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 65th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 209.5%. 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 94% of its capital from equity, and 6% of its capital from debt. Notably, its equity weight is greater than 88.9% of US equities in the Industrials sector yielding a positive free cash flow.
The business' balance sheet reveals debt to be 6% of the company's capital (with equity being the remaining amount). Approximately merely 13.4% 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 54.97% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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