Franklin Electric Stock Forecast: Expect 12% Annual Growth
Franklin Electric Co. Inc. is a global leader in manufacturing and distributing systems and components for moving water and energy. They serve various sectors, including residential, commercial, agricultural, industrial, and municipal applications.
Finance
In 2023 Franklin Electric reported net sales of $2.065 billion and an operating income of $262.4 million. The company has a strong balance sheet with $1.206 billion in shareholders’ equity and a net debt of $15.4 million.
Franklin Electric stock price history
Franklin Electric’s stock (NASDAQ: FELE) is trading at $104.94 at the time of writing, with a 52-week high of $108.39 and a low of $82.61. The company has a market cap of $4.793 billion and a PE ratio of 26.10.
Franklin Electric Co. Inc. Investment Insight
The company boasts an impressive investment rating, largely due to its conservative financial management. Despite being in the manufacturing sector, it consistently maintains high Gross and Net profitability, underscoring its ability to generate strong cash flow. The firm’s robust equity capital enables it to keep financial debt at stable levels without any increase.
Price forecast
| MIN/MAX | 2024 | 2025 | 2026 | 2027 | 2028 |
|---|---|---|---|---|---|
| MIN | 83.30 | 93.34 | 104.59 | 117.19 | 131.32 |
| MAX | 109.30 | 122.47 | 137.23 | 153.77 | 172.30 |
When to buy?
At the time of writing, the stock price is fluctuating near its historical highs, marking a period of consolidation. During these times, it’s prudent to wait for a price correction. By purchasing shares after a dip, investors can potentially enhance their returns even further.
Dividend Policy
Franklin Electric upholds a quarterly dividend policy, having recently declared a cash dividend of $0.25 per share. Impressively, their dividends grow at an average annual rate of about 11%. This steady increase in payouts underscores the company’s dedication to delivering value to shareholders while preserving financial stability.
Conclusion
Franklin Electric demonstrates strong financial health and consistent cash flow generation, contributing to an impressive investment outlook. With prudent financial management and a quarterly dividend policy, the company remains a stable choice for investors. Coupled with an average annual stock price growth rate of around 12%, Franklin Electric presents an appealing long-term investment opportunity.