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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 8/10

vs
industry
vs
history
Cash to Debt 4.47
BEN's Cash to Debt is ranked lower than
53% of the 1088 Companies
in the Global Asset Management industry.

( Industry Median: 10000.00 vs. BEN: 4.47 )
BEN' s 10-Year Cash to Debt Range
Min: 0.52   Max: 71.15
Current: 4.47

0.52
71.15
Equity to Asset 0.66
BEN's Equity to Asset is ranked higher than
50% of the 1194 Companies
in the Global Asset Management industry.

( Industry Median: 0.82 vs. BEN: 0.66 )
BEN' s 10-Year Equity to Asset Range
Min: 0.47   Max: 0.81
Current: 0.66

0.47
0.81
Interest Coverage 62.29
BEN's Interest Coverage is ranked higher than
53% of the 1020 Companies
in the Global Asset Management industry.

( Industry Median: 383.08 vs. BEN: 62.29 )
BEN' s 10-Year Interest Coverage Range
Min: 23.35   Max: 318.91
Current: 62.29

23.35
318.91
F-Score: 8
Z-Score: 6.43
M-Score: -2.38
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 10/10

vs
industry
vs
history
Operating margin (%) 36.58
BEN's Operating margin (%) is ranked higher than
60% of the 1211 Companies
in the Global Asset Management industry.

( Industry Median: 47.00 vs. BEN: 36.58 )
BEN' s 10-Year Operating margin (%) Range
Min: 21.74   Max: 37.25
Current: 36.58

21.74
37.25
Net-margin (%) 26.93
BEN's Net-margin (%) is ranked higher than
57% of the 1221 Companies
in the Global Asset Management industry.

( Industry Median: 46.10 vs. BEN: 26.93 )
BEN' s 10-Year Net-margin (%) Range
Min: 17.15   Max: 28.57
Current: 26.93

17.15
28.57
ROE (%) 21.35
BEN's ROE (%) is ranked higher than
88% of the 1270 Companies
in the Global Asset Management industry.

( Industry Median: 7.95 vs. BEN: 21.35 )
BEN' s 10-Year ROE (%) Range
Min: 10.14   Max: 24.18
Current: 21.35

10.14
24.18
ROA (%) 13.97
BEN's ROA (%) is ranked higher than
84% of the 1283 Companies
in the Global Asset Management industry.

( Industry Median: 4.32 vs. BEN: 13.97 )
BEN' s 10-Year ROA (%) Range
Min: 6.74   Max: 17.85
Current: 13.97

6.74
17.85
ROC (Joel Greenblatt) (%) 517.87
BEN's ROC (Joel Greenblatt) (%) is ranked higher than
85% of the 797 Companies
in the Global Asset Management industry.

( Industry Median: 58.81 vs. BEN: 517.87 )
BEN' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 78.86   Max: 517.87
Current: 517.87

78.86
517.87
Revenue Growth (%) 13.60
BEN's Revenue Growth (%) is ranked higher than
80% of the 766 Companies
in the Global Asset Management industry.

( Industry Median: 2.00 vs. BEN: 13.60 )
BEN' s 10-Year Revenue Growth (%) Range
Min: -9.4   Max: 27
Current: 13.6

-9.4
27
EBITDA Growth (%) 13.10
BEN's EBITDA Growth (%) is ranked higher than
78% of the 684 Companies
in the Global Asset Management industry.

( Industry Median: 1.60 vs. BEN: 13.10 )
BEN' s 10-Year EBITDA Growth (%) Range
Min: 0   Max: 31.5
Current: 13.1

0
31.5
EPS Growth (%) 16.90
BEN's EPS Growth (%) is ranked higher than
80% of the 666 Companies
in the Global Asset Management industry.

