📊 FELE Key Takeaways
Is FELE a Good Investment? Thesis Analysis
Franklin Electric demonstrates solid fundamental health with strong operational efficiency, excellent liquidity, and robust free cash flow generation. Revenue growth of 5.4% combined with stable net margins and conservative leverage positions the company well for sustainable operations, though recent EPS decline warrants monitoring for operational headwinds.
Why Buy FELE? Key Strengths
- Exceptional liquidity with 2.79x current ratio and 1.18x quick ratio providing significant financial flexibility
- Strong free cash flow generation of $193.5M (9.1% FCF margin) demonstrates operational efficiency and capital generation capability
- Conservative capital structure with 0.13x debt-to-equity ratio and 25.3x interest coverage indicating minimal financial stress
- Stable gross margin at 35.5% and operating margin at 12.6% reflecting pricing power and operational discipline
- Solid ROE of 11.1% and ROA of 7.6% showing effective asset utilization and shareholder value creation
FELE Investment Risks to Consider
- EPS declined 16.6% year-over-year despite net income growth of 0.4%, suggesting increased share count dilution or unfavorable tax dynamics
- Modest revenue growth of 5.4% may indicate market maturity or competitive pressures in the motors and generators sector
- Net margin compression risk evidenced by minimal net income growth relative to gross profit performance
- Significant insider activity with 24 Form 4 filings in last 90 days warrants monitoring for information asymmetries
Key Metrics to Watch
- EPS trajectory and share count changes to understand source of EPS decline despite growing net income
- Operating margin sustainability and gross margin trends to identify cost control and pricing dynamics
- Free cash flow conversion and capital allocation decisions to assess management efficiency
- Revenue growth acceleration/deceleration in core markets to gauge organic growth sustainability
FELE Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.79x current ratio provides a solid financial cushion.
FELE Profitability Ratios
FELE vs Default Sector
How FRANKLIN ELECTRIC CO INC compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is FELE Overvalued or Undervalued?
Based on fundamental analysis, FRANKLIN ELECTRIC CO INC has mixed fundamental signals relative to the Default 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.
FELE Balance Sheet & Liquidity
FELE 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
FELE Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q2 2023 | $551.1M | $59.4M | $1.26 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
FELE Capital Allocation
FELE SEC 10-K & 10-Q Filing 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 an AI rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are FELE's key strengths?
Claude: Exceptional liquidity with 2.79x current ratio and 1.18x quick ratio providing significant financial flexibility. Strong free cash flow generation of $193.5M (9.1% FCF margin) demonstrates operational efficiency and capital generation capability.
What are the risks of investing in FELE?
Claude: EPS declined 16.6% year-over-year despite net income growth of 0.4%, suggesting increased share count dilution or unfavorable tax dynamics. Modest revenue growth of 5.4% may indicate market maturity or competitive pressures in the motors and generators sector.
What is FELE's revenue and growth?
FRANKLIN ELECTRIC CO INC reported revenue of $2.1B.
Does FELE pay dividends?
FRANKLIN ELECTRIC CO INC pays dividends, with $50.0M 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 $3.22.
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 March 2026, FRANKLIN ELECTRIC CO INC has a BUY rating with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is FELE stock overvalued or undervalued?
Valuation metrics for FELE: ROE of 11.1% (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 BUY 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 $238.9M, with capital expenditures of $45.3M. FCF margin is 9.1%.
How does FELE compare to other Default stocks?
Vs Default sector averages: Net margin 6.9% (avg: 12%), ROE 11.1% (avg: 15%), current ratio 2.79 (avg: 1.8).