# Franklin Resources (BEN.US)

Canonical: https://gigainvestors.com/s/BEN

Analysis as of: 2026-10-16T07:26:52.829Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $31.38 per share; close as of 2026-10-15.

Estimated value: low $35.35 per share, central $39.30 per share, high $44.55 per share. Buy at or below the central value $39.30 per share. Valuation as of 2026-10-16T07:26:52.829Z; scenarios are not confidence intervals.

Expected annual return: 12.3% at the stated quote. About 12.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 6 revenue declines in the last 10 years

- more than 5 revenue declines in ten years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 6

- Years with a net loss: 0

- Operating margin variation: 0.52×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.35×

- FY2018: 0.34×

- FY2019: 0.27×

- FY2020: 0.19×

- FY2021: 0.22×

- FY2022: 0.21×

- FY2023: 0.14×

- FY2024: 0.05×

- FY2025: 0.07×

- LTM to Jun 2026: 0.10×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 12.6pp below the typical margin (limit 4pp)

- ROIC, median of available years: 11.7%

- ROIC, second-lowest year: 2.7%

- Typical minus recent gross margin: 12.6 pp

- Typical gross margin (annual median): 80.2%

- Recent gross margin (lower of latest and 3-year median): 67.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.7%

- ROIC including acquisitions, ten-year median: 12.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 48.5%

- FY2018: 71.6%

- FY2019: 44.4%

- FY2020: 10.1%

- FY2021: 16.6%

- FY2022: 13.3%

- FY2023: 6.4%

- FY2024: 2.0%

- FY2025: 2.7%

- LTM to Jun 2026: 3.4%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 1.27×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $6.3B

- Net income, five-year total: $5.0B

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: -0.5 pp

- Working capital / revenue, change between three-year averages: 1.0 pp

- Working capital / revenue, final three-year average: 1.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.13×

- FY2022: 1.22×

- FY2023: 1.27×

- FY2024: 1.46×

- FY2025: 1.69×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 48.5% vs 2.7%

- Per-share earnings: 3.03 to 1.01 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.7%

- Ordinary dilution, 5-year annual growth: 1.0%

- Market cap gain: -$13B

- Cumulative retained earnings: -$1.3B

- Diluted shares, 10-year annual growth: -1.7%

- Diluted shares, 5-year annual growth: 1.0%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -12.8%

- Per-share value change: -$2.02

- Per-share value, starting three-year median: $3.03

- Per-share value, ending three-year median: $1.01

- Buybacks concentrated in cheaper years (correlation): -0.40

- Average buyback yield: 3.3%

- Buyback history: 9 years

- Debt-funded buybacks: Yes

- Acquisition spending: $9.0B

- Cumulative net income, 10 years: $11B

- ROIC, first three-year median: 48.5%

- ROIC, last three-year median: 2.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: $2.96

- FY2017: $3.03

- FY2018: $1.42

- FY2019: $2.37

- FY2020: $1.62

- FY2021: $3.73

- FY2022: $2.64

- FY2023: $1.80

- FY2024: $0.91

- FY2025: $1.01

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -1.7%

- Receivables to sales index (DSRI): 1.01×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 20.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.03×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.86×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -0.0%

- FY2017: 3.2%

- FY2018: -10.2%

- FY2019: 6.4%

- FY2020: -1.0%

- FY2021: 2.4%

- FY2022: -2.4%

- FY2023: -0.8%

- FY2024: -1.6%

- FY2025: -1.7%

## Holders

- [Dan Davidowitz](https://gigainvestors.com/pcm): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to shrink 2.6% a year for ten years · sales +6.3%

Story as of 2026-10-16T09:58:23.210Z; price observation 2026-10-15.

Price needs cash profits to shrink 2.6% a year for ten years

- 2025-08-01: Franklin Resources Q3 earnings narrowly miss as outflows ease Q/Q ([seekingalpha.com](https://seekingalpha.com/news/4476529-franklin-resources-q3-earnings-narrowly-miss-as-outflows-ease-qq?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-01-30: Franklin Resources Q1 profit exceeds consensus on net inflows ([seekingalpha.com](https://seekingalpha.com/news/4544896-franklin-resources-q1-profit-exceeds-consensus-on-net-inflows?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-04-15: Franklin Resources (BEN) Is Up 11.1% After Beating Q1 Estimates And Expanding Digital-Asset Push ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/franklin-resources-ben-11-1-110613035.html))

- 2026-07-31: Franklin Q3 Earnings Beat on Higher Revenues, AUM Hits Record High ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/franklin-q3-earnings-beat-higher-182000739.html))

### Sales · FY2025–2026

sales +6.3%; source https://www.sec.gov/Archives/edgar/data/38777/000003877725000238/ben-20250930.htm; observed 2025-11-10.

