Franklin Electric Co. (FELE)
NASDAQ:FELE
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Franklin Electric Co
(NASDAQ:FELE)
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Rating:70Outperform
Price Target:
$109.00
▲(7.20% Upside)
Action:Reiterated
Date:05/12/26
The score is driven primarily by solid underlying financial strength (healthy margins and conservative leverage) and a constructive earnings update featuring strong Q1 performance and improving demand indicators. Offsetting factors are weakening free-cash-flow trend/cash conversion, mixed near-term technicals, and a relatively high P/E with only a modest dividend yield.
Positive Factors
Conservative balance sheet
Low leverage (TTM debt-to-equity ~0.21) and equity growth versus assets provide durable financial flexibility to fund capex, M&A, dividends, or buybacks over the next several quarters. A strong capital structure reduces refinancing and liquidity risk during cyclical slowdowns.
Negative Factors
Weakened cash conversion & FCF decline
Free cash flow has softened (TTM FCF -12.4%) and operating cash coverage is inconsistent, with Q1 showing net cash used driven by higher receivables. Persistent uneven cash conversion could limit discretionary capital allocation and increase sensitivity to working-capital swings across the next 2–6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low leverage (TTM debt-to-equity ~0.21) and equity growth versus assets provide durable financial flexibility to fund capex, M&A, dividends, or buybacks over the next several quarters. A strong capital structure reduces refinancing and liquidity risk during cyclical slowdowns.
Read all positive factors
Franklin Electric Co (FELE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.27B
Dividend Yield1.06%
Average Volume (3M)275.68K
Price to Earnings (P/E)29.7
Beta (1Y)0.84
Revenue Growth7.98%
EPS Growth-13.65%
CountryUS
Employees6,300
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)3.34
Shares Outstanding44,182,230
10 Day Avg. Volume329,330
30 Day Avg. Volume275,675
Financial Highlights & Ratios
PEG Ratio-1.74
Price to Book (P/B)3.24
Price to Sales (P/S)2.02
P/FCF Ratio22.21
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue2.09
Enterprise Value/Gross Profit5.94
Enterprise Value/Ebitda12.76
Forecast
1Y Price Target
$109.00Price Target Upside7.20% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)4.59
Revenue Forecast (FY)$2.23B
Franklin Electric Co Business Overview & Revenue Model
Company Description
Franklin Electric Co., Inc., together with its subsidiaries, designs, manufactures, and distributes water and fuel pumping systems worldwide. It operates through three segments: Water Systems, Fueling Systems, and Distribution. The Water Systems s...
How the Company Makes Money
Franklin Electric makes money primarily by selling equipment and systems used to move, manage, and dispense fluids, with revenue largely coming from its operating segments:
1) Water Systems segment revenue
- Product sales: The company generates r...
Franklin Electric Co Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
The call conveyed solid underlying operational performance with multiple positive indicators: double-digit sales growth (10%), record adjusted Q1 EPS (+24%), adjusted operating income expansion (+17%), strong Energy margins (33.7%), distribution margin improvement, new product introductions (VersaBoost), and a formal productivity program expected to deliver meaningful savings. Offsetting items include a 100-basis-point gross margin decline driven by material and tariff impacts, $3.9M of restructuring charges, working capital-driven cash use, and region-specific headwinds in EMEA and some U.S. dewatering timing weakness. Management maintained a cautious full-year outlook reflecting geopolitical and macro uncertainties while emphasizing confidence in their strategy and backlog.Positive Updates
Consolidated Sales Growth
Consolidated sales of $500.4 million in Q1 2026, up 10% year-over-year driven by price, volume, favorable FX, and incremental acquisition sales.
Negative Updates
Gross Margin Contraction
Consolidated gross profit margin declined 100 basis points to 35.0% in Q1 2026 (from 36.0% in Q1 2025), primarily due to higher material costs and tariff-related hangover.
Read all updates
Q1-2026 Updates
Positive
Negative
Consolidated Sales Growth
Consolidated sales of $500.4 million in Q1 2026, up 10% year-over-year driven by price, volume, favorable FX, and incremental acquisition sales.
