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Franklin Electric Co., Inc. (FELE)

Company Dividend Discount ModelIndustry: Industrial - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$72.10 - $191.26$110.25
Multi-Stage$49.93 - $54.52$52.18
Blended Fair Value$81.22
Current Price$95.20
Upside-14.69%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS11.12%10.40%1.020.910.800.730.640.600.490.440.420.41
YoY Growth--12.35%12.79%10.76%12.55%7.24%22.37%11.45%6.02%1.11%8.64%
Dividend Yield--1.08%0.86%0.85%0.87%0.82%1.28%0.95%1.08%0.97%1.29%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)141.50
(-) Cash Dividends Paid (M)48.62
(=) Cash Retained (M)92.88
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)28.3017.6910.61
Cash Retained (M)92.8892.8892.88
(-) Cash Required (M)-28.30-17.69-10.61
(=) Excess Retained (M)64.5875.1982.26
(/) Shares Outstanding (M)46.0346.0346.03
(=) Excess Retained per Share1.401.631.79
LTM Dividend per Share1.061.061.06
(+) Excess Retained per Share1.401.631.79
(=) Adjusted Dividend2.462.692.84
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$72.10$110.25$191.26
Upside / Downside-24.26%15.81%100.91%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)141.50150.69160.49170.92182.03193.86199.68
Payout Ratio34.36%45.49%56.62%67.74%78.87%90.00%92.50%
Projected Dividends (M)48.6268.5590.86115.79143.57174.47184.70

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)62.2462.8363.42
Year 2 PV (M)74.9176.3477.78
Year 3 PV (M)86.6889.1791.70
Year 4 PV (M)97.59101.34105.20
Year 5 PV (M)107.69112.89118.29
PV of Terminal Value (M)1,869.441,959.732,053.48
Equity Value (M)2,298.552,402.302,509.88
Shares Outstanding (M)46.0346.0346.03
Fair Value$49.93$52.18$54.52
Upside / Downside-47.55%-45.18%-42.73%

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