( Industry Median: 3.60 vs. BEN: 16.90 )
BEN' s 10-Year EPS Growth (%) Range
Min: -12.3   Max: 37
Current: 16.9

-12.3
37
» BEN's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

BEN Guru Trades in Q1 2013

Robert Olstein 19,000 sh (New)
Ray Dalio 37,938 sh (+55.24%)
Paul Tudor Jones 3,500 sh (+52.17%)
Jeremy Grantham 60,070 sh (+18.09%)
David Winters 775,650 sh (+4.94%)
Richard Pzena 1,409,266 sh (+4.62%)
Bill Nygren 1,180,000 sh (+4.42%)
Wintergreen Fund 611,782 sh (+3.81%)
John Rogers 414,880 sh (+2.42%)
Jeff Auxier 53,425 sh (+0.56%)
Chuck Royce 69,500 sh (unchged)
Jim Simons Sold Out
Mason Hawkins Sold Out
David Swensen Sold Out
RS Investment Management 133,600 sh (-0.89%)
Pioneer Investments 419,668 sh (-5.7%)
Ken Fisher 8,255 sh (-5.93%)
Mario Gabelli 2,000 sh (-42.86%)
Steven Cohen 1,337 sh (-93.99%)
» More
Q2 2013

BEN Guru Trades in Q2 2013

Jim Simons 541,200 sh (New)
Steven Cohen 43,867 sh (+3181%)
Ray Dalio 134,638 sh (+254.89%)
Robert Olstein 57,000 sh (+200%)
Paul Tudor Jones 10,100 sh (+188.57%)
Ken Fisher 7,700 sh (+179.83%)
Jeremy Grantham 90,270 sh (+50.27%)
Bill Nygren 1,470,000 sh (+24.58%)
Chuck Royce 82,000 sh (+17.99%)
Mario Gabelli 2,115 sh (+5.75%)
Wintergreen Fund 611,782 sh (unchged)
David Winters 775,650 sh (unchged)
Jeff Auxier 53,425 sh (unchged)
RS Investment Management Sold Out
John Rogers 411,786 sh (-0.75%)
Pioneer Investments 376,531 sh (-10.28%)
Richard Pzena 1,117,818 sh (-20.68%)
» More
Q3 2013

BEN Guru Trades in Q3 2013

Murray Stahl 6,535 sh (New)
Louis Moore Bacon 100,000 sh (New)
George Soros 573,100 sh (New)
Chuck Royce 337,900 sh (+37.36%)
John Rogers 1,452,595 sh (+17.58%)
Bill Nygren 4,740,000 sh (+7.48%)
Robert Olstein 177,000 sh (+3.51%)
Pioneer Investments 1,150,620 sh (+1.86%)
Richard Pzena 3,372,322 sh (+0.56%)
David Winters 2,326,950 sh (unchged)
Wintergreen Fund 1,835,346 sh (unchged)
Mario Gabelli 6,345 sh (unchged)
Jeff Auxier 160,275 sh (unchged)
Ray Dalio Sold Out
Jeremy Grantham 266,490 sh (-1.6%)
Ken Fisher 22,065 sh (-4.48%)
Jim Simons 787,000 sh (-51.53%)
Paul Tudor Jones 6,600 sh (-78.22%)
Steven Cohen 15,394 sh (-88.3%)
» More
Q4 2013

BEN Guru Trades in Q4 2013

Diamond Hill Capital 2,166,665 sh (New)
Chris Davis 3,665 sh (New)
Murray Stahl 9,379 sh (+43.52%)
Paul Tudor Jones 8,601 sh (+30.32%)
Chuck Royce 352,400 sh (+4.29%)
John Rogers 1,481,360 sh (+1.98%)
Ken Fisher 22,067 sh (+0.01%)
Mario Gabelli 6,345 sh (unchged)
Robert Olstein 177,000 sh (unchged)
David Winters 2,326,950 sh (unchged)
Bill Nygren 4,740,000 sh (unchged)
Wintergreen Fund 1,835,346 sh (unchged)
Jeff Auxier 160,275 sh (unchged)
Louis Moore Bacon Sold Out
George Soros Sold Out
Richard Pzena 3,229,729 sh (-4.23%)
Pioneer Investments 1,044,645 sh (-9.21%)
Jeremy Grantham 228,687 sh (-14.19%)
Jim Simons 189,700 sh (-75.9%)
Steven Cohen 3,060 sh (-80.12%)
» More
» Details

