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150.92 (1y: +38%)
Market Cap 31.31 B P/E(ttm) 15.60
Enterprise Value 24.44 B P/B 3.40
BEN- NYSE (USA)
Franklin Resources Inc.
  • Currently 3/5
Business Predictability Rank: 3-Star
Back Testing Results:
Average gain of all 3-Star stocks: 8.2% per year.
% of Stocks that are in still loss if held for 10yrs: 11%.
Read more:
What is Predictability Rank?
Performances of real portfolio
Top Ranked Predictable Companies
$150.92
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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 : 7/10

vs
industry		 vs
history
Cash to Debt 3.042
BEN's Cash to Debt is ranked higher than
65% of the 1325 Companies
in the Global Asset Management industry.

( Industry Median: 0.40 vs. BEN: 3.042 )
BEN' s 10-Year Cash to Debt Range
Min: 2.65   Max: 71.15
Current: 3.04
2.65
71.15
Equity to Asset 0.624
BEN's Equity to Asset is ranked higher than
59% of the 1325 Companies
in the Global Asset Management industry.

( Industry Median: 0.61 vs. BEN: 0.624 )
BEN' s 10-Year Equity to Asset Range
Min: 0.62   Max: 0.81
Current: 0.62
0.62
0.81
Interest Coverage 103.9
BEN's Interest Coverage is ranked higher than
67% of the 1325 Companies
in the Global Asset Management industry.

( Industry Median: 4.70 vs. BEN: 103.9 )
BEN' s 10-Year Interest Coverage Range
Min: 49   Max: No Debt
Current: 103.9
F-Score: 3
Z-Score: 6.2
M-Score: -2.24
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 : 7/10

vs
industry		 vs
history
Operating margin (%) 35.40
BEN's Operating margin (%) is ranked higher than
72% of the 1325 Companies
in the Global Asset Management industry.

( Industry Median: 6.00 vs. BEN: 35.40 )
BEN' s 10-Year Operating margin (%) Range
Min: 21.7   Max: 37.3
Current: 35.4
21.7
37.3
Net-margin (%) 27.2
BEN's Net-margin (%) is ranked higher than
69% of the 1325 Companies
in the Global Asset Management industry.

( Industry Median: 8.10 vs. BEN: 27.2 )
BEN' s 10-Year Net-margin (%) Range
Min: 17.2   Max: 28.6
Current: 27.2
17.2
28.6
ROE (%) 21
BEN's ROE (%) is ranked higher than
94% of the 1325 Companies
in the Global Asset Management industry.

( Industry Median: 0.00 vs. BEN: 21 )
BEN' s 10-Year ROE (%) Range
Min: 10.1   Max: 24.2
Current: 21
10.1
24.2
ROA (%) 13.1
BEN's ROA (%) is ranked higher than
91% of the 1325 Companies
in the Global Asset Management industry.

( Industry Median: 0.00 vs. BEN: 13.1 )
BEN' s 10-Year ROA (%) Range
Min: 6.7   Max: 17.8
Current: 13.1
6.7
17.8
Revenue Growth (%) 16.3
BEN's Revenue Growth (%) is ranked higher than
94% of the 1325 Companies
in the Global Asset Management industry.

( Industry Median: 0.00 vs. BEN: 16.3 )
BEN' s 10-Year Revenue Growth (%) Range
Min: -1.7   Max: 17.2
Current: 16.3
-1.7
17.2
EBITDA Growth (%) 20.8
BEN's EBITDA Growth (%) is ranked higher than
96% of the 1325 Companies
in the Global Asset Management industry.

( Industry Median: 0.00 vs. BEN: 20.8 )
BEN' s 10-Year EBITDA Growth (%) Range
Min: -4.2   Max: 21.7
Current: 20.8
-4.2
21.7
EPS Growth (%) 23.3
BEN's EPS Growth (%) is ranked higher than
96% of the 1325 Companies
in the Global Asset Management industry.

( Industry Median: 0.00 vs. BEN: 23.3 )
BEN' s 10-Year EPS Growth (%) Range
Min: -5.5   Max: 25.9
Current: 23.3
-5.5
25.9
» BEN's 10-Y Financials

Financials


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

» Details

Guru Trades
Q2 2012

BEN Guru Trades in Q2 2012

Jeremy Grantham 28,670 sh (New)
Jim Simons 105,794 sh (New)
RS Investment Management 221,100 sh (New)
Ken Fisher 1,338,538 sh (+18133.7%)
Mason Hawkins 3,784,442 sh (+227.23%)
Bill Nygren 925,000 sh (+72.9%)
Wintergreen Fund 589,352 sh (+37.95%)
David Winters 761,614 sh (+31.14%)
Mario Gabelli 4,500 sh (unchged)
Jeff Auxier 21,275 sh (unchged)
Ray Dalio Sold Out
Louis Moore Bacon Sold Out
Steven Cohen Sold Out
John Rogers 451,206 sh (-0.03%)
Richard Pzena 1,100,386 sh (-9.74%)
Chuck Royce 69,500 sh (-10.67%)
Pioneer Investments 589,502 sh (-38.38%)
» More
Q3 2012

