Franklin Resources (BEN) AI Stock Analysis

• Market Cap: $11.29B
• Dividend Yield: 5.9%
• Average Volume (3M): 4.57M
• Price to Earnings (P/E): 23.8
• Beta (1Y): 0.95
• Revenue Growth: 2.31%
• EPS Growth: 5.71%
• Country: US
• Employees: 10,000
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.67
• Shares Outstanding: 520,970,600
• 10 Day Avg. Volume: 4,898,201
• 30 Day Avg. Volume: 4,573,563
• PEG Ratio: 1.13
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 1.36
• P/FCF Ratio: 13.05
• Enterprise Value/Market Cap: 2.10
• Enterprise Value/Revenue: 2.71
• Enterprise Value/Gross Profit: 5.58
• Enterprise Value/Ebitda: 16.71
• 1Y Price Target: $24.33
• Price Target Upside: 10.44% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 7
• EPS Forecast (FY): 2.52
• Revenue Forecast (FY): $6.87B

• Rating: 64 Neutral
• Price Target: $24.50 ▲(11.21% Upside)

Franklin Resources' overall stock score reflects a moderate financial performance with stable revenue growth but challenges in profitability and cash flow. The technical analysis indicates a neutral trend, while the valuation suggests a potential overvaluation offset by a strong dividend yield. The positive sentiment from the earnings call, driven by strategic initiatives in digital assets and AI, contributes positively to the score.

Positive Factors

Revenue Growth

Exceeding revenue expectations indicates strong business performance and effective growth strategies, enhancing long-term financial stability.

Digital Assets Expansion

Growth in digital assets reflects strategic adaptation to market trends, positioning the company for future opportunities in digital finance.

ETF Growth

Significant growth in ETFs suggests strong market demand and effective product offerings, supporting long-term revenue diversification.

Negative Factors

Declining Profit Margins

Decreasing profit margins indicate potential challenges in cost management, which could impact long-term profitability and competitiveness.

Rising Debt Levels

Higher leverage may strain financial flexibility and increase risk, potentially affecting the company's ability to invest in growth initiatives.

Cash Flow Challenges

Declining free cash flow suggests liquidity pressures, which could limit the company's ability to fund operations and strategic investments.

Franklin Resources Business Overview & Revenue Model

Company Description

Franklin Resources, Inc., commonly known as Franklin Templeton, is a global investment management organization headquartered in San Mateo, California. Founded in 1947, the company offers a wide range of investment services and products across various asset classes, including equity, fixed income, alternative investments, and multi-asset strategies. Franklin Templeton serves a diverse clientele, including institutional investors, financial intermediaries, and individual investors, through its extensive suite of mutual funds, ETFs, and customized investment solutions.

How the Company Makes Money

Franklin Resources primarily generates revenue through the management fees it charges for its investment products and services. These fees are typically calculated as a percentage of assets under management (AUM) and vary depending on the type of fund or account. Additionally, the company earns performance fees from certain investment products that outperform predetermined benchmarks. Franklin Templeton also benefits from sales of mutual funds and related investment products, with revenue boosted by distribution fees and commissions from financial intermediaries. Significant partnerships with financial advisors and institutions further enhance its distribution capabilities, contributing to its earnings. Furthermore, the company may experience fluctuations in revenue based on market performance and changes in AUM, which are influenced by investor sentiment and overall market conditions.

Franklin Resources Financial Statement Overview

Summary

Franklin Resources demonstrates stable revenue growth but faces challenges in profitability and cash flow generation. The increased leverage and declining margins highlight potential risks, while the company's ability to generate cash from operations needs improvement. Overall, the financial health is moderate, with a need for strategic focus on enhancing profitability and managing debt levels.

Income Statement

Franklin Resources shows a modest revenue growth rate of 1.53% TTM, indicating a stable revenue stream. However, the gross profit margin has decreased significantly from previous years, currently at 48.57% TTM, compared to 80.11% in 2024. The net profit margin is relatively low at 5.83% TTM, reflecting challenges in maintaining profitability. The EBIT and EBITDA margins have also declined, suggesting pressure on operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.10 TTM, indicating higher leverage, which could pose risks if not managed carefully. Return on equity is low at 4.17% TTM, suggesting limited returns for shareholders. However, the equity ratio remains stable, reflecting a balanced asset structure.