Insider Trades

Latest Guru Trades with BEN

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
George Soros 2013-12-31 Sold Out 0.32%$49.52 - $57.23 $ 53.70%0
George Soros 2013-09-30 New Buy0.32%$45.2 - $52.67 $ 53.711%573100
Ray Dalio 2013-09-30 Sold Out 0.16%$45.2 - $52.67 $ 53.711%0
Ray Dalio 2013-06-30 Add 254.89%0.11%$44.66 - $56.107 $ 53.76%134638
Mason Hawkins 2013-03-31 Sold Out 2.2%$41.9 - $50.27 $ 53.714%0
Ray Dalio 2013-03-31 Add 55.24%0.02%$41.9 - $50.27 $ 53.714%37938
Mario Gabelli 2013-03-31 Reduce -42.86%$41.9 - $50.27 $ 53.714%2000
Ray Dalio 2012-12-31 New Buy0.03%$41.55 - $44.45 $ 53.725%24438
Mario Gabelli 2012-12-31 Reduce -22.22%$41.55 - $44.45 $ 53.725%3500
Mason Hawkins 2012-09-30 Add 12.27%0.26%$35.62 - $42.67 $ 53.738%4248642
Mason Hawkins 2012-06-30 Add 227.23%1.25%$34 - $42.23 $ 53.741%3784442
Ray Dalio 2012-06-30 Sold Out 0.01%$34 - $42.23 $ 53.741%0
Ray Dalio 2012-03-31 Reduce -47.07%0.01%$32.09 - $41.84 $ 53.753%6657
Mason Hawkins 2011-12-31 New Buy0.48%$30.13 - $36.97 $ 53.762%1097393
Ray Dalio 2011-12-31 Add 337.92%0.02%$30.13 - $36.97 $ 53.762%12577
Mario Gabelli 2011-12-31 New Buy$30.13 - $36.97 $ 53.762%5100
Mario Gabelli 2011-09-30 Sold Out 0.0034%$32.26 - $45.75 $ 53.735%0
Ray Dalio 2011-09-30 New Buy$32.26 - $45.75 $ 53.735%2872
Mario Gabelli 2011-06-30 Reduce -48.57%$40.46 - $43.19 $ 53.729%3600
Meridian Funds 2011-03-31 Sold Out $36.58 - $43.47 $ 53.733%0
George Soros 2011-03-31 Sold Out $36.58 - $43.47 $ 53.733%0
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Franklin Resources Inc.

Bill Nygren Comments on Franklin Resources - Apr 14, 2014

We established a position in Franklin Resources (BEN), one of the world’s largest global mutual fund companies, with leading products in both equities and fixed income. For starters, we believe asset management is an attractive business and Franklin has a history of strong fund performance across various asset classes and geographies. The company is selling for less than 14x our estimate of this year’s EPS and just over 11x adjusting for net cash and securities. In our view, this is a cheap price for a well-run company in such an attractive industry. Management has historically returned capital to shareholders through stock buybacks and dividends, and with insiders owning 35% of outstanding shares, we expect Franklin to continue to be good stewards of shareholders’ capital.

From Bill Nygren (Trades, Portfolio)'s Oakmark Select Fund first quarter 2014 investor letter.

Check out Bill Nygren latest stock trades

Diamond Hill Capital Comments on Franklin Resources - Mar 07, 2014

Asset management company Franklin Resources, Inc. (BEN) is a new position that was added late in the quarter and as a result, did not contribute to performance.

