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Franklin Resources Inc BEN

Morningstar Rating
$22.40 +0.24 (1.08%)
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Company Report

US-Based Asset Managers: Recovery in AUM, Revenue, and Profitability Already Baked Into Share Prices

All the US-based asset managers we cover have reported their first-quarter 2024 earnings, and in some cases revealed managed asset levels for April 2024, and we now have a better sense of how recent market activity has been affecting results. The rally in the US equity markets since the middle of November 2023 has lifted most traditional and alternative-asset manager valuations closer to our fair value estimates.

Price vs Fair Value

BEN is trading at a 862% premium.
Price
$22.40
Fair Value
$22.00
Uncertainty
High
1-Star Price
$39.60
5-Star Price
$56.40
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Franklin is one of the 20 largest US-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%, 60%, and 44% of its AUM above peer medians on a one-, three-, and five-year basis, respectively, at the end of March 2024.

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News

Trading Information

Previous Close Price
$22.16
Day Range
$22.1022.43
52-Week Range
$21.5730.32
Bid/Ask
$20.00 / $24.75
Market Cap
$11.79 Bil
Volume/Avg
3.7 Mil / 3.8 Mil

Key Statistics

Price/Earnings (Normalized)
8.36
Price/Sales
1.37
Dividend Yield (Trailing)
5.45%
Dividend Yield (Forward)
5.54%
Total Yield
7.92%

Company Profile

Franklin Resources provides investment services for individual and institutional investors. At the end of April 2024, Franklin had $1.602 trillion in managed assets, composed primarily of equity (35%), fixed-income (35%), multi-asset/balanced (10%) funds, alternatives (16%) and money market funds (4%). Distribution tends to be weighted equally between retail investors (52% of AUM) and institutional accounts (46%), with high-net-worth clients accounting for the remainder. Franklin is one of the more global of the US-based asset managers we cover, with more than a third of its assets under management invested in global/international strategies and 30% 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
10,100

Competitors

Valuation

Metric
BEN
BLK
TROW
Price/Earnings (Normalized)
8.3619.7614.18
Price/Book Value
0.922.932.69
Price/Sales
1.376.433.96
Price/Cash Flow
7.8927.3121.51
Price/Earnings
BEN
BLK
TROW

Financial Strength

Metric
BEN
BLK
TROW
Quick Ratio
3.3810.396.07
Current Ratio
3.3813.226.07
Interest Coverage
13.5222.50
Quick Ratio
BEN
BLK
TROW

Profitability

Metric
BEN
BLK
TROW
Return on Assets (Normalized)
4.56%4.89%15.28%
Return on Equity (Normalized)
11.46%15.40%20.31%
Return on Invested Capital (Normalized)
5.16%11.52%17.10%
Return on Assets
BEN
BLK
TROW
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Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
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