Franklin Resources Stock Fair Value Calculation – Franklin Resources: Unlocking Value with Upcoming Catalysts
December 23, 2023
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Franklin Resources ($NYSE:BEN), Inc. (NYSE: BEN) is a publicly traded asset management company that provides investment solutions to individuals, institutions and financial professionals. Franklin Resources has several catalysts for potential growth that should help unlock value in the stock. Firstly, the company’s exposure to emerging markets gives it access to large populations of consumers who are increasingly looking to invest their money in the stock market.
Additionally, Franklin Resources has done well to diversify its portfolio and expand its reach, including launching new products and services as well as expanding into new markets. Finally, the company’s increased focus on technology has enabled it to grow at a faster pace and better serve its customers. With a low price-to-earnings ratio and increased focus on technology, the company has the potential to unlock value for investors looking for a good long-term investment opportunity.
Price History
Franklin Resources, Inc. (FRANKLIN RESOURCES) is a global investment management organization operating as Franklin Templeton. On Friday, its stock opened at $29.6 and closed at $29.7, up by 0.5% from its previous closing price of $29.6. This appreciation was due to upcoming catalysts that could unlock further value for FRANKLIN RESOURCES. The first catalyst is the company’s recent announcement of cost-saving initiatives, which would help FRANKLIN RESOURCES increase efficiency and reduce operational costs over the next four to five months. These initiatives would help the organization save millions of dollars on an annual basis. Another potential catalyst lies in Franklin Resources’ strategic investments in high-growth emerging markets. The company has been focusing on expanding its presence in countries such as India and Brazil, which offer attractive growth opportunities due to their youthful demographics and fast-growing economies.
This shift to emerging markets could provide Franklin Resources with a competitive edge and unlock additional value over the long-term. Finally, investors should keep an eye on the potential for Franklin Templeton’s asset management business to benefit from an improving global economy. If the global economic environment remains supportive of risk assets, Franklin Resources’ strong asset management division could see positive returns and help the organization achieve higher revenues and profits in the coming quarters. In conclusion, with upcoming catalysts such as cost-saving initiatives, strategic investments in emerging markets, and potential benefits from an improving global economy, FRANKLIN RESOURCES has the potential to unlock greater value for its shareholders. For this reason, investors should keep a close eye on the company’s progress over the near-term and monitor how these potential drivers could affect its stock price. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Franklin Resources. More…
| Total Revenues | Net Income | Net Margin |
| 7.85k | 882.8 | 6.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Franklin Resources. More…
| Operations | Investing | Financing |
| 1.23k | -3.33k | 1.58k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Franklin Resources. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 30.23k | 16.65k | 24.09 |
Key Ratios Snapshot
Some of the financial key ratios for Franklin Resources are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.1% | 1.7% | 19.6% |
| FCF Margin | ROE | ROA |
| 13.7% | 8.1% | 3.2% |
Analysis – Franklin Resources Stock Fair Value Calculation
At GoodWhale, we conducted an analysis of FRANKLIN RESOURCES‘s financials to determine their intrinsic value. Our proprietary Valuation Line determined that the intrinsic value of their share is around $27.7. Right now, FRANKLIN RESOURCES stock is traded at $29.7, a fair price that is slightly overvalued by 7.1%. More…
Peers
Franklin Resources Inc is one of the world’s largest asset managers with over $1.5 trillion in assets under management. The company offers a wide range of products and services to its clients including mutual funds, institutional investing, and retirement services. Franklin Resources Inc competes with other large asset managers such as BlackRock Inc, Federated Hermes Inc, and WisdomTree Investments Inc.
– BlackRock Inc ($NYSE:BLK)
BlackRock Inc. is an American multinational investment management corporation based in New York City. Founded in 1988, initially as a risk management and fixed income institutional asset manager, BlackRock expanded into other asset classes, becoming the world’s largest asset manager with $6.84 trillion in assets under management as of October 2020. BlackRock operates globally with 70 offices in 30 countries and clients in 100 countries.
– Federated Hermes Inc ($NYSE:FHI)
Federated Hermes Inc is a publicly traded company with a market capitalization of $2.75 billion as of 2022. The company’s return on equity, a measure of profitability, was 22.41% for the same year. Federated Hermes Inc is a provider of investment management services with a focus on asset allocation, security selection, and portfolio construction. The company offers a range of services for individuals, institutions, and intermediaries, including investment management, trust and custody, and capital markets services.
– WisdomTree Investments Inc ($NASDAQ:WETF)
WisdomTree Investments Inc is a publicly traded investment management company that specializes in exchange-traded funds. The company has a market capitalization of $721.2 million and a return on equity of 4.76%. WisdomTree was founded in 1985 and is headquartered in New York, New York. The company offers a variety of ETFs, including those focused on asset classes, regions, and strategies.
Summary
Franklin Resources (BEN) is an attractive value play for investors. The company has several catalysts that could drive its stock higher in the near-term. Moreover, the company has a wide array of actively managed funds, making it a great option for income-seeking investors. Its portfolio is also highly diversified, emphasizing a mix of both domestic and international equities, as well as fixed income securities.
Additionally, Franklin Resources has undertaken several corporate acquisitions and restructuring initiatives, creating a more efficient and profitable organization. All these factors make BEN an appealing investment opportunity for those looking for an undervalued stock with long-term upside potential.
