A Business at a Glance
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FRANKLIN RESOURCES INC
BEN
$16.8B
Mkt Cap
$32.49
+0.62%
FRANKLIN RESOURCES INC (BEN) has a current P/E ratio of 35.7, compared to its historical median P/E of 9.5. The stock is currently considered Expensive based on its historical valuation range.
FRANKLIN RESOURCES INC (BEN) has a 5-year average return on invested capital (ROIC) of 6.6%. This is below average and may indicate limited pricing power.
FRANKLIN RESOURCES INC (BEN) has a market capitalization of $16.9B. It is classified as a large-cap stock.
Yes, FRANKLIN RESOURCES INC (BEN) pays a dividend with a trailing twelve-month yield of 4.09%. The company also returns capital through share buybacks, with a buyback yield of 1.92%.
Based on historical P/E analysis, FRANKLIN RESOURCES INC (BEN) appears expensive. The current P/E of 35.7 is 275% above its historical median of 9.5. The estimated fair value CAGR (P/E method) is -11.2%.
FRANKLIN RESOURCES INC (BEN) operates in the Investment Advice industry, within the Financials sector.
FRANKLIN RESOURCES INC (BEN) reported annual revenue of $8.8 billion in its most recent fiscal year, based on SEC EDGAR filings.
Franklin Resources is a global investment management holding company operating through specialist investment managers under brand names including Franklin, Templeton, Putnam, Legg Mason, and others, managing over $1.6 trillion in assets under management as of September 2025. The company derives revenues primarily from investment management fees based on a percentage of AUM across equity, fixed income, alternatives, multi-asset, and cash management asset classes, serving retail, institutional, and high-net-worth clients globally through mutual funds, ETFs, closed-end funds, separate accounts, private funds, and sub-advised products distributed directly and through financial intermediaries. Franklin's business model is characterized by recurring fee-based revenue dependent on AUM levels and asset class mix, with a diversified geographic footprint spanning the U.S., Europe, Asia-Pacific, and emerging markets, and a competitive advantage rooted in its scale, breadth of specialized investment capabilities across asset classes and regions, and ability to deliver integrated solutions across public and private markets. The company operates through multiple specialist investment managers that maintain distinct brand identities and investment philosophies while leveraging corporate distribution and shared infrastructure, generating revenue from management fees, performance fees, and related services including fund administration and shareholder servicing. Franklin's strategic focus includes alternatives fundraising, active ETFs, wealth management through Fiduciary Trust International, and emerging areas such as digital assets and tokenized products, positioning the firm to capture structural shifts in client preferences toward consolidated partnerships offering customization, tax efficiency, and diversified outcome-oriented solutions.
【Alternatives and ETF momentum】 Management expects continued strong growth in alternatives fundraising, with fiscal 2026 private market fundraising targeted at $25 billion to $30 billion, building toward a five-year $100 billion goal, while active ETFs are positioned as a key growth driver representing 42% of ETF assets but over 50% of flows. The company anticipates margin expansion through fiscal 2026 and into 2027, with operating margins expected to reach the high 20s in later quarters of fiscal 2026 and progress toward 30%+ margins in fiscal 2027, supported by disciplined expense management and scaling of lower-fee-rate businesses like ETFs and Canvas solutions. Management is investing in growth areas including digital assets, tokenized products, and wealth management, with expectations for tokenized money market fund assets to reach approximately $3 billion by year-end, while maintaining flat to slightly positive net flows excluding Western Asset Management. The company remains focused on executing as an integrated platform to meet evolving client demand for multifaceted partnerships offering scale, breadth of capabilities, and customization across asset classes and regions.
| Metric | Target | Period |
|---|---|---|
| Private market fundraising | $25 billion–$30 billion | Fiscal 2026 |
| Tokenized money market fund assets | ~$3 billion | End of fiscal 2026 |
| Fiduciary Trust International AUM | Double by 2029 | By 2029 |
| Effective fee rate (EFR) | Mid-to-high 37 basis points | Q3 FY2026 |
| Investment management fee revenue growth | At least 4x the rate of expense growth | Fiscal 2026 |
| Lexington flagship fund target size | ~$25 billion | Fiscal 2026 |
| Lexington flagship fund first close timing | First half of calendar 2026 | Calendar 2026 |
Private market fundraising (Fiscal 2026): “In fiscal 2026, we anticipate an increase to private market fundraising to between $25 billion and $30 billion.”
Tokenized money market fund assets (End of fiscal 2026): “we expect that to be closer to $3 billion by the time we reach the end of the year”
Fiduciary Trust International AUM (By 2029): “Our goal is to double Fiduciary's AUM by 2029.”
