Franklin Electric Co., Inc. research snapshot
FELE AI stock analysis as of the August 3, 2026 data cutoff reads Franklin Electric as a quality global manufacturer of water and fuel pumping systems that just delivered record Q2 2026 margins and raised full year guidance, but at a premium valuation. The stock closed at $104.72 on July 31, 2026, with a market capitalization near $4.63 billion, re-verified as $104.72 times 44.21 million shares outstanding per the StockAnalysis.com quote and statistics pages. Q2 2026, released July 28, 2026, delivered consolidated net sales of $622.9 million up 6%, gross margin of 37.0% up 90 basis points, GAAP EPS of $1.46 up 11%, and a record adjusted diluted EPS of $1.55 up 18%, with adjusted operating margin of 15.8% up 80 basis points and all three segments growing. Management raised full year 2026 guidance to net sales of $2.21 billion to $2.29 billion and adjusted diluted EPS of $4.50 to $4.70. The stock set an all time high near $115.82 around the July 28 report and then cooled to $104.72, above the 50-day, 100-day, and 200-day moving averages near $103.05, $100.00, and $98.86 but below the 5-day average near $105.74. Offsetting the momentum is a premium valuation at about 30x trailing GAAP EPS and near 22x forward adjusted EPS, so the AI rating is constructive but the margin of safety is thin.
Current price
$104.72
Market cap
$4.63 billion
AI score
68 / 100
Rating
Quality water and fuel pump compounder with record Q2 2026 margins and a raised outlook at a premium valuation
Trend status
Above the 50-day, 100-day, and 200-day moving averages but below the 5-day after a pullback from the all time high near $115.82
Data cutoff (updated monthly)
August 4, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | Franklin Electric is a global leader in water and fuel pumping systems with 80 plus years of history, a $1.3 billion Water Systems segment, 15 factories worldwide, and a record Q2 2026 adjusted diluted EPS of $1.55. | High |
| Moat | The moat combines brand trust, the gold standard submersible motor franchise, distribution breadth, a growing water treatment dealer network, application engineering, and aftermarket parts and service. It is durable but narrower than mega-cap industrials. | Medium-high |
| Management | Joe Ruzynski is running a growth and margin agenda with visible results: Q2 2026 sales up 6%, adjusted EPS up 18% to a record, three acquisitions closed in the first half and tracking ahead of plan, new product sales over $10 million in the quarter, and full year guidance raised. | Medium-high |
| Financial trend | Q2 2026 consolidated sales rose 6% to $622.9 million with gross margin of 37.0% up 90 basis points, adjusted operating income up 12% to $98.5 million with a 15.8% adjusted margin up 80 basis points, and adjusted EPS up 18% to a record $1.55, with first half net sales up 7.7% to $1.12 billion and operating cash flow of $58.7 million up from $32.0 million. | High |
| Valuation | At about 30.2x trailing GAAP EPS, 21.5x forward PE per StockAnalysis, near 22x on the $4.65 FY2026 consensus, 2.09x sales, 21.2x free cash flow, and 14.0x EV/EBITDA, the market already prices in continued margin and EPS expansion. | Medium |
| Technical trend | FELE closed at $104.72 on July 31, 2026, above its 50-day, 100-day, and 200-day moving averages near $103.05, $100.00, and $98.86 but below the 5-day near $105.74 after setting an all time high near $115.82, with 14-day RSI near 50.36 and 14-day ADX near 14.53. | Medium |
| Risk level | Key risks are a premium multiple, slower organic growth at 3.5%, the Middle East conflict dampening EMEA and North Africa volumes, a slower Brazil market, tariff and material cost pressure, weather dependent ag demand, liquid fuel transition risk, and integration of three 2026 acquisitions. | Medium-high |
| AI confidence | High for descriptive facts and cross-checked math that matched across StockAnalysis.com, Barchart, the Q2 2026 earnings release, the Q2 2026 earnings call, and the Q2 2026 Form 10-Q. Lower for forward return estimates because demand, tariffs, and multiples are uncertain. | High data confidence |
| Investment certainty | Medium certainty. The page gives a research framework and scenario ranges, not a buy or sell instruction. | Medium |
FELE AI stock forecast
The FELE AI stock forecast uses scenario math around the July 31, 2026 close of $104.72 and the FY2026 adjusted EPS consensus of $4.65. The three-scenario framework produced a bearish area near $76, a base area near $130, and a bullish area near $170 before dividends, using adjusted EPS growth of 3%, 10%, and 15% and exit multiples of 15x, 21x, and 24x over three years. These are scenarios, not price commitments.
