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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2106
Positioning
Market Dominance
Finance, Insurance, And Real Estate
Banking
$204M
Timothy G. Henry
Franklin Financial Services Corporation provides commercial, retail banking, and trust services to small and medium-sized businesses, individuals, governmental entities, and non-profit organizations. It offers various deposit products, including checking, savings, money management, and time deposit accounts. The company also provides commercial real estate, construction and land development, agricultural, commercial and industrial, and residential mortgage loans.
Headcount
280
HQ Base
Pending Verification
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = FRAF ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$SII SPROTT INC. | 75 | 91 | 87 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PUK PRUDENTIAL PLC | 73 | 88 | 97 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NMR NOMURA HOLDINGS INC | 72 | 81 | 92 | 87 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PSLV Sprott Physical Silver Trust | 69 | 82 | 80 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$UFCS UNITED FIRE GROUP INC | 68 | 81 | 93 | 76 | 5.0x | 3.5x | 13.2% | 4.1% | 99.9% | 14.7% | 11.1% | 9.2% | 2.1% | 16.0x | $775M | VS | |
$SLF SUN LIFE FINANCIAL INC | 68 | 83 | 95 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CBOE Cboe Global Markets, Inc. | 68 | 75 | 63 | 77 | 21.3x | 15.7x | 24.0% | 13.7% | 41.7% | 32.4% | 26.4% | 8.2% | 1.1% | 30.0x | $25.7B | VS | |
$VTMX Vesta Real Estate Corporation, S.A.B. de C.V. | 67 | 69 | 77 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PHYS Sprott Physical Gold Trust | 67 | 64 | 82 | 91 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GLDM World Gold Trust | 66 | 54 | 85 | 92 | 11.3x | 11.3x | - | 20.9% | 100.0% | 97.1% | 554.8% | -19.0% | 0.0% | - | $32.0B | VS | |
$FRAF FRANKLIN FINANCIAL SERVICES CORP /PA/ | 49 | 32 | 60 | 70 | 11.9x | 8.9x | 11.7% | 0.8% | 0.0% | 21.3% | 17.3% | 59.9% | 2.9% | 1281.0x | $204M | ||
| SECTOR BENCH | - | - | - | - | - | 11.9x | 7.8x | 9.0% | 1.3% | 77.7% | 18.1% | 21.9% | 10.7% | 2.0% | 0.5x | - | REF |
FRANKLIN FINANCIAL SERVICES CORP /PA/ (FRAF) receives a "Reduce" rating with a composite score of 49.3/100. It ranks #2106 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Outperforming peers — winners tend to keep winning over 3-12 months
Fair valuation relative to peers
Weak fundamentals — higher risk of value trap
Average volatility — neutral timing signal
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Finance, Insurance, And Real Estate sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for FRAF.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 32 | 45 | -13DRAG |
| MOMENTUM | 70 | 76 | -6DRAG |
| VALUATION | 60 | 83 | -23DRAG |
| INVESTMENT | 26 | 28 | -2NEUTRAL |
| STABILITY | 59 | 65 | -6DRAG |
| SHORT INT | 46 | 46 | 0NEUTRAL |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 23.2% vs WACC 7.2% (spread +16.0%)
GM 0% vs sector 78%, OM 21% vs sector 18%
Capital turnover 1.31x
Rev growth 60%, 10yr history
Interest coverage 0.6x, Net debt/EBITDA 3.2x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate FRANKLIN FINANCIAL SERVICES CORP /PA/ (FRAF) as a Reduce with a composite score of 49.3/100 at a current price of $51.82. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential.
FRANKLIN FINANCIAL SERVICES CORP /PA/ holds a top-quartile position (#0 of 50) within the Finance, Insurance, And Real Estate sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 49.3/100 places it at rank #2106 in our full universe.
The near-term outlook is constructive, with revenue growing at 60% and momentum in the 70th percentile confirming positive market sentiment. The combination of strong top-line growth and favorable price dynamics suggests the company is executing well on its growth strategy.
Narrow
Medium
Standard
Fair Value
Positive momentum indicates institutional accumulation.
Stable competitive position in a defensive sector.
Leverage of 1281% D/E amplifies downside risk.
Below-average quality raises earnings sustainability concerns.
Vulnerability to macroeconomic shocks and interest rate volatility.
FRANKLIN FINANCIAL SERVICES CORP /PA/ represents a reduce based on multi-factor quantitative performance.
FRANKLIN FINANCIAL SERVICES CORP /PA/ receives a Reduce rating from our analysis, with a composite score of 49.3/100 and 2 out of 5 stars, ranking #2106 out of 7,333 stocks. FRAF's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
FRAF's quality score of 32/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of 11.7% (sector avg: 9.0%), gross margins of 0.0% (sector avg: 77.7%), net margins of 17.3% (sector avg: 21.9%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
FRAF's value score of 60/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 11.91x, an EV/EBITDA of 8.88x, a P/B ratio of 1.39x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
FRANKLIN FINANCIAL SERVICES CORP /PA/'s investment score of 26/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 59.9% vs. a sector average of 10.7% and a return on assets of 0.8% (sector: 1.3%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
FRAF shows strong momentum characteristics with a score of 70/100. The stock has been trending above key moving averages, indicating solid demand from institutional buyers. Revenue growth stands at 59.9% year-over-year, while a beta of 0.46 reflects its sensitivity to broader market moves. This level of momentum typically signals sustained investor confidence and favorable near-term price action.
With a stability score of 59/100, FRAF exhibits average financial resilience. Key stability metrics include a beta of 0.46 and a debt-to-equity ratio of 1281.00x (sector avg: 0.5x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
The short interest score of 46/100 for FRAF suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include elevated leverage (D/E: 1281.00x), micro-cap liquidity risk. With a $204M market cap (micro-cap), FRANKLIN FINANCIAL SERVICES CORP /PA/ may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
FRAF pays a solid dividend yield of 2.9%, contributing an income component to total returns. This compares to a sector average dividend yield of 2.0%. This moderate yield suggests a balance between returning capital to shareholders and retaining earnings for reinvestment — a common profile among quality compounders.
FRANKLIN FINANCIAL SERVICES CORP /PA/ is a micro-cap company in the Finance, Insurance, And Real Estate sector, ranked #0 of 50 in its sector (100th percentile) and #2106 of 7,333 overall (71st percentile). Key comparisons include ROE of 11.7% exceeding the 9.0% sector median and operating margins of 21.3% above the 18.1% sector average. This top-quartile standing reflects exceptional competitive strength relative to Finance, Insurance, And Real Estate peers.
While FRAF currently exhibits a REDUCE profile, superior opportunities exist within the FINANCE, INSURANCE, AND REAL ESTATE sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Finance, Insurance, And Real Estate Alpha →Quant Factor Profile
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Improvement in Investment (26) would have the largest impact on the composite score.
EV/EBITDA 14% ABOVE SECTOR MEDIAN
ROE 30% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 100% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081
The economy is strong, as consumers and businesses are in good shape.
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