Franklin Resources (BEN)
NYSE:BEN
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Franklin Resources
(NYSE:BEN)
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Rating:69Neutral
Price Target:
$26.00
▲(3.83% Upside)
Action:ReiteratedDate:02/06/26
BEN scores highest on improving operational momentum and guidance (record inflows and a credible cost-savings/margin roadmap), reinforced by strong technical trend signals. The score is held back by still-compressed profitability/ROE and meaningful leverage, while valuation is supported by the dividend but tempered by a higher P/E given current margin levels.
Positive Factors
Strong cash generation
Consistent, high free cash flow and strong conversion versus reported earnings support durable capital flexibility: funds can underwrite buybacks, dividends, strategic M&A or cushion cycles in AUM-dependent revenues. Solid cash generation reduces reliance on external financing over the medium term.
Negative Factors
Compressed profitability
Material compression in margins and returns indicates the firm is not yet delivering historical earnings power on its capital base. Persistently low ROE reduces reinvestment efficiency and raises the bar for management to restore profitably through fee mix shifts or sustained cost reductions.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent, high free cash flow and strong conversion versus reported earnings support durable capital flexibility: funds can underwrite buybacks, dividends, strategic M&A or cushion cycles in AUM-dependent revenues. Solid cash generation reduces reliance on external financing over the medium term.
Read all positive factors
Franklin Resources (BEN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.04B
Dividend Yield5.33%
Average Volume (3M)5.16M
Price to Earnings (P/E)12.1
Beta (1Y)0.96
Revenue Growth2.31%
EPS Growth5.71%
CountryUS
Employees10,000
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.70
Shares Outstanding520,763,400
10 Day Avg. Volume4,490,960
30 Day Avg. Volume5,164,966
Financial Highlights & Ratios
PEG Ratio3.21
Price to Book (P/B)0.99
Price to Sales (P/S)1.36
P/FCF Ratio13.05
Enterprise Value/Market Cap1.82
Enterprise Value/Revenue2.68
Enterprise Value/Gross Profit3.33
Enterprise Value/Ebitda15.90
Forecast
1Y Price Target
$26.86Price Target Upside7.27% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering7
EPS Forecast (FY)2.56
Revenue Forecast (FY)$6.92B
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, balanc...
How the Company Makes Money
Franklin Resources primarily makes money by charging fees for managing client assets (assets under management, or AUM). Its core revenue stream is investment management fees, typically calculated as a percentage of average AUM and varying by produ...
Franklin Resources Key Performance Indicators (KPIs)
Any
Revenue by Segment
Highlights income from different business units, revealing which areas drive growth and profitability, and where strategic shifts may be needed.
Highlights income from different business units, revealing which areas drive growth and profitability, and where strategic shifts may be needed.
Data provided by:
The Fly
The FlyFranklin Resources Earnings Call Summary
Earnings Call Date:Jan 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call emphasized strong and broad-based commercial momentum — record long-term inflows, rising AUM, robust ETF and private markets fundraising, continued product diversification (Canvas, SMAs, Investment Solutions), and strategic tech initiatives (AI and tokenization). Short-term headwinds include fixed income outflows largely tied to Western Asset, some near-term performance declines in shorter time horizons, regulatory overhang that is easing but still affecting flows, and episodic performance-fee volatility. Management reiterated a disciplined expense approach with a $200M cost-savings target and margin improvement roadmap to >30% by 2027. Overall, positive operational and strategic progress outweighs the localized challenges.Positive Updates
Record Long-Term Inflows and Strong Sequential/Year-over-Year Growth
Record long-term inflows of $118.6 billion for the quarter, up 40% from the prior quarter and 22% year-over-year. Long-term net inflows were $28.0 billion (or $34.6 billion excluding Western Asset), with the latter nearly double the prior year quarter ($34.6B vs $17.9B, ~93% increase) and marking a ninth consecutive quarter of positive comparable flows.
Negative Updates
Fixed Income Net Outflows (Western Asset Impact)
Fixed income net outflows were $2.4 billion for the quarter; Western Asset materially influenced fixed income flows. Management has provided expense support to Western Asset, which has weighed on consolidated margins by 'several points.'
Read all updates
Q1-2026 Updates
Positive
Negative
Record Long-Term Inflows and Strong Sequential/Year-over-Year Growth
Record long-term inflows of $118.6 billion for the quarter, up 40% from the prior quarter and 22% year-over-year. Long-term net inflows were $28.0 billion (or $34.6 billion excluding Western Asset), with the latter nearly double the prior year quarter ($34.6B vs $17.9B, ~93% increase) and marking a ninth consecutive quarter of positive comparable flows.
