Franklin Financial Services (FRAF) AI Stock Analysis

• Market Cap: $164.60M
• Dividend Yield: 3.56%
• Average Volume (3M): 37.11K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.05
• Revenue Growth: 18.74%
• EPS Growth: -16.38%
• Country: US
• Employees: 306
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 0.88
• Shares Outstanding: 4,458,298
• 10 Day Avg. Volume: 82,402
• 30 Day Avg. Volume: 37,106
• PEG Ratio: 2.74
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.23
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 2.17
• Enterprise Value/Ebitda: 2.20
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: $40.00 ▲(6.64%Upside)

Franklin Financial Services displays solid financial performance with strong revenue growth and robust cash flows, which are the primary drivers of its stock score. Technical indicators suggest moderate bearish momentum, while the stock's valuation is fair with an attractive dividend yield. The recent dividend increase further underscores the company's financial strength.

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, governmental entities, and non-profit organizations in Pennsylvania. It offers various deposit products, including checking, savings, money management, and time deposit accounts, as well as demand deposits. The company also provides commercial real estate, construction and land development, agricultural, commercial and industrial, and residential mortgage loans, as well as installment and revolving loans to consumers; and secured and unsecured commercial and industrial loans, including accounts receivable and inventory financing, and commercial equipment financing. In addition, it offers various investment and trust services comprising estate planning and administration, corporate and personal trust fund management, pension, and profit sharing and other employee benefit funds management services, as well as custodial services; sells mutual funds, annuities, and insurance products; and offers safe deposit facilities and fiduciary services. Further, the company, through its subsidiary, Franklin Future Fund Inc., operates as a non-bank investment company that makes venture capital investments. It operates twenty-two community banking offices in Franklin, Cumberland, Fulton, and Huntingdon counties, Pennsylvania. Franklin Financial Services Corporation was founded in 1906 and is headquartered in Chambersburg, Pennsylvania.

How the Company Makes Money

Franklin Financial Services makes money through a variety of revenue streams primarily focused on interest income from loans and mortgages offered to individuals and businesses. Additionally, the company generates fees from account services, transaction fees, and investment management services. Other significant revenue contributors include advisory services and income from securities investments. The company may also benefit from partnerships with other financial institutions to offer co-branded financial products, enhancing its earnings potential.

Franklin Financial Services Financial Statement Overview

Summary

Franklin Financial Services demonstrates solid financial health with strong revenue growth, a sound balance sheet with manageable leverage, and robust cash flows providing ample liquidity for future growth. However, net profit margins are slightly lower due to increased operational costs, and significant investment outflows could affect short-term liquidity.

Income Statement

Franklin Financial Services has shown solid growth with a revenue increase in recent periods. The TTM gross profit margin stands at 59.6%, indicating strong profitability. The net profit margin is at 9.9%, reflecting stable earnings, though slightly lower compared to previous periods due to increased operational costs. Revenue growth rate has been robust, showcasing the company's ability to expand its revenue base effectively.

Balance Sheet

The balance sheet exhibits strength with a debt-to-equity ratio of 1.48, which is manageable and indicates prudent leveraging. Return on Equity (ROE) is at 7.7%, suggesting efficient use of equity to generate profits. The equity ratio is 6.7%, showing a stable capital structure with a focus on maintaining equity levels.

Cash Flow

The cash flow statement reveals healthy operational cash flows, with an operating cash flow to net income ratio of 2.00, indicating good cash generation relative to earnings. Free cash flow growth shows positive trends, enhancing liquidity and financial flexibility. However, the cash flow from investing activities is negative, reflecting significant investments which could impact short-term liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	117.44M	113.83M	90.38M	70.27M	63.98M	59.94M
Gross Profit	69.99M	67.91M	64.53M	64.76M	63.18M	51.33M
EBITDA	16.23M	15.40M	17.77M	18.93M	24.22M	14.39M
Net Income	11.66M	11.10M	13.60M	14.94M	19.62M	12.80M
Balance Sheet
Total Assets	2.26B	2.20B	1.84B	1.70B	1.77B	1.54B
Cash, Cash Equivalents and Short-Term Investments	531.00M	524.10M	501.87M	565.71M	715.45M	466.83M
Total Debt	223.96M	223.96M	154.48M	25.77M	24.45M	24.89M
Total Liabilities	2.11B	2.05B	1.70B	1.59B	1.62B	1.39B
Stockholders Equity	151.39M	144.72M	132.14M	114.20M	157.06M	145.18M
Cash Flow
Free Cash Flow	21.32M	19.19M	26.07M	13.03M	17.54M	5.95M
Operating Cash Flow	23.27M	21.75M	26.57M	25.24M	26.35M	6.43M
Investing Cash Flow	-204.57M	-184.37M	-178.27M	-95.06M	-133.94M	-277.31M
Financing Cash Flow	223.68M	343.08M	109.94M	-40.44M	225.59M	244.20M

Franklin Financial Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 37.51 is above the 20-day moving average (MA) of 35.49, above the 50-day MA of 37.29, and above the 200-day MA of 34.28, indicating a bullish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 64.22 is Neutral, neither overbought nor oversold. The STOCH value of 89.65 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
LARK	77 Outperform	$157.18M	10.54	11.08%	3.09%	15.79%	27.67%
ISTR	77 Outperform	$216.78M	10.03	9.12%	1.96%	6.42%	24.08%
FRAF	71 Outperform	$164.60M	14.15	8.16%	3.56%	18.74%	-16.38%
MRBK	70 Outperform	$157.77M	9.83	9.64%	3.58%	12.41%	34.20%
ATLO	68 Neutral	$162.98M	14.42	6.52%	4.38%	8.65%	14.91%
Sector *	67 Neutral	$16.89B	11.80	9.79%	3.77%	12.07%	-8.35%
FSFG	65 Neutral	$178.65M	9.18	11.31%	2.48%	6.76%	161.37%

Franklin Financial Services Corporate Events

Franklin Financial Services Increases Dividend for Q2 2025

On April 10, 2025, Franklin Financial Services Corporation announced an increase in its regular cash dividend to $0.33 per share for the second quarter of 2025, up from $0.32 in the previous quarter and the same quarter of the previous year. This 3.1% increase reflects the company’s commitment to providing value to its shareholders, with the dividend payable on May 28, 2025, to shareholders recorded by May 2, 2025.