Franklin Electric Co. Inc. Common Stock (FELE)

FairStock Score: 53/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for understandable businesses with durable advantages and a sensible price. Franklin Electric makes motors, pumps, and water and fuel systems—unglamorous equipment that people need. The filed record shows a mixed picture. In fiscal year 2023, the year ended 2023-12-31, revenue was $2.1B, net income $193.3M, and diluted EPS $4.11. In fiscal year 2024, the year ended 2024-12-31, revenue was $2.0B, net income $180.3M, and EPS $3.86. In fiscal year 2025, the year ended 2025-12-31, revenue was $2.1B, net income $147.1M, and EPS $3.22. Sales have been roughly flat, while profits and per-share earnings declined. The quarterly path is lumpy: in fiscal Q2 2025, the quarter ended 2025-06-30, revenue was $587.4M, net income $60.1M, and EPS $1.31; in fiscal Q3 2025, the quarter ended 2025-09-30, revenue was $581.7M, net income $16.7M, and EPS $0.37. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $500.4M, net income $34.3M, and EPS $0.77. At the 2026-10-13 close, FairStock calculations put P/E at 28.46, P/B at 3.11, ROE at 11.77%, ROCE at 8.60%, and FCF yield at 5.0%. Debt is modest with D/E 0.22, Altman Z-score 5.09, and Piotroski 7/9. But Graham Number is $49.92 versus a $99.03 price—a negative margin of safety—while PEG is 3.06 and EV/EBITDA is 16.08. FairStock’s Lynch category is Slow Grower: profit 7.9% a year over five years, revenue 11.3%. The moat seems modest, tied to replacement demand and distribution rather than pricing power. This is a decent industrial franchise, but the price already assumes better days. I would need lower expectations embedded in the price or clear evidence of durable earnings recovery.

In plain English: Franklin Electric makes pumps and water and fuel systems used around the world. The business is profitable and carries little debt, but its profits have slipped from a few years ago while sales have moved sideways. At the recent price of $99.03, the shares look expensive compared with the company's earnings and asset value, so investors are paying a lot for steady but slow growth.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer