Franklin Ltd Duration Income Trust (FTF) Fundamental Analysis: Revenue, Earnings & Valuation

1.61 / 10

Underperform

Fundamental analysis reveals several concerns: a low rate of return on total assets (-10.07%) and negative annualized return (-20.14%) indicate inefficiency in asset utilization. Declining earnings per share (basic: -86.26% YoY, diluted: -14.17% YoY) further underscores deteriorating profitability. However, the gross profit margin (38.11%) and current liabilities ratio (52.14%) are in the first performance group, suggesting some operational efficiency and manageable short-term obligations. The composite fundamental score of 1.61/10 reflects an underperform rating, highlighting the need for improvement in key profitability metrics.

Analysis Checks(3/8)

Gross profit margin (%)

Value38.11

Score2/3

Weight15.28%

1M Return1.53%

Current liabilities / Total liabilities (%)

Value52.14

Score2/3

Weight15.71%

1M Return1.58%

Basic earnings per share (YoY growth rate %)

Value-86.26

Score0/3

Weight4.75%

1M Return0.50%

Rate of return on total assets (%)

Value-10.07

Score1/3

Weight14.21%

1M Return1.48%

Total profit / EBIT (%)

Value100.00

Score2/3

Weight15.05%

1M Return1.52%

Annualized return on total assets (%)

Value-20.14

Score1/3

Weight14.21%

1M Return1.48%

Diluted earnings per share (YoY growth rate %)

Value-14.17

Score0/3

Weight8.30%

1M Return0.88%

Operating revenue (YoY growth rate %)

Value392.77

Score1/3

Weight12.48%

1M Return1.29%

Is FTF undervalued or overvalued?

FTF scores 1.61/10 on fundamentals and holds a Premium valuation at present. Backed by its 3.55% ROE, 56.98% net margin, 12.76 P/E ratio, 0.91 P/B ratio, and 0.00% earnings growth, these metrics solidify its Underperform investment rating.