Franklin Resources (BEN) AI Stock Analysis

• Market Cap: $12.93B
• Dividend Yield: 5.22%
• Average Volume (3M): 3.67M
• Price to Earnings (P/E): 35.6
• Beta (1Y): 1.00
• Revenue Growth: 7.02%
• EPS Growth: -60.38%
• Country: US
• Employees: 10,000
• Sector: Financial
• Sector Strength: 77
• Industry: Asset Management
• EPS (TTM): 0.47
• Shares Outstanding: 525,521,300
• 10 Day Avg. Volume: 3,327,793
• 30 Day Avg. Volume: 3,667,799
• PEG Ratio: 3.52
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.53
• Enterprise Value/Market Cap: 1.73
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 4.21
• Enterprise Value/Ebitda: 3.80
• 1Y Price Target: $23.13
• Price Target Upside: -5.67% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 64 Neutral
• Price Target: $27.00 ▲(10.11%Upside)

Franklin Resources' overall score reflects steady financial performance and operational efficiency, offset by high valuation and mixed earnings call sentiment. Technical indicators suggest bullish momentum but caution due to overbought signals. The company's strategic focus on innovation and global expansion offers growth potential, but challenges in specific segments and market volatility present risks.

Positive Factors

Management Confidence

Management remains confident in their 5-year targets of significant growth in private markets fundraising and ETF and Canvas AUM.

Market Positioning

BEN's solid positioning among traditional managers in private asset/alt products was well received.

Negative Factors

Asset Outflows

WAM continues to outflow, picking up to $10B, which is a concern despite other positive factors.

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. 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 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 steady revenue growth and strong operational efficiency with a solid Gross Profit Margin. The balance sheet shows low leverage and strong equity, though ROE is below industry average. Cash flow is resilient but declining Free Cash Flow needs attention.

Income Statement

Franklin Resources shows a steady revenue growth with a 2.3% increase from the previous year. The Gross Profit Margin is healthy at 61.1%, indicating efficient cost management. However, the Net Profit Margin has decreased to 4.7%, reflecting challenges in converting revenue into net income. The EBIT and EBITDA margins are relatively stable, suggesting consistent operational efficiency.

Balance Sheet

The company maintains a reasonable Debt-to-Equity Ratio of 0.08, indicating low leverage. Return on Equity (ROE) is modest at 3.3%, which is lower than the industry average, suggesting room for improvement in profitability. The Equity Ratio is strong at 38.6%, demonstrating a solid capital structure and financial stability.

Cash Flow

The Free Cash Flow has decreased by 17.9% compared to the previous year, indicating a decline in cash generation. The Operating Cash Flow to Net Income Ratio is robust at 2.17, showing strong cash flow relative to earnings. However, the Free Cash Flow to Net Income Ratio is slightly lower at 1.61, suggesting some cash flow pressure.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	8.48B	7.85B	8.28B	8.43B	5.57B
Gross Profit	3.98B	4.36B	3.34B	3.35B	1.99B
EBITDA	1.38B	1.95B	2.36B	2.84B	1.43B
Net Income	464.80M	882.80M	1.29B	1.83B	798.90M
Balance Sheet
Total Assets	32.46B	30.12B	28.06B	24.17B	20.22B
Cash, Cash Equivalents and Short-Term Investments	4.41B	4.40B	4.78B	4.65B	3.96B
Total Debt	13.09B	11.75B	9.36B	7.59B	4.97B
Total Liabilities	17.90B	16.55B	14.24B	11.42B	8.71B
Stockholders Equity	12.51B	11.92B	11.47B	11.22B	10.11B
Cash Flow
Free Cash Flow	794.20M	989.90M	1.87B	1.17B	917.70M
Operating Cash Flow	971.30M	1.14B	1.96B	1.25B	1.02B
Investing Cash Flow	-2.42B	-3.58B	-3.33B	-2.62B	-3.24B
Financing Cash Flow	1.42B	2.03B	1.58B	2.03B	194.20M

Franklin Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.52
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 24.52 is above the 20-day moving average (MA) of 24.11, above the 50-day MA of 22.56, and above the 200-day MA of 20.28, indicating a bullish trend. The MACD of 0.68 indicates Positive momentum. The RSI at 63.78 is Neutral, neither overbought nor oversold. The STOCH value of 43.56 is Neutral, 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	81 Outperform	$22.70B	12.08	19.47%	4.77%	6.51%	4.52%
SEIC	81 Outperform	$11.55B	20.20	26.62%	1.05%	10.23%	26.56%
IVZ	74 Outperform	$7.55B	13.84	5.50%	4.86%	5.69%	―
AMG	73 Outperform	$5.79B	16.54	12.81%	0.02%	-6.37%	-28.43%
CG	70 Outperform	$21.01B	20.30	20.38%	2.33%	81.86%	―
BEN	64 Neutral	$12.93B	35.63	2.84%	5.22%	7.02%	-60.38%
Sector *	58 Neutral	HK$91.35B	5.46	-3.21%	5.19%	7.36%	-55.21%

Franklin Resources Corporate Events

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.

Franklin Resources Reports Q1 2025 Financial Results

On May 2, 2025, Franklin Resources, Inc. reported its financial results for the quarter ended March 31, 2025, with a net income of $151.4 million, down from $163.6 million in the previous quarter but up from $124.2 million in the same quarter the previous year. Despite a challenging market environment, the company saw positive developments, including a 9% increase in long-term inflows and strong client demand for ETFs and private market assets. The firm also launched the Franklin Lexington Private Markets Fund, raising $2 billion in assets under management, and continued to expand its institutional pipeline, highlighting its strategic focus on innovation and client engagement.