Effective fee rate (EFR) (Q3 FY2026): “On the third quarter guide for our effective fee rate, we're guiding mid-to-high 37s, very consistent, stable with the second quarter.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q2 FY2026 Earnings Call, Q1 FY2026 Earnings Call, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 9.0B | 8.8B | 8.5B | 7.8B | 8.3B | 8.4B |
| Net Income | 678M | 472M | 432M | 845M | 1.2B | 1.8B |
| EPS | $1.30 | $0.91 | $0.85 | $1.72 | $2.53 | $3.57 |
| Free Cash Flow | 0 | 912M | 794M | 940M | 1.9B | 1.2B |
| ROIC | 5.3% | 3.2% | 2.9% | 5.7% | 8.4% | 13.1% |
| Gross Margin | - | - | - | - | - | - |
| Debt/Equity | 0.19 | 0.20 | 0.22 | 0.26 | 0.29 | 0.30 |
| Dividends/Share | $1.33 | $1.28 | $1.24 | $1.20 | $1.16 | $1.12 |
| Operating Income | 844M | 604M | 408M | 1.1B | 1.8B | 1.9B |
| Operating Margin | 9.3% | 6.9% | 4.8% | 14.0% | 21.4% | 22.3% |
| ROE | 5.6% | 3.8% | 3.5% | 7.2% | 10.9% | 16.4% |
| Shares Outstanding | 520M | 518M | 508M | 491M | 489M | 491M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 8.5B | 7.9B | 6.6B | 6.4B | 6.3B | 5.8B | 5.6B | 8.4B | 8.3B | 7.8B | 8.5B | 8.8B | 9.0B |
| Gross Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 360M | 349M | 340M | 322M | 372M | 391M | 450M | 537M | 565M | 565M | 703M | 775M | 790M |
| EBIT | 3.2B | 3.0B | 2.4B | 2.3B | 2.0B | 1.5B | 1.0B | 1.9B | 1.8B | 1.1B | 408M | 604M | 844M |
| Op. Margin | 37.9% | 38.1% | 35.7% | 35.4% | 32.1% | 25.4% | 18.8% | 22.3% | 21.4% | 14.0% | 4.8% | 6.9% | 9.3% |
| Net Income | 2.4B | 2.0B | 1.7B | 1.7B | 747M | 1.2B | 784M | 1.8B | 1.2B | 845M | 432M | 472M | 678M |
| Net Margin | 27.9% | 25.5% | 25.9% | 26.3% | 11.8% | 20.5% | 14.1% | 20.8% | 15.0% | 10.8% | 5.1% | 5.4% | 7.5% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 | 24M | 0 | 30M | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 19.7% | 15.6% | 12.9% | 12.5% | 6.2% | 11.2% | 6.9% | 13.1% | 8.4% | 5.7% | 2.9% | 3.2% | 5.3% |
| ROE | 21.9% | 17.3% | 14.4% | 13.7% | 6.6% | 12.0% | 7.8% | 16.4% | 10.9% | 7.2% | 3.5% | 3.8% | 5.6% |
| ROA | 14.9% | 12.4% | 10.6% | 10.0% | 4.7% | 8.2% | 4.3% | 7.6% | 4.7% | 2.9% | 1.4% | 1.5% | 2.0% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 2.1B | 2.3B | 1.7B | 1.1B | 2.2B | 269M | 1.1B | 1.2B | 2.0B | 1.1B | 971M | 1.1B | 979M |
| Free Cash Flow | 2.1B | 2.2B | 1.6B | 1.1B | 2.1B | 35M | 980M | 1.2B | 1.9B | 940M | 794M | 912M | 0 |
| Owner Earnings | 1.9B | 2.0B | 1.5B | 931M | 2.0B | 78M | 887M | 995M | 1.7B | 802M | 609M | 726M | 633M |
| CapEx | 53M | 69M | 98M | 75M | 107M | 234M | 104M | 79M | 90M | 149M | 177M | 155M | 0 |
| Maint. CapEx | 83M | 82M | 81M | 82M | 75M | 79M | 75M | 79M | 96M | 104M | 117M | 125M | 123M |
| Growth CapEx | 0 | 0 | 17M | 0 | 32M | 155M | 29M | 700K | 0 | 44M | 61M | 29M | 0 |
| D&A | 83M | 82M | 81M | 82M | 75M | 79M | 75M | 79M | 96M | 104M | 117M | 125M | 123M |
| CapEx/OCF | 2.5% | 3.1% | 5.6% | 6.6% | 4.8% | 115.9% | 9.6% | 6.4% | 4.6% | 13.7% | 18.2% | 14.5% | 0.0% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 290M | 666M | 409M | 441M | 2.1B | 519M | 533M | 560M | 583M | 607M | 656M | 684M | 691M |
| Dividend Yield | 1.4% | 3.6% | 3.1% | 3.1% | 16.0% | 4.6% | 6.5% | 5.2% | 5.2% | 5.5% | 6.0% | 6.5% | 4.1% |
| Share Buybacks | 622M | 1.1B | 1.3B | 765M | 1.4B | 755M | 218M | 208M | 181M | 256M | 274M | 240M | 324M |
