📊 FELE Key Takeaways
Is Franklin Electric Co Inc. (FELE) a Good Investment?
Franklin Electric faces significant operational challenges despite 5.4% revenue growth, with negative operating cash flow of -$40.9M indicating working capital deterioration that contradicts positive accounting profits. The company's extremely poor returns on equity (2.6%) and assets (1.7%) combined with 16.6% EPS decline signal fundamental capital inefficiency and shareholder value destruction.
Franklin Electric shows solid fundamental quality with steady revenue growth, healthy gross and operating margins, and strong free cash flow generation. The balance sheet is conservative, with low leverage, strong liquidity, and high interest coverage, though the latest period also shows weaker earnings conversion as net income barely grew and diluted EPS declined materially.
Why Buy Franklin Electric Co Inc. Stock? FELE Key Strengths
- Conservative capital structure with 0.10x debt/equity ratio and minimal financial risk
- Excellent short-term liquidity with 2.67x current ratio provides operational flexibility
- Strong interest coverage of 20.8x ensures no debt service concerns with $134.4M long-term debt
- Strong financial health with low debt-to-equity of 0.13x, current ratio of 2.79x, and interest coverage of 25.3x
- Healthy profitability profile with 35.5% gross margin and 12.6% operating margin
- Good cash generation with $193.54M in free cash flow and a 9.1% FCF margin
FELE Stock Risks: Franklin Electric Co Inc. Investment Risks
- Negative operating cash flow of -$40.9M with matching -$50.4M free cash flow indicates unsustainable working capital deterioration despite positive net income
- Catastrophically low returns: 2.6% ROE and 1.7% ROA demonstrate severe capital inefficiency and inability to generate returns for shareholders
- Profitability deterioration with 16.6% EPS decline while net income grew only 0.4% YoY indicates margin compression and shareholder dilution despite revenue growth
- Revenue growth of 5.4% translated into only 0.4% net income growth, suggesting margin pressure or weaker earnings conversion
- Diluted EPS fell 16.6% year over year despite stable net income, which raises concern about per-share earnings quality
- Net margin of 6.9% is materially below gross and operating margins, leaving less cushion if costs or demand weaken
Key Metrics to Watch
- Operating cash flow reversal and detailed working capital analysis (receivables aging, inventory turnover)
- Free cash flow sustainability and cash burn rate stabilization
- Return on equity and asset improvement trajectory
- Net income and diluted EPS growth relative to revenue growth
- Free cash flow margin and operating margin trend
Franklin Electric Co Inc. (FELE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.67x current ratio provides a solid financial cushion.
FELE Profit Margin, ROE & Profitability Analysis
FELE vs Market Sector: How Franklin Electric Co Inc. Compares
How Franklin Electric Co Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Franklin Electric Co Inc. Stock Overvalued? FELE Valuation Analysis 2026
Based on fundamental analysis, Franklin Electric Co Inc. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Franklin Electric Co Inc. Balance Sheet: FELE Debt, Cash & Liquidity
FELE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Franklin Electric Co Inc.'s revenue has grown significantly by 28% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.11 reflects profitable operations.
FELE Revenue Growth, EPS Growth & YoY Performance
FELE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $455.2M | $31.0M | $0.67 |
| Q3 2025 | $531.4M | $16.7M | $0.37 |
| Q2 2025 | $543.3M | $59.1M | $1.26 |
| Q1 2025 | $455.2M | $31.0M | $0.67 |
| Q3 2024 | $531.4M | $54.6M | $1.17 |
| Q2 2024 | $543.3M | $59.1M | $1.26 |
| Q1 2024 | $460.9M | $33.0M | $0.70 |
| Q3 2023 | $538.4M | $57.8M | $1.23 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Franklin Electric Co Inc. Dividends, Buybacks & Capital Allocation
FELE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Franklin Electric Co Inc. (CIK: 0000038725)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FELE
What is the AI rating for FELE?
Franklin Electric Co Inc. (FELE) has a Combined AI Rating of HOLD from Claude (SELL) and ChatGPT (BUY) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FELE's key strengths?
Claude: Conservative capital structure with 0.10x debt/equity ratio and minimal financial risk. Excellent short-term liquidity with 2.67x current ratio provides operational flexibility. ChatGPT: Strong financial health with low debt-to-equity of 0.13x, current ratio of 2.79x, and interest coverage of 25.3x. Healthy profitability profile with 35.5% gross margin and 12.6% operating margin.
What are the risks of investing in FELE?
Claude: Negative operating cash flow of -$40.9M with matching -$50.4M free cash flow indicates unsustainable working capital deterioration despite positive net income. Catastrophically low returns: 2.6% ROE and 1.7% ROA demonstrate severe capital inefficiency and inability to generate returns for shareholders. ChatGPT: Revenue growth of 5.4% translated into only 0.4% net income growth, suggesting margin pressure or weaker earnings conversion. Diluted EPS fell 16.6% year over year despite stable net income, which raises concern about per-share earnings quality.
What is FELE's revenue and growth?
Franklin Electric Co Inc. reported revenue of $500.4M.
Does FELE pay dividends?
Franklin Electric Co Inc. pays dividends, with $12.4M distributed to shareholders in the trailing twelve months.
Where can I find FELE SEC filings?
Official SEC filings for Franklin Electric Co Inc. (CIK: 0000038725) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FELE's EPS?
Franklin Electric Co Inc. has a diluted EPS of $0.77.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FELE a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Franklin Electric Co Inc. has a HOLD rating with 76% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FELE stock overvalued or undervalued?
Valuation metrics for FELE: ROE of 2.6% (sector avg: 15%), net margin of 6.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy FELE stock in 2026?
Our dual AI analysis gives Franklin Electric Co Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FELE's free cash flow?
Franklin Electric Co Inc.'s operating cash flow is $-40.9M, with capital expenditures of $9.5M. FCF margin is -10.1%.
How does FELE compare to other Market stocks?
Vs Default sector averages: Net margin 6.9% (avg: 12%), ROE 2.6% (avg: 15%), current ratio 2.67 (avg: 1.8).