📊 BEN Key Takeaways
Investment Thesis
Franklin Resources demonstrates solid operational profitability with 12.1% operating margins and 11.3% net income growth, supported by strong balance sheet metrics including 0.19x debt-to-equity and 13.8x interest coverage. However, severely negative free cash flow of -$409.6M (-17.6% FCF margin) and declining operating cash flow raise concerns about the sustainability of earnings quality and capital allocation efficiency.
BEN Strengths
- Strong revenue growth of 3.5% YoY in a competitive asset management environment
- Robust balance sheet with $3.5B cash, low leverage (0.19x debt-to-equity), and excellent liquidity ratios (5.30x current ratio)
- Solid operational profitability with 12.1% operating margin and 11.0% net margin
- Net income growth of 11.3% YoY outpacing revenue growth demonstrates operational leverage
BEN Risks
- Severe negative free cash flow of -$409.6M indicates operating cash generation is insufficient to cover capital expenditures, raising sustainability concerns
- Operating cash flow is negative (-$255.1M) while net income is positive, suggesting earnings quality issues and potential accounting-driven profits rather than cash generation
- Very low returns on equity (2.1%) and assets (0.8%) indicate inefficient capital deployment despite significant asset base of $32.5B
- High capital expenditures of $154.5M relative to operating cash flow suggests aggressive investment without adequate cash backing
Key Metrics to Watch
- Operating cash flow trend - critical to monitor if negative trend reverses to positive
- Free cash flow margin - must improve from -17.6% to sustainable positive territory
- Asset base growth and net inflows/outflows in managed assets given this is an asset management company
- Return on equity trajectory - 2.1% ROE is concerning and needs significant improvement
- Capital expenditure efficiency - determine if current capex investments are generating returns
BEN Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 5.30x current ratio provides a solid financial cushion.
BEN Profitability Ratios
BEN vs Default Sector
How FRANKLIN RESOURCES INC compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
BEN Balance Sheet & Liquidity
BEN 5-Year Financial Trend
5-Year Trend Summary: FRANKLIN RESOURCES INC's revenue has shown modest growth of 4% over the 5-year period. The most recent EPS of $1.72 reflects profitable operations.
BEN Growth Metrics (YoY)
BEN Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $2.3B | $163.6M | $0.29 |
| Q3 2025 | $2.1B | $92.3M | $0.15 |
| Q2 2025 | $2.1B | $124.2M | $0.23 |
| Q1 2025 | $2.0B | $163.6M | $0.29 |
| Q3 2024 | $2.0B | $174.0M | $0.32 |
| Q2 2024 | $1.9B | $124.2M | $0.23 |
| Q1 2024 | $2.0B | $165.6M | $0.32 |
| Q3 2023 | $2.0B | $227.5M | $0.44 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
BEN Capital Allocation
BEN SEC Filings
Access official SEC EDGAR filings for FRANKLIN RESOURCES INC (CIK: 0000038777)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BEN
What is the AI rating for BEN?
FRANKLIN RESOURCES INC (BEN) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are BEN's key strengths?
Strong revenue growth of 3.5% YoY in a competitive asset management environment. Robust balance sheet with $3.5B cash, low leverage (0.19x debt-to-equity), and excellent liquidity ratios (5.30x current ratio).
What are the risks of investing in BEN?
Severe negative free cash flow of -$409.6M indicates operating cash generation is insufficient to cover capital expenditures, raising sustainability concerns. Operating cash flow is negative (-$255.1M) while net income is positive, suggesting earnings quality issues and potential accounting-driven profits rather than cash generation.
What is BEN's revenue and growth?
FRANKLIN RESOURCES INC reported revenue of $2.3B.
Does BEN pay dividends?
FRANKLIN RESOURCES INC pays dividends, with $170.2M distributed to shareholders in the trailing twelve months.
Where can I find BEN SEC filings?
Official SEC filings for FRANKLIN RESOURCES INC (CIK: 0000038777) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BEN's EPS?
FRANKLIN RESOURCES INC has a diluted EPS of $0.46.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.