F

Franklin Electric Co., Inc. — Earnings Quality Grade F

FELE · Industrials

Major red flags

Revenue
$2.1B
2025
Net Income
$147M
2025
Gross Margin
35.5%
Free Cash Flow
$194M
01

Screening Summary

14
Passed
1
Watch
2
Failed
-2.58
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 42 days, change +1 days YoY

A2AR vs Revenue Growth

AR outpaced revenue for 2 consecutive years

A3Revenue vs CFFO

Revenue 5.4%, CFFO -8.6%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory 14.3% vs COGS 5.5%. Normal

B2CapEx vs Revenue

CapEx growth 8.8% vs revenue 5.4%. Normal

B3SG&A Ratio

SG&A/Gross Profit = 64.3%. Normal

B4Gross Margin

Gross margin 35.5%, change -0.0pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 1.62. Profits backed by cash

C2Free Cash Flow

FCF $0.2B, FCF/NI = 1.32

C3Accruals Ratio

Accruals ratio = -4.7%. Low accruals

C4Cash vs Debt

Cash $0.1B covers only 43% of debt $0.2B

04

Balance Sheet Health

!
D1Goodwill + Intangibles

Goodwill+Intangibles $0.6B = 49% of equity

D2Leverage

Debt/EBITDA = 0.9x. Healthy

D3Soft Asset Growth

Other assets -11.4% vs revenue 5.4%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change 18% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.58 (< -2.22). Unlikely manipulator

Portfolio monitoring

Monitor FELE continuously

The full checks and model details are free to read. Use Watchlist to track your holdings; Pro adds automatic quarterly rescoring, risk-event email alerts, scans up to 50 tickers, and export workflows.

04

Beneish M-Score

Manipulation Probability-2.58
-4.0 Clean-2.22 Grey-1.78 Danger0
1.035
DSRI
AR growing faster than revenue?
1
GMI
Gross margin declining?
1.093
AQI
Asset quality deteriorating?
1.054
SGI
Revenue growth rate
0.998
DEPI
Depreciation slowing?
0.981
SGAI
SG&A ratio changing?
-0.0472
TATA
Accruals level
1.008
LVGI
Leverage increasing?
05

Altman Z-Score

6.85
Safe Zone
0 Distress1.102.605.0+ Safe
0.3161
Liquidity
0.5576
Cumulative profit
0.1056
Operating efficiency
2.1423
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25