th percentile of its historical range.
Franklin Electric Co., Inc.'s current EV/EBITDA is 13.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.0x.
Franklin Electric Co., Inc.'s return on equity (ROE) is 11.3%. The historical average is 16.6%.
Based on historical data, Franklin Electric Co., Inc. is trading at a P/E of 29.9x. This is at the 93th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Franklin Electric Co., Inc.'s current dividend yield is 1.14% with a payout ratio of 34.0%.
Franklin Electric Co., Inc. has 35.5% gross margin and 12.8% operating margin. Operating margin between 10-20% is typical for established companies.
Franklin Electric Co., Inc.'s Debt/EBITDA ratio is 0.7x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Distribution mix margin dilution
Metrics are mathematically derived from official filings.
Margin Expansion Amid Mix Shift
Gross margin improved to 37.0% in Q2 2026 from 36.1% a year earlier, despite the growing lower-margin Distribution segment, as reported in the latest quarterly financials.
The 37.0% gross margin in Q2 2026 represents a notable improvement from the 35.5% average in 2024, suggesting that pricing discipline and product mix within the manufacturing segments are offsetting the dilutive effect of distribution. Operating margin of 15.0% in Q2 2026 is near the high end of the trailing ten-quarter range, indicating that SG&A control has been effective. However, the Q3 2025 net margin of 2.9% versus operating margin of 14.7% highlights a significant non-operating charge that distorted that quarter's profitability, so investors should focus on operating margin as the cleaner measure of earning power.
ROIC Stability Masks Cyclicality
ROIC has remained in a narrow 2.5%-4.6% band over the past ten quarters, with Q2 2026 at 4.4%, according to company filings, indicating stable but modest capital efficiency.
The consistency of ROIC around 4% suggests that management is deploying capital into acquisitions that yield returns roughly in line with the existing asset base, rather than generating outsized incremental returns. The slight uptick in Q2 2026 to 4.4% from 2.6% in Q1 2026 reflects the seasonal recovery in earnings, but the long-term trend shows no clear compounding. This stability may indicate that the shift toward distribution, which typically has lower returns on capital, is offsetting the higher returns from the manufacturing segments, capping the overall return profile.
Working Capital Drag Persists
Cash conversion cycle extended to 140 days in Q2 2026, up from 135 days a year earlier, driven by inventory days of 137, as per the latest quarterly data.
The CCC of 140 days is elevated relative to typical industrial peers, largely due to DIO of 137 days, which reflects the need to hold significant inventory for the distribution network. DSO has remained stable around 48 days, while DPO has declined slightly to 44 days, indicating that the company is not extending payables to finance its working capital. The seasonal swing in FCF margin from -10.1% in Q1 2026 to 14.2% in Q2 2026 underscores the working capital intensity, which investors should monitor for potential cash flow volatility.
Leverage Creeps Higher on M&A
Debt-to-equity rose to 0.22 in Q2 2026 from 0.16 a year earlier, with D/EBITDA at 3.34, according to the latest balance sheet, reflecting acquisition-funded growth.
While the absolute leverage remains conservative, the 61% year-over-year increase in total debt to $308.3M indicates a deliberate shift toward using debt to finance the Headwater distribution acquisitions. Interest coverage of 26.2x in Q2 2026 remains comfortable, but the trend in D/EBITDA from 1.70 in Q4 2024 to 3.34 in Q2 2026 suggests that the company is becoming more leveraged relative to its earnings. This is not alarming, but it does reduce the financial flexibility that FELE has historically enjoyed, and investors should monitor whether the acquisition pipeline continues to require debt funding.
Liquidity Solid Despite Cash Dip
Current ratio improved to 2.41 in Q2 2026 from 1.72 a year earlier, while cash stood at $97.3M, as reported in the latest balance sheet.
The current ratio of 2.41 indicates a strong ability to cover short-term obligations, and the quick ratio of 1.10 suggests that even without selling inventory, the company can meet its current liabilities. The improvement from 1.72 in Q2 2025 is partly due to the increase in inventory and receivables, but also reflects a more conservative working capital position. Under a severe demand shock, the high inventory levels could become a drag, but the current liquidity buffer appears adequate to weather a downturn.
P/E Misleads on Growth Quality
The trailing P/E of 32.5 and PEG of 3.82, based on reported earnings, may overstate expensiveness given the one-time charges in Q3 2025 that depressed earnings.
The most commonly misapplied ratio for FELE is the P/E ratio, because the trailing earnings include a significant non-operating charge in Q3 2025 that depressed net income, inflating the P/E. The forward P/E of 22.65 is more indicative of the company's earnings power, but even that may not fully capture the impact of the distribution mix on margins. A better metric is EV/EBITDA, which at 14.22 is more comparable to peers and less distorted by non-operating items, or P/FCF at 23.91, which reflects the company's actual cash generation. Investors should adjust for one-time items and focus on forward earnings or EV-based multiples when assessing valuation.