Franklin Resources Inc. (BEN:NYE) Analysts rate with a Hold, $29 target

STA Research
by: STA Research

Based on the Franklin Resources Inc. stock forecasts from 6 analysts, the average analyst target price for Franklin Resources Inc. is USD 29.63 over the next 12 months. Franklin Resources Inc.’s average analyst rating is Hold. Stock Target Advisor’s own stock analysis of Franklin Resources Inc. is Slightly Bearish, which is based on 6 positive signals and 8 negative signals. At the last closing, Franklin Resources Inc.’s stock price was USD 27.21. Franklin Resources Inc.’s stock price has changed by +2.10% over the past week, +1.43% over the past month and -20.42% over the last year.

Keefe Bruyette Woods Capital recently lowered the target on the stock to $28 from $30, and maintained the Market Perform rating.

Franklin Resources, Inc. is an asset management holding company that is publicly traded. Individuals, institutions, pension plans, trusts, and partnerships are all served by the firm’s subsidiaries. Through its subsidiaries, it offers equities, fixed income, balanced, and multi-asset mutual funds. Public equities, fixed income, and alternative markets are all areas where the firm invests. Franklin Resources, Inc. was founded in 1947 and is headquartered in San Mateo, California. It also has a presence in Hyderabad, India. One Franklin Parkway, San Mateo, CA 94403 (United States)

 

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior capital utilization

The company management has delivered a better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered a better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

Poor risk-adjusted returns

This company is delivering below median risk-adjusted returns to its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

High volatility

The total returns for this company are volatile and above the median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median total returns

The company has underperformed its peers on annual average total returns in the past 5 years.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to book value

The stock is trading high compared to its peers’ median on a price to book value basis.

Overpriced on a cash flow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.

 

 

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