Franklin Electric Co (FELE) AI Stock Analysis

• Market Cap: $4.00B
• Dividend Yield: 1.16%
• Average Volume (3M): 301.35K
• Price to Earnings (P/E): 22.6
• Beta (1Y): 0.92
• Revenue Growth: -2.12%
• EPS Growth: -6.07%
• Country: US
• Employees: 6,300
• Sector: Industrials
• Sector Strength: 63
• Industry: Industrial - Machinery
• EPS (TTM): 3.86
• Shares Outstanding: 45,780,415
• 10 Day Avg. Volume: 274,308
• 30 Day Avg. Volume: 301,348
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.16
• Price to Cash Flow (P/CF): 9.90
• P/FCF Ratio: 11.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $100.50
• Price Target Upside: 17.53% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

Franklin Electric exhibits strong financial fundamentals with consistent revenue growth and a solid balance sheet. Technical indicators suggest caution due to bearish momentum, although valuation is moderately attractive. Earnings call insights reveal mixed results with strategic growth plans offset by operational challenges.

Franklin Electric Co Business Overview & Revenue Model

Company Description

Franklin Electric Co., Inc., together with its subsidiaries, designs, manufactures, and distributes water and fuel pumping systems worldwide. It operates through three segments: Water Systems, Fueling Systems, and Distribution. The Water Systems segment offers submersible motors, pumps, drives, electronic controls, water treatment systems, monitoring devices, and related parts and equipment. Its motors and pumps are used principally for pumping clean water and wastewater in various residential, agricultural, municipal, and industrial applications; and manufactures electronic drives and controls that are used in motors for controlling functionality, as well as provides protection from various hazards, such as electrical surges, over-heating, and dry wells or tanks. The Fueling Systems segment provides pumps, pipes, sumps, fittings, vapor recovery components, electronic controls, monitoring devices, and related parts and equipment primarily for use in fueling system applications. This segment serves other energy markets, such as power reliability systems, as well as includes electronic devices for online monitoring of the power utility, hydroelectric, and telecommunication and data center infrastructure. The Distribution segment sells to and provides presale support and specifications to the installing contractors. It sells products produced by the Water Systems segment. The company sells its products to wholesale and retail distributors, specialty distributors, original equipment manufacturers, industrial and petroleum equipment distributors, and oil and utility companies through its employee sales force and independent manufacturing representatives. Franklin Electric Co., Inc. was founded in 1944 and is headquartered in Fort Wayne, Indiana.

How the Company Makes Money

Franklin Electric generates revenue primarily through the sale of its water and fueling systems. In the Water Systems segment, the company earns money by providing submersible motors, pumps, drives, electronic controls, and monitoring devices used in groundwater, surface water, and wastewater applications. This includes products for residential, agricultural, and industrial water systems. The Fueling Systems segment contributes to revenue through the sale of fuel pumping systems, fuel management systems, and monitoring and control systems used in fueling stations worldwide. Key revenue streams include direct sales to distributors, retailers, and OEMs (Original Equipment Manufacturers). The company's earnings are bolstered by its strong global distribution network, strategic acquisitions, and focus on developing energy-efficient products that meet regulatory standards.

Franklin Electric Co Financial Statement Overview

Summary

Franklin Electric demonstrates consistent revenue growth and stable profitability. The healthy gross profit margin indicates strong operational efficiency, while a robust balance sheet shows prudent leverage use. However, fluctuations in net profit margin and rising debt warrant monitoring.

Income Statement

Franklin Electric has demonstrated consistent revenue growth with a notable increase from $1.24 billion in 2020 to $2.06 billion in 2023. The gross profit margin remains healthy, consistently above 30%, indicating strong operational efficiency. However, the net profit margin has seen slight fluctuations, reflecting some volatility in cost management. The EBIT and EBITDA margins have also been stable, showing resilience in core profit generation.

Balance Sheet

The company's balance sheet is robust with a strong equity base, as indicated by the equity ratio consistently above 60%. The debt-to-equity ratio is moderate, suggesting prudent use of leverage. The return on equity (ROE) is favorable, showcasing efficient use of shareholders' equity to generate profits. The significant increase in cash reserves in 2024 strengthens liquidity, although the rise in total debt warrants cautious monitoring.

