BEN:NYSEFranklin Resources, Inc. Analysis
Data as of 2026-03-11 - not real-time
Latest Price
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 yearKey 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 yearsKey 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 yearsKey Factors
- Significant overvaluation versus intrinsic value
- Unsustainable dividend policy (payout >100%)
- Elevated volatility and beta indicating higher market sensitivity
Key Metrics & Analysis
Financial Health
Technical Analysis
Valuation
Risk Assessment
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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.