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Franklin Electric Co Inc

Franklin Electric Co Inc

FELE
$105.66USD↓-1.92%-2.07 today

MARKET CAP

4.7B

P/E (TTM)

24.9x

FWD P/E

21.3x

DAY RANGE

$105 – $108

52W RANGE

$90
$112

AI Summary

Stalk
TrimMedium

FELE remains in a medium-term decline (Stage 4) with structural lower highs and lower lows, reinforcing a bearish bias despite the long-term uptrend. In the near term, price is holding the 50-day SMA and lacks a clear timing edge for immediate selling. A deferred sell approach is advised, awaiting rallies into the 9/21 EMA resistance zone for optimal execution while maintaining discipline around the overarching downward momentum.

  • ↑Q1 revenue rose 10% YoY to $500.4M, led by organic volume growth
  • ↑Adjusted operating margin increased to 10.4% from 9.7%, driven by SG&A productivity
  • ↓Gross profit margin declined to 35% from 36% due to higher tariff-driven material costs
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The case for & against

Bull & Bear analysis

Bullish

Franklin Electric Co., Inc. (NASDAQ: FELE) is a leading manufacturer of water and fueling systems, delivering solutions that cater to various sectors including residential, agriculture, and industrial markets. The company operates primarily in the groundwater, wastewater, and fuel systems markets, and is well-positioned to capitalize on ongoing demand for innovative water management solutions amid rising global needs, particularly in urbanization and infrastructure development.

Bull says

  • ↑Q1 revenue rose 10% YoY to $500.4M, led by organic volume growth
  • ↑Adjusted operating margin increased to 10.4% from 9.7%, driven by SG&A productivity
  • ↑Repurchased 120K shares for $11.3M, highlighting strong FCF and shareholder focus
  • ↑Order backlog expanded 10%, enhancing near-term revenue visibility
  • ↑VersaBoost launch and positive earnings revisions signal a solid growth pipeline
  • ↑High quality score (~0.62) and positive earnings yield underpin robust fundamentals

Bear says

  • ↓Gross profit margin declined to 35% from 36% due to higher tariff-driven material costs
  • ↓Global market uncertainties and supply-chain risks may constrain growth and pricing power
  • ↓Negative growth factor and weak earnings revisions raise value-trap concerns
  • ↓Ongoing tariff pressures risk further margin compression if costs can’t be passed through
  • ↓Elevated short interest and leverage factor highlight market skepticism and financial risk
  • ↓Profitability and growth challenges amid geopolitical headwinds may hinder future performance

Earnings Call · Q1 2025 · Mgmt. Guidance

Updated 05-28-2026neutral

Transcript signals

Bull points

  • The company purchased about 56,000 shares of its common stock for approximately $5.4 million in the open market during the first quarter of 2025.
  • Yesterday, the company announced a quarterly cash dividend of 26.5 cents. The dividend will be payable May 22nd to shareholders of record on May 8th.
  • The company purchased about 56,000 shares of its common stock for approximately $5.4 million in the open market during the first quarter of 2025.

Bear points

  • adjusting the lower end of our EPS guidance by 10 cents. We are holding our full year sales expectations of 2.09 to 2.15 billion, but adjusting our GAAP EPS to a range of $3.95 to $4.25.
  • adjusting the lower end of our EPS guidance by 10 cents. We are holding our full year sales expectations of 2.09 to 2.15 billion, but adjusting our GAAP EPS to a range of $3.95 to $4.25.
  • Several one-time costs were a drag on first quarter results, namely expenses related to an executive transition and recent acquisitions.
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