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Franklin Financial Services
(NASDAQ:FRAF)
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Rating:71Outperform
Price Target:
$68.00
â–²(9.18% Upside)
Action:Reiterated
Date:08/11/26
The score is driven primarily by improving financial performance and strong cash conversion, tempered by balance-sheet leverage and a low operating cash flow coverage ratio risk flag. Technicals are neutral-to-mildly constructive (longer-term uptrend but near-term consolidation), while valuation is supportive with a modest P/E and moderate dividend yield.
Positive Factors
Strong free cash flow
Franklin consistently converts earnings to cash: TTM operating cash flow ~$42.3M and FCF ~$41M, with FCF tracking ~97% of net income and 259% growth. Durable cash generation supports reinvestment, dividend sustainability and buffers in downturns.
Negative Factors
Elevated leverage
Leverage has structurally stepped up versus 2021–22 and debt remains sizable, which reduces financial flexibility. In a weaker credit or rising-rate backdrop, elevated debt ratios can stress capital buffers, constrain lending growth, and limit strategic options.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Franklin consistently converts earnings to cash: TTM operating cash flow ~$42.3M and FCF ~$41M, with FCF tracking ~97% of net income and 259% growth. Durable cash generation supports reinvestment, dividend sustainability and buffers in downturns.
Read all positive factors
Franklin Financial Services (FRAF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$287.25M
Dividend Yield2.12%
Average Volume (3M)51.03K
Price to Earnings (P/E)11.6
Beta (1Y)0.42
Revenue Growth10.02%
EPS Growth67.97%
CountryUS
Employees306
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)5.49
Shares Outstanding4,499,582
10 Day Avg. Volume79,380
30 Day Avg. Volume51,030
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)1.29
Price to Sales (P/S)1.69
P/FCF Ratio9.19
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)5.79
Revenue Forecast (FY)$98.90M
Franklin Financial Services Business Overview & Revenue Model
Company Description
Franklin Financial Services Corporation (FRAF) operates as the parent company for Farmers and Merchants Trust Company of Chambersburg, delivering a comprehensive array of financial solutions. This includes commercial, retail banking, and trust ser...
How the Company Makes Money
Franklin Financial Services primarily generates revenue through its banking subsidiary by (1) earning net interest income—the spread between interest earned on loans and other interest-earning assets and interest paid on deposits and other funding...
Franklin Financial Services Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 135.09M | 133.55M | 113.83M | 90.38M | 70.27M | 63.98M |
| Gross Profit | 91.00M | 85.92M | 67.91M | 64.53M | 64.76M | 63.18M |
| EBITDA | 32.80M | 28.41M | 15.40M | 17.77M | 18.93M | 24.22M |
| Net Income | 24.64M | 21.23M | 11.10M | 13.60M | 14.94M | 19.62M |
Balance Sheet | ||||||
| Total Assets | 2.34B | 2.24B | 2.20B | 1.84B | 1.70B | 1.77B |
| Cash, Cash Equivalents and Short-Term Investments | 647.38M | 229.81M | 524.10M | 501.87M | 565.71M | 715.45M |
| Total Debt | 215.11M | 214.69M | 223.96M | 154.48M | 25.77M | 24.45M |
| Total Liabilities | 2.15B | 2.06B | 2.05B | 1.70B | 1.59B | 1.62B |
| Stockholders Equity | 183.84M | 175.24M | 144.72M | 132.14M | 114.20M | 157.06M |
Cash Flow | ||||||
| Free Cash Flow | 41.02M | 24.58M | 19.19M | 26.07M | 13.03M | 17.54M |
| Operating Cash Flow | 42.27M | 25.44M | 21.75M | 26.57M | 25.24M | 26.35M |
| Investing Cash Flow | -70.93M | -107.02M | -184.37M | -178.27M | -95.06M | -133.94M |
| Financing Cash Flow | 15.91M | 5.69M | 343.08M | 109.94M | -40.44M | 225.59M |
Franklin Financial Services Technical Analysis
Positive
62.28
Price Trends
62.06
Positive
58.75
Positive
54.25
Positive
Market Momentum
0.55
Negative
57.09
Neutral
77.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FRAF, the sentiment is Positive. The current price of 62.28 is below the 20-day moving average (MA) of 63.00, above the 50-day MA of 62.06, and above the 200-day MA of 54.25, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 57.09 is Neutral, neither overbought nor oversold. The STOCH value of 77.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FRAF.
Franklin Financial Services Risk Analysis
Franklin Financial Services disclosed 13 risk factors in its most recent earnings report. Franklin Financial Services reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Franklin Financial Services Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $274.03M | 10.45 | 15.01% | 2.14% | 4.90% | 24.16% | |
76 Outperform | $250.59M | 10.09 | 13.36% | 3.21% | 5.91% | 37.89% | |
71 Outperform | $287.25M | 11.61 | 14.00% | 2.14% | 10.02% | 67.97% | |
71 Outperform | $287.28M | 13.34 | 11.51% | 2.49% | 7.47% | 141.95% | |
71 Outperform | $236.43M | 12.63 | 9.83% | 3.06% | 20.33% | 59.91% | |
70 Outperform | $231.90M | 7.97 | 12.59% | 3.19% | 7.19% | 31.23% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
FRAF
Franklin Financial Services
63.22
21.70
52.26%
HWBK
Hawthorn Bancshares
39.76
10.62
36.46%
OPBK
OP Bancorp
15.55
2.32
17.55%
FXNC
First National
32.07
10.30
47.33%
EFSI
Eagle Financial Services
43.61
9.82
29.06%
VABK
Virginia National Bankshares
47.11
10.85
29.91%
Franklin Financial Services Corporate Events
DividendsFinancial Disclosures
Franklin Financial Services Declares Third-Quarter Cash Dividend
Positive
Jul 17, 2026
On July 16, 2026, Franklin Financial Services Corporation’s board declared a regular cash dividend of $0.34 per share for the third quarter of 2026. The payout will be made on August 26, 2026 to shareholders of record as of the close of busi...
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.