Stock fact sheet · data as of
Franklin Electric Co., Inc. (FELE): fair value, margin of safety and Wheel Score
Industrials · Industrial - Machinery · United States · Blend
Is FELE undervalued?
Franklin Electric Co., Inc. (FELE) closed at 100.69 on 16 Oct 2026, 45% above the GLS average fair value of 69.51. 6 of the 9 models that produced a number value the shares below the current price. A gap this wide usually means the market is paying for growth or a story the trailing numbers do not show yet; the models work from filed results, not forecasts, so they are conservative by design.
The 9 models disagree widely: DDM gives 16.26 while 10 Cap gives 126.66. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files FELE under Blend.
Nine valuation models for FELE
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 61.87 | -39% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 50.05 | -50% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 114.60 | +14% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 43.67 | -57% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 47.97 | -52% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 126.66 | +26% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 125.51 | +25% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 16.26 | -84% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 39.04 | -61% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 7.72 | -92% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 114.50 | +14% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health FELE scores 8/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 6.7 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are moderate - ROIC 9.4%, ROE 11.1%, ROA 7.6% - with debt at 0.18 times equity and a free-cash-flow yield of 4.9%.
The dividend yield is 1.10% with a payout ratio of 32% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Consolidated 49%, Water Systems 28%, Distribution 17% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 6/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 8 / 9 | ROIC | 9.4% |
|---|---|---|---|
| GLS Moat | 6.7 / 10 | ROE | 11.1% |
| Debt / equity | 0.18 | ROA | 7.6% |
| Free-cash-flow yield | 4.9% | Payout ratio | 32% |
| Institutions | 10 / 10 | Insiders · Congress | 6 · 5 / 10 |
Wheel Score 59: Fair
FELE scores 59 out of 100 on the Wheel Score (Fair band, 50-64): a usable but unremarkable fit for the wheel strategy. The parts: Value 0/25, Health 18/20, Moat 10/15, Premium 18/20, Stability 14/20. Value (0/25) is where the points are missing.
Implied volatility is 33% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (18 of 20 points). Chain open interest is thin - 216 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 298k shares a day on a market cap of $4.5B, with a beta of 1.02; the Stability part of the Wheel Score gives that 14 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -45% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 10 / 15 | moat 6.7/10 | |
| Premium | 18 / 20 | implied volatility 33% | |
| Stability | 14 / 20 | 298k shares/day, $4.5B cap, beta 1.02 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Franklin Electric Co., Inc. reports earnings on 27 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Industrial - Machinery
The 12 companies below are the closest to Franklin Electric Co., Inc. by market cap within the Industrial - Machinery industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| ALH Alliance Laundry Holdings Inc. | 20.93 | 15.79 | -33% | 56Fair | $4.2B |
| ESAB ESAB Corporation | 65.63 | 55.61 | -18% | 63Fair | $4.1B |
| MIDD The Middleby Corporation | 108.68 | 182.33 | +40% | 45Weak | $4.9B |
| MIR Mirion Technologies, Inc. | 15.54 | 6.80 | -128% | 57Fair | $3.8B |
| BMI Badger Meter, Inc. | 126.88 | 125.37 | -1% | 71Good | $3.7B |
| JBTM JBT Marel Corporation | 105.93 | 113.13 | +6% | 71Good | $5.5B |
| MWA Mueller Water Products, Inc. | 21.65 | 26.66 | +19% | 83Prime | $3.4B |
| SXI Standex International Corporation | 273.48 | 129.49 | -111% | 49Weak | $3.4B |
| TEX Terex Corporation | 52.21 | 44.49 | -17% | 59Fair | $6.0B |
| NPO EnPro Industries, Inc. | 283.93 | 63.52 | -347% | 52Fair | $6.0B |
| CXT Crane NXT, Co. | 54.27 | 42.09 | -29% | 53Fair | $3.1B |
| AAON AAON, Inc. | 77.30 | 43.45 | -78% | 47Weak | $6.4B |
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Start free See the Sunday ScanQuestions about FELE
Is FELE undervalued right now?
No: at 100.69 the stock trades 45% above the GLS average fair value of 69.51 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of FELE and what does it mean?
FELE scores 59 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for FELE?
69.51 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Franklin Electric Co., Inc. report earnings next?
The next earnings report is due on 27 Oct 2026 (before the open), 11 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does FELE have listed options, and how liquid are they?
Yes. The nightly snapshot found 138 listed contracts with 216 open interest across all expiries and implied volatility of 33% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.