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US Equities · Finance research note

BEN — Franklin Resources

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 17.24%
Profit Margins 8.12%
Return on Equity 6.7%
Return on Assets 2.6%
Free Float 0.3B
Dividend Yield 4.04%
Short Int % Utilisation 4.71%

2.2 Growth

Metric Value
Revenue Growth 8.7%
Free Cash Flow -0.24B
EBITDA 10.93 (Ratio)
Enterprise Value 19.53B
EV/Revenue 2.16
EV/EBITDA 10.93

Revenue growth of 8.7% indicates steady, moderate expansion.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* 46.85%
Risk / Std Dev (Ann.)* 28.13%
1-Year Price Return* 40.80%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $33.86
52-Week Range $21.11 – $36.28
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

DuPont Model Analysis

The DuPont model decomposes return on equity (ROE) into three operating and capital-structure drivers:

ROE = Net Margin × Asset Turnover × Equity Multiplier

The comparison uses the latest two comparable annual periods available for the issuer, with reported statement amounts shown in US$. Revenue and net income are income-statement flows; total assets and shareholders’ equity are year-end balance-sheet figures. This is a simplified year-end-balance DuPont comparison rather than an average-balance ROE calculation.

DuPont component Calculation FY2025 FY2024
Revenue Reported revenue $8.77B $8.48B
Net income Reported net income $471.70M $432.20M
Total assets Year-end reported balance $32.37B $32.46B
Shareholders’ equity Year-end reported balance $12.08B $12.51B
Net margin Net income ÷ revenue 5.38% 5.10%
Asset turnover Revenue ÷ total assets 0.2710x 0.2611x
Equity multiplier Total assets ÷ shareholders’ equity 2.6800x 2.5955x
ROE Net margin × asset turnover × equity multiplier 3.91% 3.46%

Source: Yahoo Finance annual statements. Values are based on the two latest comparable annual periods returned by the source; fiscal period labels use the statement period-end year.

2.5 FCFF DCF Valuation

FCFF DCF exception: FCFF DCF is not the primary valuation method for financial institutions or REITs. This post deliberately does not publish a mechanical enterprise value or implied per-share value on an unsuitable basis.

Available valuation input Value
Last market price $33.87
Market capitalisation $17.21B
Revenue $8.77B
EBIT $881.70M
Reported free cash flow $911.60M
FCF yield 5.30%
Net debt / EBITDA 6.88x

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks not rated — FCFF DCF suitability or data-integrity condition not met
Lynch-inspired balance-and-growth checks not rated — FCFF DCF suitability or data-integrity condition not met

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:24:24.035761 UTC; latest reported fiscal period: 2025-09-30 00:00:00. Financial institutions and REITs require sector-specific methods rather than a mechanical FCFF DCF. This is research and analysis only, not personalized financial advice.

2.7 Quantitative Factor Diagnostics

Model basis: Daily issuer USD excess returns are regressed in-sample using ordinary least squares on matching regional Fama–French factors. FF3 estimates market, size, and value loadings; FF5 adds profitability and investment. Coefficients are descriptive historical exposures, not predictions.

Estimation input Value
Regional factor set US
Factor-return currency USD
Issuer-return basis USD adjusted total return
Estimation window 2025-08-19 to 2026-06-30
Aligned daily observations 217
Minimum observation requirement 120
Currency conversion for HK listings not required

Fama–French Three-Factor and Five-Factor Results

Diagnostic FF3 FF5
Annualised alpha 7.25% 15.93%
Adjusted R² 0.37 0.38
Annualised residual volatility 22.35% 22.08%
Factor loading (t-statistic) FF3 FF5
Market excess return (Mkt-RF) 1.28 (9.74) 1.44 (9.61)
Size (SMB) 0.39 (2.17) 0.46 (2.41)
Value (HML) 0.46 (3.00) 0.38 (2.01)
Profitability (RMW) NM 0.35 (2.24)
Investment (CMA) NM 0.01 (0.05)

Definitions: Mkt-RF is the market return less the risk-free rate; SMB is small minus big; HML is high minus low book-to-market; RMW is robust minus weak profitability; CMA is conservative minus aggressive investment. Factor returns are sourced from the Kenneth R. French Data Library; issuer adjusted-return history is sourced from Yahoo Finance. For Hong Kong listings, adjusted HKD prices are converted into USD with daily USD/HKD closes before return calculation to match the USD regional factor basis. This is an in-sample historical regression; coefficients and t-statistics do not establish causation or predict future returns. This is research and analysis only, not personalized financial advice.

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