MeritValue

FRANKLIN FINANCIAL SERVICES CORP /PA/

FRAFdata completeness 75%17 fiscal years on file
The thesis, from the filings

FRANKLIN FINANCIAL SERVICES CORP /PA/ earns about 78% on invested capital, with a roughly flat share count. The applicable estimate puts fair value near $34.58 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$47.6M1$56.4M2$76.8M3$101.5M4$114.4M4
Net income$19.6M5$14.9M6$13.6M7$11.1M8$21.2M8
Operating cash flow$26.3M9$25.2M10$26.6M11$21.8M12$25.4M12
Capital expenditure—————
Free cash flow (derived)—————
Total debt$013————
Cash & equivalents$175.1M14$64.9M15$23.1M16$203.6M17$127.7M17
Diluted shares4.4M4.4M4.4M4.4M4.5M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$391.51
your share of equity
Profit it earned you last year
$47.42
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $391.51 of net worth that earned you $47.42 last year.

iii. Is this a good business?
Moat signal · return on invested capital
78% avg · 5y
FY21 —FY22 39%FY23 31%FY24 —FY25 163%

It earned an average 78% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+1% shares · 5y

Share count is roughly flat over 5 years — little dilution, little buyback.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$34.58
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$14.9M
  • growthAssumed0.0%
Graham Number
$64.62
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0000723646-23-000018 (InterestAndDividendIncomeOperating)
  2. 10-K/A · period ending 2022-12-31 · accession 0000723646-24-000019 (InterestAndDividendIncomeOperating)
  3. 10-K · period ending 2023-12-31 · accession 0000723646-25-000020 (InterestAndDividendIncomeOperating)
  4. 10-K · period ending 2024-12-31 · accession 0000723646-26-000016 (InterestAndDividendIncomeOperating)
  5. 10-K · period ending 2021-12-31 · accession 0000723646-23-000018 (NetIncomeLoss)
  6. 10-K/A · period ending 2022-12-31 · accession 0000723646-24-000019 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0000723646-25-000020 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0000723646-26-000016 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0000723646-23-000018 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K/A · period ending 2022-12-31 · accession 0000723646-24-000019 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0000723646-25-000020 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0000723646-26-000016 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K/A · period ending 2021-12-31 · accession 0000723646-22-000021 (ShortTermBorrowings)
  14. 10-K · period ending 2021-12-31 · accession 0000723646-23-000018 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K/A · period ending 2022-12-31 · accession 0000723646-24-000019 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2023-12-31 · accession 0000723646-25-000020 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2024-12-31 · accession 0000723646-26-000016 (CashAndCashEquivalentsAtCarryingValue)