Franklin Electric (FELE) is trading at 22.2x trailing twelve-month earnings, which is quite high for an industrial company. The reason behind this higher multiple is its high single digit growth rate, which the company has seen in the past couple of years. However, the company's growth rate is likely to slow this year as it is facing issues due to high distributor level inventory in its water segment while its fueling segment is likely to face tough comparisons going forward in 2014. Sell side estimates for the company look optimistic and will likely be revised lower post its earnings call in mid February.
Inventory Issues in Water Business
Franklin Electric saw a significant jump in groundwater pumping...
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