Franklin Electric Co., Inc. (FELE) AI Stock Analysis

Franklin Electric Co., Inc. and its subsidiaries design, manufacture, and distribute water and fuel pumping systems globally. The company operates through three strategic segments: Water Systems, Fueling Systems, and Distribution. Water Systems provides submersible motors, pumps, electronic controls, and water treatment systems for residential, agricultural, municipal, and industrial uses. Fueling Systems supplies pumps, pipes, vapor recovery components, and electronic controls for fueling systems, power reliability, and telecommunications. The Distribution segment offers sales support and supplies Water Systems products directly to installing contractors through wholesale, retail, and specialty distribution networks.

Franklin Electric expanded revenue from $1.66B in FY2021 to $2.13B in FY2025, generating a 5-year revenue CAGR of 11.3%. Annual revenue rose 5.4% in FY2025 after a 2.1% drop in FY2024 to $2.02B. Gross margin held steady at 35.5% in both FY2024 and FY2025, while operating margin rose from 12.1% to 12.8%. Net income was $147.1M with EPS of $4.15 in FY2025, compared to $180.3M and $3.91 in FY2024. For the latest quarter ended June 30, 2026, quarterly revenue increased 6.0% year-over-year, and quarterly earnings grew 11.4%.

As of June 30, 2026, Franklin Electric held $97.3M in cash and short-term investments against $308.3M in total debt, resulting in net debt of $211.0M. The company maintains a current ratio of 2.41 and a debt-to-equity ratio of 0.22 on shareholders' equity of $1.41B. In FY2025, the business generated $193.5M in free cash flow after $45.3M in capital expenditures. Cash deployment included $165.6M for share buybacks and $50.0M in dividends paid.

FELE trades at a trailing P/E of 28.9x and a forward P/E of 18.5x, compared to medians of 24.8x and 17.2x for its US-listed Industrials peers. Its EV/EBITDA of 15.7x also exceeds the peer median of 13.9x, while price-to-sales stands at 2.0x versus the peer median of 1.5x. Over the past year, the stock returned 5.1%, trailing the S&P 500 (SPY) return of 16.8%. Over five years, the stock gained 25.8% compared to 83.0% for the S&P 500.

Franklin Electric pays a quarterly dividend totaling $1.12 annualized, representing a 1.12% dividend yield and a 24.3% payout ratio. The company has paid dividends for 34 consecutive years, delivering a 5-year annualized dividend growth rate of 11.3%. The most recent ex-dividend date was August 6, 2026.

Wall Street coverage includes 2 Strong Buy ratings and 3 Hold ratings. The mean price target of $118.50 implies an 18.3% upside over the last close of $100.16. For FY2026, consensus estimates project revenue of $2.27B and EPS of $4.65, representing 12.3% EPS growth. Franklin Electric beat EPS estimates in all 4 of the last four quarters, with the next earnings release scheduled for October 28, 2026.

This page is an AI-written research summary of Franklin Electric Co., Inc. (FELE). 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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