From Diamond Hill Capital (Trades, Portfolio)'s Select Fund Commentary for fourth quarter 2013.

Check out Diamond Hill Capital latest stock trades

Diamond Hill Capital Comments on Franklin Resources - Mar 05, 2014

Additionally, Franklin Resources, Inc. (BEN) is a large global asset manager with a long history of shareholder-friendly capital allocation, diversified assets under management, great brands, a strong and growing international footprint, and a solid balance sheet.



From Diamond Hill Capital (Trades, Portfolio)'s Fourth Quarter 2013 Commentary.

Check out Diamond Hill Capital latest stock trades

Bill Nygren on Franklin Resources (BEN) - May 11, 2012

Franklin Resources is one of the world’s largest mutual fund companies, with leading products in both equities and fixed income. Franklin is also well-situated internationally, managing over $3 billion in local assets in 18 countries. The company has deliberately built this international presence over decades, and we believe this provides, and will continue to provide, a distinct competitive advantage. With consensus earnings for 2012 expected to be nearly $9 per share, Franklin is selling for just less than 14x earnings. We adjust that number for the cash and investments on Franklin’s balance sheet, which at year-end totaled about $24 per share and were not producing much income. Adjusting for those investments, the business is priced at just over 11x earnings. Given Franklin’s strong fund performance across various asset classes and geographies, we believe this valuation is attractive. Management has historically returned capital to shareholders through stock buybacks and dividends, and with insiders owning 35% of outstanding shares, we expect Franklin to continue to be good stewards of shareholders’ capital.
Check out Bill Nygren latest stock trades

Top Ranked Articles about Franklin Resources Inc.

Bill Nygren Comments on Franklin Resources
We established a position in Franklin Resources (BEN), one of the world’s largest global mutual fund companies, with leading products in both equities and fixed income. For starters, we believe asset management is an attractive business and Franklin has a history of strong fund performance across various asset classes and geographies. The company is selling for less than 14x our estimate of this year’s EPS and just over 11x adjusting for net cash and securities. In our view, this is a cheap price for a well-run company in such an attractive industry. Management has historically returned capital to shareholders through stock buybacks and dividends, and with insiders owning 35% of outstanding shares, we expect Franklin to continue to be good stewards of shareholders’ capital. Read more...
Diamond Hill Capital Comments on Franklin Resources
Asset management company Franklin Resources, Inc. (BEN) is a new position that was added late in the quarter and as a result, did not contribute to performance. Read more...
Diamond Hill Capital Comments on Franklin Resources
Additionally, Franklin Resources, Inc. (BEN) is a large global asset manager with a long history of shareholder-friendly capital allocation, diversified assets under management, great brands, a strong and growing international footprint, and a solid balance sheet. Read more...
Diamond Hill Capital Buys 12 New Stocks
Diamond Hill Capital (Trades, Portfolio) is an Ohio-based value firm managing alternative equity strategies, mutual funds and private investment funds. Its assets managed have grown substantially over the past year, reaching $11 billion as of Sept. 30, 2013, up from around $9.4 billion a year prior. Read more...
Weekly 52-Week Highs Highlight: MFC, BEN, LYG, MON
According to GuruFocus list of 52-week highs, Manulife Financial Corporation, Franklin Resources Inc., Lloyds Banking Group PLC and Monsanto Company have all reached their 52-week highs. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 15.30
BEN's P/E(ttm) is ranked higher than
57% of the 969 Companies
in the Global Asset Management industry.

( Industry Median: 12.00 vs. BEN: 15.30 )
BEN' s 10-Year P/E(ttm) Range
Min: 7.83   Max: 29.2
Current: 15.3

7.83
29.2
P/B 3.10
BEN's P/B is ranked lower than
71% of the 1193 Companies
in the Global Asset Management industry.

( Industry Median: 0.98 vs. BEN: 3.10 )
BEN' s 10-Year P/B Range
Min: 1.27   Max: 4.92
Current: 3.1

1.27
4.92
P/S 4.14
BEN's P/S is ranked higher than
63% of the 1226 Companies
in the Global Asset Management industry.

