Simple Concepts Research Group

Cheap Stock to Watch: Franklin Wireless (FKWL)

by | Oct 4, 2021 | Stock Picks

Franklin Wireless (FKWL) Company Overview & Stock Price Forecast

This article provides a brief analysis and stock rating for Franklin Wireless (FKWL) including an updated stock price target. Additional data on the company’s earnings yield, price/earnings ratio, return on invested capital and YTD performance are discussed as well.

Franklin Wireless Fundamentals

Franklin Wireless Stock Rating

Stock Price Target: $19.21

In the section below, we discuss the earnings yield, P/E, return on invested capital and YTD performance for Franklin Wireless in comparison to the Telecom Equipment industry and the S&P 500.

Franklin Wireless is a Micro-Cap company with a Market Cap of $82.7M.

Earnings Yield

Franklin WirelessTelecom Equip.S&P 500T-Bill (10Y)

The current earnings yield for Franklin Wireless is 29.85%, in comparison to 2.98% for the S&P 500 and 1.48% for the 10-year treasury bond. The median earnings yield for the Telecom Equipment industry is 6.89%.

Price/Earnings Ratio

Franklin WirelessTelecom Equip.S&P 500

Franklin Wireless is currently trading at a P/E of 4.66. The P/E for the Telecom Equipment industry is 50.68 and the P/E for the S&P 500 is 33.60.

Return on Invested Capital (ROIC)

Franklin WirelessTelecom Equip.S&P 500

Franklin Wireless ROIC is currently 53.01% in comparison to 21.80% for the Telecom Equipment industry and 8.6% for the S&P 500.

YTD Performance

Franklin WirelessTelecom Equip.S&P 500

The YTD performance for Franklin Wireless is -69.62%. The Telecom Equipment industry has a YTD performance of 24.38% in comparison to the YTD S&P 500 performance of 16.00%.

Recent Financial Results

  • Q2 2021 revenues increased 399.5% to $66.2 million (a record amount for the company’s history in any quarter)
  • Pre-tax income of $9.1 million in comparison to $848,828 in Q2 2020
  • Q2 2021 net income increase to $6.9 million
  • 399.5% YoY growth in net sales driven by increased demand for wireless connectivity during the global pandemic
    • $66.2 million in net sales compared with $13.3 million in Q2 2020

Stock Price Target: $19.21

Company Overview

Franklin Wireless Stock Rating

Franklin Wireless provides wireless solutions in the form of mobile hotspots, routers and trackers. The company’s devices integrate hardware and software enabling machine-to-machine applications and the Internet of Things. The company’s solutions include embedded modules, modems and gateways built to deliver connectivity for applications based on 5G/4G wireless technology.

The company sells it’s products through direct marketing to wireless customers and through strategic partners with distributors primarily in the US, Europe, the Middle East, Africa and Asia.

Franklin Wireless was founded in 1981 and is headquartered in San Diego, California. The current CEO is OC Kim.

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This material is provided for informational purposes only and is not financial advice. The information contained herein should not solely be used for the formation of an investment decision, whether you are a long term or short term investor.