Read all positive updates
Company Guidance
Franklin guided to flat full‑year expenses vs. FY25 at flat markets (excluding performance‑fee comp), with a $200 million cost‑savings program (≈20% realized in Q1, remainder weighted to Q3/Q4); they expect to exit FY26 with operating margins in the high‑20s (flat markets) and target >30% by 2027 (30–35% range possible if strategic goals are met), noting Western Asset support has depressed margins by several points; Q1 adjusted operating income was $437.3 million; Q2 modeling assumptions include comp & benefits of about $860 million (incl. ~$30 million calendar resets and $50 million of performance fees at a 55% comp ratio), IS&T ~$155 million, occupancy ~$70 million, and G&A $190–195 million; tax rate guidance remains 26–28% (now expected toward the lower end); EFR is expected to be stable next quarter with potential upside in the back half of the year from alternative fundraising.Franklin Resources Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
60
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.85B | 8.77B | 8.48B | 7.85B | 8.28B | 8.43B |
| Gross Profit | 7.12B | 7.05B | 6.79B | 6.35B | 6.85B | 7.00B |
| EBITDA | 1.49B | 1.41B | 1.38B | 1.91B | 2.21B | 2.84B |
| Net Income | 616.80M | 524.90M | 464.80M | 882.80M | 1.29B | 1.83B |
Balance Sheet | ||||||
| Total Assets | 32.55B | 32.37B | 32.46B | 30.12B | 28.06B | 24.17B |
| Cash, Cash Equivalents and Short-Term Investments | 3.48B | 3.57B | 4.41B | 4.40B | 4.78B | 4.65B |
| Total Debt | 14.21B | 13.30B | 13.09B | 11.75B | 9.36B | 7.59B |
| Total Liabilities | 18.16B | 18.18B | 17.90B | 16.55B | 14.24B | 11.42B |
| Stockholders Equity | 12.13B | 12.08B | 12.51B | 11.92B | 11.47B | 11.22B |
Cash Flow | ||||||
| Free Cash Flow | 873.50M | 911.60M | 794.20M | 940.40M | 1.87B | 1.17B |
| Operating Cash Flow | 956.20M | 1.07B | 971.30M | 1.09B | 1.96B | 1.25B |
| Investing Cash Flow | -2.00B | -2.34B | -2.42B | -3.61B | -3.33B | -2.62B |
| Financing Cash Flow | 851.90M | 452.40M | 1.42B | 2.11B | 1.58B | 2.03B |
Franklin Resources Technical Analysis
Positive
25.04
Price Trends
25.34
Negative
24.31
Positive
23.75
Positive
Market Momentum
-0.26
Negative
57.65
Neutral
85.84
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 25.04 is above the 20-day moving average (MA) of 23.59, below the 50-day MA of 25.34, and above the 200-day MA of 23.75, indicating a neutral trend. The MACD of -0.26 indicates Negative momentum. The RSI at 57.65 is Neutral, neither overbought nor oversold. The STOCH value of 85.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BEN.
Franklin Resources Risk Analysis
Franklin Resources disclosed 31 risk factors in its most recent earnings report. Franklin Resources reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Franklin Resources Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $9.42B | 14.53 | 30.29% | 1.18% | 9.33% | 33.17% | |
73 Outperform | $5.29B | 21.34 | 29.38% | 1.52% | 13.01% | 21.96% | |
69 Neutral | $13.04B | 12.10 | 5.06% | 5.33% | 2.31% | 5.71% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $10.47B | -42.08 | -2.06% | 3.08% | 6.64% | ― | |
65 Neutral | $5.23B | 8.26 | 9.00% | 5.30% | ― | ― | |
51 Neutral | $5.53B | -10.33 | 783.65% | 2.17% | 92.02% | -1386.34% |
* Financial Sector Average
BEN
Franklin Resources
25.04
8.11
47.89%
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Franklin Resources Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Franklin Resources Shareholders Approve Equity Plans and Directors
Positive
Feb 5, 2026
At its annual meeting of stockholders held on February 3, 2026, Franklin Resources, Inc. secured shareholder approval to significantly expand its equity-based compensation capacity, increasing the share pool under its 1998 Employee Stock Investmen...
Business Operations and StrategyFinancial Disclosures
Franklin Resources Posts Strong Profit Growth and Inflows
Positive
Jan 30, 2026
On January 30, 2026, Franklin Resources reported a sharp improvement in profitability for the quarter ended December 31, 2025, with net income rising to $255.5 million, or $0.46 per diluted share, more than doubling the prior quarter and significa...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.