Franklin Financial Services Corporation
$55.98
-1.2%Franklin Financial Services Corporation operates as the bank holding company for Farmers and Merchants Trust Company of Chambersburg that provides commercial, retail banking, and trust services to small and medium-sized businesses, individuals, governmental entities, and non-profit organizations in Pennsylvania. It offers various deposit products, including checking, savings, money management, and time deposit accounts, as well as demand deposits. The company also provides commercial real estate, construction and land development, agricultural, commercial and industrial, and residential mortgage loans, as well as installment and revolving loans to consumers; and secured and unsecured commercial and industrial loans, including accounts receivable and inventory financing, and commercial equipment financing. In addition, it offers various investment and trust services comprising estate planning and administration, corporate and personal trust fund management, pension, and profit sharing and other employee benefit funds management services, as well as custodial services; sells mutual funds, annuities, and insurance products; and offers safe deposit facilities and fiduciary services. Further, the company, through its subsidiary, Franklin Future Fund Inc., operates as a non-bank investment company that makes venture capital investments. It operates twenty-two community banking offices in Franklin, Cumberland, Fulton, and Huntingdon counties, Pennsylvania. Franklin Financial Services Corporation was founded in 1906 and is headquartered in Chambersburg, Pennsylvania.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is compressed (P/E 11.8).
Valuation inputs: P/E 11.8, earnings yield +8.5%, momentum -1.2%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is acceptable (ROE +12.1%, ROIC +5.3%).
Profitability stack: net margin +15.9%, ROE +12.1%, ROIC +5.3%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +92.2%, momentum -1.2%, net margin +15.9%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Franklin Financial Services Corporation Market vs Earnings Trajectory
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Franklin Financial Services Corporation Fair Value Envelope
Franklin Financial Services Corporation Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Healthy operating margins demonstrate effective cost control and strong business fundamentals.
Net Profit Margin
Strong net margins indicate efficient operations and favorable tax/interest management.
Effective Tax Rate
Moderate tax rate typical for most corporations. Represents standard tax burden on profits.
Profitability Insight
High margin compression: Large gap between gross and net margins suggests operational inefficiencies or heavy debt burden. Focus on expense management and deleveraging.
Franklin Financial Services Corporation Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Cash Flow Quality Insight
Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.
Franklin Financial Services Corporation Funding & Solvency Profile
Financial Health Analysis
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Franklin Financial Services Corporation Street Expectations Map
No Target Data
No analyst price targets available for fraf.
Franklin Financial Services Corporation Insider Positioning
During the last 12 months, insiders have purchased $226K and sold $690K worth of FRAF shares, resulting in $464K of net selling activity.
3 Months
2.2K
107.99K
1.4K
80.82K
+27K
+$27K
3-6 Months
399
18.83K
1.5K
81.11K
-62K
-$62K
6-9 Months
1.0K
49.11K
0
0.00
+49K
+$49K
9-12 Months
1.4K
50.18K
17.8K
528.01K
-478K
-$478K
Top Buyers
Snook Gregory I
Director
$122K
Craig Kevin W
Director
$22K
Fisher Daniel J
Director
$22K
Carroll Charles Benner Jr
Officer: Coo
$18K
Kerlin Stanley J
Director
$16K
Top Sellers
Hollar Mark R
Officer: Evp/Cfo
$198K
Heckman Lorie M.
Officer: Evp, Chief Risk Officer
$126K
Rzomp Kimberly
Director
$81K
Butz Steven D
Officer: Evp, Ccso
$81K
Ehrig Scott D
Officer: Svp, Chief Wealth Officer
$50K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $464K net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Weak buy/sell ratio. Selling significantly exceeds buying—monitor for potential fundamental concerns.
Recent Trend (3 Months)
Positive recent trend with net buying activity. Insiders have been accumulating shares in recent months.
Insider Participation
5 insider buyers and 5 sellers. Equal participation suggests mixed or neutral insider views.
fraf Dividend History
Learning Layer
Related Guides
Build conviction on FRAF by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.