$160 to $180
More likely if adjusted EPS compounds near 15% through faster water treatment share gains, critical minerals dewatering, data center liquid cooling, and price realization, with margins expanding and the market holding a 24x exit multiple.
$120 to $140
More likely if FELE compounds adjusted EPS at a 10% rate with organic growth near 4% to 5%, margins holding near record levels, and the market keeping a 21x exit multiple.
$70 to $85
More likely if organic growth fades to 3% or below, the Middle East conflict and Brazil weakness persist, tariffs and material costs compress margins, liquid fuel demand declines faster, or the market compresses the multiple toward 15x.
FELE AI technical analysis
FELE AI technical analysis is neutral to constructive as of the August 3, 2026 data cutoff. The stock closed at $104.72 on July 31, 2026, above its 50-day, 100-day, and 200-day moving averages near $103.05, $100.00, and $98.86, but below the 5-day average near $105.74 after pulling back from an all time high near $115.82 set around the July 28 earnings report. Barchart reported 14-day RSI near 50.36 and 14-day ADX near 14.53, which signals a range rather than a strong trend, while 20-day average volume near 313,000 shares confirms an orderly cooling.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $104.72 | StockAnalysis.com real-time quote at the July 31, 2026 close, up 1.21% on the day; market cap math uses 44.21 million shares outstanding. |
| 5-day moving average | $105.74 | Barchart reported the 5-day moving average near $105.74, slightly above the July 31 close, which signals near term momentum cooled after the earnings spike. |
| Near support | $102 to $104 | Barchart and StockAnalysis both placed the 50-day moving average near $103.05 as of July 31, 2026, a natural first pullback support zone. |
| Next support | $98 to $101 | The 100-day moving average near $100.00 and the 200-day near $98.86 on July 31, 2026 form a support cluster. |
| Near resistance | $105 to $110 | The 5-day average near $105.74 and the recent consolidation act as first overhead, with a failed breakout below the high keeping the range intact. |
| All time high | $115.82 | StockAnalysis.com lists the 52-week high near $115.82, reached around the July 28, 2026 earnings report, as the main upside boundary. |
| 50-day moving average | $103.05 | Barchart and StockAnalysis both reported the 50-day moving average near $103.05 on July 31, 2026. |
| 100-day moving average | $100.00 | Barchart reported the 100-day moving average near $100.00 on July 31, 2026, below price and confirming the medium term uptrend. |
| 200-day moving average | $98.86 | Barchart and StockAnalysis both reported the 200-day trend line near $98.86, below the current price. |
| 52-week low | $89.54 | StockAnalysis.com lists the 52-week low near $89.54, well below the 200-day average and the current price. |
| Momentum | RSI near 50, ADX near 15 | 14-day RSI was near 50.36 and 14-day ADX near 14.53 on Barchart, which indicates a range after the strong July move rather than an overbought or trending condition. |
| Volume | About 313,000 average shares | Barchart listed 20-day average volume near 313,230 shares and StockAnalysis near 313,216 on July 31, 2026, useful for checking breakout and breakdown quality. |
| Volatility | Elevated near earnings | Barchart reported 14-day historic volatility near 31.46% and 14-day ATR near $3.29, so position sizing should account for larger swings around reports and guidance. |
| Invalidation | Close below $100 | A decisive close below the 100-day moving average near $100.00 would weaken the medium term uptrend; a close below the 200-day near $98.86 would turn it bearish. |
FELE AI trading strategy
The FELE AI trading strategy is a rules-based research framework for trading and watching the water and fuel pump compounder. It is not personal advice and should be paired with fresh chart data, filings, position sizing, and a defined invalidation level.
Watch for FELE to reclaim its 5-day average near $105.74 and to build volume on a move toward the all time high near $115.82, with the 200-day trend line near $98.86 still rising.
A daily close below the 100-day moving average near $100.00 or a failed attempt at the all time high should trigger a stop and review.
If FELE pulls back toward the $98 to $104 support cluster without new margin, demand, or tariff damage, compare the price reaction with Q3 results, margin guidance, and order news before acting.
Do not average down without a maximum loss rule because tariff news, Middle East headlines, or ag demand shifts can turn a support zone into a value trap.
Track organic sales growth, gross margin near 37%, adjusted operating margin, water treatment dealer revenue, critical minerals and data center demand, tariff and material costs, debt levels, dividend growth, and buyback pace.
