Franklin Wireless Corp. Common Stock (FKWL)

FairStock Score: 33/100 — RISKY

Key Financials

AI Analysis

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

I approach Franklin Wireless with Graham's caution and Buffett's preference for durable economics. At the close on 2026-10-13, the stock was $2.25 and market value was $26.5M. FairStock calculates a P/B of 0.79, so the price is below stated book value, and debt is minimal with D/E of 0.03. That is the chief attraction. But I cannot call this a good business on these figures. In fiscal 2026, the year ended 2026-06-30, revenue was $36.5M and net loss was $4.7M, or EPS -$0.40. Fiscal 2025 lost $243,101, and fiscal 2024 lost $4.0M. The Lynch category is none because losses occurred in each of the last four years. In fiscal Q3 2026, the quarter ended 2026-03-31, revenue was only $3.4M and net loss was $1.6M, with EPS -$0.13. Trailing free cash flow was -$4.0M and FCF yield was -15.2%, so the company is consuming cash. FairStock's ROE is -2.15%, ROCE is -2.74%, Piotroski is 4/9, Altman Z is 2.52, and its score is 33/100. FairStock also shows revenue growth of -57% and profit growth of -141.69%. The 69-employee wireless broadband business may have niche products, but I see no evidence of a moat, pricing power, or consistent profitability. A low beta of 0.31 and low leverage give it time, but time is only valuable if losses reverse. The P/B discount could be a value trap if book value erodes. I would need evidence of stabilized revenue and positive free cash flow before treating the discount as genuine margin of safety.

In plain English: Franklin Wireless makes wireless broadband products like mobile hotspots and network software. The business looks weak: sales have fallen sharply, and it has lost money in each of the last four years. The stock price is low compared with the company's stated net worth, but because it is losing money and using cash, the cheapness is not clearly proven.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-03-31) · fiscal Q2 2026 10-Q (period ended 2025-12-31) · fiscal Q1 2026 10-Q (period ended 2025-09-30) · fiscal Q3 2025 10-Q (period ended 2025-03-31) · FY2026 10-K (period ended 2026-06-30) · FY2025 10-K (period ended 2025-06-30) · FY2024 10-K (period ended 2024-06-30)

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