Franklin Electric Co. (FELE)
NASDAQ:FELE
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Franklin Electric Co
(NASDAQ:FELE)
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Rating:70Outperform
Price Target:
$100.00
▼(-0.54% Downside)
Action:ReiteratedDate:02/19/26
The score is driven primarily by solid financial quality (low leverage, stable gross margins, and generally strong cash generation) and supportive earnings-call guidance with an emphasis on margin expansion. This is tempered by weak technical positioning (price below major moving averages despite an oversold RSI) and a relatively high P/E with only a modest dividend yield.
Positive Factors
Conservative balance sheet
Low leverage and equity growth give Franklin structural financial flexibility to fund R&D, acquisitions and buybacks without stressing liquidity. A D/E near 0.18 supports resilience through cycles and underpins durable capital allocation and investment capacity over the next 2–6 months.
Negative Factors
Energy margin pressure
Tariffs, adverse geographic mix and needed investments have compressed Energy margins. These headwinds can persist as price pass-through lags and tariffs or regional exposure remain, limiting near-term margin expansion and making segment profitability recovery uneven over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low leverage and equity growth give Franklin structural financial flexibility to fund R&D, acquisitions and buybacks without stressing liquidity. A D/E near 0.18 supports resilience through cycles and underpins durable capital allocation and investment capacity over the next 2–6 months.
Read all positive factors
Franklin Electric Co (FELE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.44B
Dividend Yield1.06%
Average Volume (3M)275.68K
Price to Earnings (P/E)29.4
Beta (1Y)0.81
Revenue Growth5.06%
EPS Growth-22.73%
CountryUS
Employees6,300
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.87
Shares Outstanding44,202,150
10 Day Avg. Volume329,330
30 Day Avg. Volume275,675
Financial Highlights & Ratios
PEG Ratio-1.72
Price to Book (P/B)3.26
Price to Sales (P/S)2.03
P/FCF Ratio22.33
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue2.17
Enterprise Value/Gross Profit6.12
Enterprise Value/Ebitda17.25
Forecast
1Y Price Target
$90.00Price Target Upside-10.48% Downside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)4.61
Revenue Forecast (FY)$2.21B
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 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 applicati...
Franklin Electric Co Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The earnings call presented a predominantly positive operational and financial picture: company-wide revenue and segment operating income reached multi-year highs, cash conversion remained strong (126%), Distribution and Water treatment businesses showed significant margin improvement, and management outlined a clear transformation agenda (Value Acceleration Office) and a sizable new-product pipeline. Key challenges include a GAAP EPS hit from a large pension settlement charge, Energy segment margin pressure due to tariffs and geographic mix, and some regional softness (HVAC in the U.S., Latin America and parts of Asia). Management provided constructive 2026 guidance (midpoint sales growth ~3% and adjusted EPS midpoint ~9%) and emphasized continued margin expansion and product-driven growth. On balance, the positives — record revenue, operating income, margin improvement in core growth areas, strong cash conversion, active capital allocation and a focused transformation program — outweigh the headwinds presented.Positive Updates
Record Revenue and Operating Income
Full year 2025 consolidated sales were $2.1 billion, up 5.4% year-over-year; consolidated operating income was $269.0 million, up 10% from $243.6 million, with operating income margin of 12.6% (up 50 basis points). Q4 sales were $506.9 million, up 4.4%, and Q4 consolidated operating income was $51.6 million, up 20% year-over-year.
Negative Updates
GAAP EPS Decline from Pension Charge
Full-year GAAP diluted EPS was $3.22 versus $3.86 in 2024. GAAP EPS was negatively impacted by a pension settlement charge of $41.5 million (net of tax, ~$0.91 per share) and $0.01 of restructuring charges; management now emphasizes adjusted EPS for 2026 guidance.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Revenue and Operating Income
Full year 2025 consolidated sales were $2.1 billion, up 5.4% year-over-year; consolidated operating income was $269.0 million, up 10% from $243.6 million, with operating income margin of 12.6% (up 50 basis points). Q4 sales were $506.9 million, up 4.4%, and Q4 consolidated operating income was $51.6 million, up 20% year-over-year.
