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Franklin Resources
(NYSE:BEN)
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Rating:66Neutral
Price Target:
$36.00
â–˛(10.80% Upside)
Action:Reiterated
Date:08/12/26
BEN scores in the mid-range primarily due to mixed financial performance—strong deleveraging and improving margins are offset by notably weaker TTM cash generation. Technicals are modestly supportive with an upward trend but neutral momentum, while valuation is reasonable with a solid dividend yield. The earnings call and recent financing/legal-overhang resolution add a positive tilt, but execution on cash flow conversion and sustained fee/margin expansion remain key.
Positive Factors
Balance sheet deleveraging
Sharp deleveraging (debt roughly $1B; debt/equity ~0.08x) materially improves financial flexibility, reduces refinancing and rate risk, and preserves capacity for buybacks, dividends, M&A or private-markets investment without stressing liquidity over the medium term.
Negative Factors
Weakened cash generation
Material deterioration in operating and free cash flow, and OCF covering only ~28% of net income, weakens the firm's ability to fund buybacks, dividends and organic investments from operations and raises reliance on balance sheet actions or external financing for capital returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet deleveraging
Sharp deleveraging (debt roughly $1B; debt/equity ~0.08x) materially improves financial flexibility, reduces refinancing and rate risk, and preserves capacity for buybacks, dividends, M&A or private-markets investment without stressing liquidity over the medium term.
Read all positive factors
Franklin Resources Key Performance Indicators (KPIs)
Any
Revenue by Segment
Highlights income from different business units, revealing which areas drive growth and profitability, and where strategic shifts may be needed.
Highlights income from different business units, revealing which areas drive growth and profitability, and where strategic shifts may be needed.
Data provided by:
The Fly
The FlyFranklin Resources (BEN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.20B
Dividend Yield3.87%
Average Volume (3M)4.22M
Price to Earnings (P/E)22.6
Beta (1Y)1.03
Revenue Growth8.39%
EPS Growth181.11%
CountryUS
Employees10,100
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)1.50
Shares Outstanding508,076,900
10 Day Avg. Volume4,023,370
30 Day Avg. Volume4,220,628
Financial Highlights & Ratios
PEG Ratio3.60
Price to Book (P/B)0.99
Price to Sales (P/S)1.36
P/FCF Ratio13.05
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
$36.75Price Target Upside13.11% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)2.88
Revenue Forecast (FY)$7.10B
Franklin Resources Business Overview & Revenue Model
Company Description
Franklin Resources, Inc. is a publicly owned asset investment manager. Through its subsidiaries, the firm provides its services to individuals, institutions, pension plans, trusts, and partnerships. It launches equity, fixed income, balanced, and ...
How the Company Makes Money
Franklin Resources primarily makes money by charging fees for managing client assets. The core revenue stream is investment management fees, typically calculated as a percentage of average assets under management (AUM); fee levels vary by product ...
Franklin Resources Earnings Call Summary
Earnings Call Date:Jul 31, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call communicated broad-based, multi-channel growth with record AUM, robust long-term net inflows, strong private markets fundraising, expanding ETF/SMA/Canvas franchises, improving operating income and clear margin targets. The company also highlighted promising digital asset initiatives and AI-driven sales/investment enhancements. Offsetting items include ongoing integration work (notably Western Asset), modest expense growth tied to strategic investments, distribution fee pressures, and execution risks around AI and tokenization scale. On balance, the positives — multiple record metrics, sustained net inflows, and forward guidance of margin expansion — materially outweigh the manageable risks described.Positive Updates
Strong Net Long-Term Inflows
Recorded $18.4 billion in long-term net inflows for the quarter and $63.3 billion fiscal year-to-date; long-term inflows reached a record $122 billion, with positive net flows across every asset class and geography.
Negative Updates
Western Asset Integration and Stabilization
Western Asset was described as 'continuing to stabilize' and has required integration work (client service, back office); while client reaction is reported as positive, the business remains a remediation/integration focus and was a drag on the consolidated fixed income numbers (fixed income ex-Western results were stronger).
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Net Long-Term Inflows
Recorded $18.4 billion in long-term net inflows for the quarter and $63.3 billion fiscal year-to-date; long-term inflows reached a record $122 billion, with positive net flows across every asset class and geography.
