Franklin Electric Co (FELE) AI Stock Analysis

• Market Cap: $3.86B
• Dividend Yield: 1.18%
• Average Volume (3M): 263.43K
• Price to Earnings (P/E): 22.1
• Beta (1Y): 0.88
• Revenue Growth: -1.26%
• EPS Growth: -4.84%
• Country: US
• Employees: 6,300
• Sector: Industrials
• Sector Strength: 92
• Industry: Industrial - Machinery
• EPS (TTM): 0.67
• Shares Outstanding: 45,595,870
• 10 Day Avg. Volume: 248,870
• 30 Day Avg. Volume: 263,430
• PEG Ratio: -21.83
• Price to Book (P/B): 3.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.44
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 0.51
• Enterprise Value/Gross Profit: 5.72
• Enterprise Value/Ebitda: 3.50
• 1Y Price Target: $92.00
• Price Target Upside: 8.59% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: $97.00 ▲( 14.49% Upside)

Franklin Electric Co receives a score of 72, reflecting its solid financial health and strategic initiatives, but tempered by technical challenges and a relatively high valuation. The company's strong profitability, healthy balance sheet, and positive corporate events are significant strengths. However, bearish technical indicators and a high P/E ratio suggest caution.

Franklin Electric Co Business Overview & Revenue Model

Company Description

Franklin Electric Co. (FELE) is a global leader in the manufacturing and distribution of systems and components for the movement of water and fuel. The company operates in two primary segments: Water Systems and Fueling Systems. With a strong emphasis on innovation, Franklin Electric provides a wide range of products, including submersible pumps, motors, drives, electronic controls, and monitoring devices, catering to residential, commercial, and industrial markets worldwide.

How the Company Makes Money

Franklin Electric generates revenue primarily through the sale of its water and fueling systems. In the Water Systems segment, the company earns money by providing submersible motors, pumps, drives, electronic controls, and monitoring devices used in groundwater, surface water, and wastewater applications. This includes products for residential, agricultural, and industrial water systems. The Fueling Systems segment contributes to revenue through the sale of fuel pumping systems, fuel management systems, and monitoring and control systems used in fueling stations worldwide. Key revenue streams include direct sales to distributors, retailers, and OEMs (Original Equipment Manufacturers). The company's earnings are bolstered by its strong global distribution network, strategic acquisitions, and focus on developing energy-efficient products that meet regulatory standards.

Franklin Electric Co Financial Statement Overview

Summary

Franklin Electric Co displays solid financial health with strong profitability and a stable balance sheet. The company effectively manages its leverage and generates substantial cash flows, supporting its operations and growth. While revenue growth shows some fluctuations, the overall financial position remains strong, with efficient capital use and limited financial risks.

Income Statement

Franklin Electric Co demonstrates strong profitability with consistent gross and net profit margins. The TTM gross profit margin is about 35.6%, and the net profit margin is 8.8%. Revenue growth has been relatively stable, with minor fluctuations, suggesting a mature market presence. EBIT and EBITDA margins are also solid, indicating good operational efficiency. However, slight revenue decline in the most recent period may suggest potential market saturation or increased competition.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of approximately 0.17 in TTM, reflecting conservative leverage practices. The equity ratio stands strong at around 67.4%, suggesting a robust asset base funded by equity. The return on equity is approximately 13.7% for TTM, demonstrating efficient use of equity capital to generate profits. The balance sheet reflects financial stability and low risk of solvency issues.

Cash Flow

Franklin Electric Co shows positive cash flow metrics, with a notable operating cash flow to net income ratio of 1.36 in TTM, indicating strong cash conversion from earnings. Free cash flow has been stable, although the growth rate shows some volatility, likely due to fluctuating capital expenditures. The free cash flow to net income ratio is robust at 1.14, suggesting effective cash generation relative to profits.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.02B	2.02B	2.07B	2.04B	1.66B	1.25B
	Gross Profit
717.60M	717.28M	697.01M	691.43M	576.09M	433.14M
	EBIT
239.81M	248.44M	262.44M	257.19M	189.19M	130.51M
	EBITDA
277.84M	294.24M	306.27M	319.13M	253.28M	176.51M
	Net Income Common Stockholders
178.31M	179.61M	193.27M	187.33M	153.86M	100.46M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
83.99M	220.54M	84.96M	45.79M	40.54M	130.79M
	Total Assets
1.93B	1.82B	1.73B	1.69B	1.58B	1.27B
	Total Debt
224.66M	191.62M	156.28M	264.84M	236.77M	126.47M
	Net Debt
140.66M	-28.92M	71.31M	219.05M	196.24M	-4.31M
	Total Liabilities
627.58M	550.77M	517.83M	623.40M	626.54M	422.36M
	Stockholders Equity
1.30B	1.27B	1.21B	1.07B	946.48M	847.83M
Cash Flow		Free Cash Flow
203.91M	219.67M	274.30M	59.77M	99.65M	189.00M
	Operating Cash Flow
243.25M	261.35M	315.71M	101.67M	129.76M	211.85M
	Investing Cash Flow
-151.53M	-45.63M	-74.29M	-43.07M	-264.81M	-78.81M
	Financing Cash Flow
-70.28M	-74.07M	-192.19M	-48.47M	50.89M	-66.58M

Franklin Electric Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 84.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FELE, the sentiment is Negative. The current price of 84.72 is below the 20-day moving average (MA) of 87.35, below the 50-day MA of 90.18, and below the 200-day MA of 98.39, indicating a bearish trend. The MACD of -0.72 indicates Positive momentum. The RSI at 39.23 is Neutral, neither overbought nor oversold. The STOCH value of 12.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FELE.

