Would You Still Hold Franklin Electric Stock If It Fell Another 30%?
Franklin Electric (FELE) stock is down 14.7% in a day. The recent slide reflects renewed concerns around its Q4 revenue miss and weaker 2026 guidance for water and fuel systems, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Franklin Electric stands today.
- Size: Franklin Electric is a $4.1 Bil company with $2.1 Bil in revenue currently trading at $92.98.
- Fundamentals: Last 12 month revenue growth of 5.1% and operating margin of 12.5%.
- Liquidity: Has Debt to Equity ratio of 0.07 and Cash to Assets ratio of 0.05
- Valuation: Franklin Electric stock is currently trading at P/E multiple of 29.2 and P/EBIT multiple of 21.1
- Has one instance since 2010 where it dipped >30% in < 30 days and subsequently returned 89.6% within a year. See FELE Dip Buy Analysis.
These metrics point to a Moderate operational performance, alongside Moderate valuation – making the stock Fairly Priced. For details, see Buy or Sell FELE Stock
That brings us to the key consideration for investors worried about this fall: how resilient is FELE stock if markets turn south? This is where our downturn resilience framework comes in. Suppose FELE stock falls another 20-30% to $65 – can investors comfortably hold on? Turns out, the stock saw an impact slightly better than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- FELE stock fell 29.4% from a high of $96.69 on 23 November 2021 to $68.28 on 26 April 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 23 February 2023
- Since then, the stock increased to a high of $110.40 on 25 November 2024 , and currently trades at $92.98
| FELE | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -29.4% | -25.4% |
| Time to Full Recovery | 303 days | 464 days |
2020 Covid Pandemic
- FELE stock fell 32.0% from a high of $60.94 on 5 February 2020 to $41.43 on 25 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 6 October 2020
| FELE | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -32.0% | -33.9% |
| Time to Full Recovery | 195 days | 148 days |
2018 Correction
- FELE stock fell 22.4% from a high of $51.05 on 18 September 2018 to $39.62 on 24 October 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 19 February 2019
| FELE | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -22.4% | -19.8% |
| Time to Full Recovery | 118 days | 120 days |
2008 Global Financial Crisis
- FELE stock fell 66.5% from a high of $25.89 on 19 July 2007 to $8.67 on 5 March 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 1 February 2012
| FELE | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -66.5% | -56.8% |
| Time to Full Recovery | 1,063 days | 1,480 days |
Feeling jittery about FELE stock? Consider portfolio approach.
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