We use cookies to analyze site traffic and improve your experience.
By accepting, you consent to the use of analytics cookies.

BEN:NYSEFranklin Resources, Inc. Analysis

Data as of 2026-03-11 - not real-time

$25.22

Latest Price

7/10Risk

Risk Level: Medium

Executive Summary

Franklin Resources (BEN) trades at $25.22, comfortably above its DCF‑derived fair value of roughly $8.5, indicating a significant valuation premium. The stock sits just above the 20‑day SMA (≈$27) and the 50‑day SMA (≈$26), with a bullish trend direction but a bearish MACD histogram and a sub‑38 RSI, suggesting short‑term pressure despite underlying momentum. Revenue growth remains modest at ~3% YoY, while operating margins hover near 16% and the payout ratio exceeds 100%, raising concerns about dividend sustainability. Recent earnings missed expectations and analyst sentiment is mixed, with some raising price targets but maintaining neutral or sell ratings. The high 30‑day volatility (~29%) and beta above 1 further underscore a risk‑on environment, though stable volume and solid liquidity mitigate immediate trading concerns.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • Bearish MACD and RSI near oversold levels
  • Current price just above key support at $24.64
  • Attractive dividend yield offset by high payout ratio

Medium Term

1–3 years
Neutral
Model confidence: 5/10

Key Factors

  • Modest revenue and earnings growth
  • Valuation premium relative to DCF and industry PE
  • Mixed analyst sentiment with limited upside (~8% upside/downside estimate)

Long Term

> 3 years
Cautious
Model confidence: 4/10

Key Factors

  • Significant overvaluation versus intrinsic value
  • Unsustainable dividend policy (payout >100%)
  • Elevated volatility and beta indicating higher market sensitivity

Key Metrics & Analysis

Financial Health

Revenue Growth3.40%
Profit Margin6.97%
P/E Ratio23.4
ROE4.46%
ROA2.37%
Debt/Equity24.59
P/B Ratio1.1
Op. Cash Flow$956.2M
Free Cash Flow$328.3M
Industry P/E17.3

Technical Analysis

TrendBullish
RSI37.9
Support$24.64
Resistance$28.32
MA 20$26.99
MA 50$26.17
MA 200$24.22
MACDBearish
VolumeStable
Fear & Greed Index76.36

Valuation

Fair Value$8.47
Target Price$27.36
Upside/Downside8.50%
GradeOvervalued
TypeValue
Dividend Yield5.23%

Risk Assessment

Beta1.09
Volatility29.44%
Sector RiskMedium
Reg. RiskMedium
Geo RiskLow
Currency RiskLow
Liquidity RiskLow

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.