Franklin Resources, Inc. (BEN) AI Stock Analysis

Founded in 1947 and headquartered in San Mateo, California, Franklin Resources, Inc. is a publicly owned asset management holding company. Operating under the Franklin Templeton brand, the firm provides financial services to individuals, institutions, pension plans, trusts, and partnerships. Franklin Resources launches equity, fixed income, balanced, and multi-asset mutual funds, investing across public equity, fixed income, and alternative markets. The company operates globally with offices across North America, Europe, Asia, and the Middle East, including locations in Calgary, Dubai, Edinburgh, Hyderabad, London, Shanghai, Singapore, and Vienna.

Franklin Resources expanded revenue from $8.43B in FY2021 to $8.77B in FY2025, recording a five-year revenue CAGR of 9.5%. However, net income fell from $1.83B in FY2021 to $524.9M in FY2025, as operating margin contracted from 22.3% to 6.9%. Annual EPS decreased over this period from $3.74 to $2.22. Recent results indicate an operating rebound; trailing twelve months revenue reached $9.32B with an operating margin of 13.0%. For the latest quarter ended June 30, 2026, revenue increased 14.3% year-over-year and quarterly earnings grew 106.7%.

As of June 30, 2026, Franklin Resources held $3.76B in cash and short-term investments against $16.71B in total debt, resulting in net debt of $12.95B. The company maintains a current ratio of 1.34 and a debt-to-equity ratio of 1.42 on shareholders' equity of $11.74B. In FY2025, the business generated $1.07B in operating cash flow and $911.6M in free cash flow. Cash allocations for FY2025 included $154.5M in capital expenditures, $240.3M in share buybacks, and $683.7M in dividend payments.

At a share price of $30.98, Franklin Resources trades at a trailing P/E of 21.1x, higher than the median of 14.2x for its S&P 500 Financial Services peers. However, its forward P/E of 10.3x sits below the peer median of 12.6x, and its price-to-sales multiple of 1.7x compares favorably to the peer median of 3.1x. Over the past year, BEN returned 47.1%, outperforming the S&P 500 (SPY) return of 16.8%. Over a five-year period, its 32.2% return lagged the S&P 500 benchmark gain of 83.0%.

Franklin Resources offers an annual forward dividend of $1.32 per share, representing a 4.26% dividend yield. The company has paid dividends for 43 consecutive years, with a five-year annualized dividend growth rate of 3.4%. Its payout ratio is 47.1%, and dividends are distributed on a quarterly frequency, with the last ex-dividend date on September 30, 2026.

Wall Street coverage includes 4 Strong Buy, 0 Buy, 7 Hold, 1 Sell, and 1 Strong Sell recommendations. The mean price target is $35.46, representing a 14.5% upside from the last close of $30.98. For the fiscal year ending September 30, 2026, analysts estimate EPS of $2.90, reflecting 30.6% growth, on revenue of $8.81B. Franklin Resources beat EPS estimates in each of the last 4 quarters, and its next earnings date is November 6, 2026.

This page is an AI-written research summary of Franklin Resources, Inc. (BEN). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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