Franklin Resources (BEN) AI Stock Analysis

• Market Cap: $12.97B
• Dividend Yield: 5.08%
• Average Volume (3M): 4.20M
• Price to Earnings (P/E): 47.9
• Beta (1Y): 1.00
• Revenue Growth: 4.72%
• EPS Growth: -67.85%
• Country: US
• Employees: 10,000
• Sector: Financial
• Sector Strength: 69
• Industry: Asset Management
• EPS (TTM): 0.49
• Shares Outstanding: 519,195,500
• 10 Day Avg. Volume: 5,221,372
• 30 Day Avg. Volume: 4,197,806
• PEG Ratio: -0.44
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 1.21
• P/FCF Ratio: 12.93
• Enterprise Value/Market Cap: 1.84
• Enterprise Value/Revenue: 2.77
• Enterprise Value/Gross Profit: 4.58
• Enterprise Value/Ebitda: 16.00
• 1Y Price Target: $25.25
• Price Target Upside: 1.04% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 75 Outperform
• Price Target: $27.00 ▲(8.04% Upside)

Franklin Resources presents a solid financial foundation with strong cash flow management and low leverage. However, profitability pressures and high P/E valuation dampen the outlook. The earnings call highlighted strategic growth areas, notably in alternatives and ETFs, though challenges with asset outflows persist. The company’s attractive dividend yield offers some appeal to income-focused investors.

Positive Factors

Earnings

Raising EPS estimates and price target shows a favorable outlook for BEN.

Revenue Prospects

Fee-rate related improved revenue prospects and unchanged expense forecasts are a good combination.

Negative Factors

Operating Expenses

Lowering C2Q25e adj EPS by -3% to $0.40 from $0.42 on higher operating expenses.

Stock Recommendation

Despite positivity, the recommendation remains underweight due to relatively more attractive opportunities elsewhere.

Franklin Resources Business Overview & Revenue Model

Company Description

Franklin Resources, Inc., known as Franklin Templeton, is a global investment management organization headquartered in San Mateo, California. It operates in the financial services sector, providing investment solutions to individual investors, institutions, and financial professionals. The company's core offerings include mutual funds, exchange-traded funds (ETFs), retirement products, and alternative investment solutions. With a presence in over 30 countries, Franklin Templeton leverages its global expertise to deliver diversified investment products and services to its clients.

How the Company Makes Money

Franklin Resources makes money primarily through the management and advisory fees it charges for its investment products and services. These fees are generally based on a percentage of the assets under management (AUM), which means that as the value of assets managed by Franklin Templeton increases, so does its revenue. Additionally, the company earns money from performance-based fees on certain investment products that exceed specific benchmarks. Franklin Templeton also generates revenue through distribution fees for selling its mutual fund products and through fees related to its advisory services. The company's earnings are influenced by market conditions, investment performance, and its ability to attract and retain clients and assets. Strategic partnerships and acquisitions also play a role in expanding its product offerings and geographical reach, contributing to its overall revenue growth.

Franklin Resources Financial Statement Overview

Summary

Franklin Resources demonstrates strong financial health with solid revenue growth and efficient cash flow management. The company maintains a low leverage with a debt-to-equity ratio of 0.08, and a significant free cash flow growth rate of 82.8% in TTM. However, challenges with decreasing net profit margins and a modest ROE of 2.64% indicate room for improvement in profitability.

Income Statement

The company has shown consistent revenue growth with a TTM revenue of $8.64 billion compared to $8.48 billion in the previous year. However, the net profit margin has decreased from 5.48% to 3.73% over the same period, indicating pressure on profitability. The EBIT margin improved to 8.77% in TTM, reflecting operational efficiency gains.

Balance Sheet

Franklin Resources maintains a solid balance sheet with a debt-to-equity ratio of 0.08 in TTM, indicating low leverage. The equity ratio stands strong at 37.5%, showcasing stability. The return on equity (ROE) is a modest 2.64%, highlighting room for improvement in generating shareholder value.

