Franklin Resources (BEN) AI Stock Analysis

• Market Cap: $12.23B
• Dividend Yield: 5.42%
• Average Volume (3M): 4.24M
• Price to Earnings (P/E): 25.8
• 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: 3,303,867
• 30 Day Avg. Volume: 4,235,082
• 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: 1.94
• Enterprise Value/Revenue: 2.71
• Enterprise Value/Gross Profit: 3.37
• Enterprise Value/Ebitda: 16.81
• 1Y Price Target: $24.35
• Price Target Upside: 3.09% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 7
• EPS Forecast (FY): 2.5
• Revenue Forecast (FY): $6.91B

• Rating: 72 Outperform
• Price Target: $26.00 ▲(10.08% Upside)

Franklin Resources' overall stock score reflects a combination of stable financial performance, positive technical indicators, and strong earnings call highlights. The company's strategic focus on alternative investments and digital assets positions it well for future growth, despite challenges in profitability and cash flow generation. The attractive dividend yield adds to the stock's appeal, although the high P/E ratio suggests potential overvaluation.

Positive Factors

Strategic Focus on Digital Assets

The significant growth in digital assets indicates Franklin Templeton's strategic positioning in emerging financial technologies, enhancing future revenue streams and competitive advantage.

Growth in ETFs

Consistent growth in ETFs reflects strong market demand and Franklin Templeton's ability to capture investor interest, supporting long-term revenue growth.

AI Integration

AI integration enhances operational efficiency and decision-making, positioning Franklin Templeton for improved productivity and competitive edge in the asset management industry.

Negative Factors

Increased Leverage

Higher leverage can pose financial risks and limit flexibility, potentially impacting the company's ability to invest in growth opportunities and manage economic downturns.

Decline in Operating Margin

A declining operating margin suggests pressure on profitability, which could affect long-term financial health and the ability to reinvest in business growth.

Western Asset Outflows

Continued outflows from Western Asset Management could weaken Franklin Templeton's fixed income segment, impacting overall asset growth and revenue stability.

Franklin Resources Business Overview & Revenue Model

Company Description

Franklin Resources, Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides its services to individuals, institutions, pension plans, trusts, and partnerships. It launches equity, fixed income, balanced, and multi-asset mutual funds through its subsidiaries. The firm invests in the public equity, fixed income, and alternative markets. Franklin Resources, Inc. was founded in 1947 and is based in San Mateo, California with an additional office in Hyderabad, India.

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	7.05B	7.05B	6.79B	6.35B	6.85B	7.00B
EBITDA	1.41B	1.41B	1.38B	1.91B	2.21B	2.84B
Net Income	524.90M	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: Positive
• Last Price: 23.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 23.62 is above the 20-day moving average (MA) of 22.58, above the 50-day MA of 22.72, and above the 200-day MA of 22.03, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 62.11 is Neutral, neither overbought nor oversold. The STOCH value of 81.86 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
IVZ	78 Outperform	$11.69B	17.83	7.29%	3.21%	6.64%	―
HLNE	77 Outperform	$7.27B	23.58	31.85%	1.60%	13.01%	21.96%
SEIC	77 Outperform	$10.16B	15.26	29.38%	1.20%	9.33%	33.17%
BEN	72 Outperform	$12.23B	25.75	3.84%	5.42%	2.31%	5.71%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
STEP	45 Neutral	$7.62B	-7.93	-750.11%	2.27%	92.02%	-1386.34%

Franklin Resources Corporate Events

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.