BEN Guru Trades in Q3 2012

Steven Cohen 104,500 sh (New)
Louis Moore Bacon 10,000 sh (New)
Richard Pzena 1,409,423 sh (+28.08%)
Bill Nygren 1,100,000 sh (+18.92%)
Mason Hawkins 4,248,642 sh (+12.27%)
Chuck Royce 69,500 sh (unchged)
Wintergreen Fund 589,352 sh (unchged)
Jeremy Grantham 28,670 sh (unchged)
Mario Gabelli 4,500 sh (unchged)
Jim Simons Sold Out
Jeff Auxier 20,775 sh (-2.35%)
David Winters 739,145 sh (-2.95%)
John Rogers 405,725 sh (-10.08%)
Pioneer Investments 507,402 sh (-13.93%)
RS Investment Management 133,700 sh (-39.53%)
Ken Fisher 13,260 sh (-99.01%)
» More
Q4 2012

BEN Guru Trades in Q4 2012

Paul Tudor Jones 2,300 sh (New)
David Swensen 19,650 sh (New)
Jim Simons 39,100 sh (New)
Ray Dalio 24,438 sh (New)
Jeff Auxier 53,125 sh (+155.72%)
Bill Nygren 1,130,000 sh (+2.73%)
RS Investment Management 134,800 sh (+0.82%)
Chuck Royce 69,500 sh (unchged)
David Winters 739,145 sh (unchged)
Wintergreen Fund 589,352 sh (unchged)
Jeremy Grantham 50,870 sh (unchged)
Louis Moore Bacon Sold Out
John Rogers 405,081 sh (-0.16%)
Richard Pzena 1,347,084 sh (-4.42%)
Mason Hawkins 4,059,842 sh (-4.44%)
Pioneer Investments 445,023 sh (-12.29%)
Mario Gabelli 3,500 sh (-22.22%)
Ken Fisher 8,775 sh (-33.82%)
Steven Cohen 22,252 sh (-78.71%)
» More
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)
Mason Hawkins Sold Out
Jim Simons 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
» Details

Insider Trades

Latest Guru Trades with BEN

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Mason Hawkins 2013-03-31 Sold Out 2.2%$125.7 - $150.81 $ 150.927%0
Ray Dalio 2013-03-31 Add 55.24%0.02%$125.7 - $150.81 $ 150.927%37938
Mario Gabelli 2013-03-31 Reduce -42.86%$125.7 - $150.81 $ 150.927%2000
Ray Dalio 2012-12-31 New Buy0.03%$124.66 - $133.34 $ 150.9217%24438
Mario Gabelli 2012-12-31 Reduce -22.22%$124.66 - $133.34 $ 150.9217%3500
Mason Hawkins 2012-09-30 Add 12.27%0.26%$106.86 - $128.01 $ 150.9230%4248642
Mason Hawkins 2012-06-30 Add 227.23%1.25%$102 - $126.69 $ 150.9232%3784442
Ray Dalio 2012-06-30 Sold Out 0.01%$102 - $126.69 $ 150.9232%0
Ray Dalio 2012-03-31 Reduce -47.07%0.01%$96.26 - $125.53 $ 150.9244%6657
Mason Hawkins 2011-12-31 New Buy0.48%$90.38 - $110.92 $ 150.9252%1097393
Ray Dalio 2011-12-31 Add 337.92%0.02%$90.38 - $110.92 $ 150.9252%12577
Mario Gabelli 2011-12-31 New Buy$90.38 - $110.92 $ 150.9252%5100
Mario Gabelli 2011-09-30 Sold Out 0.0034%$96.79 - $137.26 $ 150.9226%0
Ray Dalio 2011-09-30 New Buy$96.79 - $137.26 $ 150.9227%2872
Mario Gabelli 2011-06-30 Reduce -48.57%$121.38 - $129.58 $ 150.9220%3600
George Soros 2011-03-31 Sold Out $109.74 - $130.4 $ 150.9225%0
Meridian Funds 2011-03-31 Sold Out $109.74 - $130.4 $ 150.9225%0
Meridian Funds 2010-12-31 Reduce -37.37%0.22%$106.82 - $124.59 $ 150.9230%99200
George Soros 2010-12-31 New Buy$106.82 - $124.59 $ 150.9230%2700
Mario Gabelli 2010-12-31 Reduce -24.51%$106.82 - $124.59 $ 150.9230%7700
Mario Gabelli 2010-06-30 Add 53.33%$85.71 - $121.26 $ 150.9245%9200
Premium More recent guru trades are included for Premium Members only!!
» Financial Charts

Peter Lynch Chart

Guru Investment Theses on Franklin Resources Inc.

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 Thinks Financials Are an ‘Unusual Opportunity,’ His Favorites and a New Buy
November 30, 2012
Bill Nygren - Bill Nygren Thinks Financials Are An ‘Unusual Opportunity,’ His Favorites And A New Buy
Bill Nygren is the bottom-up value-oriented portfolio manager of the Oak Mark Fund. He buys well-managed, growing businesses at cheap prices and waits for the price to meet intrinsic value. The only way for a macro analysis to add value to a portfolio, he said in his third quarter letter, is for it to be non-consensus (otherwise it will already be discounted in stock prices), and to be correct. Since making correct, non-consensus forecasts on the economy is too difficult, he buys valuable companies the market has overlooked instead. Read more...

Ratios

vs
industry		 vs
history
P/E(ttm) 15.60
BEN's P/E(ttm) is ranked higher than
54% of the 672 Companies
in the Global Asset Management industry.

( Industry Median: 13.10 vs. BEN: 15.60 )
BEN' s 10-Year P/E(ttm) Range
Min: 7.82   Max: 29.11
Current: 15.6
7.82
29.11
P/B 3.40
BEN's P/B is ranked lower than
75% of the 935 Companies
in the Global Asset Management industry.

( Industry Median: 0.98 vs. BEN: 3.40 )
BEN' s 10-Year P/B Range
Min: 1.27   Max: 5.04
Current: 3.4
1.27
5.04
P/S 4.26
BEN's P/S is ranked higher than
68% of the 972 Companies
in the Global Asset Management industry.

( Industry Median: 5.19 vs. BEN: 4.26 )
BEN' s 10-Year P/S Range
Min: 1.92   Max: 6.3
Current: 4.26
1.92
6.3
PFCF 24.70
BEN's PFCF is ranked higher than
54% of the 585 Companies
in the Global Asset Management industry.

( Industry Median: 17.58 vs. BEN: 24.70 )
BEN' s 10-Year PFCF Range
Min: 7.91   Max: 49.26
Current: 24.7
7.91
49.26
EV-to-EBIT 9.3
BEN's EV-to-EBIT is ranked higher than
72% of the 660 Companies
in the Global Asset Management industry.

( Industry Median: 12.80 vs. BEN: 9.3 )
BEN' s 10-Year EV-to-EBIT Range
Min: 3.6   Max: 22.3
Current: 9.3
3.6
22.3
PEG 1.1
BEN's PEG is ranked higher than
64% of the 137 Companies
in the Global Asset Management industry.

( Industry Median: 1.19 vs. BEN: 1.1 )
BEN' s 10-Year PEG Range
Min: 0.31   Max: 6.33
Current: 1.1
0.31
6.33
Shiller P/E 19.9
BEN's Shiller P/E is ranked lower than
100% of the Companies
in the Global Asset Management industry.

( Industry Median: vs. BEN: 19.9 )
BEN' s 10-Year Shiller P/E Range
Min: 8.02   Max: 39.43
Current: 19.9
8.02
39.43

Dividend & Buy Back

vs
industry		 vs
history
Dividend Yield 0.74
BEN's Dividend Yield is ranked lower than
59% of the 1325 Companies
in the Global Asset Management industry.

( Industry Median: 1.78 vs. BEN: 0.74 )
BEN' s 10-Year Dividend Yield Range
Min: 0.4   Max: 2.12
Current: 0.74
0.4
2.12
Dividend Payout 0.1168
BEN's Dividend Payout is ranked higher than
91% of the 545 Companies
in the Global Asset Management industry.

( Industry Median: 0.48 vs. BEN: 0.1168 )
BEN' s 10-Year Dividend Payout Range
Min: 0.09   Max: 0.22
Current: 0.12
0.09
0.22
Dividend growth (3y) 6.5
BEN's Dividend growth (3y) is ranked higher than
95% of the 1325 Companies
in the Global Asset Management industry.

( Industry Median: 0.00 vs. BEN: 6.5 )
BEN' s 10-Year Dividend growth (3y) Range
Min: 5.7   Max: 18.9
Current: 6.5
5.7
18.9
Yield on cost (5-Year) 1.18
BEN's Yield on cost (5-Year) is ranked higher than
51% of the 1325 Companies
in the Global Asset Management industry.

( Industry Median: 1.14 vs. BEN: 1.18 )
BEN' s 10-Year Yield on cost (5-Year) Range
Min: 0.59   Max: 3.13
Current: 1.18
0.59
3.13
Share Buyback Rate 1.9
BEN's Share Buyback Rate is ranked higher than
93% of the 1325 Companies
in the Global Asset Management industry.

