2024-05-11 08:34:32 ET
Summary
- The stock of Franklin Resources has experienced a lost decade in its share price due to the deteriorating active mutual fund industry.
- The company has been experiencing margin deterioration for decades, and no growth in revenues since 2014, despite large acquisitions.
- On top of that, the stock stands overvalued based on its own PE history, and lags asset management peers in terms of financial strength, justifying a strong sell rating.
Franklin Resources (NYSE : BEN ) is a US asset manager with offices in more than 80 financial centers that delivers investment solutions in equity, fixed-income, alternatives, and multi-asset. The company is predominantly a family-owned business and now rotates its fourth CEO in the family in its 76-year history. ...
Read the full article on Seeking Alpha
For further details see:
Franklin Resources: Falling Industry, Lagging Financial Strength, And Margins Contracting