📊 BEN Key Takeaways
Is Franklin Resources Inc. (BEN) a Good Investment?
Franklin Resources exhibits a strong balance sheet with conservative leverage (0.19x D/E) and excellent liquidity (5.30x current ratio), but is offset by significant operational concerns including negative operating cash flow of -$282.7M and weak returns on capital (ROE 4.3%, ROA 1.5%). Net income growth (11.3%) outpacing modest revenue growth (3.5%) raises earnings quality questions given the persistent negative free cash flow of -$437.2M.
Franklin Resources shows modest top-line and earnings growth, with revenue up 3.5% and net income up 11.3% year over year, while maintaining solid liquidity and conservative leverage. However, the quality of that growth is weakened by negative operating cash flow and free cash flow, along with very low ROE and ROA that suggest weak capital efficiency. The fundamentals support financial stability, but not a clearly strong earnings-quality profile.
Franklin Resources Inc. Key Strengths (BEN)
- Strong balance sheet with minimal leverage and $3.6B cash position
- Excellent liquidity metrics (5.30x current ratio and quick ratio)
- Net income growth (11.3% YoY) exceeding revenue growth (3.5% YoY)
- Solid interest coverage ratio of 15.0x indicating financial stability
- Reasonable operating margin of 13.1% for asset management sector
- Strong liquidity with a 5.30x current and quick ratio plus $3.48B in cash
- Conservative leverage with 0.19x debt-to-equity and solid 13.8x interest coverage
- Positive year-over-year growth in revenue, net income, and diluted EPS
BEN Stock Risks: Franklin Resources Inc. Investment Risks
- Critical: Negative operating cash flow (-$282.7M) and free cash flow (-$437.2M) despite positive net income indicates earnings quality concerns
- Very low returns on equity (4.3%) and assets (1.5%) suggest inefficient capital deployment
- Divergence between net income growth and cash flow generation raises questions about accounting practices and working capital management
- Modest revenue growth (3.5% YoY) limits organic expansion in asset management business
- Negative FCF margin (-9.5%) unsustainable long-term for funding operations and potential distributions
- Negative operating cash flow and free cash flow despite positive net income raise earnings-quality concerns
- Low ROE of 2.1% and ROA of 0.8% indicate weak returns on capital and assets
- Operating and net margins remain relatively modest at 12.1% and 11.0%, limiting profitability resilience
Key Metrics to Watch
- Operating cash flow trend and reconciliation to net income
- Return on equity trajectory and capital allocation efficiency
- Assets under management (AUM) growth and fee margins
- Working capital changes explaining OCF divergence from net income
- Operating cash flow conversion relative to net income
- ROE improvement alongside sustained operating margin expansion
Franklin Resources Inc. (BEN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 5.30x current ratio provides a solid financial cushion.
BEN Profit Margin, ROE & Profitability Analysis
BEN vs Market Sector: How Franklin Resources Inc. Compares
How Franklin Resources Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Franklin Resources Inc. Stock Overvalued? BEN Valuation Analysis 2026
Based on fundamental analysis, Franklin Resources Inc. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Franklin Resources Inc. Balance Sheet: BEN Debt, Cash & Liquidity
BEN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Franklin Resources Inc.'s revenue has shown modest growth of 4% over the 5-year period. The most recent EPS of $1.72 reflects profitable operations.
BEN Revenue Growth, EPS Growth & YoY Performance
BEN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $2.1B | $151.4M | $0.26 |
| Q1 2026 | $2.3B | $163.6M | $0.29 |
| Q3 2025 | $2.1B | $92.3M | $0.15 |
| Q2 2025 | $2.1B | $124.2M | $0.23 |
| Q1 2025 | $2.0B | $163.6M | $0.29 |
| Q3 2024 | $2.0B | $174.0M | $0.32 |
| Q2 2024 | $1.9B | $124.2M | $0.23 |
| Q1 2024 | $2.0B | $165.6M | $0.32 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Franklin Resources Inc. Dividends, Buybacks & Capital Allocation
BEN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Franklin Resources Inc. (CIK: 0000038777)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BEN
What is the AI rating for BEN?
Franklin Resources Inc. (BEN) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 59% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BEN's key strengths?
Claude: Strong balance sheet with minimal leverage and $3.6B cash position. Excellent liquidity metrics (5.30x current ratio and quick ratio). ChatGPT: Strong liquidity with a 5.30x current and quick ratio plus $3.48B in cash. Conservative leverage with 0.19x debt-to-equity and solid 13.8x interest coverage.
What are the risks of investing in BEN?
Claude: Critical: Negative operating cash flow (-$282.7M) and free cash flow (-$437.2M) despite positive net income indicates earnings quality concerns. Very low returns on equity (4.3%) and assets (1.5%) suggest inefficient capital deployment. ChatGPT: Negative operating cash flow and free cash flow despite positive net income raise earnings-quality concerns. Low ROE of 2.1% and ROA of 0.8% indicate weak returns on capital and assets.
What is BEN's revenue and growth?
Franklin Resources Inc. reported revenue of $4.6B.
Does BEN pay dividends?
Franklin Resources Inc. pays dividends, with $346.6M distributed to shareholders in the trailing twelve months.
Where can I find BEN SEC filings?
Official SEC filings for Franklin Resources Inc. (CIK: 0000038777) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BEN's EPS?
Franklin Resources Inc. has a diluted EPS of $0.95.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is BEN's fundamental grade?
Based on our AI fundamental analysis in June 2026, Franklin Resources Inc. has a B grade with 59% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is BEN stock overvalued or undervalued?
Valuation metrics for BEN: ROE of 4.3% (sector avg: 15%), net margin of 11.3% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is BEN's AI grade for 2026?
Our dual AI analysis gives Franklin Resources Inc. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is BEN's free cash flow?
Franklin Resources Inc.'s operating cash flow is $-282.7M, with capital expenditures of $154.5M. FCF margin is -9.5%.
How does BEN compare to other Market stocks?
Vs Default sector averages: Net margin 11.3% (avg: 12%), ROE 4.3% (avg: 15%), current ratio 5.30 (avg: 1.8).