Franklin Electric CoFRA:FE4 +0.56%86 Return-on-Tangible-Equity is 20.24% as of Mar. 2026, which is 30% below its 10-year median of 28.88. GuruFocus rates FRA:FE4 with a GF Score™ of 86/100 and a GF Value™ of €90.18 (Fairly Valued). The stock has 3 warning signs investors should review. Among 2,967 Industrial Products companies, Franklin Electric Co ranks better than 87.02% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Franklin Electric Co's annualized net income for the quarter that ended in Mar. 2026 was €119 Mil. Franklin Electric Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €587 Mil. Therefore, Franklin Electric Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 20.24%.
The historical rank and industry rank for Franklin Electric Co's Return-on-Tangible-Equity or its related term are showing as below:
FRA:FE4'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 21.2 Med: 28.88 Max: 42.78
Current: 22.9
During the past 13 years, Franklin Electric Co's highest Return-on-Tangible-Equity was 42.78%. The lowest was 21.20%. And the median was 28.88%.
FRA:FE4's Return-on-Tangible-Equity is ranked better than 87.02% of 2967
companies
in the Industrial Products industry
Industry Median: 6.72
vs FRA:FE4: 22.90
Franklin Electric Co (FRA:FE4) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Franklin Electric Co Return-on-Tangible-Equity Related Terms
Franklin Electric Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Franklin Electric Co's Return-on-Tangible-Equity 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.
Franklin Electric Co Return-on-Tangible-Equity Chart
FRA:FE4 vs CSW, MIR, SYM: Return-on-Tangible-Equity Comparison
For the Specialty Industrial Machinery subindustry, Franklin Electric Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Electric Co Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Franklin Electric Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Franklin Electric Co's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 20.24% mean?
Franklin Electric Co (FRA:FE4) has a Return-on-Tangible-Equity of 20.24% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Franklin Electric Co and its competitors. This is 30% below median its historical median of 28.88. Over the past decade, Franklin Electric Co's Return-on-Tangible-Equity has ranged from 21.20 to 42.78. According to the industry distribution chart, Franklin Electric Co ranks #385 out of 2967 companies in the Industrial Products industry, placing it in the top 13%.
Is Franklin Electric Co's Return-on-Tangible-Equity too high?
Franklin Electric Co's current Return-on-Tangible-Equity of 20.24% is 30% below median its 10-year median of 28.88. Over the past 10 years, this metric has ranged from a low of 21.20 to a high of 42.78. The Industrial Products industry median Return-on-Tangible-Equity is 6.72. Franklin Electric Co's value of 20.24% is 201.2% above this industry median. Based on the distribution chart, Franklin Electric Co ranks #385 out of 2967 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Franklin Electric Co has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Franklin Electric Co's Return-on-Tangible-Equity compare to CSW and MIR?
According to the Industrial Products industry distribution chart, Franklin Electric Co ranks #385 out of 2967 companies for Return-on-Tangible-Equity. This places Franklin Electric Co in the top 13% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.72. Franklin Electric Co's value of 20.24% is 201.2% above this benchmark. Historically, Franklin Electric Co's own Return-on-Tangible-Equity has ranged from 21.20 to 42.78 over the past decade. While the company's 10-year median is 28.88 vs. the industry median of 6.72, Franklin Electric Co has consistently been above 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 Return-on-Tangible-Equity for an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.72, based on 2,967 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Franklin Electric Co's current Return-on-Tangible-Equity of 20.24% is 201.2% above 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Franklin Electric Co and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Franklin Electric Co's current Return-on-Tangible-Equity is 20.24%, which is 30% below median its own 10-year median of 28.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Franklin Electric Co stock overvalued right now?
Based on GuruFocus' analysis, Franklin Electric Co (FRA:FE4) is currently considered Fairly Valued. The stock's GF Value™ is €90.18, compared to a current price of €90.50 — trading 0.4% above its estimated fair value. The current Return-on-Tangible-Equity is 20.24%, which is 30% below median its 10-year median of 28.88 and 201.2% above the Industrial Products industry median of 6.72. Franklin Electric Co's overall GF Score™ is 86/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Franklin Electric Co (FRA:FE4), the current Return-on-Tangible-Equity is 20.24% as of Mar. 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 Electric Co (FRA:FE4) Overvalued in 2026?
Based on GuruFocus' analysis, Franklin Electric Co stock appears to be overvalued.
The current stock price of €90.50 is trading 0.4% above its estimated GF Value™ of €90.18.
GuruFocus considers Franklin Electric Co to be Fairly Valued.
Key valuation signals for FRA:FE4:
Return-on-Tangible-Equity: 20.24% (30% below median its 10-year median of 28.88)
GF Value™: €90.18 vs. price of €90.50 (0.4% above fair value)
Industry Position: 201.2% above the Industrial Products median (#385 of 2967)
No single metric tells the full story. See the FRA:FE4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Franklin Electric Co Inc designs, manufactures, and distributes water and fuel pumping systems, composed of submersible motors, pumps, electronic controls, water treatment systems, and related parts and equipment. It has three segments; The Water Systems segment designs, manufactures and sells motors, pumps, drives, electronic controls, monitoring devices, and related parts and equipment for use in groundwater, water transfer, and wastewater, The Energy Systems segment designs, manufactures and sells pumps, pipe, sumps, fittings, vapor recovery components, electronic controls, monitoring devices, and related parts and equipment for use in fueling system applications and the Distribution segment sells and provides presale support and specifications to the installing contractors.
86GF Score
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