Franklin Resources, Inc. (BEN) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Financial Services · Asset Management
Is Franklin Resources, Inc. a safe investment right now?
Franklin Resources, Inc. is in the Financial Services sector — Altman Z-Score does not apply to this type of company. Our fair value estimate is $26.77 (Fairly Valued).
Why the Altman Z-Score does not apply to Franklin Resources, Inc.
The Altman Z-Score is designed for manufacturing and non-financial companies. It uses ratios like Working Capital / Total Assets and Revenue / Total Assets that produce misleading results for Financial Services companies.
- Banks hold massive assets (loans) that inflate Total Assets, making WC/TA nearly zero — a false distress signal
- Utilities carry high regulated debt by design — the model misreads leverage as risk
- REITs use Funds From Operations (FFO), not Free Cash Flow — standard cash flow analysis doesn't apply
Altman Z-Score is designed for manufacturing companies and does not apply to banks, utilities, or REITs.
Note: A sector-specific financial health model for Financial Services companies is planned for a future update.
What is Franklin Resources, Inc. actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Analyst Consensus Target | $26.77 | 11 Wall Street analysts |
| Analyst High / Low | $33.00 / $21.00 | Range of analyst price targets |
| Price / Book | 1.18x | Current market valuation vs book value |
| Return on Equity | 4.5% | Profitability relative to shareholder equity |
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Why standard moat analysis does not apply to Franklin Resources, Inc.
Our standard moat model uses ROIC stability, gross margin trends, and switching costs — metrics designed for product and service companies. Financial Services companies compete on fundamentally different dimensions.
- Banks — moat comes from deposit cost advantage, net interest margin stability, and fee income diversification
- Utilities — moat is a regulatory monopoly with guaranteed rate of return on invested capital
- REITs — moat comes from property portfolio quality, location, tenant mix, and cap rate advantages
Standard moat analysis (ROIC/gross margin/switching costs) does not reliably apply to Financial Services companies. Banks compete on net interest margin, utilities on regulated returns, and REITs on occupancy and cap rates.
Note: A sector-specific competitive analysis for Financial Services companies is planned for a future update.
Is Franklin Resources, Inc.'s dividend safe?
Can Franklin Resources, Inc. afford its dividend?
Payout ratio is 119.4%. FCF covers the dividend 3.2x. 42 consecutive years of payments.
Franklin Resources, Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $8.8B | $8.5B | $8.3B | Rising |
| Net Income | $0.5B | $0.5B | $1.3B | Declining |
| Free Cash Flow | $0.9B | $0.8B | $1.9B | Declining |
| Gross Margin | 80.3% | 80.1% | 82.8% | Stable |
Recent events that affect our BEN analysis
BEN earnings report scheduled
Upcoming report. Consensus EPS estimate: $0.56. Revenue estimate: $2.05B. Our current Fair Value: $26.77 — a significant beat or miss could shift this estimate.
BEN analyst consensus: 27% bullish (3 of 11 analysts)
0 Strong Buy, 3 Buy, 4 Hold, 2 Sell, 2 Strong Sell. Consensus target: $26.77 (2.6% downside). Compare with our independent Fair Value: $26.77.
BEN paid $0.3300/share dividend
Dividend Safety Grade: B. Payout ratio: 119.4%.
BEN beat EPS estimates by 24.0%
Reported EPS: $0.46 vs estimate $0.37. Earnings strength supports our Fair Value of $26.77 (2.6% below current price).
BEN paid $0.3300/share dividend
Dividend Safety Grade: B. Payout ratio: 119.4%.
BEN missed EPS estimates by 50.1%
Reported EPS: $0.21 vs estimate $0.42. Our Fair Value of $26.77 may face downward pressure if the trend continues.
BEN paid $0.3200/share dividend
Dividend Safety Grade: B. Payout ratio: 119.4%.
BEN missed EPS estimates by 60.6%
Reported EPS: $0.15 vs estimate $0.38. Our Fair Value of $26.77 may face downward pressure if the trend continues.
BEN paid $0.3200/share dividend
Dividend Safety Grade: B. Payout ratio: 119.4%.
BEN missed EPS estimates by 28.2%
Reported EPS: $0.26 vs estimate $0.36. Our Fair Value of $26.77 may face downward pressure if the trend continues.