| Buyback Yield | 3.0% | 7.7% | 10.3% | 4.8% | 12.1% | 7.1% | 2.8% | 1.7% | 1.9% | 2.3% | 2.7% | 1.9% | 1.9% |
| Stock-Based Comp | 128M | 140M | 132M | 123M | 118M | 112M | 122M | 172M | 208M | 183M | 246M | 215M | 223M |
| Debt Repayment | 0 | 250M | 0 | 0 | 0 | 0 | 0 | 12M | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | -6.4B | -7.0B | -7.1B | -7.7B | -6.2B | -5.5B | -2.0B | -1.2B | -1.4B | -1.3B | -1.6B | -1.2B | -1.3B |
| Cash & Equiv. | 7.6B | 8.4B | 8.5B | 8.7B | 6.9B | 6.2B | 4.0B | 4.6B | 4.8B | 4.4B | 4.4B | 3.6B | 3.6B |
| Long-Term Debt | 1.2B | 1.3B | 1.4B | 1.0B | 696M | 697M | 2.0B | 3.4B | 3.4B | 3.1B | 2.8B | 2.4B | 2.3B |
| Debt/Equity | 0.10 | 0.11 | 0.12 | 0.08 | 0.07 | 0.07 | 0.20 | 0.30 | 0.29 | 0.26 | 0.22 | 0.20 | 0.19 |
| Interest Coverage | 68.0 | 76.5 | 47.4 | 44.0 | 43.8 | 65.5 | 31.4 | 22.0 | 18.1 | 8.9 | 4.2 | 6.4 | 9.2 |
| Equity | 11.6B | 11.8B | 11.9B | 12.6B | 9.9B | 9.9B | 10.1B | 11.2B | 11.5B | 11.9B | 12.5B | 12.1B | 12.1B |
| Total Assets | 16.4B | 16.3B | 16.1B | 17.5B | 14.4B | 14.5B | 21.7B | 24.2B | 28.1B | 30.1B | 32.5B | 32.4B | 34.1B |
| Total Liabilities | 3.9B | 3.8B | 3.5B | 2.7B | 3.1B | 3.2B | 10.3B | 11.4B | 14.2B | 16.5B | 17.9B | 18.2B | 19.5B |
| Intangibles | 88M | 58M | 19M | 6.5M | 7.9M | 864M | 4.9B | 4.7B | 5.1B | 4.9B | 4.8B | 4.2B | 4.1B |
| Retained Earnings | 11.6B | 12.1B | 12.2B | 12.8B | 10.2B | 10.3B | 10.5B | 11.6B | 12.0B | 12.4B | 11.9B | 11.5B | 11.6B |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Per Share Data | |||||||||||||
| EPS | 3.79 | 3.29 | 2.94 | 3.01 | 1.39 | 2.35 | 1.59 | 3.57 | 2.53 | 1.72 | 0.85 | 0.91 | 1.30 |
| Owner EPS | 3.08 | 3.30 | 2.60 | 1.66 | 3.79 | 0.16 | 1.80 | 2.03 | 3.38 | 1.63 | 1.20 | 1.40 | 1.22 |
| Book Value | 18.52 | 19.25 | 20.45 | 22.55 | 18.43 | 19.65 | 20.52 | 22.85 | 23.45 | 24.25 | 24.60 | 23.30 | 23.33 |
| Cash Flow/Share | 3.42 | 3.66 | 2.96 | 2.03 | 4.15 | 0.53 | 2.20 | 2.54 | 4.00 | 2.22 | 1.91 | 2.06 | 1.54 |
| Dividends/Share | 0.48 | 1.10 | 0.72 | 0.80 | 3.92 | 1.04 | 1.08 | 1.12 | 1.16 | 1.20 | 1.24 | 1.28 | 1.33 |
| Shares Out. | 625.3M | 615.0M | 583.6M | 559.6M | 537.3M | 504.2M | 492.8M | 491.2M | 489.2M | 491.3M | 508.5M | 518.4M | 519.6M |
| Valuation | |||||||||||||
| P/E Ratio | 8.6 | 6.8 | 7.3 | 9.3 | 15.4 | 8.9 | 9.7 | 6.8 | 7.5 | 12.4 | 22.1 | 24.5 | 24.9 |
| P/FCF | 9.8 | 6.3 | 7.7 | 14.8 | 5.4 | 301.4 | 7.8 | 10.3 | 5.0 | 11.1 | 12.0 | 12.7 | N/A |
| EV/EBIT | 2.0 | N/A | N/A | N/A | N/A | N/A | 2.7 | 5.2 | 5.5 | 8.7 | 20.5 | 17.4 | 18.4 |
| Price/Book | 1.8 | 1.2 | 1.1 | 1.3 | 1.2 | 1.1 | 0.8 | 1.1 | 0.8 | 0.9 | 0.8 | 1.1 | 1.4 |
| Price/Sales | 2.4 | 2.4 | 2.0 | 2.3 | 2.1 | 2.0 | 1.5 | 1.3 | 1.4 | 1.5 | 1.4 | 1.3 | 1.9 |
| FCF Yield | 10.2% | 15.9% | 12.9% | 6.7% | 18.1% | 0.3% | 12.6% | 9.3% | 19.3% | 8.6% | 7.7% | 7.1% | N/A |
| Market Cap | 20.5B | 13.7B | 12.7B | 15.8B | 11.7B | 10.6B | 7.8B | 12.5B | 9.6B | 10.9B | 10.3B | 12.9B | 16.9B |
| Avg. Price | 32.19 | 30.36 | 22.30 | 25.76 | 24.67 | 22.58 | 16.64 | 22.04 | 23.14 | 22.60 | 21.66 | 20.32 | 32.49 |
| Year-End Price | 32.59 | 22.21 | 21.59 | 28.05 | 21.36 | 20.80 | 15.47 | 24.40 | 18.90 | 21.29 | 18.75 | 22.31 | 32.49 |
FRANKLIN RESOURCES INC passes 2 of 9 quality checks, indicating weak fundamentals.
