XVARY Composite Score
64
/ 100
Average
Combines growth, value, risk, and momentum factors into a single institutional-grade score.
Start here if you're new
What it is
Franklin Resources runs mutual funds and investment accounts, then charges fees on the money your pension, advisor, or fund leaves there.
How it gets paid
Last year Franklin Resources made $8.8B in revenue. Investment management fees was the main engine at $6.2B, or 70% of sales.
Why it's growing
Revenue grew 3.5% last year. EDGAR shows quarterly revenue rose 3% vs. prior year to $2.3B.
What just happened
Latest quarter revenue hit $2.3B and EPS reached $0.46, with EPS up 59% vs. prior year.
At a Glance
A balance sheet — strong enough to weather a downturn
45/100 earnings predictability — expect surprises
26.9x trailing p/e — priced about right
5.3% dividend yield — cash in your pocket every quarter
5.5% return on capital — nothing to write home about
XVARY composite: 64/100 — average
What They Do
Franklin Resources runs mutual funds and investment accounts, then charges fees on the money your pension, advisor, or fund leaves there.
Scale still matters here. Franklin had $1.66 trillion in assets under management as of 9/30/25, across 30-plus countries and multiple brands, which keeps it on big client shortlists. Switching costs (moving money is a paperwork headache) are real, so what: if your advisor platform already uses Franklin, leaving is annoying.
How They Make Money
$8.8B
annual revenue · their business grew +3.5% last year
Investment management fees
$6.2B
+2.0%
Sales and distribution fees
$1.2B
1.0%
Shareholder servicing fees
$0.8B
+3.0%
Performance fees
$0.2B
+8.0%
Other
$0.4B
+1.0%
The Products That Matter
Manages client portfolios
Investment Management
$8.8B revenue · 100% of revenue
it's the entire $8.8B business, and it kept a 10.3% net profit margin last year. simple model, but very exposed to flows and market levels.
the whole story
Fixed-income subsidiary
Western Asset Management
$217B december AUM · $142B outflows
this unit mattered for the wrong reason: clients pulled roughly $142B during fiscal 2025, though december AUM held at about $217B.
risk center
Key Numbers
$1.66T
assets managed
AUM → money Franklin collects fees on → so what: this is the base that feeds revenue, and it still fell 1.1% vs. prior year.
6.9%
operating margin
Operating margin → profit after core costs → so what: this is thin for a firm of this size.
5.3%
dividend yield
You are getting paid to wait, but high yields often mean the market wants proof first.
$12.3B
long-term debt
Debt is 49% of capital, which limits flexibility if markets or flows turn against them.
Financial Health
A
Strength
- balance sheet grade A — very strong financial position
- risk rank 3 — safer than 50% of stocks
- price stability 60 / 100
- long-term debt $12.3B (49% of capital)
- net profit margin 11.6% — keeps 12 cents of every dollar in revenue
- return on equity 8% — $0.08 profit for every $1 investors have put in
A — balance sheet grade looks solid but long-term debt needs watching.
Total Return vs. Market
You invested $10000 in BEN 3 years ago → it's now worth $10500.
The index would have given you $14770.
source: institutional data · total return
What Just Happened
beat estimates
Latest quarter revenue hit $2.3B and EPS reached $0.46, with EPS up 59% vs. prior year.
EDGAR shows quarterly revenue rose 3% vs. prior year to $2.3B, while EPS jumped 59% to $0.46. The quiet part: profit grew much faster than sales, which tells you cost control did more work than top-line acceleration.
$2.3B
revenue
$0.46
eps
$1.7068T
jan. aum
the number that mattered
EPS rose 59% vs. prior year to $0.46, while revenue grew 3%, which means margin repair mattered more than raw growth.
-
Indeed, aum declined 1.1%, to $1.661 trillion, during a year in which investment portfolios, in general, benefited from appreciation in the value of their underlying holdings.
-
To that point, during the 12-month period ended september 30th, u.s. stocks as measured by the s&p 500 index were up 16%.
-
Western asset management (wam) remained a drag.to wit, the beleaguered subsidiary saw clients pull roughly $142 billion from its funds during fiscal 2025. the defections follow investigations into wam’s trading practices and a subsequent loss of confidence among several large clients. wam’s former top investment officer was indicted for securities fraud, amid claims he engaged in ‘‘cherry picking’’ and allocated favorable trade to certain client portfolios at the expense of others. that said, we are encouraged by news that wam’s aum held steady at roughly $217 billion during the month of december. following leadership changes and the implementation of stricter oversight guidelines, a return to aum growth seems possible this year. alternative investments, including real estate and private equity, are likely to remain a long-term focus.
-
It’s part of the company’s push to democratize investing.
-
Franklin recently got a strong vote of confidence from its board of directors.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. Plain English, no spam.
Weekly updates
Earnings alerts
Plain English
No spam
What Could Go Wrong
The #1 risk is continued client flight from western asset management.
High
Western asset trust damage
WAM saw roughly $142B of client outflows in fiscal 2025. If that keeps going, fee revenue and sentiment both stay under pressure.
direct hit to assets, fees, and credibility
High
Regulatory and litigation overhang
The investigations into WAM's trading practices are not just a headline problem. They raise legal cost, client retention, and franchise-value risk.
keeps institutions cautious even if markets rise
Med
Market-sensitive fee model
This is a business tied to client assets. AUM already slipped 1.1% to $1.661T. If markets fall or clients reallocate, revenue pressure follows.
puts pressure on fees even without new scandal
Med
Thin economics for the payout story
A 5.3% yield looks generous, but it's sitting on a business with a 10.3% net margin and just 5.0% return on capital. That leaves less room for mistakes than the balance sheet grade suggests.
income support helps, but it does not erase weak operating momentum
The combined risk picture is simple: BEN has $1.661T in firmwide assets, but one troubled subsidiary alone lost roughly $142B in fiscal 2025. That's big enough to matter.
Source: institutional data · regulatory filings · risk analysis
Pay Attention To
Risk
Western asset flows
$142B already left in fiscal 2025. If that number keeps rising, the turnaround case gets weaker fast.
Metric
Firmwide aum direction
AUM fell 1.1% to $1.661T. You want to see that number stabilize, then grow.
Calendar
Next earnings report
The update that matters is not management language. It's flows, AUM, and whether the 6.0% margin improves.
Trend
Yield vs. business quality
A 5.3% yield attracts attention. A 5.0% return on capital limits how much that income story can carry the stock on its own.
Analyst Rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts expect BEN to move pretty much with the pack.
risk profile
average
stability score 3 — this is not a bunker stock, but it's not chaos either.
chart momentum
below average
technical score 4 — the chart still says investors want proof before they pay up.
earnings predictability
45 / 100
earnings predictability is low. Translation: expect noise, and don't mistake one decent quarter for a solved story.
Source: institutional data
Institutional Activity
institutions have been net buying for 2 consecutive quarters — 292 buyers vs. 241 sellers in 3q2025. total institutional holdings: 0.3B shares. net buying for 2 quarters.
Source: institutional data
Price Targets
3-5 year target range
$20
$37
$24
Current price
$29
Target midpoint · +18% from current · 3-5yr high: $35 (+45% · 14% ann'l return)
Want the deeper analysis?
The full deep dive: DCF model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
See plans from $5/moThe Deep Dive