NYSE:BEN
FRANKLIN RESOURCES INC
A diversified global investment management powerhouse delivering robust fee-based revenue through its extensive mutual fund and institutional asset management platforms.
Key Metrics
Investment Thesis
Bull Case
Investors may favor this stock for its defensive characteristics as a fee-based business model that provides stable earnings visibility regardless of market cycles, supported by a massive global asset base and a diversified geographic footprint.
Bear Case
Concerns regarding slowing mutual fund inflows in key markets, potential erosion of distribution margins, and the significant goodwill on the balance sheet creating future impairment risks could weigh on long-term shareholder returns.
About FRANKLIN RESOURCES INC
Franklin Resources Inc. is a leading global investment management firm providing diversified wealth management solutions to individual investors, corporations, and governments across the United States, Europe, Asia, and Latin America. The company operates primarily through its flagship Franklin Templeton portfolio, offering mutual funds, exchange-traded funds, and separate accounts with a strong emphasis on active investing strategies. Key revenue streams include investment advisory fees, distribution charges, and asset-based fees derived from managing over $800 billion in client assets globally.
Analysis
Management Discussion
Despite a slight contraction in net income from 2024 to 2025, the company maintained strong revenue growth driven by continued asset expansion, with operating cash flow significantly exceeding reported net profit due to substantial non-cash adjustments and amortization activities.
Industry Overview
The investment management industry is characterized by consolidation and a shift toward fee-based models, where Franklin Resources competes with major peers like BlackRock and Vanguard to capture growing retail and institutional assets under management globally.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $7.85B | $8.48B | $8.77B |
| Cost of Revenue | $0 | $0 | $0 |
| Gross Profit | $7.85B | $8.48B | $8.77B |
| Operating Expenses | $6.75B | $8.07B | $8.17B |
| Operating Income | $1.10B | $407.6M | $604.1M |
| G&A | $565.0M | $703.3M | $774.5M |
| Marketing | $1.61B | $1.86B | $2.01B |
| Stock-Based Comp | $182.6M | $246.1M | $214.8M |
| D&A | $104.3M | $116.5M | $125.3M |
| Amortization | $341.1M | $338.2M | $406.5M |
| Other OpEx | $4.57B | $5.50B | $5.38B |
| Non-Operating Income | $313.4M | $415.6M | $182.7M |
| Interest Expense | $123.7M | $97.2M | $94.9M |
| Pre-Tax Income | $1.42B | $823.2M | $786.8M |
| Income Tax | $312.3M | $215.3M | $237.9M |
| Continuing Ops | $1.10B | $607.9M | $548.9M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $1.10B | $607.9M | $548.9M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $1.10B | $607.9M | $548.9M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| PP&E (Net) | $800.1M | $946.4M | $949.1M |
| Intangibles | $4.90B | $4.80B | $4.17B |
| Goodwill | $6.00B | $6.21B | $6.21B |
| Operating Leases | $406.3M | $823.3M | $764.3M |
| Total Assets | $30.12B | $32.46B | $32.37B |
| Total Liabilities | $16.55B | $17.90B | $18.18B |
| Shareholders' Equity | $13.57B | $14.56B | $14.19B |
| Retained Earnings | $12.38B | $11.93B | $11.52B |
| AOCI | $-509.3M | $-419.5M | $-447.1M |
| Total L&E | $30.12B | $32.46B | $32.37B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $1.10B | $607.9M | $548.9M |
| Non-Cash Adjustments | $-148.4M | $264.0M | $531.9M |
| Working Capital Changes | $183.7M | $99.4M | $-14.7M |
| Cash from Operations | $1.14B | $971.3M | $1.07B |
| Capital Expenditures | $148.8M | $177.1M | $154.5M |
| Cash from Investing | $-3.58B | $-2.42B | $-2.34B |
| Share Buybacks | $256.3M | $274.4M | $240.3M |
| Dividends Paid | $607.3M | $656.4M | $683.7M |
| Cash from Financing | $2.03B | $1.42B | $452.4M |
| FX Effect | $34.3M | $43.3M | $-10.8M |
| Net Change in Cash | $-380.1M | $6.5M | $-835.0M |
| Beginning Cash | $4.78B | $4.40B | $4.41B |
| Ending Cash | $4.40B | $4.41B | $3.57B |
Frequently Asked Questions
How does FRANKLIN RESOURCES INC make money?
The company's revenue is driven by three primary segments: Wealth Management for individual clients, Corporate & Institutional investing for large organizations, and International operations serving markets outside the U.S., all contributing to consistent fee income.
What are the main risks for BEN?
Major risks include potential outflows in mutual fund markets impacting fee income, regulatory changes affecting investment advisory fees, currency fluctuations given significant international operations, and interest rate sensitivity impacting fixed-income portfolio performance.
What is BEN's competitive advantage?
Franklin Resources benefits from an extensive global distribution network including a massive advisor force, a deep product suite with over 600 funds, and strong brand recognition that drives stable, recurring fee revenue streams.
Related Companies
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.