Franklin Electric Co (FELE) AI Stock Analysis

• Market Cap: $4.34B
• Dividend Yield: 1.07%
• Average Volume (3M): 241.32K
• Price to Earnings (P/E): 25.2
• Beta (1Y): 0.88
• Revenue Growth: 2.20%
• EPS Growth: -3.74%
• Country: US
• Employees: 6,300
• Sector: Industrials
• Sector Strength: 73
• Industry: Industrial - Machinery
• EPS (TTM): 1.31
• Shares Outstanding: 44,484,630
• 10 Day Avg. Volume: 215,272
• 30 Day Avg. Volume: 241,323
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 2.12
• Enterprise Value/Gross Profit: 5.98
• Enterprise Value/Ebitda: 15.20
• 1Y Price Target: $98.50
• Price Target Upside: 4.05% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 81 Outperform
• Price Target: $111.00 ▲(17.25% Upside)

Franklin Electric's strong financial performance and positive earnings call are the primary drivers of its high overall score. The company's robust financial health, effective cash flow management, and strategic initiatives support its growth prospects. While the stock's valuation appears high, the technical indicators suggest a stable trend, contributing to a favorable outlook.

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 segment offers submersible motors, pumps, drives, electronic controls, water treatment systems, monitoring devices, and related parts and equipment. Its motors and pumps are used principally for pumping clean water and wastewater in various residential, agricultural, municipal, and industrial applications; and manufactures electronic drives and controls that are used in motors for controlling functionality, as well as provides protection from various hazards, such as electrical surges, over-heating, and dry wells or tanks. The Fueling Systems segment provides pumps, pipes, sumps, fittings, vapor recovery components, electronic controls, monitoring devices, and related parts and equipment primarily for use in fueling system applications. This segment serves other energy markets, such as power reliability systems, as well as includes electronic devices for online monitoring of the power utility, hydroelectric, and telecommunication and data center infrastructure. The Distribution segment sells to and provides presale support and specifications to the installing contractors. It sells products produced by the Water Systems segment. The company sells its products to wholesale and retail distributors, specialty distributors, original equipment manufacturers, industrial and petroleum equipment distributors, and oil and utility companies through its employee sales force and independent manufacturing representatives. Franklin Electric Co., Inc. was founded in 1944 and is headquartered in Fort Wayne, Indiana.

How the Company Makes Money

Franklin Electric generates revenue through the sale of its products and services across its two primary segments. The Water Systems segment is a significant source of income, driven by the demand for water management solutions in residential, commercial, and agricultural markets. Key revenue streams include the sales of submersible pumps, above-ground pumps, and related accessories. The Fueling Systems segment contributes to the company's revenue through the sale of equipment and systems for fueling stations, benefiting from partnerships with major oil companies and retailers. In addition to product sales, Franklin Electric also earns revenue through service contracts and maintenance agreements, further enhancing its earnings. The company's strong market presence and focus on innovation, along with strategic acquisitions, also play a crucial role in its financial performance.

Franklin Electric Co Financial Statement Overview

Summary

Franklin Electric Co displays a robust financial position, characterized by consistent revenue growth, strong profitability margins, and effective cash flow management. The company maintains a healthy balance sheet with conservative leverage, providing stability and resilience. While there is a slight increase in debt, the overall financial health remains strong, making Franklin Electric well-positioned for future growth and investment opportunities.

Income Statement

Franklin Electric has shown steady revenue growth over the years, with the most recent TTM (Trailing-Twelve-Months) revenue slightly increasing to $2.06 billion from the previous annual figure. The gross profit margin remains robust at approximately 35.4% for the TTM, indicating strong cost management. The net profit margin is stable at around 8.7% TTM, reflecting consistent profitability. Both EBIT and EBITDA margins are healthy, at 12.1% and 12.8% respectively, demonstrating efficient operations and control over operating expenses.

Balance Sheet

The balance sheet exhibits strong equity with a debt-to-equity ratio of 0.27, signaling a conservative leverage approach. The equity ratio is high at 62.7%, underscoring a solid equity base relative to total assets. Return on equity (ROE) stands at 14.2% for the TTM, a respectable return for shareholders. The company's financial position is stable, though a slight increase in total debt warrants monitoring.

