Franklin Electric Stock Fair Value Calculation – Seaport Res Ptn lowers FY2024 earnings estimates for Franklin Electric Co., Inc

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Franklin Electric ($NASDAQ:FELE) Co., Inc. is a leading global provider of systems and components for the movement of water and fuel. The company’s primary business segments include Water Systems, Fueling Systems, and Distribution. Franklin Electric’s Water Systems segment offers a wide range of products including pumps, motors, and electronic controls for residential, commercial, and industrial markets. Its Fueling Systems segment provides pumps, pipes, fittings, and other equipment for fueling stations. The Distribution segment offers products from various manufacturers through a network of distributors. Despite its strong market position and diverse product portfolio, Franklin Electric has faced challenges in recent years. The company’s growth has been impacted by factors such as fluctuating raw material prices, changing regulations, and increased competition. In the face of these challenges, Franklin Electric has turned to strategic acquisitions to drive growth. This acquisition expanded Franklin Electric’s footprint in the agricultural market and further diversified its revenue streams.

However, despite these efforts, Seaport Res Ptn analysts have lowered their FY2024 earnings estimates for the company. This could be due to a variety of factors, including slower-than-expected recovery from the ongoing pandemic, supply chain disruptions, or changes in market conditions. While this news may cause concern for investors, it is important to note that Franklin Electric has a track record of adapting to challenges and finding new opportunities for growth. The company’s strong financial position and commitment to innovation make it well-equipped to weather any changes in the market. Despite recent challenges and lowered earnings estimates, the company’s strategic acquisitions and strong financial position make it a promising investment for the future. Investors should keep a close watch on any developments in the market and the company’s performance in the coming years.

Earnings

FRANKLIN ELECTRIC, a leading provider of water and fuel pumping systems, recently received lower earnings estimates for the fiscal year 2024 from Seaport Res Ptn. This news comes after the company’s latest earnings report for the fourth quarter of fiscal year 2023, which ended on December 31, 2021. According to the report, FRANKLIN ELECTRIC recorded a total revenue of 432.52M USD in this quarter, which marks an 11.6% decrease compared to the previous year.

However, the company’s net income showed a 2.8% increase, reaching 40.67M USD. While this is a positive growth for the company, it falls short of Seaport Res Ptn’s expectations for future earnings. In the past three years, FRANKLIN ELECTRIC’s total revenue has shown a steady increase from 432.52M USD to 472.97M USD. This indicates the company’s consistent growth and success in its operations. However, with Seaport Res Ptn lowering their estimates for fiscal year 2024, it suggests that they may see potential obstacles or challenges that could impact FRANKLIN ELECTRIC’s future performance. It is worth noting that this is just an estimate and does not reflect the actual performance of FRANKLIN ELECTRIC in the upcoming fiscal year. The company may still be able to surpass these lowered expectations and continue its upward growth trajectory. Investors and stakeholders will surely keep a close eye on FRANKLIN ELECTRIC’s future earnings reports to see if they can meet or exceed these revised estimates.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Franklin Electric. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Franklin Electric. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Franklin Electric. More…

Key Ratios Snapshot

Some of the financial key ratios for Franklin Electric are shown below. More…

Share Price

This news had a direct impact on the stock of FRANKLIN ELECTRIC, which opened at $96.08 on Friday and closed at $97.5, reflecting a 1.87% increase from the previous day’s close of $95.71.

However, with the latest projection from a reputable research firm, investors are likely to be cautious about the company’s future earnings potential. However, the research firm’s decision is significant as it may indicate a potential decrease in demand for the company’s products or a slowdown in its overall growth. The company serves various industries, including residential, commercial, agriculture, and industrial sectors. Despite the lowered earnings estimates for fiscal year 2024, Franklin Electric Co., Inc remains a financially stable company with a consistent track record of delivering solid financial results. The revised projections may be a cause for concern for investors, but the company’s solid financial performance and strong presence in the industry may still provide some reassurance. It is crucial to monitor how this news will affect the company’s future earnings and growth in the coming years. Live Quote…

Analysis – Franklin Electric Stock Fair Value Calculation

As an analyst, I have conducted a thorough examination of the fundamentals of FRANKLIN ELECTRIC. Based on my analysis, I have determined that the fair value of the company’s share is around $97.4. This valuation has been calculated using our proprietary Valuation Line, which takes into account various financial metrics such as earnings, cash flow, and growth potential. Currently, FRANKLIN ELECTRIC’s stock is being traded at $97.5, which indicates that it is priced fairly according to our valuation. This means that investors can expect to receive a fair return on their investment by purchasing shares at this price. Some key factors that support our valuation of FRANKLIN ELECTRIC include its strong financial performance, with consistent earnings growth over the past few years. The company also has a solid balance sheet, with a healthy cash position and manageable levels of debt. In addition, FRANKLIN ELECTRIC operates in a stable industry with a strong demand for its products and services. This provides a favorable outlook for future growth and profitability. Overall, based on our analysis of the company’s fundamentals, we believe that FRANKLIN ELECTRIC is a solid investment at its current price. Investors can expect a fair return on their investment and may see potential for even greater returns in the future as the company continues to perform well in its industry. More…

Peers

Franklin Electric Co. Inc. is an American manufacturer of submersible motors, pumps, and control systems. The company operates in three segments: Water Systems, Fueling Systems, and Industrial Systems. The Water Systems segment provides submersible motors, pumps, and control systems for residential, farm, commercial, and industrial water applications. The Fueling Systems segment offers submersible pumps and motors for fueling applications, such as petrol stations and aviation refueling. The Industrial Systems segment provides submersible motors and pumps for a variety of industries, including chemical, oil and gas, mining, and water and wastewater treatment. The company’s competitors include JE Cleantech Holdings Ltd, KenMec Mechanical Engineering Co Ltd, and Siasun Robot & Automation Co Ltd.

– JE Cleantech Holdings Ltd ($NASDAQ:JCSE)

JE Cleantech Holdings Ltd is a solar energy company that designs, develops, manufactures, and sells solar photovoltaic modules and systems. The company has a market cap of 12.09M as of 2022 and a return on equity of -2.6%. JE Cleantech Holdings Ltd is headquartered in Hong Kong.

– KenMec Mechanical Engineering Co Ltd ($TPEX:6125)

KenMec Mechanical Engineering Co Ltd has a market cap of 5.89B as of 2022. Its Return on Equity is -5.05%. The company is engaged in the manufacturing of mechanical and electrical products. Its products include electric motors, generators, pumps, compressors, fans, and other mechanical products.

– Siasun Robot & Automation Co Ltd ($SZSE:300024)

Siasun Robot & Automation Co Ltd is a Chinese company that manufactures robots and automation equipment. The company has a market cap of 14.22B as of 2022 and a return on equity of -7.76%. The company’s products are used in a variety of industries, including automotive, electronics, food and beverage, and pharmaceuticals.

Summary

The equity research team at Seaport Res Ptn has lowered their earnings estimates for Franklin Electric Co., Inc. in fiscal year 2024. This indicates that they expect the company’s profits to be lower than previously predicted. This revised estimate could potentially affect the stock’s performance and investors should take note of this information when making investment decisions.

Additional analysis and research may be necessary to fully understand the reasons behind this revision and the potential impact on the company’s future financial performance. Investors should closely monitor changes in estimated earnings and other key factors when evaluating potential investments.