( Industry Median: 5.17 vs. BEN: 4.14 )
BEN' s 10-Year P/S Range
Min: 1.92   Max: 6.3
Current: 4.14

1.92
6.3
PFCF 16.80
BEN's PFCF is ranked higher than
64% of the 722 Companies
in the Global Asset Management industry.

( Industry Median: 18.65 vs. BEN: 16.80 )
BEN' s 10-Year PFCF Range
Min: 8.16   Max: 49.25
Current: 16.8

8.16
49.25
EV-to-EBIT 8.30
BEN's EV-to-EBIT is ranked higher than
73% of the 990 Companies
in the Global Asset Management industry.

( Industry Median: 13.50 vs. BEN: 8.30 )
BEN' s 10-Year EV-to-EBIT Range
Min: 3.6   Max: 20.2
Current: 8.3

3.6
20.2
PEG 0.70
BEN's PEG is ranked higher than
70% of the 296 Companies
in the Global Asset Management industry.

( Industry Median: 0.97 vs. BEN: 0.70 )
BEN' s 10-Year PEG Range
Min: 0.29   Max: 18.96
Current: 0.7

0.29
18.96
Shiller P/E 20.40
BEN's Shiller P/E is ranked higher than
59% of the 629 Companies
in the Global Asset Management industry.

( Industry Median: 19.01 vs. BEN: 20.40 )
BEN' s 10-Year Shiller P/E Range
Min: 8.05   Max: 39.43
Current: 20.4

8.05
39.43

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.81
BEN's Dividend Yield is ranked lower than
92% of the 954 Companies
in the Global Asset Management industry.

( Industry Median: 3.26 vs. BEN: 0.81 )
BEN' s 10-Year Dividend Yield Range
Min: 0.4   Max: 2.13
Current: 0.81

0.4
2.13
Dividend Payout 0.12
BEN's Dividend Payout is ranked higher than
84% of the 750 Companies
in the Global Asset Management industry.

( Industry Median: 0.37 vs. BEN: 0.12 )
BEN' s 10-Year Dividend Payout Range
Min: 0.02   Max: 0.45
Current: 0.12

0.02
0.45
Dividend growth (3y) 10.00
BEN's Dividend growth (3y) is ranked higher than
74% of the 387 Companies
in the Global Asset Management industry.

( Industry Median: 5.70 vs. BEN: 10.00 )
BEN' s 10-Year Dividend growth (3y) Range
Min: 7.6   Max: 26.1
Current: 10

7.6
26.1
Yield on cost (5-Year) 1.24
BEN's Yield on cost (5-Year) is ranked lower than
84% of the 978 Companies
in the Global Asset Management industry.

( Industry Median: 3.61 vs. BEN: 1.24 )
BEN' s 10-Year Yield on cost (5-Year) Range
Min: 0.62   Max: 3.29
Current: 1.24

0.62
3.29
Share Buyback Rate 2.40
BEN's Share Buyback Rate is ranked higher than
85% of the 847 Companies
in the Global Asset Management industry.

( Industry Median: -0.70 vs. BEN: 2.40 )
BEN' s 10-Year Share Buyback Rate Range
Min: 3.9   Max: -26.1
Current: 2.4

Valuation & Return

vs
industry
vs
history
Price/Net Cash 7.20
BEN's Price/Net Cash is ranked higher than
57% of the 313 Companies
in the Global Asset Management industry.

( Industry Median: 8.30 vs. BEN: 7.20 )
BEN' s 10-Year Price/Net Cash Range
Min: 5.66   Max: 190.71
Current: 7.2

5.66
190.71
Price/Net Current Asset Value 6.20
BEN's Price/Net Current Asset Value is ranked higher than
60% of the 356 Companies
in the Global Asset Management industry.

