Latest Ratios: P/E Ratio 31.6x · EV/EBITDA 14.2x · ROE 11.3%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $4.5B | $4.3B | $4.5B | $4.5B | $3.7B | $4.4B | $3.2B | $2.7B | $2.0B | $2.2B | $1.8B |
| Enterprise Value | $4.7B | $4.5B | $4.5B | $4.6B | $4.0B | $4.6B | $3.2B | $2.8B | $2.2B | $2.3B | $1.9B |
| P/E Ratio → | 31.62 | 29.39 | 25.25 | 23.52 | 20.09 | 29.10 | 32.34 | 28.24 | 19.06 | 27.82 | 23.58 |
| P/S Ratio | 2.13 | 2.03 | 2.24 | 2.19 | 1.83 | 2.67 | 2.59 | 2.04 | 1.55 | 1.92 | 1.93 |
| P/B Ratio | 3.50 | 3.26 | 3.57 | 3.75 | 3.50 | 4.69 | 3.80 | 3.36 | 2.74 | 3.07 | 2.98 |
| P/FCF | 23.45 | 22.33 | 20.63 | 16.53 | 62.71 | 44.60 | 17.10 | 17.22 | 19.04 | 64.84 | 24.06 |
| P/OCF | 19.00 | 18.09 | 17.34 | 14.36 | 36.87 | 34.25 | 15.26 | 15.10 | 15.71 | 32.32 | 15.90 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.11 | 2.23 | 2.23 | 1.94 | 2.79 | 2.59 | 2.10 | 1.67 | 2.06 | 2.02 |
| EV / EBITDA | 14.19 | 13.54 | 15.02 | 14.63 | 12.90 | 19.85 | 19.33 | 16.82 | 12.69 | 15.89 | 13.01 |
| EV / EBIT | 17.50 | 21.93 | 18.90 | 18.13 | 16.08 | 23.81 | 25.15 | 22.07 | 16.62 | 20.16 | 17.02 |
| EV / FCF | — | 23.26 | 20.50 | 16.79 | 66.38 | 46.57 | 17.08 | 17.72 | 20.42 | 69.62 | 25.19 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 35.5% | 35.5% | 35.5% | 33.8% | 33.8% | 34.7% | 34.7% | 32.6% | 33.3% | 33.5% | 34.9% |
| Operating Margin | 12.7% | 12.7% | 12.1% | 12.7% | 12.6% | 11.4% | 10.5% | 9.7% | 10.2% | 9.5% | 11.8% |
| Net Profit Margin | 6.9% | 6.9% | 8.9% | 9.4% | 9.2% | 9.3% | 8.1% | 7.3% | 8.2% | 6.9% | 8.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 11.3% | 11.3% | 14.5% | 16.9% | 18.6% | 17.1% | 12.2% | 12.4% | 14.7% | 11.9% | 13.4% |
| ROA | 7.8% | 7.8% | 10.2% | 11.3% | 11.5% | 10.8% | 8.1% | 8.0% | 8.9% | 7.0% | 7.7% |
| ROIC | 14.7% | 14.7% | 14.5% | 15.3% | 15.8% | 14.3% | 11.4% | 10.8% | 11.3% | 10.3% | 12.0% |
| ROCE | 18.1% | 18.1% | 17.2% | 19.2% | 20.8% | 16.8% | 12.6% | 13.1% | 14.1% | 11.8% | 12.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.21 | 0.21 | 0.15 | 0.13 | 0.25 | 0.25 | 0.15 | 0.18 | 0.28 | 0.32 | 0.31 |
| Debt / EBITDA | 0.84 | 0.84 | 0.64 | 0.50 | 0.86 | 1.01 | 0.76 | 0.87 | 1.21 | 1.55 | 1.29 |
| Net Debt / Equity | — | 0.14 | -0.02 | 0.06 | 0.20 | 0.21 | -0.01 | 0.10 | — | — | — |
| Net Debt / EBITDA | 0.54 | 0.54 | -0.10 | 0.23 | 0.71 | 0.84 | -0.03 | 0.48 | 0.86 | 1.09 | 0.58 |
| Debt / FCF | — | 0.93 | -0.13 | 0.26 | 3.66 | 1.97 | -0.02 | 0.50 | 1.39 | 4.77 | 1.13 |
| Interest Coverage | 19.29 | 19.29 | 37.69 | 21.54 | 21.41 | 37.51 | 27.73 | 15.17 | 13.24 | 11.13 | 12.92 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.79 | 2.79 | 2.22 | 2.97 | 2.11 | 1.83 | 3.04 | 3.05 | 2.27 | 2.40 | 3.07 |
| Quick Ratio | 1.18 | 1.18 | 1.11 | 1.20 | 0.77 | 0.69 | 1.56 | 1.44 | 1.04 | 1.13 | 1.78 |
| Cash Ratio | 0.29 | 0.29 | 0.51 | 0.30 | 0.11 | 0.10 | 0.64 | 0.35 | 0.23 | 0.27 | 0.66 |
| Asset Turnover | — | 1.10 | 1.11 | 1.20 | 1.21 | 1.06 | 0.98 | 1.10 | 1.10 | 0.95 | 0.91 |
| Inventory Turnover | 2.49 | 2.49 | 2.70 | 2.69 | 2.48 | 2.41 | 2.71 | 2.95 | 2.76 | 2.39 | 3.04 |
| Days Sales Outstanding | — | 42.39 | 40.96 | 39.31 | 41.15 | 43.09 | 46.77 | 48.13 | 48.61 | 55.49 | 56.10 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.1% | 1.2% | 1.0% | 0.9% | 1.0% | 0.8% | 0.9% | 1.0% | 1.1% | 0.9% | 1.0% |
| Payout Ratio | 34.0% | 34.0% | 26.0% | 21.6% | 19.7% | 21.7% | 29.5% | 29.0% | 21.4% | 26.0% | 24.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.2% | 3.4% | 4.0% | 4.3% | 5.0% | 3.4% | 3.1% | 3.5% | 5.2% | 3.6% | 4.2% |
| FCF Yield | 4.3% | 4.5% | 4.8% | 6.1% | 1.6% | 2.2% | 5.8% | 5.8% | 5.3% | 1.5% | 4.2% |
| Buyback Yield | 3.6% | 3.8% | 1.3% | 1.0% | 1.1% | 0.6% | 0.6% | 0.4% | 1.7% | 0.2% | 0.4% |
| Total Shareholder Yield | 4.7% | 5.0% | 2.4% | 1.9% | 2.1% | 1.3% | 1.5% | 1.4% | 2.8% | 1.1% | 1.4% |
| Shares Outstanding | — | $45M | $47M | $47M | $47M | $47M | $47M | $47M | $47M | $47M | $47M |
Acquisition-driven margin dilution
Based on current market data, FELE trades at a TTM P/E of 33.20, which appears to price in significant future growth that may be challenged by the structural margin dilution inherent in its ongoing acquisition-led expansion strategy within the lower-margin distribution segment of the water systems market.
