Franklin Financial Services Corporation (FRAF) AI Stock Analysis

Franklin Financial Services Corporation is a bank holding company overseeing Farmers and Merchants Trust Company of Chambersburg, established in 1906. Operating twenty-two community banking offices across Franklin, Cumberland, Fulton, and Huntingdon counties in Pennsylvania, the corporation provides commercial real estate, construction, agricultural, commercial and industrial, residential mortgage, and consumer loans. It also delivers checking, savings, money management, and time deposits, along with accounts receivable, inventory, and equipment financing. Additionally, the firm offers estate planning, trust fund management, and pension administration, while its Franklin Future Fund Inc. subsidiary conducts venture capital investments.

Franklin Financial Services Corporation grew revenue from $64.0M in FY2021 to $133.5M in FY2025, reflecting a 5-year revenue CAGR of 17.4%. Annual net income moved from $19.6M in FY2021 to $14.9M in FY2022, $13.6M in FY2023, and $11.1M in FY2024, before rising to $21.2M in FY2025. Operating margin shifted from 36.0% in FY2021 down to 11.7% in FY2024, followed by a rebound to 19.7% in FY2025. For the trailing twelve months, revenue was $91.3M with an operating margin of 37.7%. In the latest quarter ended June 30, 2026, quarterly revenue increased 5.3% year-over-year, while quarterly earnings grew 11.4%.

As of June 30, 2026, the company held $647.4M in cash and short-term investments against total debt of $215.1M, resulting in net cash of $432.3M. Total assets stood at $2.34B and shareholders' equity was $183.8M. The debt-to-equity ratio was 1.17, while the current ratio stood at 0.34. During FY2025, operating cash flow reached $25.4M and free cash flow was $24.6M. Cash deployment in FY2025 included $866,000 in capital expenditures, $1.1M in share buybacks, and $5.8M in dividends paid.

Franklin Financial Services Corporation trades at a trailing P/E of 11.5x and a forward P/E of 12.0x, compared to medians of 12.1x and 10.8x for the median of its US-listed Financial Services peers. Its price-to-sales multiple of 3.1x sits just below the peer median of 3.2x, alongside a price-to-book ratio of 1.5x. Over the 1-year period, the stock gained 47.3%, outperforming the S&P 500 (SPY) return of 16.8%. Over 5 years, its 134.6% return also exceeded the S&P 500 return of 83.0%.

Franklin Financial Services Corporation pays a quarterly dividend with an annual forward payout of $1.36 per share, providing a 2.17% dividend yield. Its dividend payout ratio is 32.4%. The company has maintained 33 consecutive years of dividend payments, with an annualized 5-year dividend growth rate of 1.8%. The last ex-dividend date was August 7, 2026.

Wall Street coverage consists of 1 Hold rating, with 0 Strong Buy, Buy, Sell, or Strong Sell ratings. The mean price target is $68.00, implying an 8.4% upside compared to the last close of $62.75 on October 16, 2026. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $98.8M and EPS of $5.79. For the next fiscal year, 1 analyst projects revenue of $105.3M and EPS of $6.59. The next earnings date is October 27, 2026.

This page is an AI-written research summary of Franklin Financial Services Corporation (FRAF). 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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