Cash Flow

Cash flow generation remains solid, with operating cash flow consistently exceeding net income, indicating high-quality earnings. The free cash flow has shown positive growth, although the capital expenditure remains significant, reflecting ongoing investments. The free cash flow to net income ratio demonstrates good cash conversion, though the fluctuations in free cash flow growth suggest some variability in cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.02B	2.07B	2.04B	1.66B	1.25B
	Gross Profit
717.28M	697.01M	691.43M	576.09M	433.14M
	EBIT
243.65M	262.44M	257.19M	189.19M	130.51M
	EBITDA
294.24M	306.27M	319.13M	253.28M	176.51M
	Net Income Common Stockholders
180.31M	193.27M	187.33M	153.86M	100.46M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
220.54B	84.96M	45.79M	40.54M	130.79M
	Total Assets
1.82T	1.73B	1.69B	1.58B	1.27B
	Total Debt
191.62B	156.28M	264.84M	236.77M	126.47M
	Net Debt
-28.92B	71.31M	219.05M	196.24M	-4.31M
	Total Liabilities
552.00B	517.83M	623.40M	626.54M	422.36M
	Stockholders Equity
1.27T	1.21B	1.07B	946.48M	847.83M
Cash Flow		Free Cash Flow
219.67M	274.30M	59.77M	99.65M	189.00M
	Operating Cash Flow
261.35M	315.71M	101.67M	129.76M	211.85M
	Investing Cash Flow
-45.63M	-74.29M	-43.07M	-264.81M	-78.81M
	Financing Cash Flow
-74.07M	-192.19M	-48.47M	50.89M	-66.58M

Franklin Electric Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 85.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FELE, the sentiment is Negative. The current price of 85.51 is below the 20-day moving average (MA) of 96.33, below the 50-day MA of 99.32, and below the 200-day MA of 100.51, indicating a bearish trend. The MACD of -1.46 indicates Positive momentum. The RSI at 34.23 is Neutral, neither overbought nor oversold. The STOCH value of 16.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FELE.

Franklin Electric Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MWA	79 Outperform	$3.64B	26.67	17.49%	1.13%	11.94%	77.46%
FLS	75 Outperform	$5.28B	18.76	14.34%	2.10%	5.49%	51.02%
FELE	72 Outperform	$4.00B	22.64	14.53%	1.16%	-2.12%	-6.07%
SPXC	71 Outperform	$5.67B	28.42	15.65%	―	13.94%	37.49%
GRC	70 Outperform	$854.49M	21.29	11.09%	2.24%	0.02%	14.58%
Sector *	62 Neutral	$7.24B	12.39	3.08%	3.39%	3.63%	-14.35%
MIR	52 Neutral	$2.94B	―	-2.41%	―	7.48%	63.59%

Franklin Electric Co Corporate Events

Franklin Electric Co. CFO Resignation and Interim Appointment

Franklin Electric Co. announced that Jeffery Taylor, the Vice President and Chief Financial Officer, resigned effective March 28, 2025. On the same date, Russell Fleeger, the current Chief Financial Officer of the Water Systems Segment, will take over as the interim Chief Financial Officer. Mr. Fleeger will receive a monthly stipend and an equity grant as part of his new role.

Franklin Electric Co Releases Quarterly Presentation Materials

On February 28, 2025, Franklin Electric Co., Inc. released quarterly presentation materials on its website for investor communications and conferences. This release is part of their ongoing efforts to provide transparency and engage with stakeholders, although it is not considered a formal filing under securities regulations.

Franklin Electric Co CFO Jeffery Taylor Resigns

On February 21, 2025, Franklin Electric Co. announced that its Chief Financial Officer, Jeffery Taylor, will resign from his position effective March 28, 2025. The company clarified that Mr. Taylor’s departure was amicable and not due to any disagreements regarding company operations or accounting practices. He will assist in the transition to his successor and will receive severance benefits as per the company’s Executive Severance Policy.

Franklin Electric to Acquire Barnes de Colombia S.A.

On February 14, 2025, Franklin Electric Co., Inc. announced a definitive agreement to acquire Barnes de Colombia S.A., a leading Colombian manufacturer and distributor of industrial and commercial pumps. This strategic acquisition is part of Franklin Electric’s long-term growth and diversification strategy, aimed at enhancing its market presence in Latin America and expanding its product portfolio. The acquisition is subject to customary closing conditions, including Colombian antitrust clearance, with an expected closure around March 1, 2025. Barnes de Colombia’s established operations across various Latin American countries and its robust distribution network are expected to accelerate Franklin Electric’s growth in the region, strengthening its ability to serve customers with an expanded portfolio of innovative products.