Franklin Financial Services (FRAF) AI Stock Analysis

• Market Cap: $250.69M
• Dividend Yield: 2.33%
• Average Volume (3M): 39.59K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.16
• Revenue Growth: 12.06%
• EPS Growth: 10.38%
• Country: US
• Employees: 306
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.19
• Shares Outstanding: 4,479,037
• 10 Day Avg. Volume: 49,641
• 30 Day Avg. Volume: 39,591
• PEG Ratio: -0.62
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 1.16
• P/FCF Ratio: 6.89
• Enterprise Value/Market Cap: 1.58
• Enterprise Value/Revenue: 3.16
• Enterprise Value/Gross Profit: 5.20
• Enterprise Value/Ebitda: 18.50
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $59.00 ▲(9.44% Upside)

Franklin Financial Services shows a stable financial position with strong profitability and low leverage, which is a significant strength. The technical analysis indicates strong bullish momentum, although caution is advised due to potential overbought conditions. The valuation is reasonable but does not suggest significant undervaluation. The consistent dividend policy adds a positive aspect to the stock's attractiveness.

Positive Factors

Strong Profitability Margins

Strong profitability margins indicate effective cost management and pricing power, supporting sustainable earnings and competitive positioning.

Low Leverage

Low leverage enhances financial stability and flexibility, reducing risk and enabling investment in growth opportunities.

Consistent Dividend Policy

A consistent dividend policy reflects financial health and management's commitment to returning value to shareholders, enhancing investor confidence.

Negative Factors

Revenue Declines

Declining revenue growth may signal challenges in market demand or competitive pressures, potentially impacting future profitability.

Fluctuating Cash Flow

Volatile cash flow can hinder strategic planning and investment, affecting long-term growth and financial resilience.

Leadership Change

Leadership changes can disrupt strategic continuity and operational efficiency, affecting the company's ability to execute its business model effectively.

Franklin Financial Services Business Overview & Revenue Model

Company Description

Franklin Financial Services (FRAF) is a diversified financial services company that specializes in investment management, wealth advisory, and insurance services. With a commitment to providing tailored financial solutions, FRAF operates primarily in the sectors of asset management, retirement planning, and risk management. The company aims to empower individuals and businesses to achieve their financial goals through a comprehensive suite of products, including mutual funds, retirement accounts, life insurance, and estate planning services.

How the Company Makes Money

Franklin Financial Services generates revenue through multiple key streams. The company earns management fees from its investment management services, which are based on the assets under management (AUM). Additionally, FRAF generates revenue from advisory fees charged for wealth management and financial planning services. Insurance products, such as life and health insurance, contribute to the revenue through premiums collected from policyholders. Significant partnerships with financial institutions and brokerages allow FRAF to expand its reach and client base, further enhancing its revenue potential. Furthermore, the firm may earn commissions from the sale of financial products and maintain a portion of the investment returns generated for clients, aligning its incentives with customer success.

Franklin Financial Services Financial Statement Overview

Summary

Franklin Financial Services demonstrates a stable financial position with strong profitability margins and low leverage. However, recent revenue declines and fluctuating cash flow growth rates present potential risks. The company should focus on improving revenue growth and maintaining cost efficiency to enhance overall financial health.

Income Statement

The income statement shows a mixed performance. The TTM data indicates a decline in revenue growth, but the company maintains a healthy net profit margin of 12.9%. Historical data shows fluctuating revenue growth rates, with strong margins in previous years. The gross profit margin has decreased significantly in the TTM period, indicating potential cost management issues.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio of 0.024 in the TTM period, indicating low leverage. Return on equity is reasonable at 10.1%, showing efficient use of equity. The equity ratio is stable, suggesting a solid financial foundation.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth in the TTM period, but historical data shows volatility. The operating cash flow to net income ratio is strong at 6.67, indicating good cash generation relative to net income. However, the free cash flow to net income ratio suggests that not all net income is translating into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	125.59M	113.83M	90.38M	70.27M	63.98M	59.94M
Gross Profit	76.42M	67.91M	64.53M	64.76M	63.18M	51.33M
EBITDA	21.47M	15.40M	17.77M	18.93M	24.22M	14.39M
Net Income	15.67M	11.10M	13.60M	14.94M	19.62M	12.80M
Balance Sheet
Total Assets	2.30B	2.20B	1.84B	1.70B	1.77B	1.54B
Cash, Cash Equivalents and Short-Term Investments	271.53M	524.10M	501.87M	565.71M	715.45M	466.83M
Total Debt	214.81M	223.96M	154.48M	25.77M	24.45M	24.89M
Total Liabilities	2.13B	2.05B	1.70B	1.59B	1.62B	1.39B
Stockholders Equity	166.34M	144.72M	132.14M	114.20M	157.06M	145.18M
Cash Flow
Free Cash Flow	25.21M	19.19M	26.07M	13.03M	17.54M	5.95M
Operating Cash Flow	26.48M	21.75M	26.57M	25.24M	26.35M	6.43M
Investing Cash Flow	-199.92M	-184.37M	-178.27M	-95.06M	-133.94M	-277.31M
Financing Cash Flow	125.27M	343.08M	109.94M	-40.44M	225.59M	244.20M

Franklin Financial Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 53.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 53.91 is above the 20-day moving average (MA) of 52.91, above the 50-day MA of 48.64, and above the 200-day MA of 41.50, indicating a bullish trend. The MACD of 1.97 indicates Negative momentum. The RSI at 74.71 is Negative, neither overbought nor oversold. The STOCH value of 88.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FRAF.

Franklin Financial Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EFSI	77 Outperform	$213.71M	17.78	6.63%	3.12%	-1.45%	-31.32%
VABK	77 Outperform	$234.98M	13.20	10.41%	3.24%	1.11%	14.44%
HWBK	74 Outperform	$242.18M	11.00	14.27%	2.33%	0.16%	258.06%
OPBK	74 Outperform	$220.16M	9.41	10.99%	3.25%	9.10%	12.36%
FRAF	73 Outperform	$250.69M	15.98	9.91%	2.33%	12.06%	10.38%
FXNC	73 Outperform	$236.08M	20.97	7.36%	2.42%	48.94%	11.61%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Franklin Financial Services Corporate Events

Franklin Financial Approves Stock Repurchase Program

On December 11, 2025, Franklin Financial Services‘ Board of Directors approved a stock repurchase program, allowing the buyback of up to 150,000 shares of the company’s common stock. This initiative, set to occur between January 1, 2026, and December 31, 2026, is expected to impact the company’s market operations and shareholder value.

Franklin Financial Announces Q4 2025 Dividend

On October 16, 2025, Franklin Financial Services Corporation announced a regular cash dividend of $.33 per share for the fourth quarter of 2025, maintaining the same dividend as the third quarter of 2025 and marking a 3.1% increase from the fourth quarter of 2024. This decision reflects the company’s commitment to providing consistent returns to its shareholders, with the dividend set to be paid on November 26, 2025, to those recorded by November 7, 2025.

Franklin Financial Services Announces Leadership Change

Scott D. Ehrig, Senior Vice President and Chief Wealth Management Officer of Farmers and Merchants Trust Company of Chambersburg, a subsidiary of Franklin Financial Services Corporation, announced his retirement effective October 17, 2025. This retirement marks a significant change in the leadership of the company, potentially impacting its wealth management operations and strategic direction.