BEN paid $0.3200/share dividend
Dividend Safety Grade: B. Payout ratio: 119.4%.
BEN beat EPS estimates by 11.4%
Reported EPS: $0.59 vs estimate $0.53. Earnings strength supports our Fair Value of $26.77 (2.6% below current price).
Common questions about Franklin Resources, Inc.
What is Franklin Resources, Inc. stock price today?
Franklin Resources, Inc. (BEN) stock price is $27.49 as of the latest market close, traded on the NYSE exchange.
What does Franklin Resources, Inc. do?
Franklin Resources, Inc. is a publicly owned asset investment manager. Through its subsidiaries, the firm provides its services to individuals, institutions, pension plans, trusts, and partnerships.
What is Franklin Resources, Inc. market cap?
Franklin Resources, Inc. has a market capitalization of $14.33B, classifying it as a large-cap stock in the Financial Services sector.
What sector and industry is BEN in?
Franklin Resources, Inc. operates in the Financial Services sector, specifically within the Asset Management industry. It trades on the NYSE under the ticker symbol BEN.
Is BEN stock overvalued or undervalued?
Based on our valuation model, Franklin Resources, Inc. trades 2.7% above our fair value estimate — potentially overvalued.
- FairValueLabs Fair Value: $26.77
- Current Price: $27.49
- Valuation Zone: Fairly Valued
What is BEN stock forecast and analyst target price?
Based on 11 Wall Street analysts, the consensus price target for Franklin Resources, Inc. is $26.77, implying downside of 2.6% from the current price.
- Analyst High Target: $33.00
- Analyst Low Target: $21.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Franklin Resources, Inc. revenue and earnings growing?
Here are the analyst consensus growth estimates for Franklin Resources, Inc.:
- Revenue growth (current year est.): 2.3%
- EPS growth (current year est.): 16.3%
- Revenue growth (next year est.): 1.3%
- EPS growth (next year est.): 10.7%
What are Franklin Resources, Inc.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $8.8B | Rising |
| Net Income | $0.5B | Declining |
| Free Cash Flow | $0.9B | Declining |
| Gross Margin | 80.3% | Stable |
What is BEN's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 25.4x
- Forward P/E (next 12 months est.): 9.6x
How volatile is BEN stock?
Franklin Resources, Inc. has a beta of 1.47, meaning it is somewhat more volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Franklin Resources, Inc. have?
Franklin Resources, Inc.'s balance sheet shows:
- Total Cash: $2.67B
- Total Debt: $3.54B
- Net Cash Position: $-866.5M
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is Franklin Resources, Inc.'s free cash flow?
Franklin Resources, Inc. generated $328.3M in trailing twelve-month free cash flow (from $956.2M in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does Franklin Resources, Inc. pay a dividend, and is it safe?
Yes, Franklin Resources, Inc. pays a regular dividend. Here are the key metrics:
- Dividend Yield: 4.7%
- Payout Ratio: 119.4%
- Consecutive Years Paid: 42
- 5-Year Dividend Growth: -21.8%
- FairValueLabs Safety Grade: B
Is Franklin Resources, Inc. financially healthy?
The Altman Z-Score — the standard bankruptcy prediction model — is not applicable to Financial Services companies like Franklin Resources, Inc.. The formula uses ratios designed for manufacturing firms that produce misleading results for banks, utilities, and REITs.
Does Franklin Resources, Inc. have a competitive moat?
Our standard moat model (based on ROIC, gross margins, and switching costs) does not apply to Financial Services companies. These firms compete on fundamentally different dimensions such as regulatory advantages, deposit cost structures, or property portfolios.
What is BEN's return on equity (ROE)?
Franklin Resources, Inc.'s return on equity is 4.5%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy BEN stock?
BEN shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol BEN
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is BEN a value stock or speculative?
FairValueLabs classifies Franklin Resources, Inc. as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of Franklin Resources, Inc.?
The current CEO of Franklin Resources, Inc. is Ms. Jennifer M. Johnson.
What is BEN's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $1.08
- Forward EPS (next 12 months est.): $2.86
- Analyst consensus EPS (this year): $2.58
- Analyst consensus EPS (next year): $2.86
Other Financial Services companies analyzed by FairValueLabs
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
BEN analysis methodology: How we calculate fair value, Z-Scores, and moat ratings