Franklin Resources (BEN) AI Stock Analysis

Franklin Resources

(BMV:BEN)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Record AUM and broad-based net inflowsRecord assets and positive flows across asset classes and geographies indicate improving product demand and distribution reach. Sustained inflows can support recurring fee revenue, diversify earnings, and reduce reliance on market appreciation over the next several quarters.

Negative Factors

Weak cash generation and earnings conversionThe steep decline in operating and free cash flow weakens the quality of reported earnings and may constrain internally funded growth or shareholder returns. Persistently low cash conversion would make profitability less durable than the income statement suggests.

Franklin Resources (BEN) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 16.08B
Dividend Yield: 3.98%
Average Volume (3M): 352
Price to Earnings (P/E): 21.1
Beta (1Y): -0.16
Revenue Growth: -1.31%
EPS Growth: 145.71%
Country: Mexico
Employees: 10,100
Sector: Financial
Sector Strength: 68
Industry: Asset Management

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 mul...

Franklin Resources Earnings Call Summary

Earnings Call Date:Jul 30, 2026(Q3-2026)|% Change Since:3.41%|Next Earnings Date:Nov 05, 2026

Earnings Call SentimentPositive

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).

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 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

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

MX:BEN against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEIC	80Outperform	$12.26B	17.56	28.69%	1.01%	12.86%	5.86%
AB	79Outperform	$3.23B	10.38	25.21%	9.89%	―	11.43%
FHI	79Outperform	$4.37B	10.44	33.97%	2.46%	13.31%	15.87%
TROW	77Outperform	$22.16B	10.51	19.88%	4.98%	6.91%	7.61%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IVZ	60Neutral	$12.26B	-40.23	-0.63%	3.06%	16.65%	-147.19%

* Financial Sector Average

Performance Comparison

MX:BEN and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MX:BEN	Franklin Resources	578.66	175.39	43.49%
AB	AllianceBernstein Holding	35.09	-1.91	-5.15%
FHI	Federated Hermes, Inc.	58.48	10.70	22.39%
IVZ	Invesco Ltd.	27.76	4.91	21.47%
SEIC	SEI Investments	103.42	23.50	29.41%
TROW	T. Rowe Price Group	103.90	7.27	7.53%

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.

Franklin Resources AI Stock Analysis