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Franklin Resources Inc BEN

Morningstar Rating
$27.43 +0.43 (1.57%)
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Company Report

US-Based Asset Managers: Equity Market Rally Erased Margin of Safety Needed to Consider the Group

All the US-based asset managers we cover have reported their December-quarter earnings, and in some cases revealed assets under management, or AUM, data for January 2024. We now have a better sense of how recent market activity has been affecting results. In our third-quarter earnings wrap, we had assumed that the malaise that had crept into the markets during August-October 2023 might continue through the rest of the year.

Price vs Fair Value

BEN is trading at a 4% discount.
Price
$27.01
Fair Value
$42.00
Uncertainty
High
1-Star Price
$88.60
5-Star Price
$35.70
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Franklin is one of the 20 largest U.S.-based asset managers, with just over 70% of its AUM sourced from domestic clients. It is the fifth-largest global manager of cross-border funds.

Bears

Franklin's mutual funds continue to underperform, with just 51%, 50%, and 37% of its AUM above peer medians on a one-, three-, and five-year basis, respectively, at the end of December 2023.

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News

Trading Information

Previous Close Price
$27.00
Day Range
$27.2327.60
52-Week Range
$21.8930.32
Bid/Ask
$27.42 / $27.43
Market Cap
$14.45 Bil
Volume/Avg
531,446 / 3.1 Mil

Key Statistics

Price/Earnings (Normalized)
9.89
Price/Sales
1.68
Dividend Yield (Trailing)
4.48%
Dividend Yield (Forward)
4.59%
Total Yield
6.43%

Company Profile

Franklin Resources provides investment services for individual and institutional investors. At the end of October 2023, Franklin had $1.335 trillion in managed assets, composed primarily of equity (31%), fixed-income (35%), multi-asset/balanced (11%) funds, alternatives (19%) and money market funds (4%). Distribution tends to be weighted equally between retail investors (50% of AUM) and institutional accounts (48%), with high-net-worth clients accounting for the remainder. Franklin is one of the more global of the U.S.-based asset managers we cover, with more than a third of its assets under management invested in global/international strategies and 29% of managed assets sourced from clients domiciled outside the United States.
Sector
Financial Services
Industry
Asset Management
Stock Style Box
Mid Value
Total Number of Employees
9,100

Competitors

Valuation

Metric
BEN
BLK
IVZ
Price/Earnings (Normalized)
9.8921.4310.13
Price/Book Value
1.113.060.65
Price/Sales
1.686.831.22
Price/Cash Flow
10.1227.054.73
Price/Earnings
BEN
BLK
IVZ

Financial Strength

Metric
BEN
BLK
IVZ
Quick Ratio
3.3011.712.30
Current Ratio
3.3015.462.30
Interest Coverage
14.6023.88−3.05
Quick Ratio
BEN
BLK
IVZ

Profitability

Metric
BEN
BLK
IVZ
Return on Assets (Normalized)
4.70%4.72%2.34%
Return on Equity (Normalized)
11.78%14.85%6.19%
Return on Invested Capital (Normalized)
5.37%11.29%2.82%
Return on Assets
BEN
BLK
IVZ
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Economic Moat
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