Reduce confidence if EPS growth depends mainly on acquisitions or adjustments rather than organic volume and cash conversion.
Investment research summary
Franklin Electric turns pumps, motors, drives, and controls into reliable water and fuel movement for farms, municipalities, buildings, industrial sites, and fuel stations. Customers pay because broken water and fuel systems stop revenue, so replacement demand and aftermarket parts drive a large share of revenue.
The moat is built on brand trust, the gold standard submersible motor franchise, a global distribution network, a growing water treatment dealer channel, application engineering, and aftermarket parts and service. It is durable but narrower than mega-cap industrial moats.
The thesis fails if organic growth stays near 3%, the Middle East conflict keeps dampening EMEA and North Africa volumes, Brazil stays slow, tariffs and material costs compress margins, ag or water infrastructure spending drops, liquid fuel demand declines faster, or the premium multiple contracts.
Joe Ruzynski and the team delivered a record Q2 2026 adjusted EPS of $1.55, raised full year 2026 guidance to $2.21 billion to $2.29 billion in sales and $4.50 to $4.70 in adjusted EPS, closed three acquisitions tracking ahead of plan, and announced the first Investor Day for March 2027.
Water movement and treatment are long term needs driven by population growth, aging infrastructure, urbanization, critical minerals mining, and data center liquid cooling, while fuel movement faces a gradual energy transition that keeps liquid fuel infrastructure essential for decades.
The stock no longer trades as a discount to peers. At about 30x trailing GAAP EPS and near 22x forward adjusted EPS, margin of safety depends on whether adjusted EPS growth and cash conversion can justify the premium after a strong 2026 so far.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| FELE price | $104.72 at the July 31, 2026 close, up 1.21% on the day | StockAnalysis.com real-time quote | August 3, 2026 |
| Market capitalization | $4.63 billion, computed as $104.72 x 44.21 million shares outstanding | StockAnalysis.com quote and statistics | August 3, 2026 |
| Shares outstanding | 44.21 million shares, down 3.14% year over year, with 89.96% institutional ownership | StockAnalysis.com statistics | August 3, 2026 |
| Q2 2026 consolidated results | Net sales of $622.9 million up 6%, gross margin of 37.0% up 90 basis points, operating income of $93.6 million, GAAP EPS of $1.46 up 11%, and record adjusted EPS of $1.55 up 18% | Franklin Electric Q2 2026 earnings release | July 28, 2026 |
| Q2 2026 adjusted operating income | Adjusted operating income of $98.5 million up 12%, with adjusted operating margin of 15.8% up 80 basis points, after a $4.5 million legal settlement in Energy Systems and $0.4 million of restructuring | Franklin Electric Q2 2026 earnings call | July 28, 2026 |
| Q2 2026 segment sales | Water Systems up 5% to $358.5 million, Distribution up 11% to $221.1 million, and Energy Systems up 3% to $80.2 million | Franklin Electric Q2 2026 earnings release | July 28, 2026 |
| Q2 2026 segment operating income | Water Systems operating income of $65.2 million at 18.2% margin, Distribution of $19.7 million at 8.9% margin, and Energy Systems of $27.9 million including a $4.5 million legal settlement, with adjusted Energy margin of 40.4% up 290 basis points | Franklin Electric Q2 2026 earnings release and call | July 28, 2026 |
| 2026 guidance | Full year 2026 net sales raised to $2.21 billion to $2.29 billion and adjusted diluted EPS raised to $4.50 to $4.70 | Franklin Electric Q2 2026 earnings release | July 28, 2026 |
| First half 2026 results | Net sales of $1,123.3 million up 7.7%, GAAP diluted EPS of $2.23, and net income attributable to Franklin Electric of $100.1 million | Franklin Electric Q2 2026 earnings release | July 28, 2026 |
| Cash flow and liquidity | First half operating cash flow of $58.7 million versus $32.0 million in the first half of 2025, cash of $97.3 million, and $107 million outstanding under the revolving credit agreement as of June 30, 2026 | Franklin Electric Q2 2026 earnings call and Form 10-Q | July 28, 2026 |
| FY2025 revenue and earnings | FY2025 revenue of $2.13 billion up 5.44% and net income of $146.49 million down 18.44% | StockAnalysis.com financials | August 3, 2026 |
