QualityDipStocks / Consumer Discretionary · Metal Fabrications
Franklin Electric FELE
Outside our quality screen, so we don’t track its dips. It’s 9% below its 52-week high.
Outside our quality screen, trading well above our fair value estimate.
- Fair value est.
- $68.74−31%
- Market Value
- forming
- Off 52-wk high
- −9%
- Risk vs market
- Below marketbeta 0.71
4 bullish · 5 bearish See why
Repriced or dip?
Near its high
The price is 9% below its 52-week high (Aug 5), but the business held up: earnings per share +28.4%, shares outstanding fewer shares, each owns more, revenue growth rate −0.1 pts.
Some numbers held up (earnings per share +28.4%, shares outstanding fewer shares, each owns more, revenue growth rate −0.1 pts), others slipped (free cash flow −11.4%). The price is 9% below its 52-week high.
The price is 9% below its 52-week high, and the business changed too: free cash flow −11.4%.
Within 10% of its 52-week high, so there is no dip to judge yet.
Data-based read, not advice.
Priced in
How much growth the market assumed at the 52-week high, the low and today (a reverse DCF).
At the high ($110.05, Aug 5) the price assumed about 9%/yr free-cash-flow growth; at the low ($89.89, Mar 20) about 8%; today about 10%. The last 3 years delivered 48%/yr (free cash flow).
Dashed line: what the last 3 years delivered, 48%/yr (free cash flow)
| High | Low | Now | |
|---|---|---|---|
| Price | $110.05Aug 5 | $89.89Mar 20 | $100.30 |
| Implied growth | +9% | +8% | +10% |
| P/E | 31.7× | 27.9× | 22.5× |
| P/FCF | 22.5× | 21.1× | 23.1× |
| EV/Sales | 2.2× | 1.9× | 2.1× |
What this means: the higher the implied growth, the more the price already counts on. If today's number sits well below what the business has delivered, the market expects less than its track record.
How it’s computed
Reverse DCF: the same 10-year free-cash-flow model as our fair value estimate (9.5% discount rate, growth for years 1–5 fading to 3% by year 10, 3% after), solved for the growth that makes it equal the market value at each price. For the high and the low we use only the filings that were public on that day, so nothing from a later report leaks back. Market value = that close × diluted shares. P/E = market value / 12-month net income; Price / FCF = market value / 12-month free cash flow; EV / Sales = (market value + debt − cash) / 12-month revenue. Hidden when the share count moved over 20% (split, merger), free cash flow is negative, or the company reports in another currency.
Valuation
What we estimate it's worth, and how it ranks on value vs every stock we cover.
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 3.0% ±2 points. Bear = 10.5% and 1.0%; bull = 8.5% and 5.0% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price is above even the bull case.
What the price implies To be worth today’s price, FELE’s free cash flow would need to grow about 10% a year for five years; our estimate uses 3%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 31 to Nov 2, 252 sessions). Beta = how much FELE moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Moves a bit less than the market, but its own price swings are 2.2× the S&P 500’s (it moves on its own news).
- Beta vs S&P 500
- 0.71
- Volatility
- 28% vs 13% SPY
- Correlation SPY
- 0.33
- Correlation QQQ
- 0.23
How it ranks
Where FELE stands vs every one of the 1,996 stocks we cover that has the number. Longer bar = better.
Not in the top quarter on any of these 6 measures
- Discount to fair value estimate31% · price above our base caseLowest 26%of 1,314
- Free cash flow yield4.3% · free cash flow vs market capTop 47%of 1,391
- Dividends + buybacks yield2.5% · cash paid out or used to retire shares, vs market capLowest 46%of 1,836
- Revenue growth, last 12 months+7.3% · vs the 12 months beforeLowest 40%of 1,814
- Operating margin12% · of sales kept as operating profitTop 49%of 1,288
- Return on invested capital12% · profit per dollar of capitalTop 41%of 838
From SEC filings and our fair value estimate model. A ranking, not advice.
Valuation details
DCF $68.74 · FCF value $74.09
Assumes 3.0% growth for 5 years (revenue grew 1.4% a year FY22–FY25; floored at 3%), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $4.34 a share (trailing 12 months to Sep 30, 2026), from the 10-Q filed Oct 28, 2026.
Fundamentals
The business itself: sales, profits, cash and debt, from SEC filings.
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 4 of 5
Balance sheetOperating income covers interest 21× over.
