Franklin Wireless Corp. (FKWL) | Investment Case

1. Company Snapshot

1.a. Company Description

Franklin Wireless Corp.provides intelligent wireless solutions.The company's products include mobile hotspots, routers, trackers, and other devices, which integrates hardware and software enabling machine-to-machine (M2M) applications and the Internet of Things (IoT).

It offers M2M and IoT solutions that include embedded modules, and modems and gateways built to deliver connectivity supporting various spectrum of applications based on 5G/4G wireless technology.The company directly markets its products to wireless operators, as well as indirectly through strategic partners and distributors located primarily in the North America, the Caribbean and South America, and Asia.Franklin Wireless Corp.

was founded in 1981 and is headquartered in San Diego, California.

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1.b. Last Insights on FKWL

Franklin Wireless Corp.'s recent positive drivers include the successful funding of its Sigbeat joint venture, which will advance 4G/5G and AI module innovation. This development is expected to drive growth and improve the company's competitive position. The appointment of Ira Greenstein to the Board of Directors brings additional expertise and guidance to the company. Furthermore, the company's legal victory in the shareholder litigation, with only nominal damages awarded, removes a significant overhang and allows the company to focus on its growth initiatives.

1.c. Company Highlights

Last Price	4.49
Change Percentage	0.56%
Open	4.45
Previous Close	4.46
Market Cap ( Millions)	53
Volume	6058
Year High	7.45
Year Low	3.67
M A 50	4.78
M A 200	4.69

FCF Yield	-4.99%
Dividend Yield	0.89%
ROE	-0.33%
Debt / Equity	3.69%
Net Debt / EBIDTA	-16717.55%
Price To Book	1.5
Price Earnings Ratio	-448.62
Price To FCF	-20.05
Price To sales	1.16
EV / EBITDA	563.91

2. Transcript Summary

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3. NewsRoom

FKWL Stock Declines 12.4%, Q1 Profit Strengthens Amid Lower Sales

Nov -21

Source: zacks.com

Analyzing Cisco Systems (NASDAQ:CSCO) & Franklin Wireless (NASDAQ:FKWL)

Nov -15

Source: defenseworld.net

Franklin Wireless (OTCMKTS:FKWL) Trading Up 0.8% – Still a Buy?

Nov -01

Source: defenseworld.net

Contrasting Franklin Wireless (NASDAQ:FKWL) and Cistera Networks (OTCMKTS:CNWT)

Oct -23

Source: defenseworld.net

Franklin Wireless Posts Increased FY25 Sales, Narrower Y/Y Loss

Oct -08

Source: zacks.com

AiM Future and Franklin Wireless Sign MOU to Jointly Develop Lightweight AI Model and High-Efficiency 1 TOPS AI SoC Chipset

Aug -28

Source: businesswire.com

Zacks Initiates Coverage of Franklin Wireless With Neutral Recommendation

May -30

Source: zacks.com

Franklin Wireless Q3 Loss Narrows Y/Y on Higher Sales, Shares Slide

May -22

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.20%)

6. Segments

Wireless Access Products

Expected Growth: 10.2%

Growing demand for mobile broadband solutions, increasing adoption of IoT devices, and advancements in 5G technology are driving the growth of Franklin Wireless Corp.'s Wireless Access Products.

7. Detailed Products

M2M (Machine-to-Machine) Modules

Franklin Wireless Corp. offers a range of M2M modules that enable wireless communication between machines, devices, and systems.

Smartphone and Tablet Accessories

The company provides a variety of smartphone and tablet accessories, including cases, chargers, and screen protectors.

Wireless Broadband Solutions

Franklin Wireless Corp. offers wireless broadband solutions for mobile hotspots, routers, and modems.

IoT (Internet of Things) Devices

The company designs and manufactures IoT devices for various industries, including industrial automation, smart cities, and healthcare.

Custom Wireless Solutions

Franklin Wireless Corp. provides custom wireless solutions for OEMs and ODMs, including design, development, and manufacturing services.

8. Franklin Wireless Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Franklin Wireless Corp. faces moderate threat from substitutes, as customers have limited alternatives for wireless communication services.

Bargaining Power Of Customers

Franklin Wireless Corp. has a diverse customer base, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

Franklin Wireless Corp. relies on a few key suppliers for network equipment and services, giving them moderate bargaining power.

Threat Of New Entrants

The wireless communication services market has high barriers to entry, making it difficult for new entrants to compete with Franklin Wireless Corp.

Intensity Of Rivalry

Franklin Wireless Corp. operates in a highly competitive market with several established players, leading to intense rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	0.41%
Debt Cost	3.95%
Equity Weight	99.59%
Equity Cost	4.40%
WACC	4.39%
Leverage	0.41%

11. Quality Control: Franklin Wireless Corp. passed 3 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

NETGEAR

A-Score: 4.8/10

Value: 8.0

Growth: 4.2

Quality: 3.1

Yield: 0.0

Momentum: 9.0

Volatility: 4.3

1-Year Total Return ->

Franklin Wireless

A-Score: 4.5/10

Value: 7.8

Growth: 3.8

Quality: 3.5

Yield: 0.0

Momentum: 6.5

Volatility: 5.3

1-Year Total Return ->

Extreme Networks

A-Score: 4.2/10

Value: 1.8

Growth: 5.1

Quality: 5.6

Yield: 0.0

Momentum: 8.5

Volatility: 4.0

1-Year Total Return ->

Lantronix

A-Score: 4.0/10

Value: 6.1

Growth: 4.9

Quality: 4.3

Yield: 0.0

Momentum: 6.5

Volatility: 2.0

1-Year Total Return ->

Inseego

A-Score: 3.6/10

Value: 5.7

Growth: 5.7

Quality: 6.0

Yield: 0.0

Momentum: 3.0

Volatility: 1.3

1-Year Total Return ->

Airgain

A-Score: 3.1/10

Value: 8.6

Growth: 2.3

Quality: 4.5

Yield: 0.0

Momentum: 0.0

Volatility: 3.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

35.02%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

4.39%

Franklin Wireless Corp. - US3551841022

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on FKWL

1.c. Company Highlights

Lower Growth

Weak Momentum

Fairly Valued

Stable Momentum

Medium Volatility

Strong Momentum

Cheaper

Lower Quality

Average Quality

Average Growth

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.20%)

6. Segments

Wireless Access Products

Expected Growth: 10.2%

7. Detailed Products

M2M (Machine-to-Machine) Modules

Smartphone and Tablet Accessories

Wireless Broadband Solutions

IoT (Internet of Things) Devices

Custom Wireless Solutions

8. Franklin Wireless Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Franklin Wireless Corp. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

4.48$

Current Price

4.49$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA