Franklin Electric (FELE)
NASDAQIndustrialsIndustrial - MachinerySnapshot 2026-09-09
$98.26-0.88%
Close 2026-09-09 · 1-day change
NASDAQIndustrialsIndustrial - MachinerySnapshot 2026-09-09
Warn: Primary pillar under pressure — EPS near $4.5 to $4.6 in 2026: FY26 EPS guidance $4.5-$4.7 vs $4.4-$4.6 target.
Franklin Electric grows revenue about 4.6% yearly as guided. Profit per share is expected near $4.5 in 2026. The company completed a $50 million acquisition to boost growth. Operating income rose from $44 million to $48 million in the last year.
Revenue growth is cooling and the company cut guidance recently. Profit margins could shrink if cost control weakens. The stock faces sector headwinds and a mild market pullback.
The price is about 5% below our fair value near $109. Analysts expect roughly 4.6% revenue growth. Our view aligns with consensus but sees risk from cooling growth.
Breaks if: Acquisition not completed or reversed by 2026-Q2
Breaks if: EPS falls below $4.4 in FY26
Breaks if: Operating income falls below $44 million next year
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround play in the industrial sector. The current thesis state is cautious, as recent performance has shown recovery but remains fragile.
The market seems to price in a low level of execution quality, reflecting a justified valuation that is cheap compared to peers. There is a slight expectations gap, indicating that some cautiousness is already embedded in the valuation.
Management is focused on driving profitable growth and has delivered consistent results, with revenue and operating income showing significant increases. However, the fragility of earnings quality suggests that future performance may be uncertain.
The long-term thesis hinges on the performance of sector bellwethers like GEV, PH, and TT. If these companies continue to perform well, they could provide a favorable backdrop for FELE, while any negative guidance from them could pose risks.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports the improved outlook. Franklin Electric's acquisition of Cat Pumps expands its addressable market by over $1 billion. This acquisition is expected to increase adjusted earnings per share in 2027.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: YoY revenue growth falls below 4.6% in FY26
In the next 1 to 3 years, FELE's performance will depend on both its internal execution and external sector conditions. Not investment advice.