Présentation de l'entreprise
Franklin Wireless Corp. operates as a provider of integrated wireless solutions serving markets in North America and Asia, specializing in 5G and 4G wireless broadband products. The company's product portfolio includes portable Wi-Fi mobile hotspot routers, mobile hotspots, fixed wireless routers, and mobile device management (MDM) solutions, alongside additional mobile offerings. This enterprise functions within the Technology sector, specifically under the Communication Equipment industry, positioning it as a participant in the global infrastructure required for modern connectivity. The company maintains a market capitalization of $43.60M and reported annual revenue of $39.61M over the trailing twelve months. With a workforce of 67 employees, the entity operates on a small-to-medium enterprise scale, which is reflected in its valuation metrics where a market cap significantly below the revenue multiple suggests a niche market position or specific operational challenges relative to its peer group.
Santé financière
The company reported revenue of $39.61M for the trailing twelve months, yet net income was recorded at $187,072, indicating a net income margin of only 0.5%. This substantial disparity between total revenue and net income reveals a cost structure where operating expenses, including cost of goods sold and overhead, consume nearly 99.5% of generated revenue before arriving at profit. The EBITDA figure stands at $-1,886,737, showing that the company is currently generating negative earnings before interest, taxes, depreciation, and amortization. Free cash flow is reported at $-11,016,431, which signifies a significant cash burn rate that limits the company's current financial flexibility for capital expenditures or unexpected liquidity needs. The gross margin stands at 19.0%, while the operating margin is 0.4% and the profit margin is 0.5%, collectively indicating a highly compressed profitability profile where the company struggles to convert sales into operational earnings. On the balance sheet, the company holds $33.62M in cash against $1.20M in debt, resulting in a debt-to-equity ratio of 3.12. Despite the high debt-to-equity figure, the absolute debt load is low compared to cash reserves, though the leverage ratio technically suggests a leveraged capital structure. The current ratio is 3.39, indicating a robust position regarding short-term liquidity as current assets are more than three times current liabilities. Return on Equity is 0.8% and Return on Assets is -3.1%, metrics that reveal management has yet to generate returns that exceed the cost of capital or asset base, reflecting the challenges in deploying capital efficiently within the current fiscal period.
Évaluation de la valorisation
The trailing twelve-month P/E ratio is 185.00, whereas the forward P/E ratio is significantly lower at 6.98. This drastic difference between the historical and forward multiples implies that the market expects a substantial turnaround in earnings, as the forward multiple suggests a valuation based on anticipated future profitability rather than current earnings power. The price-to-book ratio is 1.24, indicating that the stock trades at a slight premium of 24% above its tangible book value. The price-to-sales ratio is 1.10, and the EV/EBITDA stands at -7.58, which suggests that traditional earnings-based valuation metrics are distorted by current losses and that analysts may rely more heavily on revenue multiples or cash flow projections. The stock has traded within a 52-week range between a low of $3.52 and a high of $5.48. Without the current price explicitly listed in the provided facts, the specific percentage deviation from the high or low cannot be calculated, but the range demonstrates a volatility of approximately 35.5% between the yearly extremes. The beta value is 0.22, which indicates that the stock's price volatility is significantly lower than the broader market, moving less than a quarter of the magnitude of the market index during periods of fluctuation.
Growth & Income
Revenue growth year-over-year is -33.1%, while earnings growth year-over-year is 133.3%. This divergence implies that earnings are growing at a much faster rate than revenue, a phenomenon often driven by cost reductions, one-time gains, or accounting adjustments rather than top-line expansion. The company does not pay a dividend, evidenced by a dividend yield of N/A and a payout ratio of 0.0%. Consequently, the company reinvests all available earnings back into the business operations or retains them rather than distributing income to shareholders. The overall growth and income profile is characterized by negative revenue expansion paired with a theoretical earnings surge and a complete absence of dividend distribution.