Key Stats for FELE Stock
- Price Change for FELE stock: -14.65%
- FELE Share Price as of Feb. 17: $92.98
- 52-Week High: $111.53
- FELE Stock Price Target: $109.25
Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>
What Happened?
Franklin Electric (FELE) stock gapped lower this week after the company reported Q4 2025 earnings that modestly missed Wall Street expectations.
EPS came in at $0.87 compared with the $0.89 consensus, while revenue of $506.9 million missed estimates of roughly $516 million, even though sales still grew 4.4% year over year.
Despite the shortfall, management highlighted record full‑year results, with 2025 net sales reaching about $2.1 billion, up roughly 5% from 2024, and operating income rising to around $269 million.
Adjusted diluted EPS increased to $4.14 from $3.92, though GAAP EPS declined to $3.22 because of a $54.9 million pension plan termination charge.
The market focused on near‑term margin pressure and the guidance commentary.simplywall+3
Franklin Electric projected 2026 sales of $2.17–$2.24 billion and adjusted EPS of $4.40–$4.60, which implies roughly low‑single‑digit revenue growth and high‑single‑digit EPS growth.
Management noted that gross margin expanded in 2025 thanks to pricing and mix, but segment‑level performance was mixed, with Energy Systems showing higher sales yet lower operating income because of cost pressures.
The company also emphasized continued investment in water infrastructure, industrial, and energy transition opportunities, but acknowledged headwinds from softer residential demand and lingering margin compression concerns.
See analysts’ growth forecasts and price targets for FELE stock (It’s free!) >>>
What the Market Is Telling Us About FELE Stock
The double‑digit drop suggests investors are recalibrating expectations after a long stretch of strong execution and margin expansion. Shares had rallied into earnings on optimism around infrastructure spending and water‑systems demand, so even a small quarterly miss was enough to trigger profit‑taking.
Analysts, however, still see moderate upside. Consensus 12‑month price targets sit around $107–$110 per share, implying roughly mid‑teens upside from the low‑$90s, plus the dividend yield.
Recent margin commentary has been mixed: Franklin Electric’s full‑year operating margin improved to about 12.6%, yet some analysts highlight margin compression in specific businesses, with estimates of consolidated margins around the high‑single‑digit to low‑double‑digit range depending on adjustments.
Those concerns help explain why the stock trades at a discount to prior multiples even though earnings are still growing.
On valuation, FELE trades around the mid‑20s on trailing adjusted EPS and the low‑20s on forward EPS estimates, a level that reflects its solid balance sheet, consistent cash generation, and niche leadership in water and fuel pumping systems.
Net leverage remains low, and management has emphasized a balanced capital allocation strategy that includes dividends, opportunistic buybacks, and growth investments.
Estimate a company’s fair value instantly (Free with TIKR) >>>
How Much Upside Does FELE Stock Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
See a stock’s true value in under 60 seconds (Free with TIKR) >>>
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
