Franklin Financial Services Corporation Common Stock (FRAF)

FairStock Score: 71/100 — STEADY

Key Financials

AI Analysis

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

As a value investor, I start with the business. Franklin is a small regional bank holding company in Pennsylvania, serving businesses, individuals, and government entities. In fiscal Q2 2026, the quarter ended 2026-06-30, it reported net income of $6.6M and diluted EPS of $1.47, up from $5.9M and $1.32 in fiscal Q2 2025. Fiscal Q1 2026 also showed $6.6M and $1.48. For FY2025, period ended 2025-12-31, net income was $21.2M and diluted EPS $4.74, a sharp recovery from FY2024's $11.1M and $2.51, though FY2023 was $13.6M and $3.10. That is stalwart behavior, not a fast compounder; FairStock's Lynch category is STALWART, based on 10.6% annual profit growth over five years. The local deposit base and relationship lending may give a modest moat, but community banks rarely have wide moats. At the 2026-10-13 close of $63.32, FairStock calculates P/E 11.55, P/B 1.55, PEG 0.97, dividend yield 2.15%, and ROE 14.45%. A 14% ROE supports a book value above 1x, but not extravagantly. Piotroski 5/9 suggests middling financial momentum. I cannot fully judge credit quality because CET1, net interest margin, nonperforming assets, reserves, and efficiency ratio are not in the data; combined ratio is not relevant to a bank. The price is near its 52-week high of $65.41, leaving little margin of safety. Fair business, fair price, not a bargain.

In plain English: Franklin Financial Services is a Pennsylvania bank holding company that takes deposits and makes loans to local businesses and individuals. Its profits have improved lately, and it pays a modest dividend, but the stock is not an obvious bargain and banks always carry lending risk. At the recent price, the shares look reasonable compared with its earnings and book value, though not clearly cheap.

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 Q2 2026 10-Q (period ended 2026-06-30) · 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) · 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