- FY2017: $6.4B 

- FY2018: $6.3B 

- FY2019: $5.8B 

- FY2020: $5.6B 

- FY2021: $8.4B 

- FY2022: $8.3B 

- FY2023: $7.8B 

- FY2024: $8.5B 

- FY2025: $8.8B 

- FY2026: $9.3B 

### Gross margin · FY2026

gross margin 67.6%; source https://www.sec.gov/Archives/edgar/data/38777/000003877725000238/ben-20250930.htm; observed 2025-11-10.

- FY2017: 45.8% 

- FY2018: 45.7% 

- FY2019: 41.0% 

- FY2020: 80.9% 

- FY2021: 83.0% 

- FY2022: 82.8% 

- FY2023: 80.9% 

- FY2024: 80.1% 

- FY2025: 80.3% 

- FY2026: 67.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in asset management; annual sales are USD 8.8 billion.

- Source: https://www.sec.gov/Archives/edgar/data/38777/000003877725000238/ben-20250930.htm#000003877725000238 (filed 2025-11-10); FY2025: revenue 8770700000; grossProfit 7046700000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 80.1% to 80.9% during 2023–25; it earns 11.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); FY2023: grossProfit / revenue = 80.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); FY2024: grossProfit / revenue = 80.1%.

- Source: https://www.sec.gov/Archives/edgar/data/38777/000003877725000238/ben-20250930.htm (filed 2025-11-10); FY2025: grossProfit / revenue = 80.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); 10-year return on capital observations [[2017,0.48457478647273183],[2018,0.7163762159912604],[2019,0.4439718786440001],[2020,0.10059670810459681],[2021,0.16552636577626725],[2022,0.13307757809968182],[2023,0.06371167242282806],[2024,0.020100313283182403],[2025,0.02701931707770267],[2026,0.03406803596941181]]; median 0.11683714310213932. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 240.3 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); FY2016: growth capex 0; upkeep 97600000; owner earnings 1716200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); FY2017: growth capex 0; upkeep 74900000; owner earnings 1702100000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); FY2018: growth capex 0; upkeep 106500000; owner earnings 734300000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); FY2019: growth capex 0; upkeep 233700000; owner earnings 1055400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); FY2020: growth capex 0; upkeep 103700000; owner earnings 823700000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); FY2021: growth capex 0; upkeep 79300000; owner earnings 2062500000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); FY2022: growth capex 0; upkeep 90300000; owner earnings 1579400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); FY2023: growth capex 0; upkeep 148800000; owner earnings 1120101504.4408193. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); FY2024: growth capex 0; upkeep 177100000; owner earnings 677052804.7376213. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/38777/000003877725000238/ben-20250930.htm (filed 2025-11-10); FY2025: growth capex 0; upkeep 154500000; owner earnings 885703006.012024. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); Dividend observations: [[2016,408700000],[2017,441200000],[2018,2116900000],[2019,518600000],[2020,533200000],[2021,559700000],[2022,583100000],[2023,607300000],[2024,656400000],[2025,683700000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/38777/000003877725000238/ben-20250930.htm (filed 2025-11-10); FY2025: cash repurchases 240300000 USD.

### Are managers owners

Insiders own 48.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BEN.US SharesStats.PercentInsiders = 48.496 percentage points; cache date 2026-10-16.

### What could break it

"Harm to our reputation may negatively impact our revenues and income." (SEC filing, Nov 2025)

- Source: https://www.sec.gov/Archives/edgar/data/38777/000003877725000238/ben-20250930.htm (filed 2025-11-10); Harm to our reputation may negatively impact our revenues and income.

### What the price says

The price assumes cash profits shrink 2.6% yearly over ten years; actual decline was 6.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); Ten-year compound average after fade. Initial solved rate -0.04938659119556715. Price 31.38; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 3.356480728573752 → FY2025 1.7118341824739545. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $33.66 per share

