Franklin Financial Services Corporation (FRAF) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+13.8%

$82.43

vs $72.44 price

Levered DCF

$146.81

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

0.31

Distress zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	10.59×	11.91×	10.14×	10.68×	7.45×	9.19×	10.51×	22.5×
P/B	1.29×	0.91×	1.04×	1.4×	0.93×	0.81×	1.33×	1.17×
P/S	1.69×	1.16×	1.53×	2.27×	2.29×	1.96×	2.69×	2.44×
EV / EBITDA	10.97×	9.79×	14.81×	5.62×	-0.62×	5.06×	4.02×	11.67×
Gross margin	64.3%	59.7%	71.4%	92.2%	98.7%	85.6%	88.3%	74.9%
Operating margin	19.7%	11.7%	17.4%	24.9%	36.0%	21.8%	30.1%	10.5%
Net margin	15.9%	9.8%	15.0%	21.3%	30.7%	21.4%	25.6%	10.8%
Current ratio	0.13×	0.29×	0.3×	0.36×	0.45×	0.34×	0.25×	0.17×
Debt / equity	1.23×	1.55×	1.17×	0.23×	0.16×	0.17×	0.04×	0×
Interest coverage	0.59×	0.3×	0.68×	3.6×	7.93×	3.28×	2.67×	1.41×
Dividend yield	2.6%	4.3%	4.1%	3.5%	3.8%	4.4%	3.0%	3.3%
Payout ratio	27.5%	50.7%	41.1%	37.9%	28.2%	40.8%	31.7%	75.1%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	12.1%	7.7%	10.3%	13.1%	12.5%	8.8%	12.6%	5.2%
Return on invested capital	5.3%	2.9%	4.6%	10.1%	10.4%	7.1%	11.2%	4.7%
Return on assets	0.9%	0.5%	0.7%	0.9%	1.1%	0.8%	1.3%	0.5%
Free cash flow yield	10.9%	14.5%	18.9%	8.2%	12.0%	5.1%	10.2%	5.9%
Earnings yield	9.4%	8.4%	9.9%	9.4%	13.4%	10.9%	9.5%	4.4%
Enterprise value	$311.8M	$150.8M	$263.1M	$106.5M	-$14.9M	$72.8M	$81.9M	$85.1M
Net debt / EBITDA	3.03×	1.22×	7.04×	-2.81×	-6.66×	-3.13×	-4.29×	-7.26×
Cash conversion cycle (days)	0	0	0	0	0	0	0	0