BEN

Franklin Resources Inc.

Finance/Real Estate


Presented:08/15/2018
Price:$32.16
Cap:$16.95B
Current Price:$20.25
Cap:$10.59B

Presented

Date08/15/2018
Price$32.16
Market Cap$16.95B
Ent Value$13.53B
P/E Ratio26.15x
Book Value$18.64
Div Yield2.36%
Shares O/S527.06M
Ave Daily Vol3,054,138
Short IntN/A

Current

Price$20.25
Market Cap$10.59B
Franklin Resources, Inc. is a holding company, which engages in the provision of financial and investment management services. It offers fund administration, sales, distribution, marketing, shareholder servicing, trustee, custody, and fiduciary services. The firm offers its products and services under the brands Franklin, Templeton, Franklin Mutual Series, Bissett, Fiduciary Trust, Darby, Balanced Equity Management, K2, and LibertyShares. The company was founded by Rupert H. Johnson, Sr. in 1947 and is headquartered in San Mateo, CA.

Publicly traded companies mentioned herein: BlackRock Inc (BLK), Franklin Resources Inc (BEN), T. rowe Price Group Inc (TROW)

Highlights

The presenter is short shares of Franklin Resources (BEN), seeing a structurally challenged business that he believes has an uncompetitive product suite versus its peers, and will therefore continue to see fund outflows. As asset outflows continue and possibly accelerate, margins and profits will decline. Though BEN shares have already seen some pressure, the presenter thinks valuation is still inflated given the heavy structural headwinds. He models $2.70 in 2020 earnings and ascribes an 8x - 9x multiple for a $22 - $24 price target, down from $32 today.

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Idea Discussion

Commentor 1 - 2 weeks ago

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