| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 50 | 28.0x | 17.8x | Around median | |
Growth | 36 | 7.4% | 7.1% | Bottom tier | |
Quality | 74 | 13.8% | 4.5% | Top tier | |
Safety | 87 | 0.6x | 2.6x | Top tier | |
Capital Return | 63 | 1.16% | 2.12% | Around median | |
Momentum | 56 | 10.0% | 2.9% | Around median | |
Sentiment | 64 | 3 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Franklin Electric manufactures and distributes systems that move, pump, treat, and remove water from industrial sites, alongside energy systems and a distribution network serving the agriculture, residential, mining, and utilities markets. Global Water Systems is the core of the business, which the company described on its July 28, 2026 call as a $1.3 billion business with 15 plants worldwide, while Distribution expands the reach of Franklin products to customers and end markets, and Energy Systems serves energy applications in North America, Europe, and Africa.
In Q2 fiscal 2026, consolidated revenue rose 6% year over year to $622.9 million, including organic growth of 3.5%, and gross profit increased from $211.8 million to $230.6 million. Gross margin improved by 90 basis points to 37%, and operating income rose 6% to $93.6 million, while adjusted operating income grew 12% to $98.5 million and its margin increased by 80 basis points to 15.8%. Diluted earnings per share were $1.46, up 11%, while adjusted earnings per share reached a quarterly record of $1.55, up 18%.
Performance was positive across segments in Q2 fiscal 2026, as Global Water Systems sales grew 5%, Distribution sales rose 11% to $221.1 million, and Energy Systems sales increased 3% to $80.2 million. Adjusted operating margin in Water Systems improved to 18.3%, Distribution operating margin reached 8.9% after an 80-basis-point improvement, while Energy Systems adjusted margin jumped 290 basis points to 40.4%. This improvement came despite recording a $4.5 million legal settlement provision in Energy Systems and $0.4 million in restructuring costs in Water Systems.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus rates FELE shares as Neutral, with an average target of $114.5 and a relatively wide target range of $105 to $124. The average target is close to the top of the 52-week range of $115.82, compared with a low of $89.54, reflecting a balance between improving margins and the raised outlook on one hand, and inflation, tariff, and regional weakness risks on the other. A price-to-earnings multiple is not available in the provided data, so the valuation assessment is based on the target range and the 52-week range rather than a comparable earnings multiple.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
Revenue rose 6% to $622.9 million, including organic growth of 3.5% and contributions from pricing, volume, currency, and acquisitions. New products generated more than $10 million in sales, and new water treatment dealers added more than $2 million. Sales of agricultural pumping equipment also rose 12%, and sales for mineral extraction applications increased 6% in the United States and Canada.
Global Water Systems sales grew 5%, and the segment's adjusted operating margin reached 18.3% after a 10-basis-point improvement. Distribution sales rose 11% to $221.1 million, and its operating margin improved by 80 basis points to 8.9%. Energy Systems sales increased 3% to $80.2 million, while its adjusted operating margin reached 40.4% after excluding a $4.5 million legal provision.
On July 28, 2026, the company raised its expected revenue range to between $2.21 billion and $2.29 billion. It also raised its adjusted diluted earnings per share range to between $4.50 and $4.70. The outlook reflects strong orders and backlog, but also includes caution regarding tariffs, weakness in Brazil, and the continuing impact of the conflict in the Middle East.
Management stated on July 28, 2026 that the addressable critical minerals market is worth billions of dollars, and that the company's related business grew by approximately 10% in Q2 fiscal 2026 after high-teens growth in the previous quarter. Franklin Electric's contribution is concentrated in mine operations, maintenance, and dewatering, with opportunities in South America, Africa, and the United States. In data centers, the company serves municipal connection points, circuit-cleaning applications, and CDU manufacturers, but explained that it was not yet ready to announce specific major wins.
Cash totaled $97.3 million at the end of Q2 fiscal 2026, and the amount drawn on the revolving credit facility was $107 million. The company generated $58.7 million in operating cash flow in the first half, compared with $32 million in the first half of fiscal 2025. Management attributed the improvement primarily to working capital performance, including better inventory utilization.
Risks include accelerating material inflation and changing tariffs, in addition to weak demand in Latin America and parts of Europe, the Middle East, and Africa. Sales of large industrial dewatering equipment in the United States and Canada fell 12% in Q2 fiscal 2026, while the conflict in the Middle East also weighed on volumes across several regions. At the same time, the company is starting up a plant in Turkey and consolidating facilities in North America, while expecting the stronger productivity impact of these measures to emerge in 2027.
