Franklin Resources (BEN) AI Stock Analysis

• Market Cap: $12.81B
• Dividend Yield: 5.33%
• Average Volume (3M): 4.12M
• Price to Earnings (P/E): 26.5
• Beta (1Y): 0.89
• 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: 4,466,874
• 30 Day Avg. Volume: 4,123,501
• 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: 1.85
• Enterprise Value/Revenue: 2.71
• Enterprise Value/Gross Profit: 3.37
• Enterprise Value/Ebitda: 16.81
• 1Y Price Target: $24.14
• Price Target Upside: -0.21% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $27.00 ▲(11.62% Upside)

Franklin Resources' overall score reflects strong earnings call performance and positive corporate events, offset by moderate financial performance and valuation. The company's strategic focus on digital assets and technology positions it well for future growth, despite current profitability challenges.

Positive Factors

Digital Asset Growth

The significant growth in digital assets reflects Franklin Templeton's strategic focus on emerging technologies, positioning it well for future market opportunities and diversification.

Shareholder Returns

The dividend increase and stock buyback authorization demonstrate a strong commitment to returning value to shareholders, enhancing investor confidence and financial stability.

AI and Technology Integration

Investments in AI and technology integration enhance operational efficiency and competitive positioning, supporting long-term growth and innovation.

Negative Factors

Declining Profit Margins

Decreasing profit margins indicate challenges in maintaining cost efficiency and profitability, potentially impacting long-term financial performance.

Increased Leverage

Higher leverage can pose financial risks, limiting flexibility and increasing vulnerability to economic downturns, affecting long-term stability.

Cash Flow Challenges

Decreased cash flow generation may hinder the company's ability to invest in growth opportunities and manage financial obligations effectively.

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: 24.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 24.19 is above the 20-day moving average (MA) of 23.20, above the 50-day MA of 22.78, and above the 200-day MA of 22.15, indicating a bullish trend. The MACD of 0.41 indicates Negative momentum. The RSI at 71.56 is Negative, neither overbought nor oversold. The STOCH value of 78.62 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
SEIC	79 Outperform	$10.33B	15.83	29.38%	1.18%	9.33%	33.17%
HLNE	77 Outperform	$7.73B	25.08	31.85%	1.52%	13.01%	21.96%
IVZ	77 Outperform	$12.17B	18.39	7.29%	3.05%	6.64%	―
BEN	74 Outperform	$12.81B	26.53	3.84%	5.33%	2.31%	5.71%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
STEP	45 Neutral	$7.82B	-8.31	-750.11%	2.18%	92.02%	-1386.34%

Franklin Resources Corporate Events

Franklin Resources Increases Dividend, Authorizes Stock Buyback

On December 11, 2025, Franklin Resources amended its credit agreement, increasing its senior unsecured revolving credit facility commitments by $400 million to a total of $1.5 billion, signaling enhanced financial flexibility for future operations. Additionally, on December 17, 2025, the company announced an increase in its quarterly dividend to $0.33 per share and authorized the repurchase of up to 20.8 million additional shares, bringing the total authorization to 40 million shares. These initiatives reflect a commitment to shareholder returns and stable financial growth.

Franklin Resources DOJ Investigation Resolved Without Charges

Franklin Resources, Inc. recently addressed an investigation by the U.S. Department of Justice into past trade allocations involving treasury derivatives managed by its subsidiary, Western Asset Management Company, LLC. On December 13, 2025, the DOJ indicated it is ready to resolve the investigation without filing criminal charges against Western Asset, acknowledging the company’s full cooperation in the matter.

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.