Franklin Resources Inc (BEN)
Fair ValueFundamental
51
Price
$31.06
Market Cap
$16.10B
Part 1 · What the company is worth
Overview
Franklin Resources is a global investment management holding company managing over $1.6 trillion in assets under management as of September 30, 2025. The company operates through multiple specialist investment managers under brand names including Franklin Templeton, Putnam Investments, Legg Mason, and Western Asset Management Company. It serves retail, institutional, and high-net-worth investors across equity, fixed income, alternative, multi-asset, and cash management strategies through direct relationships and financial intermediaries worldwide.
How it makes money
Franklin Resources derives revenues primarily from investment management fees calculated as a percentage of assets under management, which depend on the level and relative mix of AUM and types of services provided. The company also earns sales and distribution fees from the distribution of mutual fund shares through Rule 12b-1 plans and upfront commissions, as well as transfer agency servicing fees for providing shareholder statements, transaction processing, and tax reporting services.
Competitive moat
Brand · NarrowFranklin Resources operates through established brand names (Franklin Templeton, Putnam, Legg Mason) built over decades with long-term investment track records that provide some competitive positioning. The company benefits from scale with $1.6 trillion in AUM and established distribution relationships with financial intermediaries. However, the moat is narrow because competitive advantages depend heavily on sustained investment performance, face intense fee compression from larger competitors, and are vulnerable to redemptions during market downturns or periods of underperformance. The company acknowledges direct competition from larger institutions with greater financial resources and integrated capabilities.
What drives demand
CyclicalAsset management revenues are cyclical and highly dependent on market conditions. During bull markets and periods of investor confidence, asset valuations rise, investors deploy capital into managed accounts, and performance fees increase, driving higher revenues. Conversely, bear markets and recessions reduce AUM through lower valuations and redemptions, creating significant revenue headwinds. The timing and magnitude of revenue swings depend on equity market performance, interest rates, and investor risk appetite.
Key risks
- Market volatility and asset valuations — Changing market conditions directly impact revenues since fees depend on levels of AUM and asset mix. Market downturns reduce asset valuations, lower investor confidence, and trigger redemptions, creating a cyclical revenue dependency on equity market performance.
- Fee compression and pricing pressure — Competition is based significantly on fees charged. The company faces increasing competition for distribution access and rising distribution costs. Competitive pricing pressure from larger institutions and passive index managers creates downward pressure on management fee rates.
- Investment performance dependency — Client retention and AUM inflows depend on sustained long-term investment performance. Periods of underperformance relative to benchmarks or competitors can trigger significant asset redemptions and client attrition, directly reducing revenues.
- Regulatory complexity and evolution — The company operates under extensive U.S. and international regulation that continues to change and evolve. Regulatory risks include SEC registration requirements, Investment Company Act compliance, FINRA regulations, DOL fiduciary standards, GDPR and privacy laws, and cybersecurity disclosure requirements, any of which could increase compliance costs or limit business activities.
- Distribution channel dependence — Franklin is heavily dependent on third-party distribution channels including broker-dealers, banks, and investment advisers. These intermediaries can reduce their promotion of Franklin products, recommend competitors, or increase their commission demands. Distribution agreements may be terminated with relatively short notice.
- Industry consolidation and larger competitors — Consolidation in the financial services industry has created stronger competitors with greater financial resources, broader distribution capabilities, and integrated brokerage operations. These larger competitors can undercut fees, invest more in technology, and leverage existing customer relationships.
The case for
Buyers argue that Franklin Resources benefits from significant scale advantages with $1.6 trillion in AUM across diversified asset classes and geographies, positioning it among the world's largest asset managers. The company's portfolio of established brands (Franklin Templeton, Putnam, Legg Mason) provides competitive positioning and client stickiness. Growth is accelerating in higher-margin alternatives and exchange-traded funds (ETFs), with the company reporting it is ahead of plan in alternatives fundraising. The company is advancing its digital wealth platform (Canvas) and has made strategic acquisitions (Putnam Investments, Apera Asset Management) to expand capabilities. Operating margins are improving, with operating income up 48% year-over-year. The company trades at valuations that discount these growth initiatives and margin expansion potential.
The case against
Sellers fear that Franklin Resources faces structural headwinds from ongoing fee compression across the industry, as investors increasingly shift toward lower-cost passive index funds and ETFs. The company's revenues are inherently cyclical and vulnerable to market downturns, economic recessions, and periods of underperformance that trigger asset redemptions. Active management is losing market share to passive strategies, pressuring the company's core business model. Larger competitors with greater resources (Vanguard, Blackrock, State Street) dominate distribution channels and can undercut fees. The company's acquisition strategy (Putnam, Apera) requires successful integration and may not generate expected returns. Regulatory risks are increasing with evolving ESG, climate, cybersecurity, and fiduciary standards. Returns on equity are under pressure from margin compression and competition, making it difficult to justify premium valuations.
