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Franklin Electric Co
(NASDAQ:FELE)
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Rating:73Outperform
Price Target:
$111.00
▲(8.25% Upside)
Action:Reiterated
Date:09/08/26
The score is driven primarily by strong underlying financial quality (low leverage, steady gross margins, healthy cash generation) and a positive earnings update with raised guidance and margin/EPS momentum. These positives are partially offset by weaker near-term technical momentum and a relatively high P/E with a modest dividend yield.
Positive Factors
Cat Pumps acquisition expands flow-control platform
The Cat Pumps acquisition broadens Franklin Electric’s commercial and industrial flow-control platform while adding high-pressure technology and a larger installed base. Its mission-critical applications and aftermarket potential can diversify revenue and support durable growth, with management expecting adjusted EPS accretion in 2027.
Negative Factors
Lower net margin and moderate cash conversion
Although gross and operating margins remain healthy, lower net profitability signals that recent earnings power is below prior peak levels. Moderate free-cash-flow conversion and operating-cash-flow coverage below one also leave less internal funding cushion, potentially limiting flexibility if profitability weakens further.
Read all positive and negative factors
Positive Factors
Negative Factors
Cat Pumps acquisition expands flow-control platform
The Cat Pumps acquisition broadens Franklin Electric’s commercial and industrial flow-control platform while adding high-pressure technology and a larger installed base. Its mission-critical applications and aftermarket potential can diversify revenue and support durable growth, with management expecting adjusted EPS accretion in 2027.
Read all positive factors
Franklin Electric Co (FELE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.41B
Dividend Yield1.11%
Average Volume (3M)246.59K
Price to Earnings (P/E)28.3
Beta (1Y)0.83
Revenue Growth7.38%
EPS Growth-10.43%
CountryUS
Employees6,500
SectorGeneral
Sector StrengthN/A
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)3.50
Shares Outstanding44,211,464
10 Day Avg. Volume167,648
30 Day Avg. Volume246,592
Financial Highlights & Ratios
PEG Ratio-1.74
Price to Book (P/B)3.25
Price to Sales (P/S)2.02
P/FCF Ratio22.21
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$114.50Price Target Upside11.66% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)4.66
Revenue Forecast (FY)$2.27B
Franklin Electric Co Business Overview & Revenue Model
Company Description
Franklin Electric Co., Inc., together with its subsidiaries, designs, manufactures, and distributes water and fuel pumping systems in the United States, Canada, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. It operates thro...
How the Company Makes Money
Franklin Electric primarily makes money by selling engineered pumping and fueling-system products through OEMs, distributors, and end-market channels, with revenue generally organized around its water-focused and fuel-focused operations. In its wa...
Franklin Electric Co Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call presented a largely positive operating and financial performance: revenue growth (+6%), record adjusted EPS (+18%), margin expansion (adjusted operating margin +80 bps) and stronger cash generation supported by strategic M&A and product-led growth (>$10M new-product sales in Q2). Offsetting items were manageable one-time charges (legal and restructuring), regional softness in parts of EMEA and South America, material inflation and tariff timing headwinds, and geopolitical uncertainty that management is monitoring. Management raised full-year guidance while conservatively modeling H2 risks, indicating confidence in the company’s growth and productivity trajectory despite external headwinds.Positive Updates
Revenue Growth
Consolidated sales of $622.9 million in Q2 FY2026, up 6% year-over-year (organic growth ~3.5%); company raised full-year sales guidance to $2.21B–$2.29B.
Negative Updates
Regional Demand Weakness
Softer sales in parts of EMEA (North Africa/Middle East/Eastern Europe) impacted by the ongoing Middle East conflict and a slowdown in Latin America (including Brazil), creating uncertainty for H2 demand in those regions.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Consolidated sales of $622.9 million in Q2 FY2026, up 6% year-over-year (organic growth ~3.5%); company raised full-year sales guidance to $2.21B–$2.29B.