Read all positive updates
Company Guidance
Franklin guided full‑year 2026 adjusted EPS of $4.40–$4.60 and sales of $2.17–$2.24 billion (midpoint implying just over ~3% sales growth and roughly ~9% midpoint EPS growth), with segment organic growth targets of about 3–5% for Water, just over ~3% for Energy, and ~3–4% for Distribution; Energy is expected to realize ~1.5–2.0% price increases this year and its margins should recover modestly toward the low‑to‑mid‑30% range, Distribution margins are expected to expand further (management cited another ~70+ basis points of improvement potential) and management expects margin expansion across all segments, following normal seasonality (lighter Q1 and Q4, heavier Q2–Q3) but with growth across every quarter; guidance will be presented on an adjusted (non‑GAAP) EPS basis with reconciliations to GAAP.Franklin Electric Co Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
82
Very Positive
Cash Flow
71
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.13B | 2.02B | 2.07B | 2.04B | 1.66B |
| Gross Profit | 755.92M | 717.28M | 697.01M | 691.43M | 576.09M |
| EBITDA | 268.17M | 294.24M | 306.27M | 297.13M | 239.47M |
| Net Income | 147.09M | 180.31M | 193.27M | 187.33M | 153.86M |
Balance Sheet | |||||
| Total Assets | 1.94B | 1.82B | 1.73B | 1.69B | 1.58B |
| Cash, Cash Equivalents and Short-Term Investments | 99.66M | 220.54M | 84.96M | 45.79M | 40.54M |
| Total Debt | 280.49M | 191.62M | 156.28M | 264.84M | 236.77M |
| Total Liabilities | 619.02M | 550.77M | 517.83M | 623.40M | 626.54M |
| Stockholders Equity | 1.33B | 1.27B | 1.21B | 1.07B | 946.48M |
Cash Flow | |||||
| Free Cash Flow | 193.54M | 219.67M | 274.30M | 59.77M | 99.65M |
| Operating Cash Flow | 238.88M | 261.35M | 315.71M | 101.67M | 129.76M |
| Investing Cash Flow | -157.13M | -45.63M | -74.29M | -43.07M | -264.81M |
| Financing Cash Flow | -197.31M | -74.07M | -192.19M | -48.47M | 50.89M |
Franklin Electric Co Technical Analysis
Positive
100.54
Price Trends
97.30
Positive
96.91
Positive
95.49
Positive
Market Momentum
0.24
Negative
65.94
Neutral
95.94
Negative
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 100.54 is above the 20-day moving average (MA) of 92.95, above the 50-day MA of 97.30, and above the 200-day MA of 95.49, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 65.94 is Neutral, neither overbought nor oversold. The STOCH value of 95.94 is Negative, 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 20 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $10.14B | 27.54 | 17.82% | 0.70% | 4.18% | 16.05% | |
78 Outperform | $4.71B | 21.55 | 21.00% | 1.09% | 8.75% | 64.82% | |
70 Outperform | $4.44B | 29.38 | 11.30% | 1.06% | 5.06% | -22.73% | |
69 Neutral | $1.82B | 23.68 | 13.26% | 1.49% | 3.19% | 31.51% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $4.79B | 187.00 | 1.73% | ― | 7.81% | ― | |
61 Neutral | $13.81B | 36.68 | 4.18% | 0.97% | -4.99% | 22.16% |
* Industrials Sector Average
FELE
Franklin Electric Co
100.54
12.98
14.83%
GRC
Gorman-Rupp Company
69.23
36.72
112.96%
MWA
Mueller Water Products
30.13
6.30
26.42%
RRX
Regal Rexnord
207.65
111.86
116.78%
WTS
Watts Water Technologies
304.19
116.02
61.66%
MIR
Mirion Technologies
19.11
5.52
40.62%
Franklin Electric Co Corporate Events
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.