Franklin Electric Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPXC	80 Outperform	$7.00B	34.64	15.24%	―	10.78%	30.05%
FLS	78 Outperform	$6.46B	23.15	14.00%	1.70%	4.23%	20.40%
GRC	74 Outperform	$951.33M	21.40	12.06%	2.00%	0.92%	21.96%
FELE	72 Outperform	$3.86B	22.15	14.11%	1.18%	-1.26%	-4.84%
MIR	72 Outperform	$4.13B	―	-0.68%	―	7.25%	87.34%
MWA	69 Neutral	$3.85B	26.85	17.68%	1.07%	10.96%	43.44%
Sector *	64 Neutral	$4.39B	11.81	5.20%	249.38%	3.96%	-12.36%

Franklin Electric Co Corporate Events

Franklin Electric Co Enters New Credit Agreement

On May 14, 2025, Franklin Electric Co., Inc. entered into a Fifth Amended and Restated Credit Agreement with JPMorgan Chase Bank and Bank of America, extending the maturity date of its previous credit agreement to May 14, 2030, while maintaining a revolving commitment of $350 million. This agreement allows for an increase in aggregate revolving commitments up to $525 million and includes various financial covenants and conditions, such as a maximum leverage ratio and interest coverage ratio, which are designed to enhance the company’s financial flexibility and stability.

The most recent analyst rating on (FELE) stock is a Hold with a $90.00 price target. To see the full list of analyst forecasts on Franklin Electric Co stock, see the FELE Stock Forecast page.

Franklin Electric Co Appoints New Director Mark A. Carano

On May 2, 2025, Franklin Electric Co. appointed Jennifer L. Sherman as Chairperson of the Board, with her term expiring at the 2026 Annual Meeting of Shareholders. Sherman, who has been a director since 2015, is expected to further develop Franklin’s strategy. Additionally, on May 7, 2025, Mark A. Carano was appointed as a director, with his term expiring at the 2027 Annual Meeting. Carano’s extensive experience in finance and manufacturing is anticipated to contribute significantly to Franklin Electric’s growth through acquisitions, enhancing its industry positioning.

Franklin Electric Enhances Transparency with New Materials

On May 6, 2025, Franklin Electric Co., Inc. posted quarterly presentation materials on its website for use in investor communications and conferences. This move is intended to enhance transparency and provide stakeholders with updated insights into the company’s operations and strategic positioning.

Franklin Electric Co Holds 2025 Shareholder Meeting

On April 23, 2025, Gregg C. Sengstack retired as Executive Chairperson of Franklin Electric Co., Inc., though he will remain on the Board of Directors. A Retirement and Consulting Agreement was established, providing Mr. Sengstack with financial compensation, a consulting role, and various benefits. Additionally, Franklin Electric held its 2025 annual meeting of shareholders on May 2, 2025, where key proposals, including the election of directors and ratification of Deloitte & Touche LLP as the independent auditor, were approved.

Franklin Electric Co Releases Q1 2025 Earnings Presentation

On April 29, 2025, Franklin Electric Co. posted its quarterly presentation materials on its website for the Q1 2025 earnings call. The presentation, which is part of a Current Report on Form 8-K, provides insights into the company’s financial performance and strategic direction, although it is not considered ‘filed’ under the Securities Exchange Act of 1934.

Franklin Electric Co. CFO Resignation and Interim Appointment

Franklin Electric Co. announced that Jeffery Taylor, the Vice President and Chief Financial Officer, resigned effective March 28, 2025. On the same date, Russell Fleeger, the current Chief Financial Officer of the Water Systems Segment, will take over as the interim Chief Financial Officer. Mr. Fleeger will receive a monthly stipend and an equity grant as part of his new role.

Franklin Electric Co Releases Quarterly Presentation Materials

On February 28, 2025, Franklin Electric Co., Inc. released quarterly presentation materials on its website for investor communications and conferences. This release is part of their ongoing efforts to provide transparency and engage with stakeholders, although it is not considered a formal filing under securities regulations.

Franklin Electric Co CFO Jeffery Taylor Resigns

On February 21, 2025, Franklin Electric Co. announced that its Chief Financial Officer, Jeffery Taylor, will resign from his position effective March 28, 2025. The company clarified that Mr. Taylor’s departure was amicable and not due to any disagreements regarding company operations or accounting practices. He will assist in the transition to his successor and will receive severance benefits as per the company’s Executive Severance Policy.