# Franchise Brands plc (FRAN.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Industrials / Professional Services. Price 154p, market value 294 millionp.

## Valuation
- **P/E (trailing): 25.6×** (5-yr avg 4634.7×, 3-yr avg 5529.2×). Franchise Brands plc trades at 25.6× trailing earnings, well below its own five-year average of 4634.7×: cheap by its own standards. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 14.0×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.58**. A PEG of 0.58 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 1.0×**. Each dollar of revenue is priced at 1.0×.
- **Price / book: 1.3×**. The shares trade at 1.3× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 6.0×**. Enterprise value is 6.0× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 16.7%** (5-yr avg 0.1%). Free cash flow equals 16.7% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 3.9%**. The inverse of the P/E: 3.9% of the price is earned each year.

## Profitability
- **Gross margin: 56.8%**. Franchise Brands plc keeps 56.8% of revenue after the direct cost of what it sells.
- **Operating margin: 12.7%**. 12.7% of revenue is left after running the business.
- **Net margin: 6.3%**. 6.3% of each dollar of sales reaches the bottom line.
- **Return on equity: 4.1%**. 4.1% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 9.3%**. Return on all capital, debt included, is 9.3%.
- **Return on assets: 4.4%**. Each dollar of assets produces 4.4% of profit.

## Growth
- **Revenue growth (1 yr): 2.1%** (3-yr 15.3%/yr, 5-yr 23.6%/yr). Revenue grew 2.1% over the last year, against 23.6% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 24.1%** (3-yr -10.8%/yr, 5-yr 8.9%/yr). Earnings per share rose 24.1%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 53.8%/yr**. Free cash flow has compounded at 53.8% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.36**. Debt is 0.36 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 1.1×**. It would take 1.1 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 2.8×**. Operating profit covers interest 2.8×, thin but manageable.
- **Current ratio: 1.15** (quick 1.03). Current assets cover the next year's liabilities 1.15 times.
- **Altman Z-score: 2.56**. A Z-score of 2.56 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 1.69%** (0p per share, trailing). Franchise Brands plc yields 1.69%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 52%** (19% of free cash flow). 52% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 9**. 9 straight years of increases.
- **Dividend growth (5 yr): 20.9%/yr** (1-yr 6.5%). The dividend has compounded at 20.9% a year over five years, doubling roughly every 3 years at that pace.
- **Shareholder yield: 2.2%**. Dividends plus net buybacks return 2.2% of the market value a year.

## Analyst view
- **Analyst consensus: strong_buy** (8 analysts). 8 analysts cover Franchise Brands plc; the consensus is strong_buy, with an average price target of 200p (+30% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 12.2%** (YTD 10.9%, 3-mo 5.6%). The shares are up 12.2% over twelve months including dividends.
- **From 52-week high: -2.8%** (46.8% above the low). Trading within 5% of its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 59**. An RSI of 59 is neutral.
- **Beta (1 yr): -0.03** (volatility 30%). Beta of -0.03 against the FTSE All-Share: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=FRAN.L · Page: https://foliofundamentals.com/stocks/fran.l

Not investment advice.