Franklin Resources, Inc. (BEN)
For informational purposes only. Not financial advice. Analysis by Sedat Aydin, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Franklin Resources, Inc. (BEN) trades at $23.67 with AI Score 54/100 (Hold). Franklin Resources, Inc. is a global investment management firm providing a range of investment solutions to individuals, institutions, and sovereign wealth funds. Market cap: 13B, Sector: Financial services.
Last analyzed: Feb 9, 2026Franklin Resources, Inc. (BEN) Financial Services Profile
Franklin Resources, a global asset management leader with a rich history since 1947, offers diverse investment solutions across asset classes, boasting a 4.74% dividend yield and a strong 80.5% gross margin, making it a noteworthy option for value-seeking investors in a dynamic market.
Investment Thesis
Franklin Resources presents a notable research candidate due to its established position in the asset management industry and attractive dividend yield of 4.74%. The company's high gross margin of 80.5% indicates efficient operations and strong profitability. While the P/E ratio of 22.82 suggests a premium valuation, the company's diversified product offerings and global reach provide stability and growth potential. Key value drivers include increasing assets under management through organic growth and strategic acquisitions. Upcoming catalysts include the potential for increased market volatility, which could drive demand for actively managed funds. The company's beta of 1.49 indicates higher volatility compared to the market, which could translate to higher potential returns during favorable market conditions.
Based on FMP financials and quantitative analysis
Key Highlights
- Market capitalization of $14.16 billion, reflecting its significant presence in the asset management industry.
- Profit margin of 7.0%, indicating a healthy level of profitability.
- Gross margin of 80.5%, showcasing efficient cost management and strong pricing power.
- Dividend yield of 4.74%, offering an attractive income stream for investors.
- Beta of 1.49, indicating higher volatility compared to the market, which could translate to higher potential returns.
Competitors & Peers
Strengths
- Strong brand recognition and reputation.
- Diversified product offerings across asset classes.
- Global distribution network and client base.
- Experienced investment management team.
Weaknesses
- Dependence on market performance to drive AUM growth.
- Exposure to regulatory changes and compliance costs.
- Competition from low-cost passive investment strategies.
- Relatively high beta compared to peers.
Catalysts
- Upcoming: Potential for increased market volatility driving demand for actively managed funds.
- Ongoing: Expansion into alternative investments to diversify revenue streams.
- Ongoing: Integration of ESG factors into investment strategies to attract socially responsible investors.
- Ongoing: Investments in technology to enhance client experience and improve operational efficiency.
Risks
- Potential: Market downturns leading to decreased AUM and revenue.
- Potential: Increased competition from low-cost passive investment strategies.
- Potential: Regulatory changes impacting the asset management industry.
- Ongoing: Fluctuations in currency exchange rates affecting international operations.
- Ongoing: Dependence on key personnel and investment professionals.
Growth Opportunities
- Expansion into alternative investments: Franklin Resources can capitalize on the growing demand for alternative investments, such as private equity and real estate. The alternative investment market is estimated to reach $17.2 trillion by 2025, offering significant growth potential. By expanding its alternative investment offerings, Franklin Resources can attract new clients and diversify its revenue streams. This expansion could involve strategic acquisitions or the development of new in-house capabilities. The timeline for this expansion is ongoing, with continuous efforts to enhance alternative investment capabilities.
- Increased focus on sustainable investing: The demand for sustainable investing is rapidly increasing, driven by growing environmental and social awareness. Franklin Resources can attract socially responsible investors by offering ESG-focused investment products. The ESG investing market is projected to reach $50 trillion by 2025. By integrating ESG factors into its investment process and launching new ESG funds, Franklin Resources can enhance its brand image and attract new assets. The timeline for this initiative is ongoing, with continuous efforts to integrate ESG factors into investment strategies.
- Leveraging technology to enhance client experience: Technology is transforming the asset management industry, enabling firms to provide personalized investment advice and improve client engagement. Franklin Resources can invest in technology to enhance its client experience and improve operational efficiency. This could involve developing mobile apps, implementing AI-powered investment tools, and streamlining back-office processes. The timeline for this technological transformation is ongoing, with continuous investments in technology infrastructure.
- Strategic acquisitions to expand market reach: Franklin Resources can pursue strategic acquisitions to expand its market reach and product offerings. Acquisitions can provide access to new markets, technologies, and talent. The asset management industry is consolidating, with larger firms acquiring smaller players to gain scale and efficiency. Franklin Resources can identify attractive acquisition targets and integrate them into its existing operations. The timeline for potential acquisitions is ongoing, with continuous evaluation of market opportunities.
- Expanding into emerging markets: Emerging markets offer significant growth opportunities for asset managers, driven by rising incomes and increasing financial literacy. Franklin Resources can expand its presence in emerging markets by establishing new offices, forming partnerships with local firms, and launching investment products tailored to local investors. The timeline for this expansion is ongoing, with continuous efforts to penetrate emerging markets.
Opportunities
- Expansion into emerging markets.
- Growth in sustainable investing and ESG-focused products.
- Strategic acquisitions to expand market reach.
- Leveraging technology to enhance client experience.
Threats
- Increased competition from other asset managers.
- Market volatility and economic downturns.
- Changes in investor preferences and asset allocation.
- Rising interest rates and inflation.
Competitive Advantages
- Established brand reputation and long operating history.
- Global distribution network and diverse product offerings.
- Experienced investment professionals and proprietary investment strategies.
- Strong client relationships and high client retention rates.
