Franklin Resources is a San Mateo-based holding company providing global investment management services across various asset classes, employing 10,100 people. It serves retail, institutional, and high-net-worth clients through multiple branded products and funds.
Based on our analysis, Franklin Resources has received an undervalued rating of 4 out of 5 stars from Cashu. This assessment is supported by several key financial ratios that highlight the company's potential for growth and income.
The Price-to-Earnings (PE) ratio for Franklin Resources stands at 23.09, which is significantly higher than the sector average of 12.84. A high PE ratio may indicate that the market expects strong future growth, but in this case, it suggests that investors might be overlooking other positive aspects of the company. The Price-to-Book (PB) ratio is notably low at 0.84, compared to the sector average of 1.07. This indicates that the stock may be undervalued relative to its book value, suggesting potential for price appreciation.
Franklin Resources reports a net profit margin of 5.48, which trails the sector's 18.12. While this margin indicates profitability, it also reveals an opportunity for improvement in operational efficiency. The Return on Equity (ROE) is at 3.72, significantly lower than the sector average of 8.04, which reflects the need for better utilization of shareholder equity to generate profits.
On a positive note, the company offers a robust dividend yield of 6.12, well above the sector average of 2.93, making it an attractive option for income-focused investors. Additionally, the Return on Assets (ROA) at 1.43, surpasses the sector average of 0.83, indicating effective asset utilization.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
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