Franklin Electric Co., Inc. (FELE)
Valuation Overview•Is Franklin Electric Co., Inc. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Moderate quality score of 62/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Solid fundamental quality, though profitability presents a headwind.
Wall Street sentiment is generally neutral alongside robust expected earnings growth. This is paired with healthy capital returns, driven predominantly by aggressive share repurchases.
FELE demonstrates adequate business quality with stable profitability. This is supported by a highly conservative balance sheet featuring strong liquidity and pristine Altman Z safety.
The company exhibits steady, low-single-digit revenue growth however, earnings have severely contracted over the same period. Operating efficiency remains adequate with margins around 12.6%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $500.4M | +5.4% | +1.4% | +11.3% | +8.7% | |
| EBITDA | $48.1M | — | +2.6% | — | — | |
| Net Income | $34.3M | -18.4% | -7.7% | — | +7.3% | |
| EPS (Diluted) | $0.76 | -15.8% | -6.5% | +8.7% | +8.0% | |
| Free Cash Flow | -$50.4M | -11.9% | +47.9% | +0.5% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 35.2% | 34.9% | 34.6% | 34.2% |
| Operating Margin | 12.6% | 12.5% | 12.3% | 11.3% |
| Net Margin | 6.9% | 8.4% | 8.7% | 8.2% |
| FCF Margin | 7.8% | 11.1% | 8.4% | 8.8% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.77 | $0.83 | +7.8% | ||
| Q1'26 | $0.89 | $0.87 | -2.2% | ||
| Q4'25 | $1.29 | $1.30 | +0.8% | ||
| Q3'25 | $1.28 | $1.31 | +2.3% | ||
| Q2'25 | $0.73 | $0.67 | -8.2% | ||
| Q1'25 | $0.69 | $0.72 | +4.3% | ||
| Q4'24 | $1.27 | $1.17 | -7.9% | ||
| Q3'24 | $1.32 | $1.26 | -4.5% |
Total return is +22.8% (1Y), lagging the benchmark by -2.2%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +8.0% | -1.3% | — |
| 1Y | +22.8% | -2.2% | +1.3% |
| 3YCAGR | +2.4% | -17.5% | +3.1% |
| 5YCAGR | +7.2% | -6.0% | +6.1% |
| 10YCAGR | +12.5% | -1.0% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Franklin Electric Co., Inc. (FELE) valuation, health, and returns.
Franklin Electric Co., Inc. is estimated to be fair under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. trading near fair value (DCF: $85.05)
Franklin Electric Co., Inc. has multiple valuation anchors: DCF Intrinsic Value: $85.05 | Peer Relative Fair Value: $160.19 | Wall Street Analyst Target: $100.00 (implying -4.0% upside). A convergence of these signals offers higher conviction.
Franklin Electric Co., Inc. displays good financial health with a composite quality score of 62/100, supported by a Altman Z-Score of 7.0 (safe zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 14.7%.
Franklin Electric Co., Inc. pays a 1.1% dividend yield, covered by a 34% payout ratio with 32 years of growth, supplemented by a 3.6% buyback yield.
Franklin Electric Co., Inc.'s current growth trajectory is Accelerating. The company achieved +5.4% 1Y revenue growth and -15.8% 1Y EPS growth, compared to its 3Y revenue CAGR of +1.4%.
Wall Street consensus is Hold based on 11 analysts, beating EPS expectations in 33% of recent quarters with a 1-quarter streak. The consensus price target represents a -4.0% change from current levels.
Investment risks for Franklin Electric Co., Inc. include: -18.2% 1-year max drawdown. Volatility risk is characterized by a beta of 0.80x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.