Generated with artificial intelligence on September 21, 2026, shared with all users
Direct competitors
Who this company fights with for the same customers
Generated with artificial intelligence on September 18, 2026, shared with all users
A US-listed active manager of a comparable size that sells mutual funds, retirement and separately managed accounts through the same financial advisers and retirement platforms Franklin Templeton depends on.
Another multi-brand global manager built by acquisitions, competing for the same equity, fixed income and ETF mandates from retail intermediaries and institutional clients worldwide.
A US active manager with a similar mix of retail funds, institutional mandates and private wealth, chasing the same fee-paying assets with active equity and fixed income strategies.
The world's largest asset manager sells to the same advisers, pension funds and insurers, and its iShares ETFs and index funds take in the flows Franklin Templeton's active funds are trying to win.
Competes head-on in money market and fixed income funds distributed through banks, broker-dealers and intermediaries, a core part of Franklin's cash and bond franchise.
Privately held US manager whose funds and retirement plans compete for the same individual savers and 401(k) assets, with the added advantage of its own distribution platform.
Balance Sheet & Liquidity
Revenue
$9.32B
Trailing 12 months (through 6/30/2026)
Net Income
$813M
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$912M
Total Equity
$12.08B
Total Liabilities
$18.18B
Current Ratio
1.00
Interest Coverage
10.17
Debt/EBITDA
4.63
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$27.27
Current Price
$31.06
Margin of Safety
-13.9%
Fair Value Range
$17.72 - $36.81
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
21.13
ROE
4.3%
P/B Ratio
1.34
P/FCF
17.66
Gross Margin
-
ROIC
-
Profitability Radar
Value Creation (Economic Moat)
ROIC
-
WACC
11.5%
ROIC − WACC
-
Fundamental Analysis Criteria
Passed (13)
- P/FCF 17.66
- P/B ratio 1.34
- Debt/equity ratio
- Operating margin 9.7%
- Positive free cash flow
- CapEx intensity
- Interest coverage
- Debt/EBITDA
- Return on tangible assets
- Revenue growth 5Y 9.5%
- Earnings surprise, average 11.8%
- Net margin trend 8.7% vs 3.7%
- Piotroski F-Score 5/9
Failed (9)
- EPS shows upward trend
- EPS CAGR -10.74%
- Price CAGR -2.56%
- Low reliance on intangibles
- Price below Graham Number
- DCF valuation (Fairly Valued)
- ROE 6.8%
- Earnings quality (operating cash flow / net income) 0.34
- Share dilution 5.5%
Unavailable (5)
- ROIC –
- Gross margin –
- Dividend payout –
- Current ratio
- PEG ratio (needs P/E > 0 and growth > 0)
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
Low quality: investigate accounting
Share Dilution
Issuing new shares, diluting ownership
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Gregory Eugene Johnson CPA | Executive Chairman of the Board & Non-Independent Director | 64 |
| Ms. Jennifer M. Johnson | CEO & Non-Independent Director | 61 |
| Mr. Matthew Nicholls | Co-President, CFO & COO | 52 |
| Mr. Terrence James Murphy | Co-President & Head of Public Market Investments | 57 |
| Mr. Daniel Ernesto Gamba CFA | Co-President & Chief Commercial Officer | 57 |
| Mr. Avinash Deepak Satwalekar CFA | President of India | - |
| Ms. Lindsey Harumi Oshita | Senior VP & Chief Accounting Officer | 42 |
| Mr. Bassel Khatoun | Head of Research & Director of Portfolio Management | - |
| Ms. Anupama Sawhney | Chief Administrative Officer & Head of Business Development | - |
| Ms. Selene Oh | Head of Investor Relations | - |
Audit Risk
7
Board Risk
6
Compensation Risk
7
Shareholder Rights Risk
4
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2025-11-10
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-07-31
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-08-10
via SEC EDGAR
Income History
via SEC EDGAR
Part 2 · The price and its context
This part shows how the price has behaved, not whether the company is worth owning. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Market Reaction Profile
How much BEN moves, measured on its daily prices.
More volatile than 17% of the tracked stocks (90-day volatility).
