Franklin Electric Co (FELE) AI Stock Analysis

• Market Cap: $4.24B
• Dividend Yield: 1.14%
• Average Volume (3M): 294.67K
• Price to Earnings (P/E): 24.3
• Beta (1Y): 0.89
• Revenue Growth: -1.26%
• EPS Growth: -4.84%
• Country: US
• Employees: 6,300
• Sector: Industrials
• Sector Strength: 86
• Industry: Industrial - Machinery
• EPS (TTM): 0.67
• Shares Outstanding: 45,595,870
• 10 Day Avg. Volume: 449,547
• 30 Day Avg. Volume: 294,665
• PEG Ratio: 0.89
• Price to Book (P/B): 3.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 61.78
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 0.49
• Enterprise Value/Gross Profit: 5.45
• Enterprise Value/Ebitda: 3.33
• 1Y Price Target: $92.00
• Price Target Upside: -1.06% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 75 Outperform
• Price Target: $98.00 ▲(5.39%Upside)

Franklin Electric Co receives a strong overall stock score of 75, driven primarily by its solid financial performance and positive corporate events. Technical analysis and valuation indicate moderate risk, while the earnings call suggests a balanced outlook. The company's strategic moves, including share repurchases and new credit agreements, enhance its stability and growth potential.

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, which include a comprehensive range of pumps, motors, and related components. The company capitalizes on its extensive distribution network, offering its products to wholesalers, distributors, and original equipment manufacturers (OEMs). Key revenue streams involve the Water Systems segment, which provides high-margin products for groundwater, surface water, and wastewater applications, and the Fueling Systems segment, which offers products for the safe and efficient transfer of fuels. Additionally, Franklin Electric benefits from strategic partnerships and acquisitions that expand its market reach and product offerings, further enhancing its revenue generation capabilities.

Franklin Electric Co Financial Statement Overview

Summary

Franklin Electric Co demonstrates strong profitability with consistent gross and net profit margins. The company maintains a healthy balance sheet with a conservative debt-to-equity ratio and robust asset base funded by equity. Cash flow metrics are positive, with strong cash conversion from earnings, despite some volatility in free cash flow growth.

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
EBITDA	277.84M	294.24M	306.27M	319.13M	253.28M	176.51M
Net Income	178.31M	179.61M	193.27M	187.33M	153.86M	100.46M
Balance Sheet
Total Assets	1.93B	1.82B	1.73B	1.69B	1.58B	1.27B
Cash, Cash Equivalents and Short-Term Investments	83.99M	220.54M	84.96M	45.79M	40.54M	130.79M
Total Debt	224.66M	191.62M	156.28M	264.84M	236.77M	126.47M
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: Positive
• Last Price: 92.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 92.99 is above the 20-day moving average (MA) of 88.10, above the 50-day MA of 87.59, and below the 200-day MA of 96.96, indicating a neutral trend. The MACD of 1.32 indicates Negative momentum. The RSI at 64.04 is Neutral, neither overbought nor oversold. The STOCH value of 93.33 is Negative, 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
SPXC	78 Outperform	$8.08B	40.00	15.24%	―	10.78%	30.05%
FELE	75 Outperform	$4.24B	24.31	14.11%	1.14%	-1.26%	-4.84%
MWA	74 Outperform	$3.88B	27.09	17.68%	1.08%	10.96%	43.44%
FLS	74 Outperform	$7.23B	25.93	14.00%	1.52%	4.23%	20.40%
GRC	69 Neutral	$1.02B	22.92	12.06%	1.91%	0.92%	21.96%
MIR	66 Neutral	$4.80B	―	-0.68%	―	7.25%	87.34%
Sector *	59 Neutral	AU$1.64B	9.44	11.52%	3.68%	6.78%	6.51%

Franklin Electric Co Corporate Events

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.

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 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.