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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Franklin Electric Co Inc. To summarize, we found that Franklin Electric Co Inc ranked in the 70th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 143.83% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Franklin Electric Co Inc, consider:
Interest coverage, a measure of earnings relative to interest payments, is 23.48 -- which is good for besting 89.74% of its peer stocks (US stocks in the Industrials sector with positive cash flow).
The business' balance sheet suggests that 3% of the company's capital is sourced from debt; this is greater than only 13.91% 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 3%; for context, that number is higher than 45.88% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as FELE, try DAC, IESC, EME, STN, and ACY.
FORT WAYNE, Ind., Jan. 04, 2021 (GLOBE NEWSWIRE) -- Franklin Electric Co., Inc. (NASDAQ: FELE) announced today that on December 31, 2020 it acquired Gicon Pumps & Equipment Inc. of Lubbock, Texas for $27.9 million in a cash transaction. Gicon is a professional groundwater distributor operating seven locations in the state of Texas. Gicon has approximately $68 million of consolidated annual sales. DeLancey Davis, President of Headwater Companies, the wholly owned Distribution Segment of Franklin Electric, commented:“We are pleased to add Gicon to the Headwater family. The team at Gicon has served the pump industry and related water resource markets for over 40 years and has an outstanding reputation within the industry for quality service and technical depth. The acquisition of Gicon ad...
Rising confidence that the U.S. economy is gaining strength is likely to drive sentiments higher for industrial stocks on expectations of better business ahead. Four stocks, PH, DOV, MSM and FELE are potential gainers.