Franklin Financial Services Corporation (FRAF)
Valuation Overview•Is Franklin Financial Services Corporation Overvalued or Undervalued?
The market is pricing the stock in line with historical averages, assuming steady-state growth.
Moderate quality score of 57/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street sentiment is generally neutral alongside robust expected earnings growth. This is paired with healthy capital returns, anchored by a strong, well-covered dividend yield.
FRAF demonstrates adequate business quality with stable profitability. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company maintains stable top-line performance paired with robust earnings compounding (12.2% EPS 3Y CAGR). The company maintains healthy operational efficiency with a 19.8% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $33.7M | +17.3% | — | — | +11.1% | |
| EBITDA | $8.0M | — | +11.5% | — | — | |
| Net Income | $6.0M | +91.2% | +12.4% | — | +7.6% | |
| EPS (Diluted) | $1.35 | +88.8% | +12.2% | +10.1% | +7.0% | |
| Free Cash Flow | $3.2M | +28.1% | +23.6% | +32.8% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 64.1% | 65.1% | 77.3% | 81.6% |
| Operating Margin | 19.8% | 16.3% | 21.9% | 20.3% |
| Net Margin | 16.0% | 13.6% | 18.5% | 17.2% |
| FCF Margin | 18.5% | 21.4% | 22.0% | 22.1% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $1.34 | $1.48 | +10.4% | ||
| Q1'26 | — | $1.34 | — | ||
| Q1'26 | — | $1.35 | — | ||
| Q4'25 | — | $1.19 | — | ||
| Q3'25 | — | $1.32 | — | ||
| Q2'25 | — | $0.88 | — | ||
| Q1'25 | — | $0.11 | — | ||
| Q1'25 | — | $0.11 | — |
Total return is +83.8% (1Y), outperforming the benchmark by +58.8%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +27.0% | +17.7% | — |
| 1Y | +83.8% | +58.8% | +3.9% |
| 3YCAGR | +33.3% | +13.0% | +14.2% |
| 5YCAGR | +17.3% | +4.6% | +21.1% |
| 10YCAGR | +12.0% | -1.9% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Franklin Financial Services Corporation (FRAF) valuation, health, and returns.
Based on peer relative multiples, Franklin Financial Services Corporation appears Fair versus peers compared to industry peers.
Franklin Financial Services Corporation has multiple valuation anchors: Peer Relative Fair Value: $58.56. A convergence of these signals offers higher conviction.
Franklin Financial Services Corporation displays fair financial health with a composite quality score of 57/100, supported by a Piotroski F-Score of 8/9, Return on Invested Capital (ROIC) of 5.2%.
Franklin Financial Services Corporation pays a 2.1% dividend yield, covered by a 28% payout ratio with 1 years of growth, supplemented by a 0.4% buyback yield.
Franklin Financial Services Corporation's current growth trajectory is Accelerating. The company achieved +17.3% 1Y revenue growth and +88.8% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Hold based on 0 analysts. The consensus price target represents a N/A change from current levels.
Investment risks for Franklin Financial Services Corporation include: -16.3% 1-year max drawdown. Volatility risk is characterized by a beta of 0.61x.
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.