Franklin Templeton (BSP:F1RA34) Interest Coverage: 9.74 (As of Jun. 2026) — 68% Below Median

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BSP:F1RA34 Franklin Templeton Inc BSP:F1RA34
77 GF Score
Price R$168.81
GF Value R$107.08
! 9 Warning Signs
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What is Franklin Templeton Interest Coverage?

Franklin Templeton BSP:F1RA34 77 Interest Coverage is 9.74 as of Jun. 2026, which is 68% below its 10-year median of 30.72. GuruFocus rates BSP:F1RA34 with a GF Score™ of 77/100 and a GF Value™ of R$107.08. The stock has 9 warning signs investors should review. Among 476 Asset Management companies, Franklin Templeton ranks worse than 62.39% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Franklin Templeton's Operating Income for the three months ended in Jun. 2026 was R$1,173 Mil. Franklin Templeton's Interest Expense for the three months ended in Jun. 2026 was R$-120 Mil. Franklin Templeton's interest coverage for the quarter that ended in Jun. 2026 was 9.74. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Franklin Templeton's Interest Coverage or its related term are showing as below:

BSP:F1RA34' s Interest Coverage Range Over the Past 10 Years
Min: 11.59   Med: 30.72   Max: 68.33
Current: 14.65


BSP:F1RA34's Interest Coverage is ranked worse than
62.39% of 476 companies
in the Asset Management industry
Industry Median: 49.915 vs BSP:F1RA34: 14.65

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Franklin Templeton  (BSP:F1RA34) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Franklin Templeton Interest Coverage Related Terms


Franklin Templeton Interest Coverage Historical Data

* Premium members only.

The historical data trend for Franklin Templeton's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

Franklin Templeton Interest Coverage Chart

Franklin Templeton Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24 Sep25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 24.17 19.81 11.62 11.91 11.59

Franklin Templeton Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.91 13.53 18.06 18.36 9.74

BSP:F1RA34 vs CG, PS, CRBG: Interest Coverage Comparison

For the Asset Management subindustry, Franklin Templeton's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Franklin Templeton Interest Coverage vs Asset Management Industry

For the Asset Management industry and Financial Services sector, Franklin Templeton's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Franklin Templeton's Interest Coverage falls into.


BSP:F1RA34
77GF Score
Franklin Templeton Inc BSP:F1RA34
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Franklin Templeton Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Franklin Templeton's Interest Coverage for the fiscal year that ended in Sep. 2025 is calculated as

Here, for the fiscal year that ended in Sep. 2025, Franklin Templeton's Interest Expense was R$-509 Mil. Its Operating Income was R$5,898 Mil. And its Long-Term Debt & Capital Lease Obligation was R$71,327 Mil.

Interest Coverage=-1* Operating Income (A: Sep. 2025 )/Interest Expense (A: Sep. 2025 )
=-1*5898.227/-508.949
=11.59

Franklin Templeton's Interest Coverage for the quarter that ended in Jun. 2026 is calculated as

Here, for the three months ended in Jun. 2026, Franklin Templeton's Interest Expense was R$-120 Mil. Its Operating Income was R$1,173 Mil. And its Long-Term Debt & Capital Lease Obligation was R$85,624 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*1172.906/-120.416
=9.74

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 9.74 mean?
Franklin Templeton (BSP:F1RA34) has a Interest Coverage of 9.74 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Franklin Templeton and its competitors. This is 68% below median its historical median of 30.72. Over the past decade, Franklin Templeton's Interest Coverage has ranged from 11.59 to 68.33. According to the industry distribution chart, Franklin Templeton ranks #297 out of 476 companies in the Asset Management industry, placing it in the top 62.4%.
Is Franklin Templeton's Interest Coverage too high?
Franklin Templeton's current Interest Coverage of 9.74 is 68% below median its 10-year median of 30.72. Over the past 10 years, this metric has ranged from a low of 11.59 to a high of 68.33. The Asset Management industry median Interest Coverage is 49.92. Franklin Templeton's value of 9.74 is 80.5% below this industry median. Based on the distribution chart, Franklin Templeton ranks #297 out of 476 companies in the Asset Management industry, which is below the industry midpoint. Overall, Franklin Templeton has a GF Score™ of 77/100, reflecting its overall financial health beyond just this single metric.
How does Franklin Templeton's Interest Coverage compare to CG and PS?
According to the Asset Management industry distribution chart, Franklin Templeton ranks #297 out of 476 companies for Interest Coverage. This places Franklin Templeton in the lower half of its industry. The industry median Interest Coverage is 49.92. Franklin Templeton's value of 9.74 is 80.5% below this benchmark. Historically, Franklin Templeton's own Interest Coverage has ranged from 11.59 to 68.33 over the past decade. While the company's 10-year median is 30.72 vs. the industry median of 49.92, Franklin Templeton has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Asset Management company?
The median Interest Coverage among Asset Management companies is 49.92, based on 476 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Franklin Templeton's current Interest Coverage of 9.74 is 80.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Franklin Templeton and its competitors. For the Asset Management industry, the median Interest Coverage is 49.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Franklin Templeton's current Interest Coverage is 9.74, which is 68% below median its own 10-year median of 30.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Franklin Templeton stock overvalued right now?
Franklin Templeton (BSP:F1RA34) has a current Interest Coverage of 9.74. The stock's GF Value™ is R$107.08, compared to a current price of R$168.81 — trading 57.6% above its estimated fair value. The current Interest Coverage is 9.74, which is 68% below median its 10-year median of 30.72 and 80.5% below the Asset Management industry median of 49.92. Franklin Templeton's overall GF Score™ is 77/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Franklin Templeton (BSP:F1RA34), the current Interest Coverage is 9.74 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Franklin Templeton (BSP:F1RA34) Overvalued in 2026?

Based on GuruFocus' analysis, Franklin Templeton stock appears to be overvalued. The current stock price of R$168.81 is trading 57.6% above its estimated GF Value™ of R$107.08.

Key valuation signals for BSP:F1RA34:

  • Interest Coverage: 9.74 (68% below median its 10-year median of 30.72)
  • GF Value™: R$107.08 vs. price of R$168.81 (57.6% above fair value)
  • GF Score™: 77/100 with 9 warning signs
  • Industry Position: 80.5% below the Asset Management median (#297 of 476)

No single metric tells the full story. See the BSP:F1RA34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Franklin Templeton Business Description

Address One Franklin Parkway, San Mateo, CA, USA, 94403
Franklin Resources provides investment services for individual and institutional investors. At the end of May 2026, Franklin had $1.780 trillion in managed assets, composed primarily of equity (40%), fixed-income (26%), multi-asset/balanced (12%) funds, alternatives (17%), and money market funds (5%). Distribution tends to be weighted between retail investors (57% of assets under management) and institutional accounts (40%), with high-net-worth clients accounting for the remainder. Franklin is one of the more global of the US-based asset managers we cover, with 30% of its AUM invested in global/international strategies and 29% sourced from clients domiciled outside the United States.
77GF Score

Get the complete analysis for BSP:F1RA34

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

R$168.81
Price
R$107.08
GF Value