( Industry Median: 0.00 vs. BEN: 1.9 )
BEN' s 10-Year Share Buyback Rate Range
Min: 2.9   Max: -1
Current: 1.9

Valuation & Return

vs
industry		 vs
history
Price/Net Cash 10.4
BEN's Price/Net Cash is ranked higher than
50% of the 183 Companies
in the Global Asset Management industry.

( Industry Median: 7.10 vs. BEN: 10.4 )
BEN' s 10-Year Price/Net Cash Range
Min: 8.5   Max: 41.3
Current: 10.4
8.5
41.3
Price/Net Current Asset Value 49.2
BEN's Price/Net Current Asset Value is ranked higher than
57% of the 383 Companies
in the Global Asset Management industry.

( Industry Median: 35.10 vs. BEN: 49.2 )
BEN' s 10-Year Price/Net Current Asset Value Range
Min: 27.8   Max: 57.8
Current: 49.2
27.8
57.8
Price/Tangible Book 4.5
BEN's Price/Tangible Book is ranked lower than
74% of the 806 Companies
in the Global Asset Management industry.

( Industry Median: 1.00 vs. BEN: 4.5 )
BEN' s 10-Year Price/Tangible Book Range
Min: 3.3   Max: 6.1
Current: 4.5
3.3
6.1
Price/DCF (Projected) 1.3
BEN's Price/DCF (Projected) is ranked lower than
61% of the 425 Companies
in the Global Asset Management industry.

( Industry Median: 1.10 vs. BEN: 1.3 )
BEN' s 10-Year Price/DCF (Projected) Range
Min: 0.9   Max: 1.6
Current: 1.3
0.9
1.6
Price/Median PS Value 1
BEN's Price/Median PS Value is ranked higher than
63% of the 734 Companies
in the Global Asset Management industry.

( Industry Median: 1.10 vs. BEN: 1 )
BEN' s 10-Year Price/Median PS Value Range
Min: 0.7   Max: 1.3
Current: 1
0.7
1.3
Price/Peter Lynch Fair Value 1
BEN's Price/Peter Lynch Fair Value is ranked higher than
52% of the 93 Companies
in the Global Asset Management industry.

( Industry Median: 1.00 vs. BEN: 1 )
BEN' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.5   Max: 2.8
Current: 1
0.5
2.8
Price/Graham Number 1.9
BEN's Price/Graham Number is ranked lower than
64% of the 565 Companies
in the Global Asset Management industry.

( Industry Median: 0.80 vs. BEN: 1.9 )
BEN' s 10-Year Price/Graham Number Range
Min: 1.3   Max: 2.4
Current: 1.9
1.3
2.4
Earnings Yield (Greenblatt) 10.80
BEN's Earnings Yield (Greenblatt) is ranked higher than
86% of the 1325 Companies
in the Global Asset Management industry.

( Industry Median: 0.00 vs. BEN: 10.80 )
BEN' s 10-Year Earnings Yield (Greenblatt) Range
Min: 4.5   Max: 28.1
Current: 10.8
4.5
28.1
Forward Rate of Return (Yacktman) 18.56
BEN's Forward Rate of Return (Yacktman) is ranked higher than
95% of the 1325 Companies
in the Global Asset Management industry.

( Industry Median: 0.00 vs. BEN: 18.56 )
BEN' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 6.9   Max: 42.6
Current: 18.56
6.9
42.6

Business Description

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.
Company Website
SEC Reports
Industry: Asset Management
Compare:AMP, AMG, BLK, BK, TTS
Traded in other countries:FRK.Germany
» More Articles for BEN

Headlines

Articles On GuruFocus.com
My 4 Favorite Dividend Aristocrats with Highest Profitability May 07 2013 
The Dividend Aristocrats, Where Have All The Bargains Gone? Feb 28 2013 
Franklin Resources Inc: Fundamental Stock Research Analysis Feb 07 2013 
Longleaf’s Mason Hawkins Chops Off More Than Half of Potlatch Stake Jan 10 2013 
David Winters' Best Ideas for 2013 Jan 09 2013 
(high ROE,high EPS 1 Dec 22 2012 
Should You Care About Special Dividends? Dec 05 2012 
Bill Nygren Calls Financials a ‘Unusual Opportunity,’ His Favorites and a New Buy Nov 30 2012 
The 20 Best-Performing Dividend Aristocrats and Possible Year-End-Rally Winners Oct 19 2012 
20 Of The Best Performing Dividend Achievers With Still Cheap Earnings Multiples Sep 29 2012 

More From Our Partners
Franklin Closes Pelagos Acqusition - Analyst Blog Jun 18 2013 - ZACKS

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