Read all positive updates
Company Guidance
Management issued specific near‑term and FY guidance: catch‑up fees were $14M in the quarter and are expected to be roughly the same in Q4; the effective fee rate (EFR) is expected to remain stable in the mid‑to‑high “30‑sevens” (about 37.7–37.8 bps); Q4 compensation is guided to ~$850M (based on $50M of performance fees and a 55% payout), IS&T ~$165M (including AI/data/security), occupancy ~$70M, G&A ~$400M (with elevated fundraising/advertising), and a tax rate of 25–27% for Q4 and the full year; the company’s FY expense outlook (on a flat markets, performance‑fees‑excluded basis) is ~3.0–3.5% above FY2025 (or ~2.0–2.5% higher if including the performance fee assumption), and management expects operating margin to be very close to 30% in fiscal Q4, mid‑20s for the full year (2026), and to reach ~29–30% on a full‑year basis in 2027 with 30%+ margin targeted later in 2027, alongside a declining compensation ratio.Franklin Resources Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
44
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.32B | 8.77B | 8.48B | 7.85B | 8.28B | 8.43B |
| Gross Profit | 6.31B | 7.05B | 6.79B | 6.35B | 6.85B | 7.00B |
| EBITDA | 1.69B | 1.41B | 1.38B | 1.91B | 2.21B | 2.84B |
| Net Income | 891.20M | 524.90M | 464.80M | 882.80M | 1.29B | 1.83B |
Balance Sheet | ||||||
| Total Assets | 36.28B | 32.37B | 32.46B | 30.12B | 28.06B | 24.17B |
| Cash, Cash Equivalents and Short-Term Investments | 3.76B | 3.57B | 4.41B | 4.40B | 4.78B | 4.65B |
| Total Debt | 16.71B | 13.30B | 13.09B | 11.75B | 9.36B | 7.59B |
| Total Liabilities | 23.32B | 18.18B | 17.90B | 16.55B | 14.24B | 11.42B |
| Stockholders Equity | 11.74B | 12.08B | 12.51B | 11.92B | 11.47B | 11.22B |
Cash Flow | ||||||
| Free Cash Flow | 223.30M | 911.60M | 794.20M | 940.40M | 1.87B | 1.17B |
| Operating Cash Flow | 269.50M | 1.07B | 971.30M | 1.09B | 1.96B | 1.25B |
| Investing Cash Flow | -3.29B | -2.34B | -2.42B | -3.61B | -3.33B | -2.62B |
| Financing Cash Flow | 2.86B | 452.40M | 1.42B | 2.11B | 1.58B | 2.03B |
Franklin Resources Risk Analysis
Franklin Resources disclosed 31 risk factors in its most recent earnings report. Franklin Resources 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 Resources Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | $12.77B | 18.34 | 28.86% | 1.05% | 11.21% | 6.93% | |
80 Outperform | $5.75B | 15.72 | 31.02% | 2.67% | 24.01% | 25.97% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $17.20B | 22.57 | 7.42% | 4.03% | 8.39% | 181.11% | |
66 Neutral | $5.25B | 8.82 | 4.80% | 16.08% | 94.72% | -55.36% | |
65 Neutral | $14.37B | -47.87 | -0.51% | 2.82% | 15.64% | -173.65% | |
53 Neutral | $6.08B | -6.53 | 156.73% | 3.41% | 51.09% | -150.23% |
* Financial Sector Average
BEN
Franklin Resources
33.86
10.07
42.32%
IVZ
Invesco
32.55
12.20
59.93%
SEIC
SEI Investments Company
106.38
18.82
21.49%
HLNE
Hamilton Lane
104.24
-48.02
-31.54%
STEP
StepStone Group
50.40
-7.20
-12.50%
OTF
Blue Owl Technology Finance Corp.
11.46
-1.64
-12.54%
Franklin Resources Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Franklin Resources Completes $750 Million Subordinated Notes Offering
Positive
Aug 10, 2026
On August 10, 2026, Franklin Resources, Inc. completed an underwritten public offering of $750 million aggregate principal amount of 5.500% unsecured, subordinated notes due 2036, issued under an existing indenture with The Bank of New York Mellon...
Business Operations and StrategyFinancial Disclosures
Franklin Resources Rebrands as Franklin Templeton, Inc.
Positive
Jul 31, 2026
Effective August 17, 2026, Franklin Resources will change its corporate name to Franklin Templeton, Inc., updating its Delaware corporate records and bylaws solely to reflect the new name, with no impact on shareholder voting or other rights. The ...
Business Operations and StrategyPrivate Placements and Financing
Franklin Resources Expands and Extends Revolving Credit Facility
Positive
Jul 30, 2026
On July 30, 2026, Franklin Resources entered into a Second Amended and Restated Credit Agreement, replacing its prior revolving credit facility with Bank of America and other lenders. The new agreement increases aggregate commitments to a $1.5 bil...
Business Operations and StrategyExecutive/Board Changes
Franklin Resources Grants Special Equity Awards to Executives
Positive
Jul 23, 2026
Effective July 21, 2026, Franklin Resources’ board approved one-time special equity retention awards for CEO Jennifer M. Johnson and three Co-Presidents, alongside carry interest allocations for the CEO and Executive Chairman Gregory E. John...
Business Operations and StrategyLegal Proceedings
Franklin’s Western Asset Resolves SEC Probe, Ends Legal Overhang
Positive
Jun 5, 2026
On June 4, 2026, Western Asset Management reached a settlement with the U.S. Securities and Exchange Commission over alleged trade allocation violations involving former co-Chief Investment Officer Ken Leech, agreeing to pay a $100 million civil p...
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.