Franklin Financial Services Corporation (FRAF)
NASDAQ:FRAF
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Franklin Financial Services
(NASDAQ:FRAF)
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Rating:73Outperform
Price Target:
$55.00
â–²(6.44% Upside)
Action:UpgradedDate:03/14/26
The score is driven primarily by improving fundamentals (stronger 2025 profitability, solid cash conversion, and sharply better leverage) and supported by a reasonable P/E with a moderate dividend yield. These positives are tempered by weaker near-term technical momentum (below key short/intermediate moving averages with negative MACD).
Positive Factors
Revenue Growth
Sustained revenue growth over multiple years indicates stronger market penetration and product traction in the bank's local markets. That expansion supports operating leverage, funds reinvestment and credit capacity, and improves the firm's ability to absorb shocks over a 2–6 month horizon and beyond.
Negative Factors
Margin Volatility
Historic swings in net margin reduce predictability of future profitability and complicate planning. For a lender reliant on loan yields and deposit costs, margin variability exposes earnings to loan mix shifts, credit cycles and rate changes, creating structural uncertainty over medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained revenue growth over multiple years indicates stronger market penetration and product traction in the bank's local markets. That expansion supports operating leverage, funds reinvestment and credit capacity, and improves the firm's ability to absorb shocks over a 2–6 month horizon and beyond.
Read all positive factors
Franklin Financial Services (FRAF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$231.63M
Dividend Yield2.51%
Average Volume (3M)51.03K
Price to Earnings (P/E)10.6
Beta (1Y)0.21
Revenue Growth12.06%
EPS Growth10.38%
CountryUS
Employees306
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.34
Shares Outstanding4,482,893
10 Day Avg. Volume79,380
30 Day Avg. Volume51,030
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)1.29
Price to Sales (P/S)1.69
P/FCF Ratio9.19
Enterprise Value/Market Cap1.83
Enterprise Value/Revenue3.20
Enterprise Value/Gross Profit4.99
Enterprise Value/Ebitda14.92
Forecast
1Y Price Target
$59.00Price Target Upside14.19% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Franklin Financial Services Business Overview & Revenue Model
Company Description
Franklin Financial Services Corporation operates as the bank holding company for Farmers and Merchants Trust Company of Chambersburg that provides commercial, retail banking, and trust services to small and medium-sized businesses, individuals, go...
How the Company Makes Money
Franklin Financial Services primarily earns revenue through (1) net interest income and (2) noninterest income. Net interest income is generated from the spread between interest earned on interest-earning assets (notably loans to consumers and bus...
Franklin Financial Services Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 133.55M | 113.83M | 90.38M | 70.27M | 63.98M |
| Gross Profit | 85.92M | 67.91M | 64.53M | 64.76M | 63.18M |
| EBITDA | 26.27M | 15.40M | 17.77M | 18.93M | 24.22M |
| Net Income | 21.23M | 11.10M | 13.60M | 14.94M | 19.62M |
Balance Sheet | |||||
| Total Assets | 2.24B | 2.20B | 1.84B | 1.70B | 1.77B |
| Cash, Cash Equivalents and Short-Term Investments | 477.03M | 524.10M | 501.87M | 565.71M | 715.45M |
| Total Debt | 214.69M | 223.96M | 154.48M | 25.77M | 24.45M |
| Total Liabilities | 2.06B | 2.05B | 1.70B | 1.59B | 1.62B |
| Stockholders Equity | 175.24M | 144.72M | 132.14M | 114.20M | 157.06M |
Cash Flow | |||||
| Free Cash Flow | 24.58M | 19.19M | 26.07M | 13.03M | 17.54M |
| Operating Cash Flow | 25.44M | 21.75M | 26.57M | 25.24M | 26.35M |
| Investing Cash Flow | -107.02M | -184.37M | -178.27M | -95.06M | -133.94M |
| Financing Cash Flow | 5.69M | 343.08M | 109.94M | -40.44M | 225.59M |
Franklin Financial Services Technical Analysis
Positive
51.67
Price Trends
50.05
Positive
50.72
Positive
46.50
Positive
Market Momentum
0.19
Negative
56.99
Neutral
77.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FRAF, the sentiment is Positive. The current price of 51.67 is above the 20-day moving average (MA) of 49.84, above the 50-day MA of 50.05, and above the 200-day MA of 46.50, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 56.99 is Neutral, neither overbought nor oversold. The STOCH value of 77.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FRAF.
Franklin Financial Services Risk Analysis
Franklin Financial Services disclosed 13 risk factors in its most recent earnings report. Franklin Financial Services reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Franklin Financial Services Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $231.63M | 10.64 | 9.91% | 2.51% | 12.06% | 10.38% | |
69 Neutral | $202.51M | 8.19 | 11.75% | 3.32% | 9.10% | 12.36% | |
69 Neutral | $208.10M | 11.15 | 11.02% | 3.41% | 1.11% | 14.44% | |
68 Neutral | $233.28M | 10.24 | 14.66% | 2.39% | 0.16% | 258.06% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $245.46M | 12.82 | 9.98% | 2.49% | 48.94% | 11.61% | |
58 Neutral | $193.60M | 26.01 | 6.63% | 3.11% | -1.45% | -31.32% |
* Financial Sector Average
FRAF
Franklin Financial Services
51.67
19.05
58.39%
HWBK
Hawthorn Bancshares
33.80
7.44
28.21%
OPBK
OP Bancorp
13.60
2.95
27.75%
FXNC
First National
27.15
7.93
41.30%
EFSI
Eagle Financial Services
35.77
5.81
19.39%
VABK
Virginia National Bankshares
38.38
3.29
9.38%
Franklin Financial Services Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Franklin Financial Services Announces First-Quarter 2026 Dividend
Positive
Jan 20, 2026
On January 15, 2026, Franklin Financial Services Corporation’s board declared a regular cash dividend of $0.33 per share for the first quarter of 2026, matching the fourth quarter 2025 payout and marking a 3.1% increase over the first quarte...
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.