- Volatility 30d
- 20.5%
- Volatility 90d
- 23.7%
- Beta vs S&P 500 (1y)
- 1.21Correlation 0.56
- Max drawdown (12m)
- -19.2%
- ATR (14d, % of price)
- 2.58%
Earnings reactions
How BEN moved around its past quarterly results.
Next earnings release
Nov 6, 2026 · In 13 days · Before the open
EPS estimate: 0.77Revenue estimate: $2.1B
What usually happens
- Over the last 12 releases the stock moved a median of 3.1% the next day, up or down.
- Next-day moves: up 6, down 6 (out of 12).
- Of the 4 releases that beat estimates, the stock fell the next day after 1.
Release history
| Date | When | EPS est. | EPS actual | Surprise | Gap | 1 day | 5 days |
|---|---|---|---|---|---|---|---|
| Jul 31, 2026 | During the session | 0.68 | 0.72 | +6.2% | +0.9% | +2.1% | +2.5% |
| Apr 28, 2026 | During the session | 0.56 | 0.71 | +27.7% | +1.0% | +6.9% | +7.7% |
| Jan 30, 2026 | During the session | 0.56 | 0.70 | +25.2% | -0.5% | +2.9% | +4.0% |
| Nov 7, 2025 | During the session | 0.58 | 0.67 | +15.0% | -1.9% | -4.4% | -4.1% |
| Aug 1, 2025 | During the session | 0.50 | 0.49 | -1.7% | -3.0% | -0.2% | +3.6% |
| May 2, 2025 | During the session | n/a | n/a | n/a | +2.4% | +7.0% | +11.2% |
| Jan 31, 2025 | During the session | n/a | n/a | n/a | +3.2% | +10.4% | +2.2% |
| Nov 4, 2024 | During the session | n/a | n/a | n/a | -1.3% | -3.3% | +1.0% |
| Jul 26, 2024 | During the session | n/a | n/a | n/a | +1.5% | -2.4% | -5.9% |
| Apr 29, 2024 | During the session | n/a | n/a | n/a | -0.9% | -6.4% | -6.4% |
| Jan 29, 2024 | During the session | n/a | n/a | n/a | +1.9% | -0.3% | -2.5% |
| Oct 31, 2023 | During the session | n/a | n/a | n/a | +2.8% | +1.2% | +5.9% |
Release dates from SEC 8-K filings.
Updated 10/24/2026
Historical statistics for educational purposes only. They are not forecasts and not investment advice.
Price reaction to the news
Latest news on BEN and what the price did next.
- 9/8/2026PositiveFranklin Templeton to Buy European Real Assets Firm Stoneshield
- +1 day
- +0.3%
- +3 days
- -1.5%
- 9/8/2026PositiveHeadline no longer in the latest news feed
- +1 day
- +0.3%
- +3 days
- -1.5%
- 8/13/2026PositiveSEC allows Franklin Templeton funds to invest in onchain money fund
- +1 day
- +0.1%
- +3 days
- +1.8%
- 7/22/2026PositiveFranklin Templeton calls agentic AI next ‘killer’ use case for blockchain
- +1 day
- -0.6%
- +3 days
- +0.8%
- 7/9/2026PositiveFranklin’s Dudley Sees AI Infrastructure Bull Case Through 2027
Published while the US market was open: the move of that day cannot be split into before and after the news, so no figure is shown.
- 6/22/2026PositiveFranklin Templeton launches dedicated crypto division after closing 250 Digital acquisition
- +1 day
- +1.0%
- +3 days
- -2.4%
- 5/12/2026PositiveHeadline no longer in the latest news feed
- +1 day
- +0.6%
- +3 days
- +1.3%
Return of the stock minus return of SPY over the same days. A news item close to a price move did not necessarily cause it. Historical data for educational purposes only, not investment advice.
Latest News
Recent headlines for BEN.
- 12d agoNEUTRALKatrina Dudley on AI Spending and ROI
Katrina Dudley, Franklin Templeton's senior investment strategist for public markets, shared insights on Artificial Intelligence (AI) spending and its potential Return on Investment (ROI). Speaking on Bloomberg's "Open Interest," Dudley's discussion likely covered the current landscape of AI investments, the challenges in quantifying their immediate financial returns, and the long-term strategic value for companies. Investors are keenly watching the AI sector for sustainable growth, and expert opinions from firms like Franklin Templeton provide crucial context for evaluating investment opportunities and risks in this rapidly evolving technological domain.
