Franklin Electric Co (FELE) AI Stock Analysis

• Market Cap: $4.41B
• Dividend Yield: 1.06%
• Average Volume (3M): 275.68K
• Price to Earnings (P/E): 32.4
• Beta (1Y): 0.86
• Revenue Growth: 5.06%
• EPS Growth: -22.73%
• Country: US
• Employees: 6,300
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.30
• Shares Outstanding: 44,510,380
• 10 Day Avg. Volume: 329,330
• 30 Day Avg. Volume: 275,675
• PEG Ratio: -4.14
• Price to Book (P/B): 3.53
• Price to Sales (P/S): 2.21
• P/FCF Ratio: 20.36
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 2.11
• Enterprise Value/Gross Profit: 5.95
• Enterprise Value/Ebitda: 17.36
• 1Y Price Target: $112.00
• Price Target Upside: 11.50% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $104.00 ▲(3.53% Upside)

Franklin Electric Co's overall stock score reflects strong financial health and positive earnings call highlights, including sales growth and improved margins. However, high valuation and technical indicators suggest caution. The company's strategic investments and innovation are promising, but challenges such as declining profit margins and ForEx impacts need to be addressed.

Positive Factors

Revenue Growth

The consistent revenue growth, particularly in Water and Energy Systems, indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Innovation and Expansion

The new factory and product innovations like the pressure boosting platform demonstrate Franklin Electric's commitment to growth and competitive positioning.

Financial Health

A low debt-to-equity ratio indicates a strong financial position, providing stability and flexibility for future investments and growth initiatives.

Negative Factors

Declining Profit Margins

Decreasing profit margins suggest rising costs or inefficiencies, which could hinder profitability and cash flow if not addressed.

Foreign Exchange Challenges

Foreign exchange volatility, particularly in hyperinflationary regions, poses a risk to earnings stability and financial performance.

Pension Plan Termination Impact

The pension plan termination incurs significant costs, affecting short-term earnings and potentially straining financial resources.

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 primarily through the sale of its water and fueling systems products. The company has multiple key revenue streams, including direct sales of pumps, motors, controls, and accessories for water and fuel applications. Additionally, Franklin Electric benefits from aftermarket sales, which include replacement parts and services for its installed systems. The company has established significant partnerships with distributors, contractors, and OEMs that enhance its market reach and sales potential. Furthermore, developments in technology and sustainable practices in water management and fuel systems play a vital role in driving demand for Franklin Electric's innovative solutions, contributing to its overall earnings.

Franklin Electric Co Financial Statement Overview

Summary

Franklin Electric Co demonstrates solid financial health with stable revenue growth and effective cost management. The balance sheet reflects a strong equity position and conservative leverage. However, declining profit margins and free cash flow growth suggest potential challenges in maintaining profitability and cash generation. Overall, the company is well-positioned but should focus on improving operational efficiency and cash flow management.

Income Statement

Franklin Electric Co has shown consistent revenue growth over the years, with a TTM revenue growth rate of 2.44%. The gross profit margin remains stable at around 35%, indicating effective cost management. However, the net profit margin has decreased to 6.71% in the TTM, down from 8.89% in 2024, suggesting increased expenses or lower efficiency. The EBIT and EBITDA margins have also declined, indicating potential challenges in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is low at 0.20, reflecting a conservative leverage strategy. The return on equity (ROE) has decreased to 10.98% in the TTM from 14.19% in 2024, which may indicate reduced profitability or efficiency in using equity. The equity ratio remains strong, suggesting a solid financial position with a good proportion of equity financing.

Cash Flow

Operating cash flow remains robust, with a TTM operating cash flow to net income ratio of 0.61. However, free cash flow has declined by 7.05% in the TTM, which could impact future investments or debt repayments. The free cash flow to net income ratio is strong at 0.83, indicating good cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.11B	2.02B	2.07B	2.04B	1.66B	1.25B
Gross Profit	748.67M	717.28M	697.01M	691.43M	576.09M	433.14M
EBITDA	256.69M	294.24M	306.27M	297.13M	239.47M	164.81M
Net Income	141.50M	180.31M	193.27M	187.33M	153.86M	100.46M
Balance Sheet
Total Assets	2.00B	1.82B	1.73B	1.69B	1.58B	1.27B
Cash, Cash Equivalents and Short-Term Investments	102.93M	220.54M	84.96M	45.79M	40.54M	130.79M
Total Debt	270.72M	191.62M	156.28M	264.84M	236.77M	126.47M
Total Liabilities	675.97M	550.77M	517.83M	623.40M	626.54M	422.36M
Stockholders Equity	1.32B	1.27B	1.21B	1.07B	946.48M	847.83M
Cash Flow
Free Cash Flow	202.35M	219.67M	274.30M	59.77M	99.65M	189.00M
Operating Cash Flow	244.95M	261.35M	315.71M	101.67M	129.76M	211.85M
Investing Cash Flow	-153.44M	-45.63M	-74.29M	-43.07M	-264.81M	-78.81M
Financing Cash Flow	-86.24M	-74.07M	-192.19M	-48.47M	50.89M	-66.58M

Franklin Electric Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 100.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 100.45 is above the 20-day moving average (MA) of 98.57, above the 50-day MA of 96.02, and above the 200-day MA of 92.61, indicating a bullish trend. The MACD of 1.07 indicates Negative momentum. The RSI at 59.59 is Neutral, neither overbought nor oversold. The STOCH value of 66.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FELE.

Franklin Electric Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MWA	77 Outperform	$4.03B	21.18	21.40%	1.09%	8.75%	64.82%
WTS	77 Outperform	$9.68B	29.97	17.81%	0.70%	4.18%	16.05%
GRC	76 Outperform	$1.36B	27.08	13.01%	1.49%	3.19%	31.51%
FELE	71 Outperform	$4.41B	32.39	10.89%	1.06%	5.06%	-22.73%
RRX	69 Neutral	$10.31B	40.16	3.89%	0.97%	-4.99%	22.16%
MIR	66 Neutral	$6.66B	229.20	1.58%	―	7.81%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Franklin Electric Co Corporate Events

Franklin Electric Co Engages at Baird Industrial Conference

On November 13, 2025, Franklin Electric Co., Inc. participated in the 2025 Baird Global Industrial Conference and made its presentation materials available on its website. This event reflects the company’s engagement with the industrial sector and its commitment to transparency with investors.

The most recent analyst rating on (FELE) stock is a Buy with a $105.00 price target. To see the full list of analyst forecasts on Franklin Electric Co stock, see the FELE Stock Forecast page.

Franklin Electric Releases Q3 2025 Presentation Materials

On October 28, 2025, Franklin Electric Co., Inc. released its quarterly presentation materials for Q3 2025 on its website. These materials are intended for use in the company’s upcoming earnings call, providing insights into its financial performance and strategic direction.

The most recent analyst rating on (FELE) stock is a Buy with a $107.00 price target. To see the full list of analyst forecasts on Franklin Electric Co stock, see the FELE Stock Forecast page.