Balance sheetDebt / equity of 0.3×, below the 0.8× median for the 250 Consumer Discretionary companies we cover.
ProfitabilityOperating margin of 12%, above the 11% median for the 341 Consumer Discretionary companies we cover.
VoicesDA Davidson: “Franklin Electric Shares Rise After DA Davidson Upgrade” Yahoo Finance
Top bearish points 5 of 5
ValuationOur DCF fair value estimate is $68.74, 31% below the price.
GrowthDiluted EPS fell 17% to $3.22 in FY2025.
GrowthSales grew 1.4% a year over the last three fiscal years, below the 5.4% median for the 380 Consumer Discretionary companies we cover.
ValuationFree-cash-flow yield of 4.3%, below the 5.5% median for the 352 Consumer Discretionary companies we cover.
ValuationEV/EBITDA of 13.6×, above the 12.3× median for the 230 Consumer Discretionary companies we cover.
All fundamentals
P/E 22.5 · FCF yield 4.3% · ROE 14%
Valuation
- P/E
- 22.5×Consumer Discretionary median 20.7×
- Price / FCF
- 23.1×
- FCF yield
- 4.3%
- EV / EBITDA
- 13.6×
- Price / sales
- 1.98×
- Price / book
- 3.09×
- Market cap
- $4.5Bprice × diluted shares
- Enterprise value
- $4.7B
Growth
- Revenue, 12 months
- $2.3B
- Sales growth, 12 months
- +7.3%vs the 12 months before
- Sales growth, 3 yrs
- +1.4%/yrfrom FY2022
- Diluted EPS, 12 months
- $4.45
- EPS growth, last FY
- −16.6%
- Net income, 12 months
- $199M
- Net income growth
- +41%12 months vs before
Profitability
- Gross margin
- 35.4%
- Operating margin
- 12.4%
- Net margin
- 8.8%
- FCF margin
- 8.5%
- Return on equity
- 14%
- Return on invested capital
- 12%
Balance sheet
- Cash & short-term inv.
- $159M
- Total debt
- $433M
- Net cash
- −$274M
- Debt / equity
- 0.30×
- Interest coverage
- 21.4×operating income / interest
Cash flow & returns
- Free cash flow, 12 months
- $193M
- FCF growth, 12 months
- −4%
- Dividend yield
- 1.12%$50M paid
- Payout ratio
- 25%
- Buybacks, 12 months
- $61M1.4% of market cap
- Share count, 1 year
- −0.9%diluted shares vs a year ago
- Stock-based comp
- $14M
Trailing 12 months to Sep 30, 2026; balance sheet at Sep 30, 2026. From Franklin Electric’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
The business
FCF $0.1B · Sales +9%
- Free cash flow, 12 months$0.1B
- Free-cash-flow yield4.3%
- Free-cash-flow margin6%
- Gross margin35%
- Operating margin14%
- Return on invested capital13%
- Return on equity14%
- Sales growth (latest quarter vs year-ago quarter)+9%
- Net debt / EBITDA1.3×
Chart & levels
Where the price is vs its key levels and trends.
Key levels
Every level vs today’s $100.30
- Fair value est.base case$68.74−31.5%
- 52-wk lowlowest close, 1 year$89.89−10.4%
- PriceMon Nov 2 close$100.30you are here
- 52-wk highhighest close, 1 year$110.05+9.7%
Momentum & 52-week range
RSI 56 · 5 days +1.7%
Signals
Reversal signal setups, the public ledger and the next earnings date.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only run on companies that pass our quality screen.
FELE is outside our quality screen
One text when a published rule fires on one of the 332 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.
Voices & buzz
Who is talking about it, and how it compares with peers.
Who’s talking about it
Notable investors, executives, analysts and public figures on Franklin Electric in the last 48 hours. Headlines as published, each linked. Their words, not ours.
DA DavidsonAnalyst rating changeAnalyst
Franklin Electric Shares Rise After DA Davidson UpgradeYahoo Finance ·
D.A. DavidsonAnalyst rating changeAnalyst
D.A. Davidson Upgrades Franklin Electric (FELE) to Buy with $135 Price TargetGuruFocus ·
Checked Nov 3, 1:01 PM ET. Matched by name against a maintained list plus the company’s own executives. Information only, not advice.
Compare with peers
Closest in size in Consumer Discretionary
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.