Cash Flow

Franklin Electric's cash flow performance is commendable, with a healthy operating cash flow to net income ratio of 1.44, indicating strong cash generation relative to earnings. Free cash flow has shown significant growth, supporting future investments and financial flexibility. The free cash flow to net income ratio is 1.21, highlighting effective cash management and the company's ability to fund operations and growth without over-relying on external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.06B	2.02B	2.07B	2.04B	1.66B	1.25B
Gross Profit	729.63M	717.28M	697.01M	691.43M	576.09M	433.14M
EBITDA	287.19M	294.24M	306.27M	319.13M	253.28M	176.51M
Net Income	179.35M	179.61M	193.27M	187.33M	153.86M	100.46M
Balance Sheet
Total Assets	2.02B	1.82B	1.73B	1.69B	1.58B	1.27B
Cash, Cash Equivalents and Short-Term Investments	104.59M	220.54M	84.96M	45.79M	40.54M	130.79M
Total Debt	346.34M	191.62M	156.28M	264.84M	236.77M	126.47M
Total Liabilities	752.85M	550.77M	517.83M	623.40M	626.54M	422.36M
Stockholders Equity	1.27B	1.27B	1.21B	1.07B	946.48M	847.83M
Cash Flow
Free Cash Flow	217.69M	219.67M	274.30M	59.77M	99.65M	189.00M
Operating Cash Flow	258.35M	261.35M	315.71M	101.67M	129.76M	211.85M
Investing Cash Flow	-152.79M	-45.63M	-74.29M	-43.07M	-264.81M	-78.81M
Financing Cash Flow	-57.44M	-74.07M	-192.19M	-48.47M	50.89M	-66.58M

Franklin Electric Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 94.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FELE, the sentiment is Neutral. The current price of 94.67 is below the 20-day moving average (MA) of 97.37, above the 50-day MA of 94.25, and below the 200-day MA of 94.83, indicating a neutral trend. The MACD of 0.80 indicates Positive momentum. The RSI at 44.94 is Neutral, neither overbought nor oversold. The STOCH value of 39.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FELE.

Franklin Electric Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FELE	81 Outperform	$4.34B	25.24	14.38%	1.07%	2.20%	-3.74%
WTS	79 Outperform	$9.35B	30.15	17.75%	0.69%	2.96%	12.62%
MWA	72 Outperform	$4.19B	28.28	17.33%	1.09%	10.19%	20.71%
GRC	69 Neutral	$1.14B	21.90	13.70%	1.76%	2.60%	51.33%
MIR	65 Neutral	$5.36B	555.28	0.67%	―	7.88%	―
Sector *	63 Neutral	$10.73B	15.32	7.39%	2.01%	2.86%	-14.57%
RRX	62 Neutral	$9.66B	38.70	3.84%	0.97%	-7.88%	―

Franklin Electric Co Corporate Events

Franklin Electric Co Releases Q2 2025 Earnings Materials

On July 29, 2025, Franklin Electric Co., Inc. released quarterly presentation materials on its website for the Q2 2025 earnings call. These materials, which are part of a Current Report on Form 8-K, provide insights into the company’s financial performance and strategic direction, potentially impacting stakeholders’ perceptions and the company’s market positioning.

Franklin Electric Co Enters Annuity Contract Agreement

On July 22, 2025, Franklin Electric Co., Inc. entered into a Single Premium Guaranteed Annuity Contract Purchase Agreement with Principal Life Insurance Company to terminate its pension plan effective May 12, 2025. This agreement involves transferring pension obligations for 684 retirees to the insurer, reducing the company’s pension liabilities by $30 million. Additionally, on July 9, 2025, Franklin Electric settled $59.9 million in lump sum payouts to 1,405 plan participants, resulting in an expected non-cash pension settlement charge of $60 million in the third quarter of 2025.

Franklin Electric Co Appoints New CFO Jennifer Wolfenbarger

On July 7, 2025, Franklin Electric Co. appointed Jennifer Wolfenbarger as the new Vice President, Chief Financial Officer, and Chief Accounting Officer, following the interim tenure of Russell Fleeger. Wolfenbarger, who has extensive experience in financial leadership roles at major manufacturing companies, will play a crucial role in shaping the company’s financial future and supporting its growth and innovation initiatives. Her appointment is expected to bring significant value to Franklin Electric’s operations, stakeholders, and market positioning.

Franklin Electric Increases Share Repurchase Authorization

On June 9, 2025, Franklin Electric’s Board of Directors approved an increase in the company’s share repurchase authorization, allowing for the repurchase of up to 1,126,635 shares of common stock. This decision followed the successful acquisition of 1,200,000 shares from the Patricia Schaefer Settlement Trust at a price of $86.78 per share. The transaction not only provided liquidity for the Schaefer estate but also demonstrated Franklin Electric’s confidence in its financial stability and future prospects.