Franklin Financial Services (FRAF) AI Stock Analysis

• Market Cap: $150.35M
• Dividend Yield: 3.78%
• Average Volume (3M): 17.55K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.09
• Revenue Growth: 25.46%
• EPS Growth: -19.62%
• Country: US
• Employees: 306
• Sector: Financial
• Sector Strength: 80
• Industry: Banks - Regional
• EPS (TTM): 2.49
• Shares Outstanding: 4,440,442
• 10 Day Avg. Volume: 17,462
• 30 Day Avg. Volume: 17,549
• PEG Ratio: 14.10
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.32
• Price to Cash Flow (P/CF): 9.40
• P/FCF Ratio: 3.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Franklin Financial Services demonstrates solid financial stability with strong revenue growth and a robust balance sheet. However, inconsistent profitability margins and cash flow conversion present challenges. Technical indicators show mixed signals, while valuation remains reasonable, offering a moderate growth potential.

Franklin Financial Services Business Overview & Revenue Model

Company Description

Franklin Financial Services Corporation operates as the bank holding company for Farmers and Merchants Trust Company of Chambersburg that provides commercial, retail banking, and trust services to small and medium-sized businesses, individuals, governmental entities, and non-profit organizations in Pennsylvania. It offers various deposit products, including checking, savings, money management, and time deposit accounts, as well as demand deposits. The company also provides commercial real estate, construction and land development, agricultural, commercial and industrial, and residential mortgage loans, as well as installment and revolving loans to consumers; and secured and unsecured commercial and industrial loans, including accounts receivable and inventory financing, and commercial equipment financing. In addition, it offers various investment and trust services comprising estate planning and administration, corporate and personal trust fund management, pension, and profit sharing and other employee benefit funds management services, as well as custodial services; sells mutual funds, annuities, and insurance products; and offers safe deposit facilities and fiduciary services. Further, the company, through its subsidiary, Franklin Future Fund Inc., operates as a non-bank investment company that makes venture capital investments. It operates twenty-two community banking offices in Franklin, Cumberland, Fulton, and Huntingdon counties, Pennsylvania. Franklin Financial Services Corporation was founded in 1906 and is headquartered in Chambersburg, Pennsylvania.

How the Company Makes Money

Franklin Financial Services Corporation earns revenue through various streams, primarily from interest income generated by its banking operations. This includes interest earned on loans and mortgages provided to personal and commercial clients. Additionally, the company derives non-interest income from service fees, asset management fees, and insurance commissions. These diverse revenue streams are complemented by strategic partnerships within the financial sector, enhancing its product offerings and market reach.

Franklin Financial Services Financial Statement Overview

Summary

Franklin Financial Services showcased solid revenue growth and a strong equity base with low leverage. However, the company faces challenges in maintaining consistent profitability margins and cash flow conversion, which dampens its financial performance.

Income Statement

Franklin Financial Services demonstrated solid revenue growth with a consistent increase from $55.96 million in 2020 to $101.45 million in 2024. The gross profit margin remained robust, given that the gross profit equaled total revenue. However, the net profit margin showed slight volatility, decreasing from 31.94% in 2019 to 10.94% in 2024, indicating pressure on bottom-line profitability. The EBIT margin decreased over time, reflecting operational challenges.

Balance Sheet

The company has maintained a strong equity base, with stockholders' equity increasing from $127.53 million in 2019 to $144.72 million in 2024. The debt-to-equity ratio remains low, indicative of conservative leverage. However, the equity ratio has slightly decreased over the years, suggesting a marginal rise in liabilities relative to assets. Return on Equity (ROE) experienced some fluctuations, which could impact investor confidence.

Cash Flow

Cash flow from operations was positive and relatively stable. However, free cash flow growth has been inconsistent, affected by varying capital expenditures. The operating cash flow to net income ratio was strong, but the free cash flow to net income ratio showed some variability, indicating challenges in converting earnings to free cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
101.45M	65.76M	65.41M	61.08M	55.96M
	Gross Profit
101.45M	65.76M	65.41M	61.08M	55.96M
	EBIT
99.56M	16.25M	22.36M	23.01M	13.06M
	EBITDA
0.00	0.00	18.93M	24.22M	14.39M
	Net Income Common Stockholders
11.10M	13.60M	14.94M	19.62M	12.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
528.45M	492.01M	565.71M	715.45M	466.83M
	Total Assets
2.20B	1.84B	1.70B	1.77B	1.54B
	Total Debt
4.26M	154.48M	25.77M	24.45M	24.89M
	Net Debt
-15.59M	125.11M	-53.11M	-161.20M	-45.00M
	Total Liabilities
2.05B	1.70B	1.59B	24.45M	24.89M
	Stockholders Equity
144.72M	132.14M	114.20M	157.06M	145.18M
Cash Flow		Free Cash Flow
19.19M	26.00M	13.03M	17.54M	5.95M
	Operating Cash Flow
21.75M	26.50M	25.24M	26.35M	6.43M
	Investing Cash Flow
-184.37M	-178.20M	-95.06M	-133.94M	-277.31M
	Financing Cash Flow
343.08M	109.94M	-40.44M	225.59M	244.20M

Franklin Financial Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 33.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FRAF, the sentiment is Negative. The current price of 33.86 is below the 20-day moving average (MA) of 35.64, below the 50-day MA of 36.07, and above the 200-day MA of 31.86, indicating a neutral trend. The MACD of -0.22 indicates Positive momentum. The RSI at 39.07 is Neutral, neither overbought nor oversold. The STOCH value of 22.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FRAF.

Franklin Financial Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRST	74 Outperform	$539.40M	11.06	7.39%	5.08%	6.97%	-16.70%
NWBI	71 Outperform	$1.43B	14.25	6.36%	7.16%	7.67%	-25.85%
CBFV	68 Neutral	$137.55M	11.31	8.77%	3.72%	31.41%	-44.35%
CZNC	67 Neutral	$295.09M	11.31	9.58%	5.87%	3.55%	6.97%
FRAF	66 Neutral	$150.35M	13.47	8.02%	3.78%	25.46%	-19.62%
Sector *	63 Neutral	$12.86B	9.19	9.16%	4.78%	16.31%	-8.97%
FULT	62 Neutral	$2.76B	9.63	9.69%	4.56%	21.10%	-4.20%