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:
Below please find a table outlining a discounted cash flow forecast for FELE, in which we model out valuation assuming a variety of terminal growth rates. 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. In terms of the factors that were most noteworthy in this DCF analysis for FELE, they are:
The company's balance sheet shows it gets 96% of its capital from equity, and 4% of its capital from debt. Its equity weight surpasses that of 88.69% of free cash flow generating stocks in the Industrials sector.
The business' balance sheet reveals debt to be 4% of the company's capital (with equity being the remaining amount). Approximately just 13.93% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
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 44.78% 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 RGR, DY, CHRA, MG, and CVLG.
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 ...