Franklin Electric Co., Inc. (FELE)
Industrials · NMS · US
Fundamentals
Valuation and ratings
Franklin Electric Co., Inc. trades at USD107.73, close to the USD102.42 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.
Our moat model scores it 48 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 31.4 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Franklin Electric Co., Inc.
Franklin Electric Co., Inc., together with its subsidiaries, designs, manufactures, and distributes water and fuel pumping systems in the United States, Canada, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. It operates through Water Systems, Energy Systems, and Distribution segments. The Water Systems segment offers motors, pumps, water treatment systems, monitoring devices, and related parts and equipment for use in groundwater, water transfer, and wastewater in a range of residential, agricultural, municipal, and industrial applications; and electronic drives and controls for the motors, which control functionality and provide protection from various hazards, such as electrical surges, over-heating, and dry wells or dry tanks. Its Energy Systems segment produces and markets pumps, motors, pipes, sumps, fittings, vapor recovery components, electronic controls, monitoring devices, and related parts and equipment for use in energy system applications; and components between the tanks and the dispensers, including submersible pumps, station hardware, piping, and corrosion control systems. This segment serves other energy markets, such as power reliability systems, including intelligent electronic devices that are designed for online monitoring for the power utility, hydroelectric, rail, and telecommunication and data center infrastructure. The Distribution segment sells to and provides presale support and specifications to the installing contractors. It sells its products to wholesale and retail distributors, specialty distributors, and industrial and petroleum equipment distributors, as well as to oil and utility companies, and original equipment manufacturers. The company was founded in 1944 and is headquartered in Fort Wayne, Indiana.
FELE passes 3 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
5 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Impax Asset Management, Impax Asset Management Group plc$119.51M · 0.8% of book
- Two Sigma, TWO SIGMA INVESTMENTS, LP$48.38M · 0.0% of book
- Select Equity Group, Select Equity Group, L.P.$19.47M · 0.1% of book
- Arrowstreet Capital, ARROWSTREET CAPITAL, LIMITED PARTNERSHIP$13.56M · 0.0% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$11.73M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Franklin Electric Co., Inc. (FELE) undervalued?
Against our discounted cash flow estimate of USD102.42, FELE at USD107.73 is 5% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own FELE?
5 of the institutions we track reported a position in FELE in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is FELE's P/E ratio?
FELE trades at 31.4 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for FELE, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.