Franklin Resources screens deeply discounted at a forward multiple of 10.9x with a PEG of 0.40 and consensus estimates rising 23% over 30 days, but the stock has slightly exceeded the analyst target, free cash flow is negative relative to net income, and the entry asymmetry has flipped unfavorable — the fundamental setup is more interesting than the current entry point suggests.
Thesis pillars
- Cheap Valuation Growth Discount→Stable
- Estimate Upgrade Momentum↑Improving
- Negative Fcf Earnings Quality→Stable
- +2 more pillars — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Nov 10, 2025
Franklin Templeton, Inc. (BEN) Stock Analysis
Range Bound setup
Financial Services · Asset Management
Hold if already holding. Not a fresh buy at $31.73, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.6).
Franklin Resources manages $1.6 trillion in assets under management through 17 specialist investment managers including Western Asset Management, Putnam Investments, and Lexington Partners, offering equity, fixed income, alternative, and multi-asset strategies to retail,... Read more
Hold if already holding. Not a fresh buy at $31.73, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.6). Chart setup: RSI 44 mid-range, Bollinger mid-band. Mixed signals. Hold existing position. Score 6.0/10, moderate confidence.
Passes 6/9 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and earnings proximity 7d<=7d. Suitability: aggressive.
About Franklin Templeton, Inc.
About Franklin Resources, Inc.
Franklin Resources managed $1.6 trillion in assets under management at September 30, 2025, with equity strategies representing 41% of AUM at $686.2 billion—the largest single asset class—followed by fixed income at 26% ($438.7 billion), alternatives at 16% ($263.9 billion), and multi-asset and cash management at 17% combined. The firm's 17 specialist investment managers—including Western Asset Management, Clarion Partners, Putnam Investments, and Lexington Partners—operate as SEC-registered investment advisers under the Investment Advisers Act of 1940.
Franklin Resources earns revenue primarily from investment management fees calculated as a percentage of AUM, with generally higher rates from international and alternative strategies than from U.S. equity products. The company primarily distributes through third-party broker-dealers, banks, and investment advisers—channels it does not control, and in which competing products are also sold. The 10-K explicitly identifies rising distribution costs and increasing competition for third-party channels as structural pressures on margins. Retail separately managed account programs ($164.5 billion in AUM) and institutional separate accounts ($237.9 billion) provide vehicle diversification beyond fund products. The Putnam acquisition closed January 2024 and Apera Asset Management in October 2025. Fee rates remain subject to downward pressure from the secular shift toward lower-fee index funds and ETFs, a trend the 10-K identifies as potentially causing a shift in AUM mix toward lower-margin products.
Show full overview
Franklin Resources' U.S. mutual fund management agreements must be renewed annually under the Investment Company Act, with termination permitted at relatively short notice without penalty—exposing a substantial portion of U.S. fund AUM to annual re-authorization risk. Canada, the U.K., the Netherlands, and EU member states have adopted or are implementing regimes banning or limiting adviser commissions on certain fund sales, which may shift flows to competitors offering substitute products outside commission-based distribution. The 10-K notes that if several major financial advisers ceased distributing Franklin Resources products, the resulting impact on revenues and income could be significant.
See also: Financial Services · Asset Management
From Franklin Resources, Inc.'s most recent 10-K filing, extracted June 9, 2026.
Recent developments
updated 2026-10-29Recent Developments — Franklin Templeton, Inc.
Latest news
- NEWS ‘Man enough to apologise’: Ben Stokes takes responsibility after England axe - The Indian Express — The Indian Express neutral
- NEWS Franklin Resources' Arm Expands Crypto Capabilities With 250 Digital Buyout - Yahoo Finance — Yahoo Finance positive
- NEWS Franklin Resources' Arm Expands Crypto Capabilities With 250 Digital Buyout - TradingView — TradingView positive
- NEWS Franklin Resources' Arm Expands Crypto Capabilities With 250 Digital Buyout - Zacks Investment Research — Zacks Investment Research positive
- NEWS What to Expect From Franklin Resources’ Next Quarterly Earnings Report - Yahoo Finance — Yahoo Finance neutral
Generated 2026-10-29T11:14:31Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMProductequity AUM41%10-K Item 1: 'Equity| | $| 391.8 ... | | | 41| %'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. People who build TrendMatrix, or entities they control, may hold positions, long or short, in securities it covers, and may trade them at any time. Positions are not disclosed individually. Verdicts are generated by an automated model applied by the same rules to every covered stock, and are not adjusted for any position held by the people who build TrendMatrix. We do not accept payment from issuers for coverage.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
Rating Breakdown
10 dimensions · all in-band
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $31.73, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.6). Chart setup: RSI 44 mid-range, Bollinger mid-band. Mixed signals. Hold existing position. Analyst target $30.85 reached (−2.8%), stop $30.13 (−5.3%), A.R:R -0.5:1. Score 6.0/10, moderate confidence.
Analyst target $30.85 reached (−2.8% from $31.73); no take-profit level is published. Analyst target $30.85 reached (−2.8%), stop $30.13 (−5.3%), A.R:R -0.5:1. Stop-loss: $30.13.
Analyst target reached - limited upside remaining; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.6); Earnings in 7 days (event risk).
Franklin Templeton, Inc. trades at a P/E of 21.6 (forward 10.0). TrendMatrix value score: 7.4/10. Verdict: Hold.
18 analysts cover BEN with a consensus score of 3.3/5. Average price target: $35.
What does Franklin Templeton, Inc. do?Franklin Resources manages $1.6 trillion in assets under management through 17 specialist investment managers including...
Franklin Resources manages $1.6 trillion in assets under management through 17 specialist investment managers including Western Asset Management, Putnam Investments, and Lexington Partners, offering equity, fixed income, alternative, and multi-asset strategies to retail, institutional, and high-net-worth clients globally. Investment management fees, which represent the majority of revenues, are calculated as a percentage of AUM levels.