The forward P/E of 23.50 suggests that investors are anticipating a recovery in earnings quality, yet the PEG ratio of 3.81 indicates that the current valuation is expensive relative to expected growth rates. This premium valuation warrants caution, as it assumes the company can successfully integrate its distribution roll-ups without further eroding the consolidated operating margins that have historically defined its manufacturing core.
As reported in financial statements, ROIC has trended in a narrow range between 2.4% and 4.5% over the last ten quarters, suggesting that the company's aggressive acquisition strategy is currently struggling to generate returns that meaningfully exceed the cost of capital for the broader industrial machinery sector.
The persistent gap between ROIC and historical industrial benchmarks implies that the capital deployed into the Headwater distribution network is not yet yielding the synergistic returns management likely envisioned. Investors should monitor whether these returns improve as the company moves past its current phase of heavy inorganic investment and focuses on operational integration.
According to recent quarterly filings, the cash conversion cycle has remained elevated, peaking at 158 days in 2026Q1, which reflects the significant inventory burden required to support the company's vertically integrated distribution model and the inherent logistical complexities of its global water and fueling systems supply chain.
The high days inventory outstanding, consistently exceeding 140 days, indicates that the company is carrying substantial working capital to ensure product availability for its contractor base. This reliance on inventory depth may limit free cash flow generation during periods of softening demand, as the company cannot easily liquidate these assets without impacting its service-level commitments.
Based on reported figures, Franklin Electric maintains a robust balance sheet with a debt-to-equity ratio of 0.22, providing the company with significant financial flexibility to continue its acquisition-led growth strategy despite the volatility observed in its operating income and interest coverage ratios over the last ten quarters.
While the interest coverage ratio has fluctuated significantly, the low absolute debt levels suggest that the company is not at risk of financial distress even if earnings volatility persists. This conservative capital structure appears to be a deliberate choice by management to maintain the ability to pursue regional distribution acquisitions regardless of the broader macroeconomic interest rate environment.
The P/E ratio is frequently misapplied to Franklin Electric because it fails to account for the significant non-cash amortization of intangibles resulting from the company's aggressive acquisition strategy, which artificially depresses reported net income and obscures the underlying cash-generating capacity of the core manufacturing business segments.
Analysts should instead focus on EV/EBITDA or free cash flow yields to better normalize for the impact of acquisition-related accounting distortions. Relying solely on P/E multiples may lead to an incorrect assessment of the company's valuation, as it ignores the structural shift toward a distribution-heavy model that carries different depreciation and amortization profiles than traditional pure-play pump manufacturing.
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Quick answers to the most common questions about buying FELE stock.
Franklin Electric Co., Inc.'s current P/E ratio is 31.6x. The historical average is 22.0x. This places it at the 97th percentile of its historical range.
Franklin Electric Co., Inc.'s current EV/EBITDA is 14.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.0x.
Franklin Electric Co., Inc.'s return on equity (ROE) is 11.3%. The historical average is 16.6%.
Based on historical data, Franklin Electric Co., Inc. is trading at a P/E of 31.6x. This is at the 97th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Franklin Electric Co., Inc.'s current dividend yield is 1.08% with a payout ratio of 34.0%.
Franklin Electric Co., Inc. has 35.5% gross margin and 12.7% operating margin. Operating margin between 10-20% is typical for established companies.
Franklin Electric Co., Inc.'s Debt/EBITDA ratio is 0.8x, indicating low leverage. A ratio below 2x is generally considered financially healthy.