Read all positive updates
Company Guidance
Franklin raised full-year sales guidance to $2.21–$2.29 billion and increased full-year adjusted diluted EPS guidance to $4.50–$4.70, while announcing a quarterly cash dividend of $0.28 (payable Aug. 20; record Aug. 6); that raise reflects Q2 momentum including consolidated Q2 sales of $622.9 million (+6% YoY, 3.5% organic), Q2 adjusted diluted EPS of $1.55 (a quarterly record, +18% YoY), Q2 adjusted operating income of $98.5 million (+12% YoY) with an adjusted operating margin of 15.8% (+80 bps YoY), gross profit of $230.6 million (37.0% margin, +90 bps), and stronger cash flow (H1 operating cash flow $58.7 million vs. $32.0 million prior year) — management noted the guide still reflects macro/geopolitical uncertainties (tariffs, Middle East, Brazil/South America) and expects productivity and new-product sales tailwinds to help offset headwinds.Franklin Electric Co Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
82
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.21B | 2.13B | 2.02B | 2.07B | 2.04B | 1.66B |
| Gross Profit | 785.77M | 755.92M | 717.28M | 697.01M | 691.43M | 576.09M |
| EBITDA | 274.04M | 268.17M | 294.24M | 306.27M | 297.13M | 239.47M |
| Net Income | 156.06M | 147.09M | 180.31M | 193.27M | 187.33M | 153.86M |
Balance Sheet | ||||||
| Total Assets | 2.15B | 1.94B | 1.82B | 1.73B | 1.69B | 1.58B |
| Cash, Cash Equivalents and Short-Term Investments | 97.28M | 99.66M | 220.54M | 84.96M | 45.79M | 40.54M |
| Total Debt | 308.32M | 234.01M | 191.62M | 156.28M | 264.84M | 236.77M |
| Total Liabilities | 739.34M | 617.36M | 550.77M | 517.83M | 623.40M | 626.54M |
| Stockholders Equity | 1.41B | 1.32B | 1.27B | 1.21B | 1.07B | 946.48M |
Cash Flow | ||||||
| Free Cash Flow | 218.28M | 193.54M | 219.67M | 274.30M | 59.77M | 99.65M |
| Operating Cash Flow | 265.59M | 238.88M | 261.35M | 315.71M | 101.67M | 129.76M |
| Investing Cash Flow | -120.73M | -157.13M | -45.63M | -74.29M | -43.07M | -264.81M |
| Financing Cash Flow | -139.08M | -197.31M | -74.07M | -192.19M | -48.47M | 50.89M |
Franklin Electric Co Technical Analysis
Negative
102.54
Price Trends
104.22
Negative
102.24
Negative
99.51
Negative
Market Momentum
-1.72
Positive
38.76
Neutral
32.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FELE, the sentiment is Negative. The current price of 102.54 is above the 20-day moving average (MA) of 102.44, below the 50-day MA of 104.22, and above the 200-day MA of 99.51, indicating a bearish trend. The MACD of -1.72 indicates Positive momentum. The RSI at 38.76 is Neutral, neither overbought nor oversold. The STOCH value of 32.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FELE.
Franklin Electric Co Risk Analysis
Franklin Electric Co disclosed 20 risk factors in its most recent earnings report. Franklin Electric Co reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Franklin Electric Co Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $12.12B | 31.50 | 18.56% | 0.64% | 17.13% | 23.21% | |
79 Outperform | $3.74B | 16.62 | 21.21% | 1.18% | 5.88% | 49.15% | |
73 Outperform | $4.41B | 28.32 | 11.59% | 1.11% | 7.38% | -10.43% | |
68 Neutral | $1.99B | 31.99 | 14.79% | 1.01% | 4.18% | 19.92% | |
63 Neutral | $4.22B | 170.91 | 1.33% | ― | 15.68% | 133.41% | |
56 Neutral | $10.85B | 33.55 | 4.74% | 0.86% | 3.50% | 29.04% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
FELE
Franklin Electric Co
99.13
5.48
5.85%
GRC
Gorman-Rupp Company
75.49
33.92
81.59%
MWA
Mueller Water Products
23.76
-0.63
-2.58%
RRX
Regal Rexnord
163.73
22.54
15.96%
WTS
Watts Water Technologies
360.98
86.84
31.68%
MIR
Mirion Technologies
16.92
-5.18
-23.44%
Franklin Electric Co Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Franklin Electric Expands Portfolio With Cat Pumps Acquisition
Positive
Sep 8, 2026
On September 4, 2026, Franklin Electric completed the acquisition of Cat Pumps Corporation, purchasing all outstanding shares for about $350 million in cash plus performance-based stock units with a potential earnout up to $50 million. Cat Pumps, ...
Financial DisclosuresRegulatory Filings and Compliance
Franklin Electric Posts Q2 2026 Earnings Presentation Materials
Neutral
Jul 28, 2026
On July 28, 2026, Franklin Electric Co., Inc. announced that it had posted its Q2 2026 earnings call presentation materials on its investor relations website. The company also furnished these presentation slides in a current report on Form 8-K und...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.