Cash Flow

Free cash flow has decreased by 37.21% TTM, indicating potential liquidity challenges. The operating cash flow to net income ratio is 0.87 TTM, showing a reasonable conversion of income to cash. However, the free cash flow to net income ratio is 0.88 TTM, suggesting that cash generation from operations is under pressure.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.77B	8.77B	8.48B	7.85B	8.28B	8.43B
Gross Profit	4.26B	4.26B	6.79B	6.35B	6.85B	7.00B
EBITDA	1.42B	1.32B	1.38B	1.91B	2.21B	2.84B
Net Income	511.60M	524.90M	464.80M	882.80M	1.29B	1.83B
Balance Sheet
Total Assets	32.37B	32.37B	32.46B	30.12B	28.06B	24.17B
Cash, Cash Equivalents and Short-Term Investments	3.57B	3.57B	4.41B	4.40B	4.78B	4.65B
Total Debt	13.30B	13.30B	13.09B	11.75B	9.36B	7.59B
Total Liabilities	18.18B	18.18B	17.90B	16.55B	14.24B	11.42B
Stockholders Equity	12.08B	12.08B	12.51B	11.92B	11.47B	11.22B
Cash Flow
Free Cash Flow	911.60M	911.60M	794.20M	940.40M	1.87B	1.17B
Operating Cash Flow	1.07B	1.07B	971.30M	1.09B	1.96B	1.25B
Investing Cash Flow	-2.34B	-2.34B	-2.42B	-3.61B	-3.33B	-2.62B
Financing Cash Flow	452.40M	452.40M	1.42B	2.11B	1.58B	2.03B

Franklin Resources Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 22.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BEN, the sentiment is Neutral. The current price of 22.03 is below the 20-day moving average (MA) of 22.37, below the 50-day MA of 22.84, and above the 200-day MA of 21.79, indicating a neutral trend. The MACD of -0.38 indicates Positive momentum. The RSI at 45.76 is Neutral, neither overbought nor oversold. The STOCH value of 25.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BEN.

Franklin Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HLNE	77 Outperform	$6.81B	22.12	31.85%	1.66%	13.01%	21.96%
SEIC	76 Outperform	$9.80B	14.71	29.38%	1.22%	9.33%	33.17%
IVZ	74 Outperform	$10.34B	15.76	7.29%	3.60%	6.64%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BEN	64 Neutral	$11.29B	23.78	3.84%	5.90%	2.31%	5.71%
STEP	45 Neutral	$7.16B	―	-750.11%	2.29%	92.02%	-1386.34%

Franklin Resources Corporate Events

Franklin Resources’ Earnings Call Highlights Growth and Challenges

The recent earnings call for Franklin Resources reflected a generally positive sentiment, underscoring the company’s robust performance in several key areas. Notable achievements included awards and significant growth in digital and ETF segments, although challenges such as Western Asset outflows and a tough fundraising environment for Lexington’s flagship fund were acknowledged. Overall, the sentiment was optimistic, with the company’s accomplishments outweighing the hurdles.

Franklin Resources Reports Strong Fiscal Year 2025 Results

Franklin Resources, Inc., operating as Franklin Templeton, is a global investment management organization providing a range of investment solutions across equity, fixed income, alternatives, and multi-asset classes, with a presence in over 150 countries.

Franklin Resources Reports Q4 2025 Financial Results

On November 7, 2025, Franklin Resources, Inc. announced its preliminary financial results for the fourth quarter and fiscal year ending September 30, 2025. The company reported a net income of $117.6 million for the quarter and $524.9 million for the fiscal year, showing significant improvement from the previous year. The company experienced growth in long-term inflows across all asset classes, reaching $84.6 billion, and maintained a strong institutional pipeline. Despite a decrease in operating income compared to the previous quarter, Franklin Templeton achieved record growth in retail SMAs, ETFs, and alternative AUM, highlighting its strategic focus on diversification and expansion in both public and private markets.

The most recent analyst rating on (BEN) stock is a Sell with a $23.00 price target. To see the full list of analyst forecasts on Franklin Resources stock, see the BEN Stock Forecast page.