About BEN
Franklin Resources, Inc., operating as Franklin Templeton, is a prominent global investment management firm founded in 1947. The company has evolved from a small New York-based investment firm into a multinational organization with a significant presence in the asset management industry. Throughout its history, Franklin Resources has focused on providing investment solutions to a diverse clientele, including individuals, institutions, pension plans, trusts, and partnerships. The company offers a wide array of investment products, including equity, fixed income, balanced, and multi-asset mutual funds. These funds are managed by experienced investment professionals who employ various strategies to generate returns for their clients. Franklin Resources invests in public equity, fixed income, and alternative markets, adapting its investment approach to suit different market conditions and client needs. Headquartered in San Mateo, California, with an additional office in Hyderabad, India, Franklin Resources has a global reach, serving clients in numerous countries. The company's commitment to innovation and client service has enabled it to maintain a strong competitive position in the asset management industry, managing a substantial portfolio of assets under management.
What They Do
- Provides asset management services to individuals and institutions.
- Launches equity mutual funds.
- Launches fixed income mutual funds.
- Launches balanced mutual funds.
- Launches multi-asset mutual funds.
- Invests in public equity markets.
- Invests in fixed income markets.
- Invests in alternative markets.
Business Model
- Generates revenue through management fees based on assets under management (AUM).
- Earns performance-based fees for certain investment products.
- Distributes investment products through various channels, including financial advisors and direct sales.
- Focuses on providing a wide range of investment solutions to meet diverse client needs.
Industry Context
Franklin Resources operates in the highly competitive asset management industry. The industry is characterized by increasing demand for passive investment strategies, technological advancements, and evolving regulatory landscapes. Key trends include the growth of sustainable investing and the increasing importance of data analytics. Franklin Resources competes with other major asset managers, including BlackRock and Affiliated Managers Group. The asset management industry is expected to continue growing, driven by rising global wealth and increasing demand for retirement planning services. Franklin Resources is well-positioned to capitalize on these trends, leveraging its global reach and diversified product offerings.
Key Customers
- Individuals seeking investment management services.
- Institutions, including pension funds, endowments, and foundations.
- Sovereign wealth funds.
- Financial advisors who distribute Franklin Resources' investment products.
Financials
Chart & Info
Franklin Resources, Inc. (BEN) stock price: $23.67 (-0.95, -3.86%)
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Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for BEN.
Price Targets
Consensus target: $23.50
MoonshotScore
What does this score mean?
The MoonshotScore rates BEN's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Franklin Resources, Inc. Stock: Key Questions Answered
What does Franklin Resources, Inc. do?
Franklin Resources, Inc., through its subsidiaries, operates as a global investment management firm. It provides a wide array of investment solutions and services to individuals, institutions, pension plans, trusts, and partnerships. The company launches and manages various types of mutual funds, including equity, fixed income, balanced, and multi-asset funds. Franklin Resources invests in public equity, fixed income, and alternative markets, aiming to generate returns for its clients while managing risk. The firm's business model relies on earning management fees based on assets under management and performance-based fees for certain investment products.
Is BEN stock worth researching?
BEN stock presents a mixed investment profile. Its attractive 4.74% dividend yield and high gross margin of 80.5% are appealing. However, the P/E ratio of 22.82 suggests a premium valuation. Growth opportunities in alternative investments and sustainable investing could drive future returns. Potential risks include market volatility and competition from low-cost passive strategies. Investors may want to evaluate their risk tolerance and investment horizon before investing. A balanced approach considering both the potential upside and downside is crucial for making an informed decision about BEN stock.
What are the main risks for BEN?
Franklin Resources faces several key risks. Market downturns could significantly reduce assets under management and revenue. Increased competition from low-cost passive investment strategies poses a threat to market share. Regulatory changes and compliance costs could impact profitability. Fluctuations in currency exchange rates could affect international operations. Dependence on key personnel and investment professionals could disrupt operations if these individuals leave the company. These risks should be carefully considered by investors when evaluating Franklin Resources' investment potential.
What are the key factors to evaluate for BEN?
Franklin Resources, Inc. (BEN) currently holds an AI score of 54/100, indicating moderate score. The stock trades at a P/E of 20.2x, near the S&P 500 average (~20-25x). Analysts target $23.50 (-1% from $23.67). Key strength: Strong brand recognition and reputation.. Primary risk to monitor: Potential: Market downturns leading to decreased AUM and revenue.. This is not financial advice.
How frequently does BEN data refresh on this page?
BEN prices update in real time during U.S. market hours (9:30 AM-4:00 PM ET, weekdays). Fundamentals refresh after quarterly or annual filings. Analyst ratings and AI insights update daily. News is aggregated continuously from financial sources.
What has driven BEN's recent stock price performance?
Recent price movement in Franklin Resources, Inc. (BEN) can be influenced by earnings results, analyst revisions, sector rotation, and broader market sentiment. The current analyst target of $23.50 implies 1% downside from here. Notable catalyst: Strong brand recognition and reputation.. Check the News and Technical Analysis tabs for the latest drivers. Past performance does not predict future results.
Should investors consider BEN overvalued or undervalued right now?
Determining whether Franklin Resources, Inc. (BEN) is overvalued or undervalued requires examining multiple metrics. Its P/E ratio is 20.2. Analysts target $23.50 (-1% from current price), suggesting analysts see the stock near fair value. Compare valuation ratios (P/E, P/S, EV/EBITDA) against sector peers for a comprehensive view.
What research should beginners do before buying BEN?
Before investing in Franklin Resources, Inc. (BEN), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Financial data is based on the most recent available information.
- Future performance is subject to market conditions and other factors.