Read all positive updates
Company Guidance
Management maintained full-year guidance of $2.17–$2.24 billion in sales and adjusted diluted EPS of $4.40–$4.60, noting increased confidence but citing macroeconomic and geopolitical uncertainty; the outlook excludes any clawback of tariff-related expenditures (request submitted). They entered Q2 with a 10% backlog increase and a positive book‑to‑bill, after reporting Q1 sales of $500.4 million (+10% YoY) and a Q1 record adjusted diluted EPS of $0.83 (GAAP EPS $0.77), and said Q2 looks robust though sequentials may be muted seasonally. Management expects volume and price to be fairly balanced for the year, will deliver over $15 million of productivity from the Value Acceleration Office in 2026 with an opportunity to exceed 100 basis points of productivity per year as it ramps, and highlighted cash of $80.4 million, $88 million drawn on the revolver, 120k shares repurchased (~$11.3M) with ~700k remaining authorization, and a quarterly dividend of $0.28.Franklin Electric Co Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
83
Very Positive
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.18B | 2.13B | 2.02B | 2.07B | 2.04B | 1.66B |
| Gross Profit | 766.99M | 755.92M | 717.28M | 697.01M | 691.43M | 576.09M |
| EBITDA | 356.86M | 334.87M | 294.24M | 306.27M | 297.13M | 239.47M |
| Net Income | 150.46M | 147.09M | 180.31M | 193.27M | 187.33M | 153.86M |
Balance Sheet | ||||||
| Total Assets | 2.00B | 1.94B | 1.82B | 1.73B | 1.69B | 1.58B |
| Cash, Cash Equivalents and Short-Term Investments | 84.50M | 99.66M | 220.54M | 84.96M | 45.79M | 40.54M |
| Total Debt | 290.52M | 280.49M | 191.62M | 156.28M | 264.84M | 236.77M |
| Total Liabilities | 651.99M | 619.02M | 550.77M | 517.83M | 623.40M | 626.54M |
| Stockholders Equity | 1.34B | 1.33B | 1.27B | 1.21B | 1.07B | 946.48M |
Cash Flow | ||||||
| Free Cash Flow | 169.49M | 193.54M | 219.67M | 274.30M | 59.77M | 99.65M |
| Operating Cash Flow | 217.47M | 238.88M | 261.35M | 315.71M | 101.67M | 129.76M |
| Investing Cash Flow | -50.55M | -157.13M | -45.63M | -74.29M | -43.07M | -264.81M |
| Financing Cash Flow | -162.14M | -197.31M | -74.07M | -192.19M | -48.47M | 50.89M |
Franklin Electric Co Technical Analysis
Positive
101.68
Price Trends
97.01
Positive
98.15
Positive
96.55
Positive
Market Momentum
-0.46
Positive
50.23
Neutral
47.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FELE, the sentiment is Positive. The current price of 101.68 is above the 20-day moving average (MA) of 98.92, above the 50-day MA of 97.01, and above the 200-day MA of 96.55, indicating a neutral trend. The MACD of -0.46 indicates Positive momentum. The RSI at 50.23 is Neutral, neither overbought nor oversold. The STOCH value of 47.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FELE.
Franklin Electric Co Risk Analysis
Franklin Electric Co disclosed 40 risk factors in its most recent earnings report. Franklin Electric Co reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Franklin Electric Co Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.91B | 22.93 | 14.30% | 1.49% | 4.62% | 31.96% | |
74 Outperform | $10.03B | 23.86 | 18.38% | 0.70% | 14.22% | 25.22% | |
71 Outperform | $3.93B | 18.19 | 20.74% | 1.09% | 6.57% | 43.96% | |
70 Outperform | $4.27B | 29.67 | 11.47% | 1.06% | 7.98% | -13.65% | |
65 Neutral | $13.07B | 48.42 | 4.23% | 0.97% | 1.54% | 22.59% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
57 Neutral | $4.41B | -334.43 | 1.43% | ― | 12.73% | ― |
* Industrials Sector Average
FELE
Franklin Electric Co
98.28
14.49
17.30%
GRC
Gorman-Rupp Company
72.66
36.98
103.64%
MWA
Mueller Water Products
25.31
1.00
4.11%
RRX
Regal Rexnord
200.78
67.64
50.80%
WTS
Watts Water Technologies
302.44
66.91
28.41%
MIR
Mirion Technologies
18.35
-0.49
-2.60%
Franklin Electric Co Corporate Events
Executive/Board ChangesShareholder Meetings
Franklin Electric shareholders approve directors and annual say-on-pay
Positive
May 11, 2026
At its 2026 annual meeting of shareholders held on May 8, 2026, Franklin Electric Co., Inc. reported strong investor participation, with 93.19% of eligible common shares represented in person or by proxy. Shareholders elected directors Victor D. G...
Business Operations and StrategyM&A Transactions
Franklin Electric Expands Water Treatment Reach With Acquisition
Positive
May 4, 2026
On May 1, 2026, Franklin Electric Co., Inc. completed the $50 million acquisition of three companies operating as Wood Bros Industries, Reverse Osmosis Superstore, and Vistar Water Technologies, collectively referred to as the Acquired Entity. The...
Financial DisclosuresRegulatory Filings and Compliance
Franklin Electric Posts Q1 2026 Earnings Presentation Online
Neutral
Apr 28, 2026
On April 28, 2026, Franklin Electric Co., Inc. posted its Q1 2026 quarterly presentation materials on its investor relations website, reflecting the slide deck used by management during the quarter’s earnings call. The materials, furnished v...
Business Operations and StrategyRegulatory Filings and Compliance
Franklin Electric Highlights Strategy at Gabelli Investor Symposium
Neutral
Feb 26, 2026
On February 26, 2026, Franklin Electric Co., Inc. presented at Gabelli Funds 36th Annual Pump, Valve Water Systems Symposium, highlighting its participation in a key industry and investor-focused event. The company simultaneously made its present...
Business Operations and StrategyRegulatory Filings and Compliance
Franklin Electric Highlights Strategy at Citi Industrial Tech Conference
Positive
Feb 18, 2026
On February 18, 2026, Franklin Electric Co., Inc. presented at Citi’s 2026 Global Industrial Tech and Mobility Conference, highlighting its role in the industrial technology and mobility space. The company simultaneously made its presentatio...
Financial DisclosuresRegulatory Filings and Compliance
Franklin Electric Releases Q4 2025 Earnings Presentation Materials
Neutral
Feb 17, 2026
On February 17, 2026, Franklin Electric Co., Inc. posted its Q4 2025 earnings call presentation materials on the investor relations section of its website, making the slide deck publicly available to shareholders and analysts. The materials were f...
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.