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Franklin Electric Co
(NASDAQ:FELE)
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Rating:75Outperform
Price Target:
$119.00
▲(12.70% Upside)
Action:Reiterated
Date:07/28/26
FELE scores well primarily on strong financial quality (low leverage, steady margins, healthy cash generation) and a supportive earnings update with raised guidance and margin/EPS momentum. The main constraints are a relatively high valuation (P/E ~31.6 with a modest ~1.0% yield) and limited technical indicator depth beyond moving-average trend confirmation.
Positive Factors
Raised guidance and organic growth
Higher guidance alongside organic growth indicates strengthening demand, channel execution and customer adoption across core water and energy applications. This supports a more durable revenue base beyond acquisition-led growth.
Negative Factors
Moderating bottom-line profitability
Although gross and operating margins remain healthy, lower net margin shows that peak earnings conversion has weakened. If this persists, it could constrain EPS growth and reduce the benefit of otherwise solid revenue expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Raised guidance and organic growth
Higher guidance alongside organic growth indicates strengthening demand, channel execution and customer adoption across core water and energy applications. This supports a more durable revenue base beyond acquisition-led growth.
Read all positive factors
Franklin Electric Co (FELE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.51B
Dividend Yield1.06%
Average Volume (3M)275.68K
Price to Earnings (P/E)29.7
Beta (1Y)0.83
Revenue Growth7.38%
EPS Growth-10.43%
CountryUS
Employees6,500
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)3.50
Shares Outstanding44,211,464
10 Day Avg. Volume329,330
30 Day Avg. Volume275,675
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 Upside8.44% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)4.64
Revenue Forecast (FY)$2.25B
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
105.59
Price Trends
104.87
Negative
101.50
Positive
98.95
Positive
Market Momentum
0.11
Positive
39.22
Neutral
6.64
Positive
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 105.59 is below the 20-day moving average (MA) of 106.38, above the 50-day MA of 104.87, and above the 200-day MA of 98.95, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 39.22 is Neutral, neither overbought nor oversold. The STOCH value of 6.64 is Positive, 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 (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $12.55B | 32.70 | 18.56% | 0.63% | 17.13% | 23.21% | |
77 Outperform | $3.89B | 17.69 | 21.21% | 1.10% | 5.88% | 49.15% | |
75 Outperform | $4.51B | 29.73 | 11.59% | 1.03% | 7.38% | -10.43% | |
68 Neutral | $2.08B | 33.27 | 14.79% | 0.92% | 4.18% | 19.92% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $3.82B | 157.58 | 1.33% | ― | 15.68% | 133.41% | |
56 Neutral | $11.45B | 34.73 | 4.74% | 0.66% | 3.50% | 29.04% |
* Industrials Sector Average
FELE
Franklin Electric Co
104.07
9.29
9.80%
GRC
Gorman-Rupp Company
78.52
37.78
92.72%
MWA
Mueller Water Products
25.29
-0.70
-2.70%
RRX
Regal Rexnord
169.49
25.84
17.99%
WTS
Watts Water Technologies
374.72
100.48
36.64%
MIR
Mirion Technologies
15.60
-4.64
-22.92%
Franklin Electric Co Corporate Events
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.