Franklin Wireless Corp.

Franklin Wireless Corp.

FKWL·NASDAQ

$4.27

-0.23%
TechnologyCommunication Equipment

Franklin Wireless Corp. provides intelligent wireless solutions. The company's products include mobile hotspots, routers, trackers, and other devices, which integrates hardware and software enabling machine-to-machine (M2M) applications and the Internet of Things (IoT). It offers M2M and IoT solutions that include embedded modules, and modems and gateways built to deliver connectivity supporting various spectrum of applications based on 5G/4G wireless technology. The company directly markets its products to wireless operators, as well as indirectly through strategic partners and distributors located primarily in the North America, the Caribbean and South America, and Asia. Franklin Wireless Corp. was founded in 1981 and is headquartered in San Diego, California.

At a Glance

Live Snapshot
Market Cap$50.32M
EPS-0.0206
P/E Ratio-207.28
Earnings Date02/12/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal · Driver · Risk

Signal

Medium confidence

Valuation multiple is compressed (P/E -207.3).

Valuation inputs: P/E -207.3, earnings yield N/A, momentum -0.2%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE -0.7%, ROIC -5.5%).

Profitability stack: net margin -0.5%, ROE -0.7%, ROIC -5.5%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +26.2%, momentum -0.2%, net margin -0.5%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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Franklin Wireless Corp. Market vs Earnings Trajectory

FKWL · NASDAQ

Loading price and EPS data...

Franklin Wireless Corp.

Franklin Wireless Corp. Fair Value Envelope

FKWL · NASDAQ

Our analysis suggests that FKWL has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $4.27, this represents a potential HIDDEN relative to our calculated worth for Franklin Wireless Corp..

Intrinsic Value
Current Price: $4.27
3Y-94.0%
5Y-104.0%
10Y-114.0%
3Y+92.0%
5Y-39.0%
10Y-23.0%
3Y-94.0%
5Y-104.0%
10Y-115.0%
3Y-125.0%
5Y-92.0%
10Y-32.0%
3Y-122.0%
5Y-91.0%
10Y+10.0%
3Y-1.0%
5Y-22.0%
10Y+62.0%
Franklin Wireless Corp.

Franklin Wireless Corp. Profit Bridge

FKWL · NASDAQ
Revenue46.09M
Cost of Goods Sold (38.17M)
Gross Profit7.92M
Operating Expenses (10.78M)
Operating Income-2.86M
Interest Expense (0.00)
Other Income/Expense2.68M
Pretax Income-185.60K
Income Tax (-45.17K)
Net Income-243.10K
Net Income
-243.10K

Profitability Analysis

Gross Margin

17.2%

Thin margins leave little room for error. Cost management and pricing strategy are critical.

Operating Margin

-6.2%

Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.

Net Profit Margin

-0.5%

Net losses indicate the company is burning cash. Sustainability depends on path to profitability.

17.17%
Gross Profit Margin
51%
3Y+8.0%
5Y-11.0%
10Y+3.0%
-6.21%
Operating Profit Margin
-68%
3Y-70.0%
5Y-166.0%
10Y-275.0%
-0.53%
Net Profit Margin
-96%
3Y-97.0%
5Y-107.0%
10Y-120.0%
-0.70%
Return on Equity
-94%
3Y-92.0%
5Y-103.0%
10Y-107.0%
-0.47%
Return on Assets
-94%
3Y-93.0%
5Y-106.0%
10Y-109.0%
-5.51%
Return on Invested Capital
-57%
3Y-39.0%
5Y-122.0%
10Y-148.0%
FKWL

Franklin Wireless Corp. Cash Conversion Engine

FKWL · NASDAQ
Net Income-140.43K
Depreciation & Amortization860.22K
Stock-Based Compensation350.59K
Change in Working Capital2.12M
Others-1.26M
Capital Expenditures-32.77K
Free Cash Flow1.81M

Cash Flow Quality Analysis

FCF Conversion Rate

-1290.0%

Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.

CapEx Intensity

1.8%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

+288.8%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

+$2.12M

Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.

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Franklin Wireless Corp. Funding & Solvency Profile

FKWL · NASDAQ
Cash & Cash Equivalents13.38M
Net Receivables7.45M
Inventory1.11M
Other Current Assets126.48K
Total Current Assets47 M
Property, Plant & Equipment1.35M
Goodwill & Intangible Assets1.14M
Long-Term Investments0.00
Other Non-Current Assets130.36K
Total Non-Current Assets1 M
Total Assets
53.28M

Financial Health Analysis

Current Ratio

3.38x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

0.39x

Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.

Working Capital

33 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

89% Current

Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.

Financial Health Insight

Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.

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Franklin Wireless Corp. Street Expectations Map

FKWL · NASDAQ

Wall Street analysts project that FKWL stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 6.00, with estimates ranging from a low of 6.00 to a high of 6.00.

Lowest Target
6.00
40.52%
Consensus Target
6.00
40.52%
Highest Target
6.00
40.52%

The consensus 1-year price target stands at 6.00, with estimates ranging from a low of 6.00 to a high of 6.00.

Analyst Consensus Analysis

Upside Potential

+40.5%

Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.

Analyst Agreement

0.0% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Analyst Conviction

Very High

Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.

Market Sentiment Insight

Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.

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Franklin Wireless Corp. Insider Positioning

FKWL · NASDAQ

During the last 12 months, there has been no insider trading activity reported for FKWL.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

6-9 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

9-12 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

Top Buyers

No buying activity

Top Sellers

No selling activity

Insider Activity Analysis

Net Insider Sentiment

Neutral

No insider trading activity reported. This could indicate blackout periods, lack of conviction, or regulatory restrictions.

Insider Participation

No Activity

No insider trading activity reported from any insiders in the past year.

No Dividend Yield Data

FKWL has not reported any dividend yield values in the available annual periods.

 

fkwl Dividend History

FKWL
10Y CAGR +0%
Latest $0.04
Annual $0.04
Stable dividend payments
Last Period: +0%