Franklin Electric Company engages in the production and marketing of systems and components for the movement of water and automotive fuels. The company serves customers around the world in residential, commercial, agricultural, industrial, municipal, and fueling applications. The company was founded in 1944 and is based in Fort Wayne, Indiana.
FELE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Franklin Electric Co Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Franklin Electric Co Inc ranked in the 80th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Franklin Electric Co Inc ended up being:
The company's balance sheet shows it gets 96% of its capital from equity, and 4% of its capital from debt. Notably, its equity weight is greater than 89.73% of US equities in the Industrials sector yielding a positive free cash flow.
The business' balance sheet suggests that 4% of the company's capital is sourced from debt; this is greater than only 13.27% of the free cash flow producing stocks we're observing.
FELE's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 45.26% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Franklin Electric Co Inc? See CHRA, TRU, GOGL, DY, and RGR.
FORT WAYNE, Ind., July 27, 2020 (GLOBE NEWSWIRE) -- Franklin Electric Co., Inc. (NASDAQ: FELE) announced today that its Board of Directors declared a quarterly cash dividend of $0.155 per share payable August 20, 2020, to shareholders of record on August 6, 2020. Franklin Electric is a global leader in the production and marketing of systems and components for the movement of water and fuel. Recognized as a technical leader in its products and services, Franklin Electric serves customers around the world in residential, commercial, agricultural, industrial, municipal, and fueling applications.“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including those relating to market conditions or the Company’s ...