FRANKLIN RESOURCES INC trades at 35.7x trailing earnings, compared to its 15-year median P/E of 9.5x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 20.6x vs a median of 10.3x. The company's 5-year average ROIC is 6.6%. Total shareholder yield (dividends + buybacks) is 6.0%. At current prices, the estimated annualized return to fair value is +5.3%.
FRANKLIN RESOURCES INC (BEN) has a net profit margin of 5.4%. This is a modest margin.
FRANKLIN RESOURCES INC (BEN) generated $912 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
FRANKLIN RESOURCES INC (BEN) has a debt-to-equity ratio of 0.20. This indicates a conservatively financed balance sheet.
FRANKLIN RESOURCES INC (BEN) reported earnings per share (EPS) of $0.91 in its most recent fiscal year.
FRANKLIN RESOURCES INC (BEN) has a return on equity (ROE) of 3.8%. This indicates moderate shareholder returns.
The Ledger Terminal provides 19 years of financial data for FRANKLIN RESOURCES INC (BEN), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
FRANKLIN RESOURCES INC (BEN) has a book value per share of $23.30, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued strong growth in alternatives fundraising, with fiscal 2026 private market fundraising targeted at $25 billion to $30 billion, building toward a five-year $100 billion goal, while active ETFs are positioned as a key growth driver representing 42% of ETF assets but over 50% of flows. The company anticipates margin expansion through fiscal 2026 and into 2027, with operating margins expected to reach the high 20s in later quarters of fiscal 2026 and progress toward 30%+ margins in fiscal 2027, supported by disciplined expense management and scaling of lower-fee-rate businesses like ETFs and Canvas solutions. Management is investing in growth areas including digital assets, tokenized products, and wealth management, with expectations for tokenized money market fund assets to reach approximately $3 billion by year-end, while maintaining flat to slightly positive net flows excluding Western Asset Management. The company remains focused on executing as an integrated platform to meet evolving client demand for multifaceted partnerships offering scale, breadth of capabilities, and customization across asset classes and regions.
Based on recent SEC filings and earnings calls, FRANKLIN RESOURCES INC (BEN) has provided the following forward guidance: Private market fundraising: $25 billion–$30 billion (Fiscal 2026); Tokenized money market fund assets: ~$3 billion (End of fiscal 2026); Fiduciary Trust International AUM: Double by 2029 (By 2029); Effective fee rate (EFR): Mid-to-high 37 basis points (Q3 FY2026); Investment management fee revenue growth: At least 4x the rate of expense growth (Fiscal 2026), plus 2 additional metrics.
Investment management fee revenue growth (Fiscal 2026): “We would expect investment management fee revenue to increase at 4 x that rate at least. Meaning if the expenses increase by 1.5%, we would expect investment management fee revenue would be expected to increase by at least 6% year-over-year, all else remaining equal.”
Lexington flagship fund target size (Fiscal 2026): “I think their target is, I am trying to find my notes, I think it is about $25 billion for this fund.”
Lexington flagship fund first close timing (Calendar 2026): “I think the first close they expect in the first half of 2026, calendar 2026.”