Our analysis is based on comparing Franklin Electric Co., Inc. with the following peers – A. O. Smith Corporation, Gorman-Rupp Company, Flowserve Corporation, Regal Beloit Corp, Allied Motion Technologies Inc., AMETEK, Inc., Xylem Inc., Colfax Corporation, Dover Corporation and Servotronics, Inc. (AOS-US, GRC-US, FLS-US, RBC-US, AMOT-US, AME-US, XYL-US, CFX-US, DOV-US and SVT-US).
Franklin Electric Co., Inc.’s dividend yield is 1.16 percent and its dividend payout is 22.31 percent. This compares to a peer average dividend yield of 1.29 percent and a payout level of 33.44 percent. This relatively lagging dividend performance could spur some dividend action going forward – except the company’s current dividend quality score of 58 out of a possible score of 100 is only about average.
Dividend Quality Overview
- Over the last twelve months (prior to September 30, 2017), FELE-US paid a low quality dividend, which represents a yield of 0.92% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 3 were high quality and 2 were low quality.
- The ending cash balance, with a dividend coverage of 3.02x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
Quadrant label definitions. Hover to know more
Over the last twelve months (prior to September 30, 2017), FELE-US paid a low quality dividend.
The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 4.27x), investing cash flow (coverage of -4.41x), issuance cash flow (coverage of 0.36x) and twelve-month prior cash (coverage of 3.97x), for a total dividend coverage of 4.02x.
These coverage ratio factors imply that the firm had to dip into the beginning cash balance to pay the dividend, which suggests a low dividend quality.
|Dividend Yield (%)||0.98||0.7||0.98||1.51||1.06||1.16|
|Dividend Payout (%)||16.47||18.15||24.65||25.5||24.09||22.31|
A complete list of metrics and analysis is available on the company page.
Franklin Electric Co., Inc. engages in the development, manufacture, and distribution of water and fuel pumping systems. It operates through the following business segments: Water Systems, Fueling Systems, and Other. The Water Systems segment designs, manufactures, and sells water pumping systems, submersible motors, pumps, electronic controls, and related parts and equipment. The Fueling Systems segment produces and markets fuel pumping, fuel containment, and monitoring and control systems. It also offers pumps, pipe, sumps, fittings, vapor recovery components, electronic controls, monitoring devices, and related parts and equipment. The Other segment includes the unallocated corporate expenses and inter-company eliminations. The company was founded by Edward J. Schaefer and T. Wayne Kehoe in 1944 and is headquartered in Fort Wayne, IN.
The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website www.analytixinsight.com.