Franklin Financial Services (FRAF) AI Stock Analysis

• Market Cap: $204.00M
• Dividend Yield: 2.83%
• Average Volume (3M): 18.77K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.11
• Revenue Growth: 15.18%
• EPS Growth: 5.13%
• Country: US
• Employees: 306
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.32
• Shares Outstanding: 4,476,651
• 10 Day Avg. Volume: 23,338
• 30 Day Avg. Volume: 18,773
• PEG Ratio: -0.62
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 1.16
• P/FCF Ratio: 6.89
• Enterprise Value/Market Cap: 1.72
• Enterprise Value/Revenue: 2.87
• Enterprise Value/Gross Profit: 4.77
• Enterprise Value/Ebitda: 17.65
• 1Y Price Target: $46.00
• Price Target Upside: 0.00%
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: $46.00 ▲(0.00% Upside)

Franklin Financial Services holds a strong financial position with robust revenue growth and profitability. The recent dividend increase and positive corporate events enhance its appeal. Technical indicators suggest the stock is overbought, which may limit short-term gains, but long-term prospects remain positive. The valuation is attractive, offering a good balance of growth and income potential.

Franklin Financial Services Business Overview & Revenue Model

Company Description

Franklin Financial Services (FRAF) is a diversified financial services company that operates primarily in the banking and investment sectors. The company offers a wide range of products, including consumer and commercial banking, wealth management, investment advisory, and insurance services. FRAF is committed to providing tailored financial solutions to individuals and businesses, leveraging cutting-edge technology and a customer-centric approach to enhance user experience and satisfaction.

How the Company Makes Money

Franklin Financial Services generates revenue through multiple streams. Primarily, it earns interest income from its banking operations, including loans and mortgages provided to consumers and businesses. Additionally, FRAF generates fee income from its wealth management and investment advisory services, charging clients for portfolio management, financial planning, and related services. The company also earns commissions and fees from insurance products offered to customers. Significant partnerships with investment firms and insurance providers further enhance its product offerings and revenue potential. Moreover, FRAF may benefit from strategic investments and asset management, allowing it to diversify its income sources and improve profitability.

Franklin Financial Services Financial Statement Overview

Summary

Franklin Financial Services shows solid financial performance with strong revenue growth and profitability. The balance sheet is robust with manageable leverage, and cash flows indicate good liquidity. Some areas, like net profit margins and investment outflows, need improvement.

Income Statement

Franklin Financial Services has shown solid growth with a revenue increase in recent periods. The TTM gross profit margin stands at 59.6%, indicating strong profitability. The net profit margin is at 9.9%, reflecting stable earnings, though slightly lower compared to previous periods due to increased operational costs. Revenue growth rate has been robust, showcasing the company's ability to expand its revenue base effectively.

Balance Sheet

The balance sheet exhibits strength with a debt-to-equity ratio of 1.48, which is manageable and indicates prudent leveraging. Return on Equity (ROE) is at 7.7%, suggesting efficient use of equity to generate profits. The equity ratio is 6.7%, showing a stable capital structure with a focus on maintaining equity levels.

Cash Flow

The cash flow statement reveals healthy operational cash flows, with an operating cash flow to net income ratio of 2.00, indicating good cash generation relative to earnings. Free cash flow growth shows positive trends, enhancing liquidity and financial flexibility. However, the cash flow from investing activities is negative, reflecting significant investments which could impact short-term liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	122.39M	113.83M	90.38M	70.27M	63.98M	59.94M
Gross Profit	73.68M	67.91M	64.53M	64.76M	63.18M	51.33M
EBITDA	19.90M	15.40M	17.77M	18.93M	24.22M	14.39M
Net Income	14.54M	11.10M	13.60M	14.94M	19.62M	12.80M
Balance Sheet
Total Assets	2.29B	2.20B	1.84B	1.70B	1.77B	1.54B
Cash, Cash Equivalents and Short-Term Investments	328.55M	524.10M	501.87M	565.71M	715.45M	466.83M
Total Debt	223.83M	223.96M	154.48M	25.77M	24.45M	24.89M
Total Liabilities	2.13B	2.05B	1.70B	1.59B	1.62B	1.39B
Stockholders Equity	157.36M	144.72M	132.14M	114.20M	157.06M	145.18M
Cash Flow
Free Cash Flow	24.43M	19.19M	26.07M	13.03M	17.54M	5.95M
Operating Cash Flow	25.98M	21.75M	26.57M	25.24M	26.35M	6.43M
Investing Cash Flow	-220.04M	-184.37M	-178.27M	-95.06M	-133.94M	-277.31M
Financing Cash Flow	222.12M	343.08M	109.94M	-40.44M	225.59M	244.20M

Franklin Financial Services Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 46.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FRAF, the sentiment is Neutral. The current price of 46 is below the 20-day moving average (MA) of 47.61, above the 50-day MA of 44.55, and above the 200-day MA of 37.59, indicating a neutral trend. The MACD of 0.59 indicates Positive momentum. The RSI at 40.92 is Neutral, neither overbought nor oversold. The STOCH value of 4.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FRAF.

Franklin Financial Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATLO	77 Outperform	$178.86M	13.20	7.09%	3.98%	6.86%	44.24%
LARK	77 Outperform	$154.53M	9.50	9.55%	3.14%	14.58%	43.66%
ISTR	77 Outperform	$226.09M	10.37	8.39%	1.87%	3.25%	47.03%
MRBK	75 Outperform	$174.60M	9.78	10.30%	3.24%	12.20%	71.87%
FRAF	72 Outperform	$204.00M	14.08	9.88%	2.83%	15.18%	5.13%
FSFG	68 Neutral	$219.72M	10.14	7.67%	2.00%	7.93%	134.03%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Franklin Financial Services Corporate Events

Franklin Financial Redeems $9M Notes with Cash

On August 25, 2025, Franklin Financial Services Corporation announced its decision to redeem a portion of its outstanding 5.00% Fixed to Floating Rate Notes, due September 1, 2030. The redemption, scheduled for September 30, 2025, will cover $9,000,000 of the principal amount, with the company using excess cash on hand for the payment.

Franklin Financial Services Declares Increased Q3 Dividend

On July 17, 2025, Franklin Financial Services Corporation declared a regular cash dividend of $0.33 per share for the third quarter of 2025, marking a 3.1% increase from the third quarter of 2024. The company reported strong financial results for the second quarter and year-to-date 2025, with a notable 94.8% increase in net income compared to the previous year. The company experienced growth in assets, loans, and deposits, while also facing an increase in nonperforming loans. Despite this, Franklin Financial remains well-capitalized and continues to demonstrate robust financial performance.