- 2016-11: $39.26 per share

- 2016-12: $39.58 per share

- 2017-01: $39.74 per share

- 2017-02: $43.04 per share

- 2017-03: $42.14 per share

- 2017-04: $43.11 per share

- 2017-05: $41.79 per share

- 2017-06: $44.79 per share

- 2017-07: $44.78 per share

- 2017-08: $43.23 per share

- 2017-09: $44.51 per share

- 2017-10: $42.13 per share

- 2017-11: $43.35 per share

- 2017-12: $43.33 per share

- 2018-01: $42.41 per share

- 2018-02: $38.67 per share

- 2018-03: $34.68 per share

- 2018-04: $33.64 per share

- 2018-05: $33.57 per share

- 2018-06: $32.05 per share

- 2018-07: $34.32 per share

- 2018-08: $31.74 per share

- 2018-09: $30.41 per share

- 2018-10: $30.50 per share

- 2018-11: $33.89 per share

- 2018-12: $29.66 per share

- 2019-01: $29.61 per share

- 2019-02: $32.61 per share

- 2019-03: $33.14 per share

- 2019-04: $34.59 per share

- 2019-05: $31.82 per share

- 2019-06: $34.80 per share

- 2019-07: $32.63 per share

- 2019-08: $26.28 per share

- 2019-09: $28.86 per share

- 2019-10: $27.55 per share

- 2019-11: $27.49 per share

- 2019-12: $25.98 per share

- 2020-01: $25.30 per share

- 2020-02: $21.76 per share

- 2020-03: $16.69 per share

- 2020-04: $18.84 per share

- 2020-05: $18.87 per share

- 2020-06: $20.97 per share

- 2020-07: $21.05 per share

- 2020-08: $21.06 per share

- 2020-09: $20.35 per share

- 2020-10: $18.75 per share

- 2020-11: $21.99 per share

- 2020-12: $24.99 per share

- 2021-01: $26.29 per share

- 2021-02: $26.17 per share

- 2021-03: $29.60 per share

- 2021-04: $30.00 per share

- 2021-05: $34.21 per share

- 2021-06: $31.99 per share

- 2021-07: $29.55 per share

- 2021-08: $32.44 per share

- 2021-09: $29.72 per share

- 2021-10: $31.49 per share

- 2021-11: $32.40 per share

- 2021-12: $33.49 per share

- 2022-01: $31.97 per share

- 2022-02: $29.73 per share

- 2022-03: $27.92 per share

- 2022-04: $24.59 per share

- 2022-05: $27.08 per share

- 2022-06: $23.31 per share

- 2022-07: $27.45 per share

- 2022-08: $26.07 per share

- 2022-09: $21.52 per share

- 2022-10: $23.45 per share

- 2022-11: $26.81 per share

- 2022-12: $26.38 per share

- 2023-01: $31.20 per share

- 2023-02: $29.47 per share

- 2023-03: $26.94 per share

- 2023-04: $26.88 per share

- 2023-05: $24.01 per share

- 2023-06: $26.71 per share

- 2023-07: $29.24 per share

- 2023-08: $26.74 per share

- 2023-09: $24.58 per share

- 2023-10: $22.79 per share

- 2023-11: $24.80 per share

- 2023-12: $29.79 per share

- 2024-01: $26.63 per share

- 2024-02: $27.45 per share

- 2024-03: $28.11 per share

- 2024-04: $22.84 per share

- 2024-05: $23.60 per share

- 2024-06: $22.35 per share

- 2024-07: $22.87 per share

- 2024-08: $20.24 per share

- 2024-09: $20.15 per share

- 2024-10: $20.77 per share

- 2024-11: $22.76 per share

- 2024-12: $20.29 per share

- 2025-01: $22.24 per share

- 2025-02: $20.25 per share

- 2025-03: $19.25 per share

- 2025-04: $18.76 per share

- 2025-05: $21.64 per share

- 2025-06: $23.85 per share

- 2025-07: $24.00 per share

- 2025-08: $25.66 per share

- 2025-09: $23.13 per share

- 2025-10: $22.61 per share

- 2025-11: $22.59 per share

- 2025-12: $23.89 per share

- 2026-01: $26.62 per share

- 2026-02: $26.54 per share

- 2026-03: $23.62 per share

- 2026-04: $29.97 per share

- 2026-05: $31.02 per share

- 2026-06: $33.27 per share

- 2026-07: $33.86 per share

- 2026-08: $34.15 per share

- 2026-09: $32.12 per share

- 2026-10: $31.38 per share

## Annual estimated value (USD per share)

- FY2016: low $48.07 per share, central $52.73 per share, high $58.92 per share

- FY2017: low $48.70 per share, central $53.28 per share, high $59.39 per share

- FY2018: low $45.94 per share, central $50.54 per share, high $56.66 per share

- FY2019: low $44.04 per share, central $48.52 per share, high $54.47 per share

- FY2020: low $30.46 per share, central $33.57 per share, high $37.72 per share

- FY2021: low $43.44 per share, central $48.17 per share, high $54.46 per share

- FY2022: low $43.22 per share, central $47.88 per share, high $54.08 per share

- FY2023: low $38.87 per share, central $43.28 per share, high $49.14 per share

- FY2024: low $33.22 per share, central $36.93 per share, high $41.86 per share

- FY2025: low $32.72 per share, central $36.37 per share, high $41.22 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:32:31.336Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/38777/000003877725000238/ben-20250930.htm); period 2025-09-30, filed 2025-11-10.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.