- 23d agoNEUTRALFranklin Templeton’s Mann on ETF Business in Asia
Franklin Templeton, through its Global Head of ETFs & Market Structure, David Mann, has initiated a strategic partnership with ChinaAMC. This collaboration marks the first phase of Franklin Templeton's plan to engage with local asset managers in mainland China, aiming to tap into emerging investment themes within the region. The move signifies a deliberate effort by the global asset manager to expand its footprint and product offerings in the dynamic Asian market, particularly focusing on China's growing ETF sector. Investors will monitor this expansion for potential future growth opportunities and product diversification.
- 9/23/2026NEUTRALEarnings Growth Driving Market: Katrina Dudley
Katrina Dudley, Senior Investment Strategist at Franklin Templeton, discussed the equity market's resilience in a high-yield environment on Bloomberg's "Bloomberg Brief". The conversation focused on the underlying earnings growth that is supporting stock valuations despite rising interest rates. Dudley's insights suggest that corporate profitability remains robust, providing a foundation for continued market performance. Investors are advised to monitor earnings reports closely as a key indicator of market direction, especially in the current macroeconomic climate.
- 9/8/2026POSITIVEFranklin Templeton to Buy European Real Assets Firm Stoneshield
Franklin Templeton Inc. has announced its acquisition of a majority stake in Stoneshield Capital, a European firm focused on real estate and infrastructure investments. This strategic move by the US-based money manager signals a significant expansion into alternative asset classes, a sector experiencing robust investor demand. Stoneshield Capital's expertise in European real assets is expected to complement Franklin Templeton's existing portfolio, potentially enhancing its offerings and market reach. The deal underscores a broader industry trend of traditional asset managers increasing their exposure to alternatives to drive growth and diversification.
- 8/13/2026POSITIVESEC allows Franklin Templeton funds to invest in onchain money fund
The U.S. Securities and Exchange Commission (SEC) has signaled a more permissive stance towards the integration of traditional finance with blockchain technology. In a recent development, the SEC stated it would not pursue enforcement actions against Franklin Templeton's funds for investing in the asset manager's own tokenized money market fund. This regulatory green light is a significant step for the tokenization of financial assets, potentially paving the way for broader adoption of on-chain investments within established fund structures. Investors may see this as a positive indicator for innovation in asset management and a potential catalyst for increased efficiency and accessibility in the money market space.
- 7/22/2026POSITIVEFranklin Templeton calls agentic AI next ‘killer’ use case for blockchain
Franklin Templeton's digital assets lead has identified agentic AI as the next major application for blockchain technology. The firm anticipates that the burgeoning autonomous AI agent economy will significantly drive demand for blockchain protocols capable of facilitating machine-to-machine micropayments. This strategic outlook suggests a potential surge in utility and adoption for blockchain networks that can support high-frequency, low-value transactions, positioning them as critical infrastructure for the future of AI-driven commerce and services. Investors watching the intersection of AI and blockchain may find this a compelling growth narrative.
- 7/9/2026POSITIVEFranklin’s Dudley Sees AI Infrastructure Bull Case Through 2027
Franklin Templeton's Katrina Dudley highlighted a strong, durable bull case for artificial intelligence infrastructure spending, projecting its strength through 2027 and beyond. This optimistic outlook suggests continued robust investment in AI-related hardware, data centers, and networking, benefiting companies involved in these sectors. Investors should consider the long-term growth potential driven by AI adoption, as the underlying demand for computing power and specialized infrastructure is expected to remain high, potentially leading to sustained revenue growth for key players in the AI ecosystem.
- 6/22/2026POSITIVEFranklin Templeton launches dedicated crypto division after closing 250 Digital acquisition
Franklin Templeton has launched a dedicated cryptocurrency division, bolstered by the acquisition of 250 Digital. This strategic move aligns with the rapid expansion of tokenized assets, as the firm's on-chain product offerings have surged from approximately $768 million to over $2.5 billion in the past year. The growth signifies increasing institutional interest and adoption within the digital asset space, positioning Franklin Templeton to capitalize on this burgeoning market. Investors may view this as a positive step towards diversification and future revenue streams.
- 5/14/2026NEUTRALFranklin Templeton CEO Jenny Johnson on Trump-Xi Summit, Data Center Risks
Franklin Templeton CEO Jenny Johnson commented on the US-China relationship, suggesting both nations recognize the importance of dialogue. She also voiced concerns that markets are underestimating inflation risks and highlighted the rapid pace of data center investments as a potential area of concern. While the geopolitical commentary offers a broad market perspective, the specific concerns about inflation and data center spending do not present a clear, immediate directional signal for Franklin Templeton's stock itself, making the overall impact neutral for investors.