| TTM income statement | TTM revenue of $2.21 billion, gross profit of $785.77 million at 35.52% margin, operating income of $286.70 million, net income of $155.26 million, EBITDA of $344.99 million, and EPS of $3.47 | StockAnalysis.com statistics and financials | August 3, 2026 |
| Balance sheet as of June 30, 2026 | Cash of $97.28 million, total assets of $2,150.7 million, total debt of $308.32 million, net debt of $211.04 million, and total equity of $1.41 billion, with current ratio of 2.41 and debt to equity of 0.22 | StockAnalysis.com balance sheet and Q2 2026 Form 10-Q | August 3, 2026 |
| Valuation ratios | PE of 30.19x trailing GAAP EPS, forward PE of 21.53x, PS of 2.09x, PB of 3.29x, P/FCF of 21.21x, EV/EBITDA of 14.03x, and PEG of 1.79 | StockAnalysis.com statistics | August 3, 2026 |
| Forward valuation cross-check | $104.72 divided by the $4.65 FY2026 adjusted EPS consensus gives about 22.5x forward, versus the 21.53x forward PE reported on the StockAnalysis statistics page, which uses a different forward estimate basis | StockAnalysis.com statistics and forecast | August 3, 2026 |
| Dividend | Quarterly dividend of $0.28 per share declared July 27, 2026, annual rate of $1.12 with a 1.07% yield, 32 years of dividend growth, payout ratio of 32.29%, and ex-dividend date of August 6, 2026 | StockAnalysis.com dividend history and company press release | August 3, 2026 |
| Analyst consensus | Buy with an average target of $118.50 across 5 analysts, low $105 and high $125, with a median of $122 | StockAnalysis.com forecast | July 29, 2026 |
| Analyst rating mix, July 2026 | 2 Strong Buy, 0 Buy, 3 Hold, 0 Sell out of 5 analysts | StockAnalysis.com forecast recommendation trends | July 29, 2026 |
| Recent analyst target updates | D.A. Davidson raised its target to $105 from $100 with a Hold rating on July 29, 2026, and Robert W. Baird raised its target to $124 from $118 with a Hold rating on July 29, 2026 | StockAnalysis.com forecast and news feed | July 29, 2026 |
| 2026 and 2027 consensus estimates | FY2026 revenue of $2.26 billion with adjusted EPS of $4.65, and FY2027 revenue of $2.37 billion with adjusted EPS of $5.16 | StockAnalysis.com forecast financial forecast | July 29, 2026 |
| Short interest | 747,056 shares short, 1.69% of shares outstanding, and 2.25 days to cover | StockAnalysis.com statistics short selling | August 3, 2026 |
| Trailing free cash flow | Operating cash flow of $265.59 million, capital expenditures of $47.31 million, and free cash flow of $218.28 million over TTM | StockAnalysis.com cash flow statement | August 3, 2026 |
| Financial efficiency | ROE of 11.77%, ROIC of 13.75%, ROA of 8.60%, and return on capital employed of 16.43% | StockAnalysis.com statistics | August 3, 2026 |
| Technical snapshot | 5-day SMA near $105.74, 20-day SMA near $104.65, 50-day SMA near $103.05, 100-day SMA near $100.00, 200-day SMA near $98.86, 14-day RSI near 50.36, 14-day ADX near 14.53, and 14-day historic volatility near 31.46% | Barchart and StockAnalysis.com technical snapshots | August 3, 2026 |
| 52-week range | High of $115.82, set around the July 28, 2026 earnings report, and low of $89.54 | StockAnalysis.com quote | August 3, 2026 |
| Acquisitions in 2026 | Geoquip in the U.K., Wood Bros. in the central U.S., and Benson, all closed in the first half of 2026 and tracking ahead of plan, with new product sales over $10 million in Q2 and water treatment new dealer revenue over $2 million | Franklin Electric Q2 2026 earnings call | July 28, 2026 |
| Strategic growth areas | Critical minerals mining is a multibillion dollar TAM growing at high single digits with Q2 sales up about 10%, water treatment organic volume grew over 5% in Q2, and data center liquid cooling is served through CDU manufacturers, municipal hookups, and flushing applications | Franklin Electric Q2 2026 earnings call | July 28, 2026 |
This FELE AI stock analysis is an informational research tool, not investment advice, a recommendation, or a promise of future return. Forecast ranges are scenarios based on available filings, quote snapshots, and third-party data as of the stated cutoff date. They may be wrong, incomplete, or outdated after new earnings, legal developments, market moves, or macro conditions.
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