FELE

Franklin Electric Co., Inc.

Fundamental data last updated:September 6, 2026

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company profile

SECTOR

Industrials

industry

Industrial - Machinery

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

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.

 


VALUATION

P/E

29.11

Market Cap ($M USD)

$4.38B

Forward P/E

19.35

PEG

0.38

PRICE TO SALES

2.01

PRICE TO BOOK

3.27

EV / EBITDA

12.86

5-Year Average P/E

Free Cash Flow Yield

3.87%

DCF Value

$77.73

Graham Number

$48.18

Price to FCF

25.83

EV to FCF

27.07

Earnings Yield

3.44%

FCF Yield

3.87%

DIVIDEND

Yield

1.10%

Annual Payout

$1.09

Payout Ratio

32.76%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$3.40

Next Year EPS Growth Estimate

$5.12

Next Year Revenue Growth Estimate

$2.33B

Return on Equity (ROE)

11.47%

FREE CASH FLOW

Operating Margin

12.86%

Debt-to-Equity

0.21

Piotroski F-Score

6

Altman Z-Score

6.79

Return on Invested Capital (ROIC)

17.31%

Current Ratio

2.67

Quick Ratio

1.14

Net Debt to EBITDA

0.59

Interest Coverage

25.09

Gross Profit margin

35.24%

FCF PER SHARE

$3.83

REVENUE PER SHARE

$49.24

Gainseekers Quantitative Analysis

Summary

Franklin Electric Co., Inc. presents a perplexing valuation scenario. Recent pricing indicated it traded above its DCF value and Graham Number, suggesting potential overvaluation. However, the Forward P/E of 19.40 and a robust Altman Z-score of 6.76 highlight financial stability and growth potential. The Earnings Yield of 3.43% may not be enticing, but the company’s safety metrics are solid. The market seems to be pricing in significant growth, yet the stock’s current valuation may not fully justify this optimism.

AI Exposure / Tech Reliance

Operating within the Industrials sector, Franklin Electric is well-positioned to leverage AI and modern technology shifts. As an Industrial Machinery company, it can integrate AI for predictive maintenance and operational efficiency. This adaptability could enhance its competitive edge in a rapidly evolving market.

The Bull Case

For the value or GARP investor, Franklin Electric offers compelling reasons to buy. With an impressive ROIC of 17.31%, the company demonstrates strong capital efficiency. The Piotroski F-Score of 6 indicates decent financial health, while the operating margin of 12.86% underscores its pricing power. Despite a modest FCF Yield, the company's ability to generate cash flow and maintain a low Debt/Equity ratio enhances its appeal.

The Bear Case

Yet, the stock is not without its flaws. The Price/Book ratio of 3.28 and Price/Sales of 2.02 suggest a premium valuation, potentially limiting upside. Its Price to FCF of 25.90 raises concerns about cash flow efficiency. Additionally, trading close to its 52-week high could indicate technical overextension. These factors might deter investors wary of paying a premium for growth that may not materialize.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$100.00

Institutional Ownership %

1-Year Beta

1.07

Insider Buying % (6 Mo)

Distance to 52-Week High

12.55%

Distance to 52-Week Low

14.92%

EARNINGS SURPRISE %

7.79%

50-DAY SMA

$97.74

200-DAY SMA

$97.17

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.