Franklin Resources (BEN) AI Stock Analysis

• Market Cap: $11.74B
• Dividend Yield: 5.66%
• Average Volume (3M): 4.48M
• Price to Earnings (P/E): 43.4
• Beta (1Y): 0.99
• Revenue Growth: 4.72%
• EPS Growth: -67.85%
• Country: US
• Employees: 10,000
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.49
• Shares Outstanding: 519,195,500
• 10 Day Avg. Volume: 3,248,561
• 30 Day Avg. Volume: 4,481,657
• 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: 2.03
• Enterprise Value/Revenue: 2.76
• Enterprise Value/Gross Profit: 3.45
• Enterprise Value/Ebitda: 21.17
• 1Y Price Target: $24.50
• Price Target Upside: 8.36% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 7

• Rating: 70 Neutral
• Price Target: $25.00 ▲(10.57% Upside)

Franklin Resources' strong financial performance and global presence are key strengths, supported by efficient cash flow management and a solid balance sheet. However, the stock's high P/E ratio and technical indicators suggest caution, with challenges in profitability and market volatility impacting the outlook.

Positive Factors

Global Presence

A strong international presence diversifies revenue streams and reduces reliance on any single market, enhancing long-term stability and growth potential.

Alternative Assets Growth

Growth in alternative assets expands the company's product offerings and attracts new clients, supporting revenue diversification and resilience against market fluctuations.

ETF Platform Success

Consistent positive net flows in ETFs indicate strong demand and effective product positioning, contributing to sustainable revenue growth and market competitiveness.

Negative Factors

Western Asset Management Outflows

Significant outflows from Western Asset Management highlight challenges in retaining clients, which could impact overall AUM and fee income if not addressed.

Equity Net Outflows

Equity net outflows suggest difficulties in maintaining investor confidence during volatile periods, potentially affecting future revenue from equity management fees.

Profit Margin Pressure

Declining profit margins indicate cost pressures or pricing challenges, which could hinder profitability and limit the company's ability to invest in growth initiatives.

Franklin Resources Business Overview & Revenue Model

Company Description

Franklin Resources, Inc., commonly known as Franklin Templeton, is a global investment management organization headquartered in San Mateo, California. Founded in 1947, the company offers a wide range of investment solutions including mutual funds, managed accounts, and alternative investments across various asset classes such as equity, fixed income, and multi-asset strategies. Franklin Templeton caters to a diverse clientele, including individual investors, financial advisors, institutions, and pension funds, and operates in multiple sectors including asset management and financial services.

How the Company Makes Money

Franklin Resources generates revenue primarily through management fees charged on the assets it manages across its investment funds and accounts. These fees are typically based on a percentage of assets under management (AUM) and vary by fund type and investment strategy. Additionally, the company earns performance fees from certain funds that exceed predefined benchmarks. Other revenue streams include distribution fees and investment advisory services provided to institutional clients. The company also benefits from partnerships with financial intermediaries, such as broker-dealers and financial advisors, which help distribute its investment products to a broader audience, thereby increasing AUM and, subsequently, management fees.

Franklin Resources Financial Statement Overview

Summary

Franklin Resources demonstrates strong financial health with solid revenue growth and efficient cash flow management. Despite challenges with net profit margins, the company's low leverage and stable equity position offer a strong foundation for future growth.

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	8.64B	8.48B	7.85B	8.28B	8.43B	5.57B
Gross Profit	6.90B	6.79B	6.35B	6.85B	7.00B	4.50B
EBITDA	1.13B	1.38B	1.91B	2.21B	2.84B	1.18B
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	21.68B
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	10.27B
Stockholders Equity	12.20B	12.51B	11.92B	11.47B	11.22B	10.11B
Cash Flow
Free Cash Flow	1.45B	794.20M	940.40M	1.87B	1.17B	979.60M
Operating Cash Flow	1.65B	971.30M	1.09B	1.96B	1.25B	1.08B
Investing Cash Flow	-3.10B	-2.42B	-3.61B	-3.33B	-2.62B	-4.06B
Financing Cash Flow	1.27B	1.42B	2.11B	1.58B	2.03B	734.40M

Franklin Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BEN, the sentiment is Negative. The current price of 22.61 is below the 20-day moving average (MA) of 22.89, below the 50-day MA of 23.65, and above the 200-day MA of 21.56, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 43.05 is Neutral, neither overbought nor oversold. The STOCH value of 36.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BEN.

Franklin Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEIC	―	$9.87B	14.82	29.38%	1.22%	9.33%	33.17%
IVZ	―	$10.57B	16.05	7.29%	3.46%	6.35%	―
BEN	―	$11.74B	43.36	2.16%	5.66%	4.72%	-67.85%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
HLNE	―	$6.35B	21.91	32.03%	1.81%	10.66%	22.13%
STEP	―	$7.19B	―	-88.82%	2.30%	88.68%	-494.20%

Franklin Resources Corporate Events

Franklin Resources Reports Q3 2025 Earnings and Strategic Growth

Franklin Resources, Inc., operating as Franklin Templeton, is a global investment management organization based in California, offering a wide range of investment solutions across equity, fixed income, alternatives, and multi-asset classes with a presence in over 150 countries.

Franklin Resources’ Earnings Call: Mixed Results and Strategic Growth

Franklin Resources’ recent earnings call painted a picture of mixed performance, with the company showcasing notable improvements in net flows and robust growth in alternatives and ETFs. However, challenges persist, particularly with Western Asset Management outflows and equity and fixed income outflows. Despite these hurdles, strategic acquisitions and an increased institutional pipeline are providing positive momentum for future growth.

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.