( Industry Median: 8.70 vs. BEN: 6.20 )
BEN' s 10-Year Price/Net Current Asset Value Range
Min: 4.74   Max: 52.41
Current: 6.2

4.74
52.41
Price/Tangible Book 4.20
BEN's Price/Tangible Book is ranked lower than
78% of the 1128 Companies
in the Global Asset Management industry.

( Industry Median: 1.00 vs. BEN: 4.20 )
BEN' s 10-Year Price/Tangible Book Range
Min: 1.9   Max: 19.48
Current: 4.2

1.9
19.48
Price/DCF (Projected) 1.20
BEN's Price/DCF (Projected) is ranked higher than
51% of the 690 Companies
in the Global Asset Management industry.

( Industry Median: 1.00 vs. BEN: 1.20 )
BEN' s 10-Year Price/DCF (Projected) Range
Min: 0.59   Max: 1.77
Current: 1.2

0.59
1.77
Price/Median PS Value 1.00
BEN's Price/Median PS Value is ranked higher than
72% of the 1026 Companies
in the Global Asset Management industry.

( Industry Median: 1.10 vs. BEN: 1.00 )
BEN' s 10-Year Price/Median PS Value Range
Min: 0.62   Max: 1.36
Current: 1

0.62
1.36
Price/Peter Lynch Fair Value 0.80
BEN's Price/Peter Lynch Fair Value is ranked higher than
64% of the 148 Companies
in the Global Asset Management industry.

( Industry Median: 0.80 vs. BEN: 0.80 )
BEN' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.51   Max: 4.14
Current: 0.8

0.51
4.14
Price/Graham Number 1.70
BEN's Price/Graham Number is ranked lower than
67% of the 914 Companies
in the Global Asset Management industry.

( Industry Median: 0.70 vs. BEN: 1.70 )
BEN' s 10-Year Price/Graham Number Range
Min: 1.22   Max: 4.73
Current: 1.7

1.22
4.73
Earnings Yield (Greenblatt) 12.10
BEN's Earnings Yield (Greenblatt) is ranked higher than
72% of the 1022 Companies
in the Global Asset Management industry.

( Industry Median: 7.60 vs. BEN: 12.10 )
BEN' s 10-Year Earnings Yield (Greenblatt) Range
Min: 4.9   Max: 28.1
Current: 12.1

4.9
28.1
Forward Rate of Return (Yacktman) 22.46
BEN's Forward Rate of Return (Yacktman) is ranked higher than
90% of the 916 Companies
in the Global Asset Management industry.

( Industry Median: 1.11 vs. BEN: 22.46 )
BEN' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -2   Max: 39.3
Current: 22.46

-2
39.3

Business Description

Industry: Asset Management » Asset Management
Compare:AMP, AMG, BLK, BK, TTS » details
Traded in other countries:FRK.Germany
Franklin Resources, Inc. was incorporated in Delaware in November 1969. It is a holding company that, together with its various subsidiaries operates as a global investment management organization offering investment choices under the Franklin, Templeton, Mutual Series, Bissett, Fiduciary and Darby brand names. In its primary business and operating segment, investment management and related services, it provides services to investment funds and institutional, high net-worth and separately-managed accounts and internationally. The Company's investment management and related services include fund administration, shareholder services, transfer agency, underwriting, distribution, custodial, trustee and other fiduciary services. The Company's sponsored investment products include a broad range of equity, hybrid, fixed-income and cash management funds and accounts. In its secondary business and operating segment, banking/finance, it provides clients with select retail banking, private banking and consumer lending services through its bank subsidiaries. It generally operates its institutional business under the trade name 'Franklin Templeton Institutional'. The Company faces strong competition from numerous asset management companies, mutual fund, stock brokerage and investment banking firms, insurance companies, banks, savings and loan associations and other financial institutions. Virtually all aspects of its business are subject to various federal, state, and international regulation and supervision.

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