Franklin Financial Services (FRAF) AI Stock Analysis

• Market Cap: $206.19M
• Dividend Yield: 2.69%
• Average Volume (3M): 19.99K
• Price to Earnings (P/E): 13.2
• 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: 4,476,651
• 10 Day Avg. Volume: 21,587
• 30 Day Avg. Volume: 19,986
• 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: 1.93
• Enterprise Value/Revenue: 3.27
• Enterprise Value/Gross Profit: 27.28
• Enterprise Value/Ebitda: 12.05
• 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: 71 Outperform
• Price Target: $52.00 ▲(17.25% Upside)

The overall stock score of 71 reflects a stable financial position with strong profitability and low leverage, complemented by positive technical indicators. However, recent revenue declines and fluctuating cash flow growth rates present potential risks. The valuation is fair, but not particularly attractive, which slightly tempers the overall score.

Franklin Financial Services Business Overview & Revenue Model

Company Description

Franklin Financial Services (FRAF) is a diversified financial services company that operates primarily in the banking and investment sectors. The company offers a wide range of products, including consumer and commercial banking, wealth management, investment advisory, and insurance services. FRAF is committed to providing tailored financial solutions to individuals and businesses, leveraging cutting-edge technology and a customer-centric approach to enhance user experience and satisfaction.

How the Company Makes Money

Franklin Financial Services generates revenue through multiple streams. Primarily, it earns interest income from its banking operations, including loans and mortgages provided to consumers and businesses. Additionally, FRAF generates fee income from its wealth management and investment advisory services, charging clients for portfolio management, financial planning, and related services. The company also earns commissions and fees from insurance products offered to customers. Significant partnerships with investment firms and insurance providers further enhance its product offerings and revenue potential. Moreover, FRAF may benefit from strategic investments and asset management, allowing it to diversify its income sources and improve profitability.

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	121.47M	113.83M	90.38M	70.27M	63.98M	59.94M
Gross Profit	14.55M	67.91M	64.53M	64.76M	63.18M	51.33M
EBITDA	32.95M	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	493.96M	524.10M	501.87M	565.71M	715.45M	466.83M
Total Debt	3.97M	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: 44.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 44.35 is below the 20-day moving average (MA) of 45.47, below the 50-day MA of 46.11, and above the 200-day MA of 39.51, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 72.57 is Negative, neither overbought nor oversold. The STOCH value of 76.93 is Neutral, 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
FRAF	71 Outperform	$206.19M	13.15	9.91%	2.69%	12.06%	10.38%
VABK	70 Outperform	$212.66M	11.96	10.41%	3.43%	1.11%	14.44%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
EFSI	67 Neutral	$191.29M	15.91	6.63%	3.45%	-1.45%	-31.32%
OPBK	67 Neutral	$195.00M	8.34	10.99%	3.64%	9.10%	12.36%
HWBK	64 Neutral	$213.83M	9.71	14.27%	2.55%	0.16%	258.06%
FXNC	61 Neutral	$202.26M	18.01	7.36%	2.64%	49.33%	11.61%

Franklin Financial Services Corporate Events

Franklin Financial Services Reports Strong Q3 2025 Results

Franklin Financial Services Corporation, a bank holding company for F&M Trust, operates in the financial sector with a focus on community banking across several counties in Pennsylvania and Maryland.

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.

The most recent analyst rating on (FRAF) stock is a Hold with a $46.00 price target. To see the full list of analyst forecasts on Franklin Financial Services stock, see the FRAF Stock Forecast page.

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.

The most recent analyst rating on (FRAF) stock is a Buy with a $46.00 price target. To see the full list of analyst forecasts on Franklin Financial Services stock, see the FRAF Stock Forecast page.

Franklin Financial Redeems $9M Notes with Cash

On August 25, 2025, Franklin Financial Services Corporation announced its decision to redeem a portion of its outstanding 5.00% Fixed to Floating Rate Notes, due September 1, 2030. The redemption, scheduled for September 30, 2025, will cover $9,000,000 of the principal amount, with the company using excess cash on hand for the payment.

The most recent analyst rating on (FRAF) stock is a Buy with a $46.00 price target. To see the full list of analyst forecasts on Franklin Financial Services stock, see the FRAF Stock Forecast page.