Cash Flow

The company exhibits robust cash flow management with a significant free cash flow growth rate of 82.8% in TTM. The operating cash flow to net income ratio is 5.1, indicating strong cash generation relative to net earnings, which is a positive indicator of financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.61B	8.48B	7.85B	8.28B	8.43B	5.57B
Gross Profit	5.20B	3.98B	4.36B	3.34B	3.35B	1.99B
EBITDA	1.49B	1.71B	1.91B	2.33B	2.84B	1.43B
Net Income	309.30M	464.80M	882.80M	1.29B	1.83B	798.90M
Balance Sheet
Total Assets	32.55B	32.46B	30.12B	28.06B	24.17B	20.22B
Cash, Cash Equivalents and Short-Term Investments	3.96B	4.41B	4.40B	4.78B	4.65B	3.99B
Total Debt	13.25B	13.09B	11.75B	9.36B	7.59B	6.44B
Total Liabilities	18.12B	17.90B	16.55B	14.24B	11.42B	8.71B
Stockholders Equity	12.20B	12.51B	11.92B	11.47B	11.22B	10.11B
Cash Flow
Free Cash Flow	1.45B	794.20M	989.90M	1.87B	1.17B	917.70M
Operating Cash Flow	1.65B	971.30M	1.14B	1.96B	1.25B	1.02B
Investing Cash Flow	-3.10B	-2.42B	-3.58B	-3.33B	-2.62B	-3.24B
Financing Cash Flow	909.20M	1.42B	2.03B	1.58B	2.03B	734.40M

Franklin Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BEN, the sentiment is Positive. The current price of 24.99 is above the 20-day moving average (MA) of 24.63, above the 50-day MA of 23.55, and above the 200-day MA of 20.69, indicating a bullish trend. The MACD of 0.35 indicates Positive momentum. The RSI at 59.33 is Neutral, neither overbought nor oversold. The STOCH value of 84.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BEN.

Franklin Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TROW	80 Outperform	$23.08B	11.75	19.39%	4.78%	4.43%	5.55%
AMG	79 Outperform	$6.00B	15.90	13.47%	0.02%	-6.17%	-21.51%
IVZ	76 Outperform	$9.24B	22.26	5.74%	3.98%	6.79%	―
BEN	75 Outperform	$12.97B	47.92	2.16%	5.08%	4.72%	-67.85%
SEIC	75 Outperform	$10.82B	16.43	30.06%	1.12%	10.55%	40.74%
CG	70 Outperform	$22.47B	18.16	23.07%	2.25%	81.86%	―
Sector *	69 Neutral	€15.99B	12.42	14.69%	5.78%	0.57%	-7.12%

Franklin Resources Corporate Events

Franklin Resources Reports Q3 2025 Earnings Decline

Franklin Resources, Inc. reported a net income of $92.3 million for the third quarter ending June 30, 2025, a decrease from $151.4 million in the previous quarter and $174.0 million in the same quarter last year. Despite the decline in net income, the company highlighted progress in asset classes and investment vehicles, with long-term net outflows improving and strong growth in alternative asset fundraising, ETFs, and international markets. The acquisition of a majority interest in Apera Asset Management is expected to enhance the company’s private credit capabilities in Europe, reflecting its commitment to expanding its global alternatives platform.

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

Franklin Resources Designates Delaware Court for Legal Actions

On July 8, 2025, Franklin Resources‘ Board of Directors approved amendments to the company’s Bylaws, introducing a new section that designates the Court of Chancery of the State of Delaware as the exclusive forum for certain legal actions involving the company and its affiliates. This strategic move is aimed at centralizing legal proceedings to a single jurisdiction, potentially streamlining legal processes and reducing litigation costs for the company.

The most recent analyst rating on (BEN) stock is a Hold with a $27.00 price target. To see the full list of analyst forecasts on Franklin Resources stock, see the BEN Stock Forecast page.