Franklin Templeton is an asset manager with a forward P/E of 10.0x and strong growth, but the price is above the analyst target, cash conversion is deeply negative and a yield-trap warning is flagged.
Thesis pillars
- Attractive Valuation Growth→Stable
- Price Above Analyst Target↓Deteriorating
- Weak Cash Conversion→Stable
- +2 more pillars — see the Why tab for full reasoning
Pillars as of Nov 1, 2026, based on the 10-K filed Nov 10, 2025
Franklin Templeton, Inc. (BEN) Stock Analysis
Financial Services · Asset Management
Hold if already holding. Not a fresh buy at $32.36, 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 $32.36, 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: No clear chart pattern; technical signals are mixed. Mixed signals. Hold existing position. Score 6.1/10, moderate confidence.
Passes 5/7 gates (positive momentum, clean insider activity, no SEC red flags, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and earnings proximity 2d<=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.
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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
No fresh coverage since Aug 5, 2026
Recent Developments — Franklin Templeton, Inc.
Latest news
- NEWS Franklin Resources Inc. stock underperforms Wednesday when compared to competitors - MarketWatch — MarketWatch Aug 5, 2026 negative
- NEWS Franklin Resources Inc. stock underperforms Wednesday when compared to competitors - marketwatch.com — marketwatch.com Aug 5, 2026 negative
- NEWS Franklin Resources (BEN) Is Up 7.3% After Strong Q3, Rebrand To Franklin Templeton, New Credit Facility - Yahoo Finance — Yahoo Finance Aug 5, 2026 positive
- NEWS Franklin Resources (BEN) Is Up 7.3% After Strong Q3, Rebrand To Franklin Templeton, New Credit Facility - finance.yahoo. — finance.yahoo.com Aug 5, 2026 positive
- NEWS Franklin Resources (BEN) Upgraded to Strong Buy: Here's What You Should Know - Yahoo Finance — Yahoo Finance Aug 5, 2026 positive
Latest item Aug 5, 2026 · Generated 2026-11-04T11:39:49Z.
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
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Rating Breakdown
1 floor-breaker
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $32.36, 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: No clear chart pattern; technical signals are mixed. Mixed signals. Hold existing position. Analyst target $30.85 reached (−4.7%), stop $30.80 (−5.1%), A.R:R -0.7:1. Score 6.1/10, moderate confidence.
Analyst target $30.85 reached (−4.7% from $32.36); no take-profit level is published. Analyst target $30.85 reached (−4.7%), stop $30.80 (−5.1%), A.R:R -0.7:1. Stop-loss: $30.80.
Analyst target reached - limited upside remaining; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.6).
Franklin Templeton, Inc. trades at a P/E of 22.0 (forward 10.2). TrendMatrix value score: 7.4/10. Verdict: Hold.
18 analysts rate BEN, with a consensus score of 3.3/5. 13 analysts publish price targets averaging $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.