1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
GuruFocus
GuruFocus
Articles 

Bill Nygren on Franklin Resources (BEN)

May 11, 2012 | About:

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.

About the author:

GuruFocus
Charlie Tian, Ph.D. - Founder of GuruFocus. You can now order his book Invest Like a Guru on Amazon.

Rating: 3.7/5 (9 votes)

Comments

Please leave your comment:


GuruFocus has detected 4 Warning Signs with Franklin Resources Inc $BEN.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.

Performances of the stocks mentioned by GuruFocus


User Generated Screeners


rael22224
tdesai50Below5Year
tdesai50Below3Year
mpacholskaFrance strong 6+
san330Yasar_Graham_Number
FAROSFaros criteria 1
ahcukaValue
olanderfGood
merknt84my4
LuddyNEW SCHOOL VAL+MOMO
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK